Anti-Corruption Policies in Asia and the Pacific Self-Assessment Report Singapore

Transcription

1 ADB/OECD Anti-Corruption Initiative for Asia and the Pacific The Secretariat Anti-Corruption Policies in Asia and the Pacific Self-Assessment Report Singapore Over the last decade, societies have come to realize the extent to which corruption and bribery has undermined their welfare and stability. Governments, the private sector and civil society alike have consequently declared the fight against corruption to be of highest priority. In the Asia-Pacific region, twenty-one countries have expressed their commitment to fight corruption by endorsing an anti-corruption action plan within the framework of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific, a first-of-its-kind partnership between all stakeholders of Asian and Pacific countries. The Action Plan comprehensively promotes the regions objectives and needs for reform to develop effective and transparent systems for public service, to strengthen anti-bribery initiatives, to promote integrity in business operations, and to support citizens involvement. In order to gain a comprehensive and structured overview of the endorsing countries legal and institutional framework in place to ensure and enhance transparency in the public sector, combat bribery and promote transparency in business operations, and facilitate public involvement in the fight against corruption, endorsing countries of the Action Plan have decided to take stock of their relevant legal and institutional provisions in place. The following report reflects the Anti-Corruption Policies that Singapore has reportedly in place as of October Organized along the topics of the Anti-Corruption Action Plan for Asia and the Pacific, it outlines the legal and institutional framework governing each of its issues, the respective implementing agencies and recent of planned reforms. Self-assessment reports provided by the other countries that have endorsed the Anti-Corruption Action Plan for Asia-Pacific as well as a summarizing overview of the anti-corruption policies in the region are available at the Initiative s website (www1.oecd.org/daf/asiacom/stocktaking.htm). For further information about the Anti-Corruption Initiative for Asia-Pacific and its work, please refer to www1.oecd.org/daf/asiacom/. Jak Jabes, Director, Governance and Regional Co-operation, ADB jjabes@adb.org phone: , fax: Frederic Wehrlé, Co-ordinator, Anti-Corruption Initiatives, Anti-Corruption Division, OECD frederic.wehrle@oecd.org phone: , fax:

2 Pillar I: Developing Effective and Transparent Systems for Public Service Integrity in Public Service: Establish systems of government hiring of public officials that assure openness, equity, and efficiency and promote hiring of individuals of the highest levels of competence and integrity through: Development of systems for compensation adequate to sustain appropriate livelihood and according to the level of the economy of the country in question Employment in the Singapore Public Service is guided by the principles of meritocracy and equal opportunities for all. Recruitment into the Public Service is open and transparent. Development of systems for compensation adequate to sustain appropriate livelihood and according to the level of the economy of the country in question; Salaries and benefits are constantly reviewed by a central department (the Public Service Division) with inputs from the relevant agencies. There is also conscious policy of the Government to peg salaries to the level of the economy. Development of systems for transparent hiring and promotion to help avoid abuses of patronage, nepotism and favouritism, help foster the creation of an independent civil service, and help promote a proper balance between political and career appointments; Oversight of appointment and promotion is provided by the Public Service Commission. Promotion procedures are formulated by a central department (the Public Service Division under the Prime Minister's Office), and Government Ministries have to comply with these procedures. Promotions and hiring have to be approved by the Personnel Boards, with across the department representation, and oversight by a central body, i.e. the Public Service Commission. Recruitment is mostly done through open invitation by advertising in the local newspapers and other electronic media (e.g. internet websites). Development of systems to provide appropriate oversight of discretionary decisions and of personnel with authority to make discretionary decisions; The Government Instruction Manual requires individual Government Ministries to review work procedures for corruption prevention, and to have control systems for effective supervision wherever there is discretionary powers. The Corrupt Practices Investigation Bureau also makes such reviews if investigations reveal that corruption is due to such systemic shortcomings. Development of personnel systems that include regular and timely rotation The Government Instruction Manual provides the framework for Ministries to regularly and systematically rotate officers for prevention of corrupt practices. 2

3 of assignments to reduce insularity that would foster corruption; Integrity in Public Service: Establish ethical and administrative codes of conduct that proscribe conflicts of interest, ensure the proper use of public resources, and promote the highest levels of professionalism and integrity through: Prohibitions or restrictions governing conflicts of interest; The Government Instruction Manual has provisions to prevent conflicts of interest, requiring officers to declare whenever he has a personal interest in any issue being decided in the course of his work. Officers are also not allowed to hold shares in private companies, unless prior approval (with certain conditions) is obtained from their Ministries. Systems to promote transparency through disclosure and/or monitoring of, for example, personal assets and liabilities; The Government Instruction Manual requires public officers to make declaration of non-indebtedness annually. They must also declare annually their interest in investments and properties, and personal assets and shareholdings in non-listed private companies. Sound administration systems which ensure that contacts between government officials and business services users, notably in the area of taxation, customs and other corruptionprone areas, are free from undue and improper influence; The Government Instruction Manual has a section on Conduct and Discipline, with guidelines that prohibit public officers from furthering their private interest by making use of their official position and duties. The manual also has a section dedicated to prevention of corruption, with guidelines on how to prevent corrupt practices. Promotion of codes of conduct taking due account of the existing relevant international standards, as well as each country's traditional cultural standards, and regular education, training and supervision of official to ensure proper understanding of their responsibilities; There are also Regulations and Directions that are used to discipline public officers if they do deviate from service and departmental guidelines. Measures which ensure that officials report acts of corruption and which protect the safety and professional status of those who do. The Government Instruction Manual specifically requires officers to report any corrupt acts that come to their knowledge. The Prevention of Corruption Act also makes it mandatory for public officers to report instances of bribe offers. Furthermore, the Act protects the identity of informers in civil and criminal proceedings. 3

4 Accountability and Transparency: Safeguard accountability of public service through effective frameworks, management practices, and auditing procedures through Measures and systems to promote fiscal transparency; Adoption of existing relevant international standards and practices for regulation and supervision of financial institutions; Appropriate auditing procedures applicable to public administration and the public sector, and measures and systems to provide timely public reporting on performance and decision making; Various legislative and administrative measures ensure accountability and transparency. The Government publishes the Budget annually. Annual estimates of revenue and expenditure are presented to the Parliament and legislative approval of the estimates is shown in the passing of a Supply Act. The Parliament's Estimates Committee keeps watch on Government expenditure. The Accountant's General's Department supervises and administers the Government accounting systems. The Auditor-General s Office (AGO) derived the power to audit ministries and statutory boards from the Constitution, the Audit Act and various other laws. The AGO s audit procedures are generally based on standard issued by Singapore s Institute of Certified Public Accountants. Annually, the Accountant-General prepares accounts and financial statements of the Government as required by the Financial Procedure Act. The Government accounts and statements are submitted to the Auditor-General for audit, before a report is submitted to the President and Parliament within three months of the end of the financial year. The report is referred to the Parliament's Public Accounts Committee for consideration. This Committee considers the Auditor-General's Report and examines the Government's accounts and statements that were presented to Parliament. A report on the findings and recommendations of the Committee is presented to Parliament and is published. Similar requirements for the audit of accounts of statutory boards by AGO are in place. In addition, the Constitutional provisions also give the elected President the mandate of safeguarding the Government's reserves. Appropriate transparent procedures for public procurement that promote fair competition and deter corrupt activity, and adequate simplified administration procedures. The Government Instruction Manual has sections on financial and procurement policies and procedures. The measures implemented in these Manuals meet the requirements set out in the Action Plan. The fundamentals and principles guiding our policies ensure accountability with checks and balances to prevent corruption. We have an effective and transparent procurement system which also meet our other international commitments, e.g. the World Trade Organisation Agreement on Government Procurement, which Singapore has gained ascension to. Also, the Ministry of Finance has a system to provide suitable responses to public feedback. Enhancing institutions for public scrutiny and oversight; The Government publishes the Budget annually. Government accounts and statements prepared by the Accountant-General are audited by the Auditor-General and presented to the Parliament, for examination by the Public Accounts Committee. The report on the Committee's findings is published. Any Member of Parliament may query a Minister on the way in which money has been spent, and may suggest ways in which Government money could be better utilised. Systems for information availability including on issues such as application processing procedures, funding of political parties and electoral campaigns and expenditure; Details for various application procedures are readily available to the public, both in print and on electronic media (e.g. internet). For funding of political parties, there are provisions in the Political Donations Act that govern the issue. For funding of electoral campaigns and expenditure, there are provisions in the Parliamentary Elections Act relating to them. Simplification of the regulatory environment by abolishing overlapping, ambiguous or excessive regulations that burden business. Government agencies welcome any feedback from the business community regarding any regulations under their charge that affect businesses. In addition, the Government has also specifically set up three panels, namely Pro-Enterprise Panel (PEP), the Zero-In Process (ZIP) panel and the Public Officers Working on Eliminating Red-tape (POWER) initiative, under the "More Vision, Less Bureaucracy" (MVLB) movement. PEP responds to private sector feedback on bureaucracy and aims to cut red-tape and revise Government rules and regulations to be more pro-enterprise. ZIP aims to reduce bureaucracy and resolve 4

5 overlapping or grey areas in regulations, so that the public need not go separately to different agencies for related services but enjoy integrated services. POWER aims to let public officers cut red tape by eliminating cumbersome and obsolete public sector rules/regulations. Pillar II: Strengthening Anti-bribery Actions and Promoting Integrity in Business Operations Effective Prevention, Investigation and Prosecution: Take effective measures to actively combat bribery by Ensuring the existence of legislation with dissuasive sanctions which effectively and actively combat the offence of bribery of public officials; In Singapore, the offences and sanctions on bribery are set out in the Prevention of Corruption Act. This Act covers passive and active bribery committed by private or public sector individuals in Singapore and by Singaporeans in another country. These offences and their sanctions are set out in section 5, 6 and 37 of this Act : [Section 5 : Punishment for corruption 5. Any person who shall by himself or by or in conjunction with any other person - (a) corruptly solicit or receive, or agree to receive for himself, or for any other person; or (b) corruptly give, promise or offer to any person whether for the benefit of that person or of another person, any gratification as an inducement to or reward for, or otherwise on account of - (i) any person doing or forbearing to do anything in respect of any matter or transaction whatsoever, actual or proposed; or (ii) any member, officer or servant of a public body doing or forbearing to do anything in respect of any matter or transaction whatsoever, actual or proposed, in which such public body is concerned, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 5 years or to both. Section 6: Punishment for corrupt transactions with agents 6. If - (a) any agent corruptly accepts or obtains, or agrees to accept or attempts to obtain, from any person, for himself or for any other person, any gratification as an inducement or reward for doing or forbearing to do, or for having done or forborne to do, any act in relation to his principal s affairs or business, or for showing or forbearing to show favour or disfavour to any person in relation to his principal s affairs or business; (b) any person corruptly gives or agrees to give or offers any gratification to any agent as an inducement or reward for doing or forbearing to do, or for having done or forborne to do any act in relation to his principal s affairs or business, or for showing or forbearing to show favour or disfavour to any person in 5

6 relation to his principal s affairs or business; or (c) any person knowingly gives to an agent, or if an agent knowingly uses with intent to deceive his principal, any receipt, account or other document in respect of which the principal is interested, and which contains any statement which is false or erroneous or defective in any material particular, and which to his knowledge is intended to mislead the principal, he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 5 years or to both. Section 37 : Liability of citizens of Singapore for offences committed outside Singapore (1) The provisions of this Act have effect, in relation to citizens of Singapore, outside as well as within Singapore; and where an offence under this Act is committed by a citizen of Singapore in any place outside Singapore, he may be dealt with in respect of that offence as if it had been committed within Singapore. (2) Any proceedings against any person under this section which would be a bar to subsequent proceedings against that person for the same offence, if the offence had been committed in Singapore, shall be a bar to further proceedings against him, under any written law for the time being in force relating to the extradition of persons, in respect of the same offence outside Singapore.] Further, under section 10, a contractor tendering for a Government contract is prevented from removing his rivals from the field by means of a gratification. Sections 11 and 12 of this Act specifically make it an offence to offer a bribe to any Member of Parliament or of a public body and for any such member to solicit or accept a bribe. With regard to sanctions, any person found guilty under section 5, 6 and 37 will be liable to a maximum fine of $100,000 or a maximum of 5 years imprisonment or to both. Any person found guilty under sections 10, 11 and 12 will be liable to a maximum fine of $100,000 or a maximum of 7 years imprisonment or to both. Further, under section 13(1), the Courts are given the power to order a person found guilty of accepting an illegal gratification to pay a penalty equal to the amount of that gratification in addition to any other punishment imposed. Ensuring the existence and effective enforcement of anti-money laundering legislation that provide for substantial criminal penalties for the laundering of the proceeds of corruption and crime consistent with the law of each country; Money laundering is dealt with in the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. Section 47 of the Act sets out both the offences and the sanctions. Under this section, any person who knows or has reasonable grounds to believe that any property represents another person s benefits from criminal conducts and conceals, disguises, converts, transfers that property or removes it from the jurisdiction for the purpose of assisting any person to avoid prosecution will be guilty of an offence. Further, any person who knows or has reasonable grounds to believe that any property represents another person s benefits from criminal conduct and acquires that property for no or inadequate consideration shall similarly be guilty of an offence. Any person found guilty under this section is liable to a maximum fine of $200,000 or a maximum of 7 years imprisonment or to both. The Monetary Authority of Singapore (MAS) has issued separate guidelines on Prevention of Money Laundering to different financial institutions (banks, merchant banks, finance companies, insurers, securities firms, money changers and remittance businesses) in year The following are links to the guidelines : Notice to Banks : Notice to Merchant Banks: 6

7 Notice to Finance Companies: Notice to Insurers: Futures brokers, futures trading advisers, and futures pools operators: Dealers and investment advisers: Ensuring the existence and enforcement of rules to ensure that bribery offences are thoroughly investigated and prosecuted by competent authorities; these authorities should be empowered to order that bank, financial or commercial records be made available or be seized and that bank secrecy be lifted. The Prevention of Corruption Act sets out the powers given to investigating authorities and the Public Prosecutor. Powers given to the investigating authorities include : power to arrest persons without warrant for offences under the Act (section 15); power to exercise the special powers of police investigation contained in the Criminal Procedure Code when investigating all offences under this Act (section 18) and; power to search, seize and detail any article or property relating to the commission of an offence under this Act (section 22). Wide powers are also given to the Public Prosecutor, whose consent is required for prosecution under the Act, including power to authorise the investigation of bank accounts, share accounts or purchase accounts (section 18); power to order the inspection of banker s books relating to a public servant, his wife, child or agent (section 20), and power to require suspected Government servants and employees of public bodies to furnish sworn statements enumerating the property belonging to them, their spouses and their children and any property sent outside Singapore. The power is extended to other persons where the Public Prosecutor has reasonable grounds to believe that the information will assist any investigations into corruption by a Government servant or employee o a public body. The Public Prosecutor is also empowered to require information from the Comptroller of Income Tax relating to such servants and employees and their immediate families and to obtain any documents in the possession or control of Government departments and public bodies. The Public Prosecutor may require the manager of a bank to supply copies of bank accounts (section 21). Strengthening of investigative and prosecutorial capacities by fostering inter-agency co-operation, by ensuring that investigation and prosecution are free from improper influence and have effective means for gathering evidence, by protecting those persons helping the authorities in combating corruption, and by providing appropriate training and financial resources. Protection of persons helping authorities in combating corruption is dealt with by section 36 of the Prevention of Corruption Act. This section protects the identity of informers by prohibiting the disclosure of any matter which might lead to his discovery in civil or criminal proceedings. The courts adopt an open-court system in criminal proceedings, with free public access. The Grounds of Decision are made public, and lower courts' decisions are subject to appeal. 7

8 Strengthening bi- and multilateral cooperation in investigations and other legal proceedings by developing systems which - in accordance with domestic legislation - enhance (i) effective exchange of information and evidence, (ii) extradition where expedient, and (iii) co-operation in searching and discovering of forfeitable assets as well as prompt international seizure and repatriation of these forfeitable assets. In April 2000, the Singapore Legislature enacted the Mutual Assistance in Criminal Matters Act. Essentially, this Act enables Singapore to provide legal assistance in relation to serious criminal offences, including corruption offences. It is important to note however, that this Act will only apply if the Minister declares a foreign country to be a prescribed foreign country and if there is in force an agreement between Singapore and that country under which that country has agreed to provide mutual assistance to Singapore. Where the appropriate authority of a prescribed foreign country makes a request for legal assistance for any criminal proceedings pending in a court in the foreign country, the Attorney-General may authorise for such legal assistance to be given. The legal assistance which may be given includes production orders in criminal matters (sections 22 and 23); the making of arrangements for persons to give evidence or assist in criminal investigations in a foreign country (sections 26 and 27); the recovery, forfeiture or confiscation of property in respect of foreign serious offences (section 29); the restraining of dealings in property, or the freezing of assets, that may be recovered, forfeited or confiscated in respect of offences (section 29); and the execution of requests for search and seizure (section 33). Extradition for bribery is dealt with under the Extradition Act. Subject to the requirements set out in this Act, the Minister has discretion to authorise the apprehension of a fugitive and to surrender him to the requesting country. Corporate Responsibility and Accountability : Take effective measures to promote corporation responsibility and accountability on the basis of existing relevant international standards through Promotion of good corporate governance which would provide for adequate internal company controls such as codes of conduct, the establishment of channels for communication, the protection of employees reporting corruption, and staff training; The Companies Act regulates the conduct of Singapore-incorporated companies. It contains provisions on audit, reporting and corporate governance to ensure that companies have adequate internal controls and accountability to their stakeholders. Companies that do not comply with the law are taken to task by the Commercial Affairs Department and the Registry of Companies and Businesses. In December 1999, the Government set up three private-sector-led committees to review Singapore's corporate governance and regulatory framework. The 3 committees are: the Corporate Governance Committee (CGC), the Disclosure and Accounting Standards Committee (DASC) and the Company Legislation and Regulatory Framework Committee (CLRFC). The CGC and DASC have completed their reviews and submitted their final reports to the Government. The Government has accepted all their recommendations. The CLRFC's review is still on-going. The committee conducted its first public consultation from May to July It expects to complete its review later this year. The CGC came up with a Code of Corporate Governance, which is benchmarked against the Codes in the leading jurisdictions. The Code would serve as a set of guidelines and best practices for listed companies in Singapore. Although compliance is not mandatory, listed companies have to disclose and explain in their annual reports where they have deviated from the Code. This requirement has been included in the Singapore Exchange's listing rules and would apply to all listed companies for Annual General Meetings starting from 1 January The DASC made several recommendations that would improve Singapore's corporate disclosure and reporting requirements. The committee proposed that 8

9 Singapore should as much as possible adopt accounting standards that are set by the International Accounting Standards Board. It recommended that compliance with accounting standards should be made a legal requirement for companies, which would strengthen the enforcement framework and improve compliance. The DASC also made recommendations to improve the frequency and contents of financial reporting, especially by listed companies in Singapore. Please also see the following newspaper clippings relating to corporate governance : a. Clipping marked as Annex A entitled " S'pore most transparent Asia economy", which describes the survey result by the Political and Economic Risk Consultancy (PERC) in 2001; and b. Clipping marked as Annex B entitled S'pore disclosure rules 'tough enough', in which the Government commented on the new disclosure rules proposed by US Securities and Exchange Commission (SEC) in Feb The existence and the effective enforcement of legislation to eliminate any indirect support of bribery such as tax deductibility of bribes; Tax deduction for bribes is not permitted. The Prevention of Corruption Act makes it an offence to give, offer or receive any corrupt gratification, including money, any gift, loan, commission, payment, service, favour or advantage of any description. The existence and thorough implementation of legislation requiring transparent company accounts and providing for effective, proportionate and dissuasive penalties for omissions and falsifications for the purpose of bribing a public official, or hiding such bribery, in respect of the books, records, accounts and financial statements of companies; The Companies Act has provisions that govern company accounts and audits to cater for maintenance of books and records, financial statement disclosures and accounting & auditing standards for companies.. There are also sections that make omissions/falsifications of statements/documents offences punishable under the Act. The Penal Code also has sections that provide punishment for falsification of accounts, making false documents and forgery. Review of laws and regulations governing public licenses, government procurement contracts or other public undertakings, so that access to public sector contracts could be denied as a sanction for bribery of public officials. The Government Instruction Manual has guidelines requiring Ministries to constantly review work methods and procedures (including those relating to public licenses) to prevent corruption. Debarment of companies from public contract as a result of corruption involving public officers is an existing measure under the Instruction Manual. 9

10 Pillar III: Supporting Active Public Involvement Public Discussion of Corruption: Take effective measures to encourage public discussion of the issue of corruption through Initiation of public awareness campaigns at different levels; Support of non-governmental organisations that promote integrity and combat corruption by, for example, raising awareness of corruption and its costs, mobilising citizen support for clean government, and documenting and reporting cases of corruption; Preparation and/or implementation of education programs aimed at creating an anti-corruption culture. The Government has initiated various National Education programs, including Learning Journeys, in which schools organise visits to selected Government agencies to learn about issues of strategic significance, including corruption control. These include visits to the anti-corruption agency to increase awareness of corruption and its costs, and the importance of anti-corruption efforts. Corruption prevention lectures are conducted for public officers and some private sector organisations. NGOs' involvement redundant, as absence of lobby groups is an indication of strong anti-corruption ethos. Please see quote of our Senior Minister Lee Kuan Yew at Annex C on "The Strongest Deterrent" for corruption. Public Perception Survey has been conducted with the general public to gauge the public's awareness of the role of the anti-corruption agency and to increase their understanding of corruption offences. The role and service standards of the anti-corruption agency are made known to the public through the public survey. The public is also asked to state any new services they expect in relation to corruption control, and to highlight any emerging corruption trend they are aware of. The survey findings have been published to further increase public awareness on these matters. Please see Annex D for key findings of the Public Perception Survey Since 1996, Annual Customer Surveys have been conducted with witnesses and complainants of corruption cases to obtain feedback on their readiness to report corruption cases, their confidence in the anti-corruption agency, the state of corruption control, factors that could contribute to low corruption rate, emerging trend, and new services expected. Please see Annex E for key findings of the Annual Customer Surveys conducted with witnesses and complainants of corruption cases in recent years. Access to information: Ensure that general public and the media have freedom to receive and impart public information and in particular information on corruption matters in accordance with domestic law and in a manner that would not compromise the operational effectiveness of the administration or, in any other way, be detrimental to the interest of governmental agencies and individuals, through Establishment of public reporting requirements for justice and other governmental agencies that include disclosure about efforts to promote integrity and accountability and combat corruption; Implementation of measures providing There is frequent publicity for corrupt offenders, especially public officers, through press releases in the news media. Where applicable, members of the public and relevant public sector organisations are consulted on proposed changes. The Government has set up two panels, namely Pro-Enterprise Panel (PEP) and the Zero-In Process (ZIP) panel under the "More Vision, Less Bureaucracy" (MVLB) movement. PEP responds to private sector feedback on bureaucracy and aims to cut red tape and revise Government rules and regulations to be more pro-enterprise. ZIP aims to reduce bureaucracy and resolve overlapping or grey areas in regulations, so that the public need not go separately to different agencies for related services but enjoy integrated services. Press releases/briefings are held to announce any new policies or changes to policies. 10

11 for a meaningful public right of access to appropriate information. The anti-corruption agency initiated an internet website that is freely accessible to the general public, and it contains information on the role of the agency, various means to lodge corruption complaints, examples of corruption offences, punishment for corruption, and extracts of the relevant law against corruption offences, etc. Public participation: Encourage public participation in anti-corruption activities, in particular through Co-operative relationships with civil society groups such as chambers of commerce, professional associations, NGOs, labor unions, housing associations, the media, and other organisations; NGOs' involvement redundant, as absence of lobby groups is an indication of strong anti-corruption ethos. Publicity efforts through the printed mass media (newspapers) have been undertaken to inform the public of the role of the anti-corruption agency, and various facts & figures relating to anti-corruption efforts. Protection of whistleblowers; Protection of persons helping authorities in combating corruption is dealt with by section 36 of the Prevention of Corruption Act. This section protects the identity of informers by prohibiting the disclosure of any matter which might lead to his discovery in civil or criminal proceedings. Involvement of NGOs in monitoring of public sector programmes and activities. NGO's monitoring redundant, in view of strong anti-corruption ethos. 11