Millennium Challenge Corporation (MCC) Millennium Challenge Corporation (MCC) Component ThreeComponent Three

US Department of Justice/OPDATUS Department of Justice/OPDAT (Office of Overseas Prosecutorial Development, Assistance and Training) (Office of Overseas Prosecutorial Development, Assistance and Training)

Independent Control over the Independent Control over the Executive Branches of PowerExecutive Branches of Power

The Millennium Challenge Corporation (MCC)

The MCC is a United States Government corporation, established in January 2004, that is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people.

Different from many other foreign assistance programs in that it involves a direct request from the host government and a contractual agreement on what will be done.

The Millennium Challenge Corporation (MCC)

Threshold Country Program: The two-year, nearly $45 million Threshold Country Program (TCP) with Ukraine aims to reduce corruption in the public sector by:

Strengthening civil society’s monitoring and exposure of corruption,

Judicial reform, Increased government monitoring and

enforcement of ethical standards for public servants,

Regulatory reform, and Combating corruption in higher education.

DOJ/OPDATDOJ/OPDAT OPDAT draws on Department of Justice (DOJ) OPDAT draws on Department of Justice (DOJ)

resources and expertise to strengthen foreign criminal resources and expertise to strengthen foreign criminal justice sector institutions and enhance the justice sector institutions and enhance the administration of justice abroad. administration of justice abroad.

In FY 2007, OPDAT had 43 RLAs in 30 countries. RLAs In FY 2007, OPDAT had 43 RLAs in 30 countries. RLAs are experienced federal or state prosecutors stationed are experienced federal or state prosecutors stationed in a host country for at least one year where they in a host country for at least one year where they provide full-time advice and technical assistance in provide full-time advice and technical assistance in establishing fair and professional justice sector establishing fair and professional justice sector institutions and practicesinstitutions and practices. .

Basic Structure of Government in the USA

Federal and State Systems Within Federal Government = 3 Branches

Executive Legislative Judicial

Controls on the Executive Branch

External controls from other branches of government, for example:

Legislative Branch (1) passes laws that Executive Branch is obligated to carry out and enforce, (2) has to approve heads of departments, and (3) can impeach President

Judicial Branch can declare actions of Executive Branch unconstitutional and/or require its officers to take or refrain from taking action in accordance with the law

Internal controls function within Executive Branch

Internal Control within the Internal Control within the Executive BranchExecutive Branch

Conduct of employees of the Executive Branch Conduct of employees of the Executive Branch is supervised by the Office of Government is supervised by the Office of Government Ethics (OGE) Ethics (OGE)

• A small agency within the executive branch, A small agency within the executive branch, established by the Ethics in Government Act of 1978, established by the Ethics in Government Act of 1978, following a period of low public trust in government. following a period of low public trust in government.

• OGE became a separate agency on October 1, 1989. OGE became a separate agency on October 1, 1989.

OGE works with Designated Agency Ethics OGE works with Designated Agency Ethics Officers (DAEOs), who are employed in Officers (DAEOs), who are employed in Executive Branch agenciesExecutive Branch agencies

OGE OGE exercise leadership to: OGE exercise leadership to:

• Prevent conflicts of interestPrevent conflicts of interest on the part of on the part of Government employees, and Government employees, and

• Resolve conflicts of interest that do occurResolve conflicts of interest that do occur OGE works in OGE works in partnershippartnership with executive with executive

branch agencies and departments, to:branch agencies and departments, to:• Foster Foster high ethical standardshigh ethical standards for employees, for employees,

and and • Strengthen public confidenceStrengthen public confidence that the that the

Government acts with impartiality and integrity.Government acts with impartiality and integrity.

OGE Functions include:

Providing advice and guidance on ethical issues Providing assistance to agency ethics officers Responsible for system of financial disclosures by

Executive Branch employees• Review disclosures of highest level appointees• Establish procedures and provide guidance to agencies and

employees• Ensure public availability of information

Ensuring compliance with ethics agreements Conducting annual ethics conferences and training Conducting on-site ethics reviews at HQ and regional

agency offices

EthicsEthics

Standards of Ethical Conduct for Employees of the Standards of Ethical Conduct for Employees of the Executive BranchExecutive Branch

General obligations and role of ethics advice, andGeneral obligations and role of ethics advice, and Rules on receiving gifts from outside sourcesRules on receiving gifts from outside sources Rules on gifts between employeesRules on gifts between employees Rules on conflicts of interestRules on conflicts of interest Rules on impartiality in government serviceRules on impartiality in government service Rules on seeking outside employmentRules on seeking outside employment Rules on misuse of government position or propertyRules on misuse of government position or property Rules on outside activitiesRules on outside activities

EthicsEthics

What is a Conflict of Interest? What is a Conflict of Interest?

““A conflict between the private interests of a A conflict between the private interests of a public servant and his/her professional public servant and his/her professional duties the presence of which could influence duties the presence of which could influence the objectivity and impartiality of decision-the objectivity and impartiality of decision-making and the taking or not taking of action making and the taking or not taking of action in the course of their service activities.”in the course of their service activities.”

Ethics

Key elements of a conflict of interest: Overlap between private interest and

professional duties of public servant Could influence objectivity or impartiality of

official actions

Includes actual and potential conflicts of interest

EthicsEthics

Why are conflicts of interest bad?Why are conflicts of interest bad? Have potential to distort government decision-makingHave potential to distort government decision-making Often reflect other criminal conductOften reflect other criminal conduct Undermine public trust in governmentUndermine public trust in government

Need not actually result in separate tangible harm Need not actually result in separate tangible harm Existence of conflict itself is enough, whether acted Existence of conflict itself is enough, whether acted

upon or not, and whether or not separate harm to the upon or not, and whether or not separate harm to the state can be demonstratedstate can be demonstrated

Harm is the corruption of the state Harm is the corruption of the state process itselfprocess itself

Financial DeclarationsFinancial Declarations

Purpose of Financial Declarations Legislation:Purpose of Financial Declarations Legislation: ““Sets forth Sets forth legal and organizational frameworklegal and organizational framework

for reporting incomes, property status, and for reporting incomes, property status, and expenses of public servants, using information expenses of public servants, using information included in the declarations for: included in the declarations for: • (i) (i) detecting and preventing financial conflicts of detecting and preventing financial conflicts of

interestinterest in the activities of public servants, in the activities of public servants, • (ii) (ii) detecting illicit receiptdetecting illicit receipt by public servants of goods by public servants of goods

[not in US],[not in US], [and] establishing the framework for [and] establishing the framework for • (iii) (iii) legal responsibility for non-compliancelegal responsibility for non-compliance

Also establishes transparency of reporting Also establishes transparency of reporting systemsystem

Operation of the Financial Reporting System

Prevent and detect conflicts of interest by comparing reported financial interests and activities with official responsibilities and duties

Role of responsible agency personnel Collection of forms, advice to employees,

review within agency for conflicts of interest Public information v. privacy interests

IIUsIIUs

IIUsIIUs

Advantages of IIUs include:Advantages of IIUs include:

Know system, procedures, peopleKnow system, procedures, people

Enable ministry to clean up its own problemsEnable ministry to clean up its own problems• Increases public confidence in ministryIncreases public confidence in ministry• May work with other general investigative agenciesMay work with other general investigative agencies

Often include both internal auditing for waste, Often include both internal auditing for waste, fraud and abuse (agency watchdog) and fraud and abuse (agency watchdog) and investigation into misconduct and corruptioninvestigation into misconduct and corruption

IIUsIIUs Importance of IndependenceImportance of Independence

Often secured through restrictions on Often secured through restrictions on appointment, termination, protection of appointment, termination, protection of salary/budget, etc.salary/budget, etc.

IIUs still have to be accountableIIUs still have to be accountable• Reporting requirementsReporting requirements

Public Assessment of Public Assessment of Different Anti-Corruption Different Anti-Corruption

MeasuresMeasures

Questions and Questions and DiscussionDiscussion

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