1 2007 ICGFM International Conference “New Developments in Government Bringing Together the Tools,...

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1 2007 ICGFM International 2007 ICGFM International Conference Conference “New Developments in Government “New Developments in Government Bringing Together the Tools, Talent Bringing Together the Tools, Talent and Technology” and Technology” Presentation by Linda P. Fealing Presentation by Linda P. Fealing OAS Inspector General OAS Inspector General May 21, 2007 May 21, 2007

Transcript of 1 2007 ICGFM International Conference “New Developments in Government Bringing Together the Tools,...

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2007 ICGFM International Conference2007 ICGFM International Conference

“New Developments in Government “New Developments in Government Bringing Together the Tools, Talent and Technology”Bringing Together the Tools, Talent and Technology”

Presentation by Linda P. FealingPresentation by Linda P. FealingOAS Inspector General OAS Inspector General

May 21, 2007May 21, 2007

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One of the essential purposes of the OAS is to promote One of the essential purposes of the OAS is to promote and consolidate representative democracy with due and consolidate representative democracy with due respect for the principle of nonintervention. OAS Charter respect for the principle of nonintervention. OAS Charter states that representative democracy is an indispensable states that representative democracy is an indispensable condition for the stability, peace and development of the condition for the stability, peace and development of the region.region.

Recognizing that : Recognizing that : Corruption constitutes one of the most serious threats to Corruption constitutes one of the most serious threats to

democracy. democracy. Transparency in government activities, probity, responsible Transparency in government activities, probity, responsible

public administration on the part of government are essential public administration on the part of government are essential components of the exercise of democracy. components of the exercise of democracy.

OAS CHARTEROAS CHARTER

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OAS and its Commitment in Fighting CorruptionOAS and its Commitment in Fighting Corruption

Member States have committed toMember States have committed to::

Ensure proper oversight of government functions. Ensure proper oversight of government functions.

Call on governments to adopt and enforce measures against Call on governments to adopt and enforce measures against bribery.bribery.

Establish conflict of interest standards for public employees and Establish conflict of interest standards for public employees and effective measures against illicit enrichment.effective measures against illicit enrichment.

Develop mechanisms of cooperation with judicial and banking areas Develop mechanisms of cooperation with judicial and banking areas to facilitate investigations.to facilitate investigations.

Utilize other international organizations to strengthen government Utilize other international organizations to strengthen government regulations and operational processes. regulations and operational processes.

Develop applicable treaties and a hemispheric approach to acts of Develop applicable treaties and a hemispheric approach to acts of corruption corruption

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Corruption - a serious threat toCorruption - a serious threat todemocratic governancedemocratic governance

OAS Secretary General :OAS Secretary General :

Corruption is one of the most serious threats to democratic governance. Corruption is one of the most serious threats to democratic governance. At the OAS we believe there is a lot we can do jointly and there are At the OAS we believe there is a lot we can do jointly and there are many ways in which we can help each other to address this issue. many ways in which we can help each other to address this issue.

To find a solution to the problems of citizens and foster their To find a solution to the problems of citizens and foster their participation in public interest affairs, the OAS must promote programs participation in public interest affairs, the OAS must promote programs to ensure that institutions function smoothly and are efficient and to ensure that institutions function smoothly and are efficient and transparent.transparent.

President of the IDB President of the IDB ::

Corruption takes opportunities away from the majority in our region Corruption takes opportunities away from the majority in our region diminishes the competitiveness of our countries and paralyses their diminishes the competitiveness of our countries and paralyses their economic and social development.economic and social development.

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DevelopmentsDevelopments 1994: The issue of Corruption was targeted for the first time in the 1994: The issue of Corruption was targeted for the first time in the

first Summit held in Miami. first Summit held in Miami.

1996: The Nations of the Americas adopted the Inter-American 1996: The Nations of the Americas adopted the Inter-American Convention Convention against Corruption that has now been ratified by against Corruption that has now been ratified by 33 OAS Member States to : 33 OAS Member States to :

◊ ◊ Promote and strengthen the mechanisms needed to prevent, Promote and strengthen the mechanisms needed to prevent, detect, detect,

punish and eradicate corruption.punish and eradicate corruption.

◊ ◊ Promote cooperation among the Member States to ensure the Promote cooperation among the Member States to ensure the

effectiveness of measures and actions to prevent, detect and effectiveness of measures and actions to prevent, detect and

eradicate corruption in the performance of public functions.eradicate corruption in the performance of public functions.

1997: Inter-American Program was originally adopted by the OAS 1997: Inter-American Program was originally adopted by the OAS General Assembly.General Assembly.

2001: Creation of MESICIC – a political forum in the hemispheric 2001: Creation of MESICIC – a political forum in the hemispheric cooperation against corruption.cooperation against corruption.

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Inter-American Program for Cooperation Inter-American Program for Cooperation in the fight against Corruptionin the fight against Corruption

Originally adopted in 1997, revised in 2006 to consider Originally adopted in 1997, revised in 2006 to consider changes in the last nine years, the program is a changes in the last nine years, the program is a framework that outlines OAS anti-corruption activities and framework that outlines OAS anti-corruption activities and

addressesaddresses::

Strengthening the MESICICStrengthening the MESICIC Exchange of information between Member StatesExchange of information between Member States Recovery of assetsRecovery of assets Technical cooperation and cooperation on extraditionTechnical cooperation and cooperation on extradition Cooperation with other international agenciesCooperation with other international agencies Participation of civil societyParticipation of civil society

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MESICICMESICIC

is a follow up mechanism for the implementation of the is a follow up mechanism for the implementation of the Inter-American Convention against Corruption and to Inter-American Convention against Corruption and to support its development through cooperation between support its development through cooperation between Member States. Member States.

The MESICIC facilitates technical cooperation activities The MESICIC facilitates technical cooperation activities as well as exchange of information, experiences and as well as exchange of information, experiences and good practicesgood practices

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Accountability, Transparency and EfficiencyAccountability, Transparency and Efficiency

In the Declaration of Mar del Plata adopted at the Fourth In the Declaration of Mar del Plata adopted at the Fourth

Summit of the Americas, in Mar del Plata, Argentina, in Summit of the Americas, in Mar del Plata, Argentina, in

November 2005 the Heads of State and Government, November 2005 the Heads of State and Government,

stated:stated: ““Accountability is a key instrument to achieve transparency and Accountability is a key instrument to achieve transparency and

efficiency in the use of resources administered by our efficiency in the use of resources administered by our

governments. Fighting corruption is a key aspect of strengthening governments. Fighting corruption is a key aspect of strengthening

democracy and economic growth”.democracy and economic growth”.

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Government Financial ManagersGovernment Financial Managers

Government Financial Managers need to :Government Financial Managers need to :

comply with the mandates given by our Governments for the comply with the mandates given by our Governments for the consolidation of democratic governance, economic growth and social consolidation of democratic governance, economic growth and social development. development.

take effective measures to fight corruption which is the most serious take effective measures to fight corruption which is the most serious threat to democracy. threat to democracy.

be aware of new developments in the business if we are to be effective be aware of new developments in the business if we are to be effective financial managers.financial managers.

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Role of Internal Audit in the fight against CorruptionRole of Internal Audit in the fight against Corruption

The primary responsibility for the prevention, detection and The primary responsibility for the prevention, detection and investigation of fraud rests with management as part of the investigation of fraud rests with management as part of the responsibility for establishing sufficient and satisfactory internal responsibility for establishing sufficient and satisfactory internal controls.controls.

Internal Audit provides independent, objective, assurance and Internal Audit provides independent, objective, assurance and consulting activity through systematic evaluations and analyses, consulting activity through systematic evaluations and analyses, adds value, improves operations and recognizes the need to link adds value, improves operations and recognizes the need to link risks and related controls to achieve objectivesrisks and related controls to achieve objectives

Internal Auditors are required to comply with Professional Internal Auditors are required to comply with Professional Standards in the exercise of their functions and are expected to Standards in the exercise of their functions and are expected to have sufficient knowledge to identify indicators of fraud.have sufficient knowledge to identify indicators of fraud.

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Internal auditors are well positioned to detect fraud Internal auditors are well positioned to detect fraud because:because:

They are internal and are at the organization on day –to day They are internal and are at the organization on day –to day basis. basis.

They contribute to overall corporate governance.They contribute to overall corporate governance.

Internal auditors must continuously be kept current on Internal auditors must continuously be kept current on relevant developments for effective internal auditing.relevant developments for effective internal auditing.

Professional training ensures that internal auditors Professional training ensures that internal auditors attain and maintain proficiency. attain and maintain proficiency.

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Professional StandardsProfessional Standards

The Institute of Internal Auditors (IIA) is The Institute of Internal Auditors (IIA) is the acknowledged leader, recognized the acknowledged leader, recognized authority, and principal educator for the authority, and principal educator for the internal audit profession and sets the internal audit profession and sets the Professional Standards.Professional Standards.

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OAS and other International OrganizationsOAS and other International Organizations

In 2007 OAS signed two MOUs to facilitate cooperation among countries in In 2007 OAS signed two MOUs to facilitate cooperation among countries in

their efforts to fight corruption in the exercise of public functions : their efforts to fight corruption in the exercise of public functions : Inter-American Development Bank (IDB)Inter-American Development Bank (IDB) Organization for Economic Co-operation and Development (OECD)Organization for Economic Co-operation and Development (OECD)

Main purpose: To promote and strengthen necessary mechanisms to Main purpose: To promote and strengthen necessary mechanisms to

prevent, detect, sanction and eradicate corruption in the Member countries prevent, detect, sanction and eradicate corruption in the Member countries

by facilitating cooperation among countries in their efforts to fight corruption by facilitating cooperation among countries in their efforts to fight corruption

in the exercise of public functions. in the exercise of public functions. Systems of government hiring and procurement of goods and services.Systems of government hiring and procurement of goods and services. Systems for protecting public servants and private citizens who, in good Systems for protecting public servants and private citizens who, in good

faith, report acts of corruption and;faith, report acts of corruption and; Acts of CorruptionActs of Corruption

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Technological developmentTechnological development

The theme at the 2006 OAS General Assembly was:The theme at the 2006 OAS General Assembly was:

““Good Governance and Development in the Good Governance and Development in the Knowledge-based Knowledge-based Society”Society”

One of the major challenges recognized by the General Assembly for One of the major challenges recognized by the General Assembly for

achieving full democracy:achieving full democracy:

Technological development is one of the major needs of the Member Technological development is one of the major needs of the Member Countries.Countries.

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Link between OAS, IDB, the IIA and other Link between OAS, IDB, the IIA and other International Institutions in the fight against fraudInternational Institutions in the fight against fraud

2007 - OAS joined the IDB in organizing a workshop on 2007 - OAS joined the IDB in organizing a workshop on development of the Internal Auditing function to combat development of the Internal Auditing function to combat fraud and corruption.fraud and corruption.

The IIA is developing a new global model for The IIA is developing a new global model for implementing effective internal auditing. implementing effective internal auditing.

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IDB-OAS workshopIDB-OAS workshop Summary of Conclusions Summary of Conclusions

IDB - IDB - Martin Martin GuozdenGuozden

IIA - Colleen WaringIIA - Colleen Waring

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THANK YOUTHANK YOU

Linda P. FealingLinda P. Fealing202-458-3467202-458-3467

[email protected]@oas.orgwww.oas.orgwww.oas.org