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Preventing White Collar Crimes in Public Sector:
Parliament’s Perspective
Endah Retnoastuti Executive Director, GOPAC (Global Organization of Parliamentarians against Corruption)
Head of Bureau of Inter-Parliamentary Cooperation, Indonesian House of Representatives
Defining White Collar Crimes Current Trends and Occurrence in Asia
White Collar Crime
“Non-violent” crimes (e.g. fraud, corruption, money
laundering, etc.)
VIOLATION
Individuals of respectability and power, high-level positions/status
PERPETRATOR
Committed in priviledged situations for financial or
other private gain
TRAIT
States and Regional Characteristics W
CC
Tre
nd
s in
Asi
a
West Asia
East Asia
Southeast Asia
Natural resource (oil, gas, mineral)
Robust economic growth
Emerging, newly industrialised
Energy Industry (e.g. Fraud on offshore
companies)
Corporate Olygarchy (Bribery, embezzlement)
Private-Public (Bribery, tax evasion,
misused power)
Causes of White Collar Crime
Opportunities to commit crime
Situational pressures on the individuals
Issues pertaining to integrity
Yusuf Nook (1993), Joseph Eby Ruin (1996)
Prevalence in Public Sector
Government Control on Economic Activities
Occurrence
High
Centralized, weak corporate law
Low
Liberalization, free trade
Mainly in Public Sector
Mainly in Private Sector
3 Ways to Strengthen Misconduct Management Procedures in Public Sector
Public sector can
utilize their audit
function, authority
or internal control
routine, and whistle-
blower report
DETECTING Improving the exposure
could be done by
ensuring transparency,
access for public and civil
society, and investigative
media coverage
EXPOSING
Public sector and
governmental
institution should
develop a strong
ethics and conduct
regime, and review the
existing rules/codes
DETERRING
Challenges to Tackle White Collar Crimes
Difficult to detect
Advancement of technology – more sophisticated crimes
Inadequate methods and infrastructures both in measuring and investigating
Lack of regulatory prevention and ethical enforcement
Lack of comprehensive laws in addressing white collar crimes
Proposed Prevention Efforts through Ethic and Conducts Parliament’s Perspective
GOPAC Global Organization of Parliamentarians
against Corruption
GOPAC is an international network of
parliamentarians dedicated to combat corruption,
strengthen good governance, and uphold
the rule of law throughout the world.
The central focus of GOPAC is the development of
practical tools and training for parliamentarians, to
assist and support parliamentarians in their
advocacy and legislation to make governments
accountable and transparent. It provides peer
support to parliamentarians engaged in combating
corruption, and relevant training to promote
methods for fighting corruption.
Equipping parliamentarians with comprehensive
knowledge on anti-corruption will strengthen the
internal structure and prevent parliamentarians
from doing misconduct in their offices.
GOPAC’s Focus
GOPAC consists of
5 Regional
Chapters
and
62 National
Chapters
SEAPAC
OCEANIA APNAC
LATIN AMERICA
ARPAC
Anti-Money Laundering
UN Convention against
Corruption
Parliamentary Oversight
Parliamentary Ethics and Conducts
Participation of Society
GOPAC’s programming model uses Global Task Forces (GTFs) to promote agendas identified by membership through a regionally representative group of parliamentarians that champion specific issues.
GOPAC
Network &
Global Task
Forces
GOPAC GTF Parliamentary Ethics and Conducts
GOPAC established a Parliamentary Ethics and
Conduct Global Task Force (GTF-PEC) to develop and
provide tools and training materials, strengthen
Parliamentary ethical system to preserve the
independence of MPs, and to avoid any possibility
that private interests might interfere with their
public duties.
Result:
Handbook on Parliamentary Ethics and Conduct
A Guide for Parliamentarians
Why is it important to address Ethics and Conducts for Parliamentarians?
Deter unethical behavior by parliamentarians in the broader context of preventing white collar crime
Allow parliamentarians to demonstrate high standards of ethics
Enhance public’s level of trust in Parliaments and Parliamentarians
Implement the provisions of Article 8 UNCAC, which provides for the development ‘Codes of Conduct for Public Officials’
Steps to Establish an Ethics and Conduct Regime
Create political will, determine purpose
Reach agreement on ethical principles
Develop detailed rules
Est. regulatory system
Train
MPs
Determining the purpose, and establishing the principles of an ethics and conduct regime
Build a coalition for change within parliament around the need for an ethics
and conduct regime. Politicians must understand why a comprehensive and
effective ethics is needed and what it is designed to achieve.
Creating the political will for reform
Generate agreement around the broad principles by which all politicians
should abide. E.g. Integrity, Accountability, Objectivity, Impartial, etc.
Get agreement on ethical principles
Developing the content of the ethics and conduct regime
Identifying conflict of interest
Public Mandate vs Private Interest
The ultimate task of the MP is to ensure that they always seek to promote the
public interest.
Transparency and disclosure
Forms and timing of disclosure
Who should register?
What should be registered?
Establishing the regulatory system and training members
Develop a robust system of regulation which can enforce the rules. This
includes finding the right mechanisms and proportionate sanctions.
Mechanisms for regulation and enforcement
The system must also include provision for the training and education of
MPs, providing continuing advice and guidance on how to interpret and
implement the rules.
Developing a culture
The creation of the ethics and conduct
regime may will not solve all the problems
faced by the Parliament or other public
institution. The principles, rules and
regulations should be viewed as only one
part of a wider effort to improve the
functioning of the institution.
Let us work together to help prevent
misdemeanor in public sector, and help
ensure that Parliament and other public
institutions are accountable and
trustworthy, to finally tackle the white
collar crimes.
Thank You GOPAC Global Secretariat – Jakarta Office
DPR/MPR Building, Nusantara III, 2nd Floor Jl. Jend. Gatot Subroto, Central Jakarta,
INDONESIA 10270
gopacnetwork.org [email protected] /gopacnetwork @GOPAC_Eng