Minutes of Meeting. ADB/OECD Anti-Corruption Initiative for Asia and the Pacific. Participants. Chairs of the Meeting. Summary of the Discussions

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1 16th Steering Group Meeting New Delhi, India, 27 September 2011 Public Management, Governance and Participation Division Asian Development Bank Anti-Corruption Division Organisation for Economic Co-operation and Development Minutes of Meeting Participants Member countries and jurisdictions: Bangladesh; Bhutan; Cambodia; Fiji Islands; Hong Kong, China; India; Indonesia; Japan; Republic of Korea; Kyrgyz Republic; Macao, China; Malaysia; Nepal; Pakistan; Philippines; Samoa; Singapore; Sri Lanka; Thailand; Vietnam Advisory Group: American Bar Association Rule of Law Initiative (ABA); German Federal Ministry for Economic Cooperation and Development (BMZ); German Agency for International Cooperation (GIZ); Swedish International Development Cooperation Agency (SIDA); Transparency International (TI); United Nations Development Programme (UNDP); United Nations Office on Drugs and Crime (UNODC); World Bank Observer countries and organisations: Brunei Darussalam; Solomon Islands; Asia-Pacific Economic Co-operation Secretariat: Asian Development Bank (ADB); Organisation for Economic Co-operation and Development (OECD) Chairs of the Meeting The meeting was chaired by the following officials of the Ministry of Personnel, Public Grievances and Pensions, Government of India: Minister Shri V. Narayanasamy (Items 1 and 2); Secretary Alka Sirohi (Items 3-5); and Additional Secretary Dr. S.K. Sarkar (Items 6-9). Summary of the Discussions 1. Opening and Adoption of Agenda The Chair opened the meeting and the Steering Group adopted the agenda. The Chair and the Secretariat gave opening remarks. 2. Timor-Leste s Membership in the Initiative Prior to the meeting, Steering Group members considered and approved a request by Timor-Leste to join the Initiative as a full member. The Secretariat has informed Timor-Leste of the Steering Group s decision. The next step is for Timor-Leste to write to the Secretariat to formally endorse the Initiative s Anti-Corruption Action Plan, and to designate a contact point. The Secretariat will keep the Steering Group apprised of developments. 3. Initiative s Strategy and Work Programme Prior to the meeting, Steering Group members provided comments on a draft Strategy and Work Programme At the meeting, members discussed a revised version of the document, on which members provided further comments, including the following: Thailand reported that it had promoted the Initiative s work by translating the Thematic Reviews on Public Procurement and Mutual Legal Assistance into the Thai language. Translation of the Thematic Review on Criminalisation is underway. After attending an

2 2 Initiative event, the National Anti-Corruption Commission (NACC) presents summaries and recommendations to its Board. A report of the event is also posted on the NACC website. The Steering Group considered these efforts to be good practice and encouraged other Steering Group members to do the same. To further raise the Initiative s profile, the Secretariat would send copies of the Thematic Review on Criminalisation to countries participating in the UNCAC Implementation Review. The Chair of the APEC Anti-Corruption and Transparency Experts Task Force (ACT) outlined ACT s priorities and proposed joint work with the Initiative. Several Steering Group members questioned a proposal that the six members of the Initiative that are not considered developing countries should pay annual membership fees. Two members were not able to make this commitment. Several members suggested that the Secretariat raise this issue directly with their governments (e.g. the ministries of finance). The Steering Group agreed to revisit this matter in the future. The Secretariat would also request some members to voluntarily forego financial support from the Initiative to attend the Initiative s events. The Steering Group agreed to consider holding a separate session in future meetings and seminars, if needed, to which the private sector, civil society and the media would be invited. The Secretariat would revise the draft Strategy and Work Programme as appropriate after the meeting. The revised document would then be circulated to Steering Group members for final adoption. 4. Initiative s Activities in 2011 Q4 and 2012 Steering Group members discussed four proposals for activities in the fourth quarter of 2011 and 2012, and agreed to do the following: (a) Deliver a message to the 4 th Conference of States Parties to the UNCAC on October 2011, in Marrakech, Morocco. The message, with agreed revisions, is in the Annex. India would deliver the message on behalf of the Initiative. (b) (c) (d) (e) Conduct a thematic review on corporate compliance, internal controls, ethics and tax deductibility of bribes in (discussed further in next section). The members also discussed the importance of finding leading experts on the relevant topics from the Initiative s member countries and internationally. Conduct scoping exercises on two member countries as a pilot project. Bangladesh volunteered to undergo a scoping exercise in 2013 on procurement rules, and Bhutan volunteered to undergo a scoping exercise in 2014 on an issue to be decided later. The Secretariat will send concrete proposals to both countries for their scoping exercises by the end of These activities are subject to funding availability. Consider the following theme proposed by Bangladesh, Pakistan and Thailand for the 11 th Regional Seminar, to be hosted by Vietnam back-to-back with the 17 th Steering Group meeting: tracing illicit flows, and asset recovery in relation to corruption in Asia- Pacific. Work with APEC on issues of mutual interest. Key areas of interest to APEC are illicit enrichment, financial disclosure and asset recovery. The Secretariat would discuss with APEC potential areas for joint work in 2012 and beyond.

3 3 5. Thematic Review on Corporate Compliance, Internal Controls, Ethics and Tax Deductibility of Bribes In its 15 th Steering Group meeting in 2010, the Steering Group agreed to launch in 2011 a Thematic Review on Corporate Compliance, Internal Controls, Ethics and Tax Deductibility of Bribes. In spring and summer 2011, the Secretariat sought a national consultant from the Asia- Pacific region to conduct the Thematic Review but was unable to find a sufficiently qualified candidate. The Steering Group agreed that the Secretariat would expand the search for an international consultant in early If a qualified consultant is retained, the Thematic Review would take place in The Steering Group also heard a presentation by the OECD Centre for Tax Policy and Administration on the tax deductibility of bribes. 6. Written and Oral Reporting by Steering Group Members As agreed in the Initiative s Strategic Principles and Future Activities Plan, members were asked to submit written reports on their recent activities in the anti-corruption field since the previous Steering Group meeting. Those reports are compiled in document StG16-6. The Steering Group agreed that members that have not yet submitted a written report prior to this meeting would do so by 10 October All written reports received by the Secretariat would be circulated to members again before their publication on the Initiative s website. During the meeting, members were invited to make presentations (10 minutes each) on specific issues and/or activities. Eight Steering Group members Bhutan; India; Korea; Macao, China; Nepal; Pakistan; Philippines and Thailand presented on a range of topics covering new legislation, strategies and plans, preventive measures and initiatives, and institutional developments. Each presentation was followed by a question-and-answer session. 7. Revised Country Reporting Template The Steering Group considered a revised country reporting template prepared by the Secretariat for future written reporting prior to each Steering Group meeting. The Group agreed to revise the template after reviewing the written reporting format used by other regional anti-corruption initiatives and networks. 8. Presentations by Advisory Group and Observers As in previous meetings, members of the Advisory Group and Observers were invited to present their recent activities. Presentations were made by four Advisory Group members: German Federal Ministry for Economic Cooperation and Development; Transparency International; UN Development Programme; and UN Office on Drugs and Crime. 9. Secretariat Report and Other Business Since the 15 th Steering Group Meeting, the Secretariat s main activities included finalising the Thematic Review on Criminalisation, retaining a consultant to conduct the Thematic Review on Corporate Compliance, and revising the country reporting templates. On behalf of the Initiative, the Secretariat also attended meetings of the APEC Anti-Corruption and Transparency Experts Task Force in March and September The OECD reported that, at the 14 th International Anti-Corruption Conference (IACC) in Bangkok in October 2010, the OECD organised a workshop entitled: Integrated Solutions for Fighting Transnational Bribery in Asia. In 2011, two members of the Initiative (Japan and Korea) were undergoing Phase 3 Evaluations under the OECD Anti-Bribery Convention. A third member (Australia) would undergo evaluation in 2012.

4 4 ADB reported that at the 14 th International Anti-Corruption Conference (IACC) held at Bangkok in October 2010, ADB organized three workshops in partnership with UNDP Bangkok Office Achieving Quality Education for All by 2015; Improving Integrity in Health Sector; and Preventing Corruption in Relief, Recovery and Reconstruction. ADB also supported the preparation of four conference themes: (i) Fuelling Transparency and Accountability in Natural Resources/Energy Markets; (ii) Climate Governance; (iii) Strengthening Global Action for an Accountable Corporate World; and (iv) Restoring Trust: Global Action for Transparency and the Control of Corruption. In addition, ADB supported participation of nine member countries of the Initiative and five representatives of civil service organizations in the Conference. ADB also reported that it was currently providing technical assistance to strengthen capacity of anti-corruption agencies of Bhutan and Cambodia.

5 5 ANNEX Final Version MESSAGE FROM THE STEERING GROUP OF THE ADB/OECD ANTI-CORRUPTION INITIATIVE FOR ASIA AND THE PACIFIC October 2011, Marrakech 1. The Asian Development Bank/Organisation for Economic Co-operation and Development Anti-Corruption Initiative ( Initiative ), which consists of 28 member countries and jurisdictions, 1 congratulates the Conference of the States Parties to the United Nations Convention against Corruption for its major progress since the 3 rd Session of the Conference of the States Parties to the UNCAC, especially on the review mechanism. 2. In 2010, the Initiative adopted new Strategic Principles and Future Activities, which make the Initiative s priority effective UNCAC implementation. The Initiative s strength is its capacity as a regional forum, to support UNCAC implementation through capacity building based on peer-learning, mutual support and exchange of expertise. The Initiative is therefore a logical and efficient forum for efficient technical assistance delivery in Asia-Pacific. 3. In 2010, the Initiative completed its Thematic Review on the Criminalisation of Bribery in Asia and the Pacific, which reviews the members implementation of articles 15 and 16 of the UNCAC on a country-specific and regional-wide basis. The Thematic Review could thus be an effective foundation for providing technical assistance to the Initiative s members collectively and individually. The Initiative also encourages the Conference of States Parties to consider the Thematic Review in its current program of country reviews on criminalisation, in accordance with the Guiding Principles [Paragraph 3(j)] and Review Process [Paragraph 27(c)] outlined in Resolution 3/1 of the Third Conference of States Parties. 4. The Initiative proposes conducting a Thematic Review in 2012 on implementation of Article 12 of the UNCAC on the prevention of corruption in the private sector, including through awareness-raising, accounting and auditing standards, corporate compliance measures and the non-tax deductibility of bribe payments. The Initiative therefore further encourages the Conference of States Parties to consider this upcoming Thematic Review in its future reviews that encompass Article 12 of the UNCAC, and the provision of related technical support to countries in Asia and the Pacific. 1 The Initiative s members are: Australia; Bangladesh; Bhutan; Cambodia; P.R. China; Cook Islands; Fiji Islands; Hong Kong, China; India; Indonesia; Japan; Kazakhstan; Korea; Kyrgyzstan; Macao, China; Malaysia; Mongolia; Nepal; Pakistan; Palau; Papua New Guinea; Philippines; Samoa; Singapore; Sri Lanka; Thailand; Vanuatu; and Vietnam.

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