AGAINSTCORRUPTION INASIAANDTHE PACIFIC PapersPresentedatthe 5thRegionalAnti-CorruptionConference oftheADB/OECDAnti-CorruptionInitiative forAsiaandthePacific Beijing,People'sRepublicofChina 28-30September2005 OrganisationforEconomicCo-operationandDevelopment AsianDevelopmentBank Copyrightedmaterial c PublicationsoftheADB/OECDAnti-CorruptionInitiativeforAsiaandthePacific • Anti-CorruptionPoliciesinAsiaandthePacific:ProgressinLegalandInstitutional Reformin25Countries.Manila:ADB/OECD,2006. • Anti-CorruptionActionPlanforAsiaandthePacificwithcountryendorsingstatements. Manila:ADB/OECD(2002;reprinted2005). • CurbingCorruptioninTsunamiReliefOperations.Manila:ADB/OECD/TI,2005 (availableinEnglish,Bahasa,Sinhala,andTamillanguages). • ControllingCorruptioninAsiaandthePacific:Proceedingsofthe4thRegionalAnti- CorruptionConferenceheldinKualaLumpur,Malaysia,inDecember2003.Manila: ADB/OECD,2005. • Anti-CorruptionPoliciesinAsiaandthePacific:TheLegalandInstitutionalFrameworks. Manila:ADB/OECD,2004. • EffectiveProsecutionofCorruption.Manila:ADB/OECD,2003. • TakingActionAgainstCorruptioninAsiaandthePacific:Proceedingsofthe3rd RegionalAnti-CorruptionConferenceheldinTokyo,Japan,in2001.Manila:ADB/ OECD,2002. • ProgressintheFightagainstCorruptioninAsiaandthePacific:Proceedingsofthe 2ndRegionalAnti-CorruptionConferenceheldinSeoul,Korea,in2000.Manila:ADB/ OECD,2001. • CombatingCorruptioninAsiaandthePacific:ProceedingsoftheManilaworkshop heldin1999.Manila:ADB/OECD,2000. ThesedocumentsareavailablefordownloadfromtheInitiative'swebsiteathttp:// www.oecd.org/corruption/asiapacifi 2006AsianDevelopmentBank,OrganisationforEconomicCo-operationandDevelopment Allrightsreserved ThispublicationwaspreparedbytheSecretariatoftheADB/OECDAnti-Corruption InitiativeforAsiaandthePacificcomposedofAsianDevelopmentBank(ADB)and OrganisationforEconomicCo-operationandDevelopment(OECD)staff.Thefindings, AiannDtdeBrOporEretCtahDtoisodneso,ofnaointtdsgmcueoanmrcbalneutsreieognostvheeerxnpacrmceeusnrstaescdyoirnofoifttdthhoeednOaottEaCneiDcnecoslrsuadirteisdlmyienrmetpbhrieesrsepcunobtulntithcreaitevisio.enwAsaDnoBdf acceptnoresponsibilitywhatsoeverforanyconsequencesoftheiruse.Theterm"country" doesnotimplyanyjudgmentbytheADBortheOECDastothelegalorotherstatusofany territorialentity. ISBN971-561-604-6 PublicationStockNo.030306 PublishedbytheAsianDevelopmentBank P.O.Box789,0980Manila,Philippines 5 Contents AbbreviationsandAcronyms vii Foreword x Acknowledgements xii KeynoteAddresses 1 WelcomeRemarks 1 HuaJianmin OpeningRemarks 4 GeertvanderLinden OpeningRemarks 8 RichardHecklinger OpeningRemarksofthe7thSteeringGroup Meeting 12 LiZhilun ClosingRemarks 1 HuangShuxian ConferenceConclusionsandRecommendations 17 Chapter1: AchievementsandNewChallenges intheFightAgainstCorruptionin AsiaandthePacific 23 GrettaFenner Pushingforwardanti-corruptionworkinthe People'sRepublicofChinatomeetthe requirementsofamarketeconomy 29 HuangShuxian IV Knowledge-Commitment-ActionAgainstCorruptioninAsiaandthePacific Promotinggrowthbypreventingcorruption: ThestrategyofVietnam 35 TranQuocTruong Punishingandpreventingcorruptiontoensure comprehensivesocio-economicdevelopmentin thePeople'sRepublicofChina 39 HuangShuxian Performinganti-moneylaunderingfunctionsand promotinganti-corruptionworkinthe People'sRepublicofChina 45 CaiYilian Buildingcleanandefficientcustomsauthorities inthePeople'sRepublicofChina 49 YaoSai Chapter2: TheRoleofInternational OrganizationsandDonorsinthe Region'sFightAgainstCorruption 55 Corruption,poverty,anddevelopment 58 PatrickKeuleers DFID'sapproachtoeffectivedonorsupport foranti-corruptionreform 74 FionaLouiseLappin Supportforanti-corruptionreform: UNDPinthePeople'sRepublicofChina 77 EdwardWu Donorsupportforanti-corruptionefforts: TheIndonesianperspective 83 AmienSunaryadi Chapter3: HowtheBusinessSector CanContributetotheFight AgainstCorruption 87 Korea'sbusinessethicsprograms 89 So-yeongYoon 27 Contents V Combatingcorruptionthroughlawinthe People'sRepublicofChina 95 LesterRoss Promotingrevenuetransparencyintheextractive industries 98 HenryParham Chapter4: TheRoleofSurveysin Anti-CorruptionReform 105 TransparencyInternational'spublic opinionsurveys 107 CobusdeSwardt Howpublicopinionsurveyscanassistinthe preparationofanti-corruptionreform 11 DavidZussman Publicopinionsurveysandanti-corruption reforminMalaysia 11 AbdulRahmanEmbong TheMinxinwebsite:Connectinggovernment andthecitizensinthePeople'sRepublicofChina 130 WangGang Chapter5: PreventingCorruptioninDisaster ReliefOperations 135 Trade-offsandsequencing:Fightingcorruption indisasterreliefandreconstruction 138 HelenSutch Corruptionindisasterreliefoperations: Risksandpitfalls 146 NicholasStockton Preventingcorruptioninreconstruction operationsaftertheKutchearthquake 153 PramodKumarMishra VI Knowledge-Commitment-ActionAgainstCorruptioninAsiaandthePacific SriLanka'sexperienceinpreventingcorruption indisasterreliefoperations 160 JCWeliamuna Chapter6: ConflictofInterestinthe PublicSector 169 Conflictofinterest:Anethicalissueinpublicand privatemanagement 172 PairotePathranarakul Managingconflictofinterestinthepublicsector: TheapproachofHongKong,China 181 ThomasChan Monitoringandpreventingconflictofinterest amongpublicservantsinthe People'sRepublicofChina 188 ChengWenhao Chapter7: InternationalLegalAssistancein theProsecutionofCorruption 195 Australia'sapproachtoprosecuting transnationalcorruption 198 IanMcCartney Switzerland'sexperiencewithtransnational judicialcooperation 202 Jean-BernardSchmid Denyingsafehavensthroughjudicialcooperation: TheexperienceofthePhilippines 215 SimeonMarcelo Appendices 223 ConferenceAgenda 223 ListofParticipants 228 Abbreviations and Acronyms ABA AmericanBarAssociation ACA Anti-CorruptionAgency(Malaysia) ADB AsianDevelopmentBank APEC Asia-PacificEconomicCo-operation art. article ASEAN AssociationofSoutheastAsianNations ATF arretsdutribunalfederal(courtdecisions)(Switzerland) AusAID AustralianAgencyforInternationalDevelopment BAPEL SupervisoryBoardandExecutingAgencyofthe RehabilitationandReconstructionAgencyforAceh andNias(Indonesia) BRR BadanRehabilitasidanRekonstruksi(Rehabilitationand ReconstructionAgency)(Indonesia) CEO chiefexecutiveofficer CIABOC CommissiontoInvestigateAllegationsofBriberyor Corruption(SriLanka) CNY ChineseYuan COPA CommitteeonPublicAccounts(SriLanka) COPE CommitteeonPublicEnterprises(SriLanka) CP codepenal(penalcode)(Switzerland) CPC CommunistPartyofChina CPI CorruptionPerceptionIndex CSO civilsocietyorganization DAD DevelopmentAssistanceDatabase DFID DepartmentforInternationalDevelopment(UK) EBRD EuropeanBankforReconstructionandDevelopment ECHR EuropeanConventiononHumanRights EIMP loifederalesurI'entraideinternationaleenmatiere penale([Swiss]federallawonmutuallegalassistancein criminalmatters) EITI ExtractiveIndustriesTransparencyInitiative FATF FinancialActionTaskForceonMoneyLaundering GDP grossdomesticproduct GSDMA GujaratStateDisasterManagementAuthority(India) VIII Knowledge-Commitment-ActionAgainstCorruptioninAsiaandthePacific HAP HumanitarianAccountabilityPartnership HDR HumanDevelopmentReport HKSAR HongKongSpecialAdministrativeRegion IAQ InternationalAdvisoryGroup ICAC IndependentCommissionAgainstCorruption (HongKong,China) IGEC InternationalGroupofExpertsonCorruption 1I1MMF IInntteegrrniattyioInnasltiMtuotneeotfarMyalaFyusnida IT informationtechnology KICAC KoreaIndependentCommissionAgainstCorruption K-PACT KoreanPactonAnti-CorruptionandTransparency KPK KomisiPemberantasanKorupsi(CorruptionEradication Commission)(Indonesia) LDCs leastdevelopedcountries LTTE LiberationTigersofTamilEelam MDG MillenniumDevelopmentGoal MDTFANS MultiDonorTrustFundforAcehandNorthSumatra MLA mutuallegalassistance MOU memorandumofunderstanding NGO nongovernmentalorganization NIP NationalIntegrityPlan(Malaysia) NPC NationalPeople'sCongress OCHA UnitedNationsOfficefortheCoordinationof HumanitarianAffairs OECD OrganisationforEconomicCo-operationand Development PBC People'sBankofChina PBEC PacificBasinEconomicCouncil PGRI PartnershipforGovernanceReforminIndonesia PHP PhilippinePeso PIRR CentreforRehabilitationandReconstruction Information(Aceh,Indonesia) PRC People'sRepublicofChina PWYP PublishWhatYouPay RM Malaysianringgit Rs Indianrupee SAARC SouthAsianAssociationforRegionalCooperation SAFE StateAdministrationofForeignExchange (People'sRepublicofChina) SCPC ServiceCentraldePreventiondelaCorruption (CentralBureauforthePreventionofCorruption) (France) SEAPAC SouthEastAsianParliamentariansAgainstCorruption AbbreviationsandAcronyms IX SOE state-ownedenterprise SPC SupremePeople'sCourt(People'sRepublicofChina) SPP SupremePeople'sProcuratorate(People'sRepublic ofChina) TAFREN TaskForceforRebuildingtheNation(SriLanka) Tl TransparencyInternational TISL TransparencyInternationalSriLanka UK UnitedKingdom UN UnitedNations UNCAC UnitedNationsConventionAgainstCorruption UNDP UnitedNationsDevelopmentProgramme UNPICR UnitedNationsHighCommissionerforRefugees USD USDollar WCO WorldCustomsOrganization WTO WorldTradeOrganization Foreword Recentyearshaveseensignificantprogressinthefightagainst corruptionintheAsia-Pacificregion.Onlyafewyearsago,hadAsian andPacificcountrieswishedtocallforanopen,constructivediscussion ofthedifficultiestheyfacedbecauseofcorruption,nointernationalforum wouldhavebeenavailabletothem.Governmentofficialswouldnothave beenabletosharetheirexperiencescandidlyorbrainstormtogether aboutpossiblesolutionstotheproblemscommontothemall.There wasnovenuewheregovernments,theprivatesector,civilsociety, internationalorganizations,anddonoragenciescouldcontemplate strategicanti-corruptionreformsandwaystoworktogetherforchange. Therewouldhavebeennoopportunitytoreflectonhowbesttomanage humanitarianaidtopreventcorruptioninreliefandrebuildingoperations, ortoconsiderthewaysgovernmentscanworktogethertoclosethe avenuesofescapeforthecorrupttohidetheirprofitsandevadedetection andprosecutionbycrossingborders.Yet,theseandothermatterscrucial toimprovingsocialwelfare,reducingpoverty,andboostingeconomic developmentintheregionwerethefocusoftheFifthRegionalAnti- CorruptionConferenceforAsiaandthePacific,heldinBeijing,People's RepublicofChina,on28-30September2005. TheconferencewasorganizedwiththesupportoftheGovernment ofthePeople'sRepublicofChina,inclosepartnershipwithitsMinistryof Supervision,whichgraciouslyhostedtheconference.Theeventwasthe fifthinaseriesofconferencesheldintheframeworkoftheAsian DevelopmentBank(ADB)/OrganisationforEconomicCo-operationand Development(OECD)Anti-CorruptionInitiativeforAsiaandthePacific, withinwhichAsia-Pacificleadershavecommittedtoundertakeactions essentialtothedevelopmentoftheireconomiesforthebenefitoftheir people.Thisconferencereinforcedcoordinatedactionacrosstheregion andcultivatedexchangeanddebatearounddesigningandimplementing effectivepoliciestocurbcorruption.Theenthusiasticparticipationatthis eventofnearly250representativesofgovernment,thebusiness cboymsmeunniiortyg,ovaenrdncmiveinltsorceiperteysefnrtoamti2v8esAsoifa1n1aOnEdCPDacicfoiucnctoruinetsr—ierse—afjfoiirnmeedd thecommitmentofregionalandglobalstakeholders,andmostparticularly