Strategies for business, government and civil society to fight corruption in Asia and the Pacific : proceedings of the 6th Regional Anti-Corruption Conference for Asia and the Pacific held in Singapore, 26 - 28 November 2008, and hosted by the Corrupt Pra

218 Pages·2009·0.94 MB·English

A ADB/OECD Anti-Corruption Initiative
D
B
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific /O for Asia and the Pacific
E
C
D
Strategies for Business, Government and A
nti-C Strategies for Business,
Civil Society to Fight Corruption in Asia orru
p Government and
and the Pacific tion
bbTD2sttamiBbnCoatTvohha8nsofhhurrre)oe ee ii ifs tteebbAssvbpnem icao-ih PPeeesefrnghAcbcceeaelrriaareuoaoaolsyyirvyrmyccasaenp neir ;e aaiit asrirniififi fbmainsnsudnneto,nccche ntm p drsendgbite. Dreend h tin s o asn Faiintgc cefoer,thvd;v oog c o vol nceei(eaai firrae)eiOurf xi ri ntogrvri),AhmlPnnen pou eEdirhtoom ltsas fppeh oCN rtbowristcmi aretmrgee Daooruiiiec o efimnasagdavrsce )onnc itn ineianeisnna,;Arnec,.i amikrvd stfnainetneOuo igesey )dBnssbtsp tr ,ilEdithn otds ma -aethj aiC euC,igpnn bnrbo enac rs dDmkroy2n Pcidtfiiiosrv ibr 0 ogooa (ectdmi raAdelh0wucnhnlno siesercDee8ipfl,ttu hfiy oi vt sm,ointpBnpy ciAc eicoeiefgol tn at)b leDidtengx/soe cn reaObrboso pBatptr monrsyIir utulrmmn /iiobfhe egncbOste hir e uitriae oeinaveiniastnEnrasnnuhristdave esC iteycitneunetilsd is v rhatiDtpire ilae) sr enraei enew sna its?p ewesA i xsf rbotA bowfso tt;pTne afuhn ns,senrovesht wgse esticltr)fA -reeaiia oirct.o-ntCbfiia sossninsCro6mengl id ode teatntEtssofehooirhaecr ntstcrrrdtoa i rdru n.ngeropRidnmraune.paui snrosdvgepevsit teto vergoia citnapaoo tigamrioiotlthbonnovsnnoet/unelened isan ci rcasIn b-ptdd lanoAP n thctrCri colirrnac idt iitoibnsrAosio-oecita rutpe eiuri nps-iiottntrafipsr?sioh thuovnciact it tvep-eeiapr Waei nvaCPa oess ntinfiedftntilurenhodoeoetgasa ai pa/r jr n vnhqutcbbr ctatpie A outor uo–loufs roisepo assne orismc raarirtgd sfliatoui aoennpopstaiA cpuinserd aonalis iintn tdsta n nicdiisosotsa ndsieo tn fin c ra a s;c en n. dd Strategies for Business, Government and Civil S Initiative for Asia and the Pacific CcgBbGcCgBbGbCouoououOUUOOOOsrvsrsvSRSieRVireVirRnnnrruuIIEREeReeRNNnnppsssRRUUaaUttEsEssniNniN P oPoSPSgggccnAnTATSoTSoeoe IN vIN vbvI b OcOcOCeCeeuuCCoorrrNNsOsNOrrnEnEnii n nr rRaRaaF G GeeuBunBnnORRssOppcOccUUssUtUUteeeV V iSiS g ogoPRPccEcEIoInonooTNoTNTRRv vbr rbIIHeEeEfNuONOrrurrisS SfuuAsANnFNnitpSniSpaaNnIhN teFtn Gn Ge iCCisGCfocTocsOsOoneOsEenOHE u V gV cgRbc VbrBBoFEEouooutERvUIURsRrhvrsR TUier irSnSNNntSruuPehIeIAnApNTpNssiTarttNsN sEEIniSdi ooOCgCSgcS ECCannsoeoNESES Ce vbvb c c eeOBuGCuCnoorrssoiUNOnrOOnniinndrvaaSDRVReeu dnnfIEs sRprRcNciTssritReeUU HE si rg ogl NctPSPIono Ro tATfSuTv vrbiDSeNeIfI rhOuOrCrt CusFnhnNpONpia EaOnoft eRnne GoiGUoBccsRutOneOseRUrUc VcVgTbtiSPhoPuEoHEoI srTNvRitR ierFIhnENeOrNuiIearSnnFpAsANdatSTsNN nit os GHcgcC CCeno Oeyc FOEiE vbocVIe i nRuRnBoBrE sfidRrSnUURit nraUfT SSNeuni orsPcIpAcISANssNtTeEt NiE EgoI cC OfCoSnSosiOfv FNESrSbteNr hu rBGCiu snDfipUiOaOano tgnTSeuViRocsHrIERnesN tIR hhRUcEg b NouoDStPsrhvAS TtierrFnNI ruiOOCd nCp OUNatsEnieo RR ccGBnTReo OU HbnUcVudS oPFs EIrfiTNInRirFrIeuEONsTspStHsANt S fi gNo iFGfonCItv ORhbEe SVurf BsnEoTiaun UR nreSNcsthIesAN cNgEooCSrvEerSru B Cp
o
c
ie
ty
to
F
ig
h
T T SFu shoh o ore ua s mwwtrfe ucSoww lewlor wweOtiute ..hiErssxnc ooCtfao euucoDrOrrcmfcc eEiteesahsC ootsitishoee D tenccbo@ dd oOaao..oboolElek orrCO ggcuiDsEd//t g9 ’C.tsao7ho Dv8iovrsag e9n bial.r2laionwn6boae4alkn er0lsdci 7b o-eo7rwna/n09 ri l0ny7liinn 3n8oeie9nf v2gsbi6 haos4o oet0ukrhv7lsidsi7,c 0ueplis0n eae3krni :otd hd ifiscr ealienls kt ra:i anlds ,s atastkis ytiocuarl ldibartaarbiaans,e os.r write to t Corruption in Asia and the Pacific cBG gbC ou oUOO rsv SV rieRn ruI EeRN nGp sRU taEsO iNn oSP gcVnA STo eE Nb Iv cORC euC orsN ON rEni nA Rra Ge BunNR sO pcUs CUte VS ig EPo cE Io nTN oBRv rI beEcUON rru oS uSANnsr Sp iaIrNn Nt Gn ueCi CcoEs pO OensEtS V i coRg bSBE onuo R UR r Csv bUrie SNOnu ruP esIA nRpNs iTnta NsRE Iien o OCgUsS cBn sNoEe SP U b v g cTeBGu CSoo rIs UvOOIOrn iNne rSaV NRreE unI Ens RNp cSGsa RteU ESnigOg NoccSP oonCVeoAvSTv ErOebeNcI rrORCruoRCunnsrNONRpaiaErnbtAn RnU ueGiuBccoNspRPseOenstUCiU Tni cVcogbSeEIPoonuEoOsI rTr NsvsBRbNrrieI EnuUOgNuru esSGopnpSANsitvntaSOsINi eienNo o GrVgsCcCnnEnsOoEe OE abSb vRgVcnu eRuSoBoENrcsCsR vrnieURiCnAnOer UaercSNeONunRsPnsoIpAcRCssNaRrTte NnrREigEgU IoccOuCo oUSnPeoBpvvN E SPtrTebeUci rr ruoTIoBGCSOunnsnIrUpOOaIiOa NrnNbtnnSuVNeRi ucEcoGspIEs ReeNnSstGiO R oni UcEScogbOveVNoonuSo PesCVrEr AsvrsSTbrrEieRO nNnuI guruaORCeNsRopCnpnsiNONtvntaARcsEieienoA oeRNU rgGsc nBnNnRcsCoPe OU aobb vCUgETcnuerVuSoEo IPrcsrsEBOIvr nieuiTNnneBRUr NapIerceEuUnONtSs nso piSGc sosSaANrI teN S nn OriIgNg oN cc GuE ooVbCn CeopE SvvuO E GtOreEbecSsSiRVrrruoiOo RSn uBnEnsnNCreVR paia URrnCsAbOtnEnUuesiSNuOcNcoRRsp PsegIenAstRCNNiR Toni cNcogbREEvAUeIoonuOoeCs USNrPr BsvrsbNErSriPe nCTnUuguru aTIe EopS pOn I
ISBN 978-92-64-07700-3 -:HSTCQE=U\\UUX:
28 2009 01 1 P
www.oecd.org/publishing

ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
STRATEGIES FOR
BUSINESS,
GOVERNMENT, AND
CIVIL SOCIETY TO
FIGHT CORRUPTION
IN ASIA AND
THE PACIFIC
Proceedings of the 6th Regional Anti-Corruption Conference
for Asia and the Pacific
Held in Singapore, 26–28 November 2008, and hosted by the
Corrupt Practices Investigation Bureau (CPIB) Singapore
Asian Development Bank
Organisation for Economic Co-operation and Development
Publications of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
– Supporting the Fight against Corruption in Asia and the Pacific: ADB/OECD Anti-Corruption Initiative
Annual Report 2007. Paris, ADB/OECD, 2008.
– Fighting Bribery in Public Procurement in Asia and the Pacific. Proceedings of the 7th Regional
Technical Seminar. Paris: ADB/OECD, 2008.
– Asset Recovery and Mutual Legal Assistance in Asia and the Pacific. Proceedings of the 6th Regional
Technical Seminar. Paris: ADB/OECD, 2008.
– Managing Conflict of Interest: Frameworks, Tools, and Instruments for Preventing, Detecting, and
Managing Conflict of Interest. Proceedings of the 5th Regional Technical Seminar. Manila:
ADB/OECD, 2008.
– Mutual Legal Assistance, Extradition and Recovery of Proceeds of Corruption in Asia and the Pacific:
Frameworks and Practices in 27 Asian and Pacific Jurisdictions, Paris: ADB/OECD, 2008.
– Curbing Corruption in Public Procurement in Asia and the Pacific: Progress and Challenges in 25
Countries, Manila: ADB/OECD, 2006.
– Denying Safe Haven to the Corrupt and the Proceeds of Corruption: Enhancing Asia-Pacific Co-
operation on Mutual Legal Assistance, Extradition, and Return of the Proceeds of Corruption.
Proceedings of the 4th Master Training Seminar. Manila: ADB/OECD, 2006.
– Knowledge-Commitment-Action against Corruption in Asia and the Pacific: Proceedings of the 5th
Regional Anti-Corruption Conference. Manila: ADB/OECD, 2006.
– Anti-Corruption Policies in Asia and the Pacific: Progress in Legal and Institutional Reform in 25
Countries. Manila: ADB/OECD, 2006.
– Anti-Corruption Action Plan for Asia and the Pacific with country endorsing statements. Manila:
ADB/OECD (2002; reprinted 2005).
– Curbing Corruption in Tsunami Relief Operations. Manila: ADB/OECD/TI, 2005 (available in English,
Bahasa, Sinhala, and Tamil languages).
– Controlling Corruption in Asia and the Pacific: Proceedings of the 4th Regional Anti-Corruption
Conference. Manila: ADB/OECD, 2005.
– Anti-Corruption Policies in Asia and the Pacific: The Legal and Institutional Frameworks. Manila:
ADB/OECD, 2004.
– Effective Prosecution of Corruption. Proceedings of the 1st Regional Training Seminar. Manila:
ADB/OECD, 2003.
– Taking Action against Corruption in Asia and the Pacific: Proceedings of the 3rd Regional Anti-
Corruption Conference. Manila: ADB/OECD, 2002.
– Progress in the Fight against Corruption in Asia and the Pacific: Proceedings of the 2nd Regional Anti-
Corruption Conference. Manila: ADB/OECD, 2001.
– Combating Corruption in Asia and the Pacific: Proceedings of the Manila workshop held in 1999.
Manila: ADB/OECD, 2000.
These documents are available for download from the Initiative’s Web site at
www.oecd.org/corruption/asiapacific/publications
2009 Organisation for Economic Co-operation and Development, Asian Development Bank
All rights reserved
ISBN 9789264077003 (print); ISBN 9789264077010 (PDF)
This publication was prepared by the Secretariat of the ADB/OECD Anti-Corruption Initiative for Asia and
the Pacific, composed of Asian Development Bank (ADB) and Organisation for Economic Co-operation
and Development (OECD) staff. The findings, interpretations, and conclusions expressed in it do not
necessarily represent the views of ADB or those of its member governments or of the OECD or its member
countries. ADB and OECD do not guarantee the accuracy of the data included in this publication and
accept no responsibility whatsoever for any consequences of their use. The term “country” does not
imply any judgment by the ADB or the OECD as to the legal or other status of any territorial entity.
3
Contents
Foreword ............................................................................................................. 7
Main abbreviations and acronyms ................................................................. 8
Introduction ...................................................................................................... 11
Acknowledgments and editorial remarks ................................................... 12
Keynote addresses .......................................................................................... 13
Welcome Remarks by Senior Minister Ho Peng Kee ................................. 15
Opening Statement by Lawrence Greenwood ........................................ 19
Opening Statement by Mario Amano ........................................................ 25
Closing Remarks by Peter Ho ........................................................................ 29
Concluding Remarks by Patrick Moulette .................................................. 33
Chapter 1 Combating corruption in business transactions—a
priority for governments, business, and civil society ........................ 35
The Business Case for Fighting Corruption (John Bray) ............................. 38
Efforts of the Business Community to Fight Corruption
(David Lyman).................................................................................................. 47
Singapore’s Experience in Fighting Bribery in Business
(Soh Kee Hean) ................................................................................................ 52
P.R. China’s Campaign against Commercial Bribery
(Wang Huangeng) .......................................................................................... 58
A Global Framework for the Fight against Corruption in Business
Transactions—the United Nations Convention against Corruption
(Kuniko Ozaki) .................................................................................................. 63
Civil Society’s Contribution to Curbing Bribery in Business
(Peter Rooke) ................................................................................................... 68
STRATEGIES FOR BUSINESS, GOVERNMENT, AND CIVIL SOCIETY TO FIGHT CORRUPTION IN ASIA AND THE PACIFIC © ADB/OECD 2009
4
Chapter 2 The role of international criminal law standards in
combating bribery ................................................................................ 75
Implementing the OECD Anti-Bribery Convention (William Loo
and Christine Uriarte) ...................................................................................... 77
Setting Global Standards — the Criminalization Chapter of the
United Nations Convention against Corruption (Kuniko Ozaki) ............. 87
Effective Anti-Corruption Enforcement: Another Flight of Fancy?
(Mathew Joseph) ............................................................................................ 91
Chapter 3 Corporate compliance programs and integrity systems....... 101
Corporate Compliance Programs and Integrity Systems:
Singapore’s Experience (Juthika Ramanathan) ..................................... 107
Chapter 4 Conflict of interest—the soft side of corruption ....................... 113
OECD Guidelines, Toolkit, and Emerging Concerns (János Bertok) .... 114
Conflict of Interest in Indonesia: Business as Usual
(Arief T. Surowidjojo) ...................................................................................... 119
Auditors’ Conflicts—Independence in the Audit of Financial
Statements (Navita Srikant) ......................................................................... 129
Conflict of Interest in the Transport Sector (William Paterson) .............. 134
Chapter 5 Working together to combat corruption: International
and regional initiatives ....................................................................... 139
The APG and its Role in Combating Corruption in Asia and the
Pacific(Ong Hian Sun) ................................................................................. 141
APEC Business Principles and UN Global Compact as Examples
of Regional and Global Cooperation in the Fight against
Corruption (Peter Rooke) ............................................................................. 147
Translating Regional and Global Initiatives into Local Action—
Insights from the Republic of Korea (Geo-Sung Kim) ............................. 151
Implementing the Extractive Industry Transparency Initiative (EITI)
in Timor-Leste (Manuel de Lemos).............................................................. 153
13th International Anti-Corruption Conference—Global
Transparency: Fighting Corruption for a Sustainable Future
(Kathleen M. Moktan)................................................................................... 156
STRATEGIES FOR BUSINESS, GOVERNMENT, AND CIVIL SOCIETY TO FIGHT CORRUPTION IN ASIA AND THE PACIFIC © ADB/OECD 2009
5
Chapter 6 Private-to-Private Corruption: The Last Piece of the
Puzzle .................................................................................................... 161
Rethinking the Definition of Corruption (Jermyn Brooks) ....................... 163
Combating Corruption in the Private Sector—the ICAC of Hong
Kong, China (Li Bo-Ian Rebecca) .............................................................. 165
Singapore’s Strategies to Fight Corruption in the Private Sector
(Koh Teck Hin) ................................................................................................ 170
Chapter 7 Fighting corruption and the sustainable development
agenda................................................................................................. 177
The Philippines’ Experience with Donor Supported National Anti-
Corruption Efforts (Merceditas N. Gutierrez) ............................................ 179
Republic of Korea’s Experience as a Provider of Anti-Corruption
Technical Assistance (So-yeong Yoon) ..................................................... 183
Why Corruption Matters to Donors and their Role in Curbing
Corruption (Marcel van den Bogaard) ..................................................... 190
Annexes .......................................................................................................... 194
List of Participants .......................................................................................... 195
Agenda ........................................................................................................... 209
ADB/OECD Anti-Corruption Initiative for Asia-Pacific Secretariat
Contacts ............................................................................................... 214
STRATEGIES FOR BUSINESS, GOVERNMENT, AND CIVIL SOCIETY TO FIGHT CORRUPTION IN ASIA AND THE PACIFIC © ADB/OECD 2009

7
Foreword
Created in 1999, the ADB/OECD Anti-Corruption Initiative for Asia and the
Pacific supports its members in strengthening their policies, legislation, institutions
and practices to fight corruption. The Initiative offers experts in Asia and the
Pacific opportunities to work with colleagues from around the globe to address
emerging challenges in the fight against corruption, and to seek solutions.
Expansion of Asian and Pacific economies and strengthened economic
ties among countries bring increased attention to the negative impact of bribery
in business. The members of the ADB/OECD Anti-Corruption Initiative for Asia and
the Pacific thus dedicated the 6th Regional Anti-Corruption Conference for Asia
and the Pacific on 26–28 November 2008 to Fighting Corruption in Asia-Pacific:
Strategies for Business, Government, and Civil Society.
The conference, hosted by the Government of Singapore and its Corrupt
Practices Investigation Bureau (CPIB), brought 150 experts from 35 countries to a
regional forum to assess the role of businesses, governments, and civil society in
the fight against corruption, notably the supply of bribes. Workshop discussions
addressed six topics: the role of international criminal law standards; conflict of
interest; corporate compliance programs and integrity systems; international and
regional Initiatives to combat corruption; private-to-private corruption; and the
role of the fight against corruption for sustainable development.
STRATEGIES FOR BUSINESS, GOVERNMENT, AND CIVIL SOCIETY TO FIGHT CORRUPTION IN ASIA AND THE PACIFIC © ADB/OECD 2009
8
Main abbreviations and
acronyms
ACRA Accounting and Corporate Regulatory Authority (Singapore)
ACT Anti-Corruption and Transparency Task Force
ACTT Anti-Corruption Task Team (of the OECD DAC GOVNET)
AML anti-money laundering
APCAC Asia-Pacific Council of American Chambers of Commerce
APEC Asia-Pacific Economic Cooperation
APG Asia-Pacific Group on Money Laundering
ASEAN Association of Southeast Asian Nations
AusAID Australian Agency for International Development
CEO Chief Executive Officer
CFT combating the financing of terrorism
CoI conflict of interest
CPI Corruption Perceptions Index
CPIB Corrupt Practices Investigation Bureau (Singapore)
DAC Development Assistance Committee of the OECD
EITI Extractive Industries Transparency Initiative
EUR euro
FATF Financial Action Task Force
FCPA Foreign Corrupt Practices Act
FIU financial intelligence unit
GDP gross domestic product
GNI gross national income
GOVNET Network on Governance (of the OECD Development
Assistance Committee DAC)
IACC International Anti-Corruption Conference
STRATEGIES FOR BUSINESS, GOVERNMENT, AND CIVIL SOCIETY TO FIGHT CORRUPTION IN ASIA AND THE PACIFIC © ADB/OECD 2009