presentation ministry of the interior corruption

Commission for the Prevention of Corruption

Jaka KosmačDunajska 56, Ljubljana

t +386 1 400 57 10f +386 1 478 84 72

www.kpk-rs.si

INTEGRITY I ACCOUNTABILITY I RULE OF LAW

“Our mandate is preventing corruption, strengthening the rule of law, integrity and transparency of public sector. Our

moto is: integrity, accountability, rule of law.”


Organizational Stucture and Staff of Commission


Project Transparency

public accessibility to information on matters of public concern three different services that will be later on upgraded with new topics:


SUPERVIZOR - online application for

monitoring expenses of public bodies

CONTACTS WITH LOBBYISTS - list of

reported contacts with lobbyists

FINANCIAL STATUS OF MEMBERS OF THE

COMMISSION

SupervizorProviding citizens with information about the government

spending


Supervizor – first steps

• The idea arised among some CPC’s enthusiastic employees, which in cooperation with external partners prepared it for free (relevant data provided by other bodies)

• Application has been developed in less than a month.• Daily updated. • Adding data is highly automatized, so operating costs are low.


Supervizor – first steps and responses

• Introduction of the Supervizor didn't require any law modification → gathered information already available to slovenian citizens on legal basis of the Access to public information Act on a principle of special requirement.

• Public launch: 23. 8. 2011; significant interests by the public on first day: 1.200.000 pageviews.

• “Supervizor is not a toy, it’s a tool for responsible journalism and responsible citizenship” (Chief Commissioner G. K. on the public launch day).

• Mostly positive response, from other budget users, local level, abroad (nominated for the UNPSA, awarded NETKO award for the best digital project of the public administration).


Supervizor – who can use it?

• Insight in financial flows among the public and the private sector not only to the public, media, profession, but also to regulatory and supervisory bodies.

• On basis of Supervizor data in 2012 more than 100 cases of suspected violations of restriction on business were discovered by CPC (mostly on local level) and approx. Worth 1,4 million €.

• Transparency of financial flows among the public and the private sector increases level of responsibilities of public office holders for use of public finance, adopted and planned investments, abuse of functions → limits systemic corruption, unfair competitivnes and clientage in public procurement procedures.


.

Supervizor – aim

• Supervizor implements the primary purpose of the CPC mission: strenghtening the rule of law, integrity and transparency, limiting corruption risks and conflicts of interest.

INTEGRITETA. ODGOVORNOST. VLADAVINA PRAVA.

• Supervizor is an online application that provides information on business transactions of the public sector bodies by simple browsing and grafical presentation.

• User can view all money transfers from selected budget user or all money transfers from the budget user to selected company.

• Data shown for a specified period of time. • It indicates the largest recipients of finances, related legal

entities, date and amount of transactions and also their purpose (for all transactions over 2000 EUR).

Supervizor – how does it “work?”


• Application also shows data about public procurements, management and ownership structure of the companies and some information from their annual reports.

• Important part is a module, which shows list and information about public owned companies.

• Centralized system of the budget users transfers as the crucial condition.

• Supervizor oversees 4,7 bn € of annual public spending, which is approx. half of the budget of the Republic of Slovenia.

• ! Supervisor combines data – it doesn’t give answers, but helps asking better questions.

Supervizor – how does it “work?”


Financial flow analysis

http://supervizor.kpk-rs.si

• Public Payments Administration; providing payment services for direct and indirect budget users (gathered data from 1. 1. 2003).

• Slovenian Business Register; central public database on all business and legal entities, their subsidiaries, and other organization segments located in Slovenia (public and private institutes)).

• Annual reports of Slovenian companies.• Ministry of the Finance; Database of public procurements

and procurement of a small value.• only combines relevant data from different sources in more

user-friendly format, not interprating content in any way.

Data sources


• Some transactions were removed:– transactions to physical persons (salaries, expenses related to salaries,

etc.);– transactions to accounts of health insurance companies containing

personal data;– transactions from deposit account of the Customs Administration of the

Republic of Slovenia;– transactions to Central Securities Clearing Corporation for the purchase of

debt securities and payments of Public Payments Administration for the repayment of debt;

– transactions to intelligence and security services;– transactions to banks;– transactions among budget users;– returns of taxes, etc.

Datasets – removed data



http://supervizor.kpk-rs.si

Dependance from public sector

Data from annual reports combined with data from database of public sector payments.

• detecting companies, who received money transfers depending of the government in charge.

• Analysis has shown:• high correlation between the change of government in power

and money flow from budget users to a limited number of companies.

• high inflexibility of the market for certain services (namely IT companies, pharmaceutics companies, construction companies, etc.).

• a group of companies, highly dependent on the budget users money transfers (a great amount of their income from budget users only), which constitutes a noticeable risk of corruption.




1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 200,000.00

EUR 400,000.00

EUR 600,000.00

EUR 800,000.00

EUR 1,000,000.00

EUR 1,200,000.00

EUR 1,400,000.00

EUR 1,600,000.00

EUR 1,800,000.00

Summary monthly payments to 65 companies

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 5,000,000.00

EUR 10,000,000.00

EUR 15,000,000.00

EUR 20,000,000.00

EUR 25,000,000.00

EUR 30,000,000.00

Summary monthly payments to 252 companies


Financial flow analysis1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 10,000.00

EUR 20,000.00

EUR 30,000.00

EUR 40,000.00

EUR 50,000.00

EUR 60,000.00

EUR 70,000.00

EUR 80,000.00

Company A


2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 5,000.00

EUR 10,000.00

EUR 15,000.00

EUR 20,000.00

EUR 25,000.00

EUR 30,000.00

EUR 35,000.00

EUR 40,000.00

EUR 45,000.00

EUR 50,000.00

Company B


2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 10,000.00

EUR 20,000.00

EUR 30,000.00

EUR 40,000.00

EUR 50,000.00

EUR 60,000.00

EUR 70,000.00

Company G (director A)

Company H (director A)


1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2003 2004 2005 2006 2007 2008 2009 2010

0.00 EUR

10,000,000.00 EUR

20,000,000.00 EUR

30,000,000.00 EUR

40,000,000.00 EUR

50,000,000.00 EUR

60,000,000.00 EUR

70,000,000.00 EUR

80,000,000.00 EUR

Monthly payments to top 5 pharmaceutical companies – high inflexibility of the market

F1F2F3F4F5


2003 2004 2005 2006 2007 2008 2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Payment shares of top 5 pharmaceutical companies

F1F2F3F4F5


1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2003 2004 2005 2006 2007 2008 2009 2010

EUR 0.00

EUR 5,000,000.00

EUR 10,000,000.00

EUR 15,000,000.00

EUR 20,000,000.00

EUR 25,000,000.00

EUR 30,000,000.00

EUR 35,000,000.00

EUR 40,000,000.00

EUR 45,000,000.00

EUR 50,000,000.00

Payments to 3483 IT companies

Plans for the future

• Supervizor 2.0 upgrade in final phase.• Further upgrade and improvement by the CPC in cooperation

with other bodies.• Goal → to get acces to some additional databases and publish

them (judiciary registers, …) → to perform more complex analysis and visualisation of data:– advanced data mining,– detection of violations of restrictions as regard profitable activity,– pattern search,– advanced network analysis (detection of affiliate persons and affiliate

companies).– full text search (all public procurements on certain topic/of certain

type of budget user, (local communities …).INTEGRITETA. ODGOVORNOST. VLADAVINA

PRAVA.

• We are finishing Supervizor 2.0.• Goal → get access and publish some additional databases

(judiciary registers …).• To perform more complex analysis and visualisation of data:

– advanced data mining– detection of violations of restrictions on business– pattern search– advanced network analysis (detection of affiliate persons and affiliate

companies).

Plans for the future


Questions?


presentation ministry of the interior corruption

Economy & Finance