Report from the International Round Table regarding anti-corruption methods, held in Belgrade on 13 and 14 May 2004

The meeting was organized by Serbian and Montenegrin Employers Association and OEBS. The conference was attended by the representatives of the Association, OEBS, MOR, CU, UNDP, USAID, Independent Union of Serbia and Montenegro, Anti-Corruption Council of Serbia, Transparency Serbia, Ministry for the economic relations with foreign countries, and economic adviser of the President of the Republic of Serbia…

Conclusions of the Round Table are, as follows:

1. Enactment of systematic law which would disable the corruption, for instance, Law on Funds Management.
2. Amendment to the Law on Public Procurements.
3. Amendments to the Law on Political Parties Finance would have a negative impact on the corruption curb.
4. Elaboration of national strategy for anti-corruption struggle.
5. Ministry of Foreign Affairs is asked to form a Council of Economic partners of Serbia and Montenegro, with ad joint anti- corruption commissions.
6. Relevant authorities are asked to support MOR.
7. Closer relationship with the Anti-Corruption Council of Serbia.

Highlights

Ms Verica Barac
The Council strived to establish institutional frame against corruption in public procurements, access to information, political parties finance, but did not have an impact analysis, particularly with respect to Law on public procurements. In the future, the Council will report on the application of these Laws. The Council wishes to open the way to establishment of other anti-corruption institutions. Also, to talk openly with the Government regarding failures of executive authorities, especially regarding Sartid and sugar affair, because they represent a crystal-clear cases of public interest denial. Controversial cases in companies whose privatization is questioned require post privatization check up, but such control can only be performed by the Agency for Privatization and Ministries.

Ms Verica Barac disagreed that corruption scared away the investors. They were not scared away by the talks of corruption, but the corruption itself, said Ms Barac.

Mr. Nebojsa Medojevic
Corruption is not the responsibility of the state only. There has to be a general agreement about anti-corruption struggle, and it must not be subjected to political contest. An independent body, like the Anti-Corruption Council, should be instituted in order to prevent the Ministers from making big decisions contrary to the public interest. Its position should be regulated by law, and not by government decision. It is necessary to define the strategy of anti-corruption struggle, and determine the most vulnerable institutions. Mr. Medojevic reminded to the example of Italy, where government corruption was investigated by Prosecutor and by an independent institution as well. An advisory body composed of employers should be ad joint to the government, and an institute for evaluation of the contracts made by the government, in order to avoid nude contracts.

Mr. Nemanja Nenadic
The National Assembly of Republic of Serbia was not in position to fight the corruption so far. Mr. Kandic believes that, in the future, the Assembly should establish and control anti-corruption institutions like, agencies, ombudsman, specialized anti-corruption bodies, and others. He reminded that Serbia and Montenegro is a signatory to several international anti- corruption documents. He announced the arrival of experts within GRECO program, but advised the government to establish institutions to coordinate the work of the state authorities. Taking into account that after the evaluation in Slovenia anti-corruption agency was established similar body should be instituted in Serbia and Montenegro as well.

He pointed out to the upcoming amendments of the Law on public procurements envisaging preferential treatment of domestic bidders. Similar thing occurs with the Law on political parties finance now disputed. It seams that the Law on free access to information represents the core of the mechanism of the civil sector in the efficient state authorities’ control, not only in the field of corruption but efficiency and negligence, which, according to him, represent a problem bigger than corruption itself.

Ms Silvija Panovic- Djuric, Council of Europe said that they wish to join all reform processes, and implement CARD and PACO programs referring to the anti-corruption programs and strategies. It is, therefore, necessary to join the Serbian and Montenegrin Employers Association, Unions, NGO and state authorities with the program. She emphasized that Council of Europe’s projects comprise the region of former Yugoslavia and Albania, and that, besides the amendments to the enacted laws envisage a reform of the criminal legislation and it’s adjusting with European standards. PACO will, also, deal with anti-corruption training of Ministers of Justice and Internal Affairs, i.e. persons who will work on both project of the Council of Europe.

Mr. Ivan M. Lalic advised on Anti-Corruption Council’s activities. The main problem is privatization and amendments to Law on privatization. Also, the issue of public procurements, where there is an obvious risk of corruption. Than judiciary, especially cases, such as bankruptcy and privatization of SARTID. Fourth issue represents the town planning, namely collaboration of state officers with mafia. Mr. Lalic suggested that the Round Table recommends the increase of the salaries of the employees in public sector to 500 euros, explaining that there are negative selections and corruptions within this sector. He concluded that there is an evident lack of political will to curb the corruption more efficiently.

Representatives of MOR and MOP agreed that the anti-corruption struggle depends on the government, but made references to the significance of the education and business culture contrary to the corruption dogma. They called for the union of the organizations and employers in the anti-corruption struggle. They pointed out that those international organizations insist on basic conditions, like democracy, independent judiciary and ownership recognition.

Representatives of Serbian and Montenegrin Employers Association criticized the fact that the Government did not show interest in the Round Table, but expressed their readiness to contribute to anti-corruption struggle. They pointed out that laws are not being obeyed, and that immediate application of European standards was not possible. Mr. Rato Ninkovic from the Serbian and Montenegrin Employers Association noticed that the Law on public procurements is now hiding what was obvious anyway, i.e. that tenders represent a “big scam”. He pointed out that there is a connection between National Bank, Ministry for Privatization and tenders, and referred to this as the Bermuda triangle. He criticized the decisions of the Law on public procurements which facilitate damping competition and monopoly prices, i.e. non compliance with the rules of the world market. Mr. Ninkovic was explicit in the estimation that if the Government establishes an Anti-Corruption Council, than anti- corruption struggle is a phantom one.