OECD Public Governance Reviews - OECD _ OCDE

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OECD Public Governance Reviews O
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OECD Integrity Review of Brazil D
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MANAGING RISKS FOR A CLEANER PUBLIC SERVICE lic
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Contents ve OECD Integrity Review
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Assessment and proposals for action a
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Chapter 1. Overview ce of Brazil
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Chapter 2. Promoting transparency and citizen engagement
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Chapter 3. Implementing a risk-based approach to internal control ie
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Chapter 4. Embedding high standards of conduct s
Chapter 5. Enhancing integrity in public procurement
Annexes to the main report available online:
Annex A. Secretariat of Federal Revenue
Annex B. Family Grant Programme
Annex C. National STD/AIDS Programme
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Related reading C
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OECD Economic Surveys: Brazil 2011 (2011) In
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OECD Reviews of Human Resource Management in Government: Brazil 2010 (2010) g
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OECD Economic Surveys: Brazil 2009 (2009) it
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OECD Reviews of Regulatory Reform – Brazil: Strengthening Governance for Growth (2008)
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OECD Journal on Budgeting, Vol. 2003/1 (2003) ie
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Please cite this publication as: B
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OECD (2012), OECD Integrity Review of Brazil: Managing Risks for a Cleaner Public Service, OECD Public IC S
Governance Reviews, OECD Publishing. E
R
http://dx.doi.org/10.1787/9789264119321-en VIC
E
This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.
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ISBN 978-92-64-11931-4 -:HSTCQE=VV^XVY:
42 2011 15 1 P

OECD Public Governance Reviews
OECD Integrity Review
of Brazil
MANAGING RISKS
FOR A CLEANER PUBLIC SERVICE
This work is published on the responsibility of the Secretary-General of the OECD. The
opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial
viewsoftheOrganisationorofthegovernmentsofitsmembercountries.
This document and any map included herein are without prejudice to the status of or
sovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundaries
andtothenameofanyterritory,cityorarea.
Pleasecitethispublicationas:
OECD(2012),OECDIntegrityReviewofBrazil:ManagingRisksforaCleanerPublicService,OECDPublic
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http://dx.doi.org/10.1787/9789264119321-en
ISBN978-92-64-11931-4(print)
ISBN978-92-64-11932-1(PDF)
Series:OECDPublicGovernanceReviews
ISSN2219-0406(print)
ISSN2219-0414(online)
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3
FOREWORD –
Foreword
Over the past decade the Federal Government of Brazil has undertaken a series of
reforms of its public sector. Enhancing public governance is a key element in the
country’s political reform agenda. They aim at making government more cost-effective,
improving accountability and preventing corruption.
This Public Integrity Review of Brazil assesses the implementation and coherence of
instruments, processes and structures to safeguard integrity within Brazil's federal public
administration. It is based on four sets of policy principles developed by the OECD: the
Principles for Managing Ethics in the Public Service, Guidelines for Managing Conflict
of Interest in the Public Service, Principles for Enhancing Integrity in Public Procurement
and Principles for Transparency and Integrity in Lobbying.
The review recognizes the important progress made so far and points at ways in
which the Federal Government of Brazil could further reinforce its integrity and anti-
corruption reforms by: i) integrating operational risk management as a core element of
management responsibility, ii) ensuring adequate capability within public organisations to
safeguard public resources; iii) enhancing efforts to assess the impact of integrity
institutions and measures; and iv) increasing co-ordination at the policy and
implementation levels in order to better develop a collective commitment.
This report also underlines the importance of a comprehensive approach that
examines issues of integrity across different parts of the public administration. Three
case studies – on Brazil's federal tax administration, Family Grant and National
STD/AIDS Programmes – demonstrate that there are significant differences in the
implementation of integrity measures within individual public organisations. In parallel
with formulating government-wide initiatives, central integrity authorities should focus
on providing more practical “how to” guidance and tools to provide capability in
individual public organisations. Moreover, these central authorities have a critical role in
monitoring implementation.
The significance of this report is global. This is the first public sector integrity peer
review of a G20 country. It is part of the OECD contribution to implementing the G20
Anti-Corruption Action Plan agreed at the Seoul Summit in November 2010. It is also
complementary to other activities in support of international and regional conventions
against corruption. Last but not least, Brazil’s willingness to be reviewed by its peers on
an important systemic issue highlights its growing role and profile in international
debates and decision making processes.
OECD INTEGRITY REVIEW OF BRAZIL: MANAGING RISKS FOR A CLEANER PUBLIC SERVICE © OECD 2012
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– FOREWORD
The report embodies the ongoing engagement between the OECD and Brazil in the
field of public governance. It follows three previous reviews of Brazil on Public
Budgeting (2003), Regulatory Reform (2008) and Human Resource Management in
Government (2010). As an active participant in the OECD Public Governance
Committee, Brazil plays a key role in building stronger frameworks for good governance.
All these efforts contribute to our common goal of better policies for better lives.
Angel Gurría
OECD INTEGRITY REVIEW OF BRAZIL: MANAGING RISKS FOR A CLEANER PUBLIC SERVICE © OECD 2012
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ACKNOWLEDGEMENTS –
ACKNOWLEDGEMENTS
Under the direction and oversight of Christian Vergez and Janos Bertok, the main
findings and proposals for action were written by James Sheppard. Research assistance
was provided by Viviane Espinoza, Anton Leis Garcia and Jonathan Werner.
Administrative assistance was provided by Lia Beyeler, Karena Garnier and Katarzyna
Weil.
The OECD expresses its gratitude to the Government of Brazil for its active
engagement in the review and, in particular, to Jorge Hage Sobrinho (Comptroller
General of the Union) and Luiz Augusto Fraga Navarro de Britto Filho (Executive
Secretary, Office of the Comptroller General of the Union) for their leadership and
Izabela Moreira Corrêa (Manager, Promotion of Ethics, Transparency and Integrity,
Office of the Comptroller General of the Union) for her co-ordination in the review
process.
Special thanks are given to the lead reviewers for their active role in policy dialogue
in Brasilia, Paris and Venice: Joe Wild and Mary Anne Stevens (Canada); Claudio
Seebach, Filipe del Solar, Filipe Sebastian Goya and Macarena Vargas (Chile);
Rogelio Carbajal Tejada (Mexico); Ina de Haan, Peter Reimer and Koos Roest
(Netherlands); and Emilio Garcia and Nicolás Domínguez Toribio (Spain).
OECD INTEGRITY REVIEW OF BRAZIL: MANAGING RISKS FOR A CLEANER PUBLIC SERVICE © OECD 2012

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TABLE OF CONTENTS –
Table of Contents
Assessment and proposals for action ....................................................................................................... 15
Introduction ........................................................................................................................................... 17
Assessments .......................................................................................................................................... 19
Proposals for action ............................................................................................................................... 24
Management and consultation ............................................................................................................... 38
Chapter 1 Overview ................................................................................................................................ 49
Introduction ........................................................................................................................................... 50
The federal government ........................................................................................................................ 50
Central integrity actors within the federal public administration .......................................................... 56
National Strategy against Corruption and Money Laundering .............................................................. 71
Oversight by other branches of the federal government ....................................................................... 73
Oversight by non-governmental actors ................................................................................................. 87
Chapter 2 Promoting transparency and citizen engagement ........................................................... 107
Introduction ......................................................................................................................................... 108
Transparency in the management of public finances .......................................................................... 110
Transparency in service delivery and broader government operations ............................................... 124
Citizen engagement in oversight and direct social control .................................................................. 139
Conclusions and proposals for action .................................................................................................. 153
Chapter 3 Implementing a risk-based approach to internal control ............................................... 173
Introduction ......................................................................................................................................... 174
Internal control .................................................................................................................................... 177
Professional and independent internal audit ........................................................................................ 194
Conclusions and proposals for action .................................................................................................. 215
Chapter 4 Embedding high standards of conduct ............................................................................. 225
Introduction ......................................................................................................................................... 226
Developing systems for promoting standards of conduct ................................................................... 227
Effectively guiding and assessing standards of conduct ..................................................................... 249
Conclusions and proposals for action .................................................................................................. 266
1. Ethical standards for public service should be clear ....................................................................... 271
2. Ethical standards should be reflected in the legal framework ......................................................... 271
3. Ethical guidance should be available to public servants ................................................................. 271
4. Public servants should know their rights and obligations when exposing wrongdoing .................. 271
5. Political commitment to ethics should reinforce the ethical conduct of public servants................. 272
6. The decision-making process should be transparent and open to scrutiny ...................................... 272
7. There should be clear guidelines for interaction between the public and private sectors ............... 272
8. Managers should demonstrate and promote ethical conduct ........................................................... 272
9. Management policies, procedures and practices should promote ethical conduct .......................... 272
OECD INTEGRITY REVIEW OF BRAZIL: MANAGING RISKS FOR A CLEANER PUBLIC SERVICE © OECD 2012
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– TABLE OF CONTENTS
10. Public service conditions and management of human resources should promote ethical
conduct ................................................................................................................................................ 273
11. Appropriate procedures and sanctions should exist to deal with misconduct ............................... 273
Chapter 5 Enhancing integrity in public procurement ..................................................................... 291
Introduction ......................................................................................................................................... 292
Public procurement developments in Brazil ....................................................................................... 294
Transparency throughout the public procurement cycle ..................................................................... 300
Measures to prevent waste and corruption by officials and suppliers ................................................. 311
Strengthening capability of the procurement system .......................................................................... 324
Conclusions and proposals for action .................................................................................................. 336
Transparency ....................................................................................................................................... 343
Good management ............................................................................................................................... 343
Prevention of misconduct .................................................................................................................... 343
Accountability and control .................................................................................................................. 344
Transparency, control and accountability are being reinforced… ...................................................... 345
…but the government must remain vigilant in managing operational risks ........................................ 346
OECD INTEGRITY REVIEW OF BRAZIL: MANAGING RISKS FOR A CLEANER PUBLIC SERVICE © OECD 2012