Concerns over Romania's National Integrity System - Transparency ...

Concerns over Romania’s National Integrity System
Brussels, 26 January 2012
Full press release available at:
http://www.transparency.org/news_room/latest_news/press_releases_nc/2012/2
012_01_26_tiromania_nis_release
Note to EU stakeholders:
Concerns remain over progress in the fight against corruption in Romania. A new
report released today by Transparency International (TI) Romania identified
public administration, political parties and the business climate as the
most vulnerable pillars in the national integrity system analysis.
The National Integrity System Assessment, a TI research tool, aims to identify
the contribution and needs of each institutional actor in the fight against
corruption. The assessment examines the integrity of key institutions and sectors
of Romanian society.
In the context of elections this year, the poor performance of these pillars
threatens not only public funds and the economy, but also the quality of
democracy. This report also highlights that Romanian institutions do not have
the necessary resources and lack independence to address corruption
problems.
The Cooperation and Verification Mechanism (CVM) has applied to Bulgaria
and Romania since they joined the EU in 2007, following concerns over their
efforts in combating corruption. The CVM seeks to evaluate and guide reforms in
anti-corruption.
The European Commission is currently preparing the next CVM Progress
Report on judicial reform and the fight against corruption in Romania, expected
in February. In July 2012, the Commission will publish its annual report on the
CVM and will decide, depending on the results of its report, whether the
mechanism is to be maintained in the future. TI-Romania hopes that the
weaknesses of the system underlined by both the European Commission in
previous CVM Progress Reports and the civil society report launched today will
generate the needed policy changes.
Romania’s poor performance in fighting corruption can also have indirect political
consequences at European level. Some EU Member States, such as the
Netherlands, have expressed their view that giving the green light for Romania to
join Schengen will depend on the outcome of these reports, despite this proviso
not being included in the official Schengen enlargement criteria.
Romania will need to prove its competence in the fight against corruption if it
wants to achieve positive CVM Reports in February and June. Romanian citizens
have also demonstrated their disappointment with the system, making the
elimination of corruption in all sectors of Romanian society an even more pressing
task.

The report can be viewed on Transparency International's website and can be
viewed at: http://www.transparency.org/content/download/65905/1056510
NB: This report is part of a pan-European anti-corruption initiative, supported by the DG Home Affairs
of the European Commission.
Further information can be obtained by contacting:
Irina Lonean
Transparency International Romania
T. +40 21-317.71.70
E. irina.lonean@transparency.org.ro
www.transparency.org.ro
Jana Mittermaier
Transparency International Liaison Office to the EU
T. +32 (0)2 23 58 621
E. jmittermaier@transparency.org
www.transparencyinternational.eu

Corruption threatens to prolong Greek crisis:
- Report on national institutions highlights crisis of values -
Brussels/ Athens, 29 February 2012 – Efforts to reform and rebuild Greece’s economy in
future will be undermined because the country’s government, businesses and civil servants not
only fail to stop corruption but actively participate in it. The warning comes today from
Transparency International Greece’s first ever assessment of the ability of important national
institutions to fight corruption.
The report, the first “National Integrity System assessment” in Greece, exposes the corruption
problems that underlie the Greek crisis. 98 per cent of Greeks told an EU corruption survey
published this month that corruption was a major problem in their country, with 88 per cent
saying that corruption is part of Greek business culture.
The report calls for several institutional reforms to put an end to impunity for corruption in
business, government and daily life, including the creation of a single anti-corruption body.
"We all know about the debt crisis, but Greece is also suffering a crisis of values. It has the right
laws in place but does little to enforce them. The law is being violated, the illegal is being
legalized, and the international commitments to fight corruption are being ignored. The laws are
there, and institutions already have teeth – they just need to bite,” said Costas Bakouris,
President of TI-Greece, at the launch of the NIS report.
While Greece has many laws in place to fight corruption, the report warns that they are not
being enforced, and that in many cases other laws effectively condone corruption:
• buildings built illegally can be approved later,
• accounts can be validated without being seen by a tax inspector, and
• most worryingly given the role of budget opacity in the debt crisis, many Ministries have
“special accounts” to which normal rules of budgetary transparency do not apply.
The report assessed 12 Greek institutions ("pillars") – including the executive, legislature,
political parties, and civil society - in terms of their effectiveness in preventing and combating
corruption. The private sector, judiciary and public sectors were identified as most problematic,
the Ombudsman as the least, thanks to sound legal framework and effective operation in
practice.
The Transparency International Greece report made several recommendations, notably:
• stronger rules on disclosure of the accounts of political parties
• stronger rules on the transparency of private companies (today only companies listed on
the stock exchange are transparent)
• merge existing anti-corruption agencies into a single body that would also be responsible
for protecting whistle-blowers
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"Political leaders must realize that this crisis is a unique opportunity to redefine lost values and
re-establish national institutions. Greece urgently needs to see the emergence of leaders in
government institutions who champion and lead the fight against corruption. Strong political will
and citizens’ engagement is necessary, so that a new slogan "Live with transparency in Greece"
will be created”, concluded Costas Bakouris.
Note to editors: The NIS assessment has been carried out between March 2011 and January
2012, within the framework of the European National Integrity System Programme, which is
being implemented in 26 European countries. More details at:
http://media.transparency.org/nis/cogs/?Country=ge
Media Contacts:
Marina Nasika
Jana Mittermaier
Transparency International Greece
Transparency International EU Office
T. + 30 69 345 80 478 T. +32 2 23 58 621
E. mnasika@yahoo.gr E. jmittermaier@transparency.org
www.transparency.gr
www.transparencyinternational.eu
Sponsors:
With the financial support from the Prevention of and Fight against Crime Programme of the European Union
European Commission - Directorate-General Home Affairs
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Polish institutions prone to corruption – Polish anti-corruption system
has considerable gaps
Warsaw, 5 March 2012 - Polish citizens and leaders are doing too little to prevent nepotism,
favouritism and vague ethical standards, according to an assessment of 13 key areas of
public life, such as legislative, executive, judiciary, media or business in terms of their
transparency, accountability and effectiveness in preventing corruption in a country.
The assessment, prepared by the Institute of Public Affairs (one of the Polish leading public
policy think tanks) and anti-corruption organisation Transparency International, warns that
without giving more resources and political backing to watchdog bodies, and raising public
awareness about issues like whistle blowing, the fight against corruption in Poland will stall.
“Although we do have developed legal regulations in most of the areas, they often do not
work in reality. There is a big gap between theory and practice,” points out Grzegorz
Makowski, expert on corruption and lead researcher of the study. “The fight against corruption
in Poland is about more than a few court cases. We need a comprehensive anticorruption
policy that develops higher standards of public life”.
The assessment shows that among the public institutions the weakest appear to be those
most important for fighting corruption – the executive and public administration. It also points
out low anticorruption engagement and integrity standards within the civil society and
business sector.
The report cites the promotion of a politician’s family in an insurance firm as an example of
nepotism and cronyism that still is present in Polish society, as well as cultural barriers to
mobilizing more citizens to report and protest against corruption.
“The standards of public life in Poland leave a lot to be desired,” – says Grzegorz Makowski.
“Most of the institutions do not have effective mechanisms to hold public functionaries
accountable for their actions. It also appears that integrity standards do not work very well”. It
seems that, although the level of corruption in the country might not be as high as 20 years
ago, Polish authorities should undertake serious efforts to improve the overall standards of
public life.
Background information
The ”National Integrity System” study, the first of its kind in Poland, assessed whether Poland
can be said to have a robust and reliable protection against corruption. The study was a part
of a research project across 25 European countries, supported by the European Commission.
Transparency International has carried out similar studies in almost a hundred countries
around the world.
Media contact(s):
Aleksandra Murawska (PR officer), Institute of Public Affairs
+48 22 556 42 91
aleksandra.murawska@isp.org.pl
http://www.transparency.org/news_room/latest_news/press_releases_nc/2012/2012_03_05_
poland_institutepublicaffairs_nisrelease
Dr. Janina Berg, LL.M
EU Policy & Legal Officer
Transparency International
Liaison office to the EU
Rue Breydel 40, B-1040 Brussels, Belgium
T. + 32 (0) 2 23 58 646
F. + 32 (0) 2 23 58 610
E. jberg@transparency.org

International Press Release
Hungary – a State Under Capture
New study on the integrity of Hungary’s national institutions
by Transparency International’s local chapter
Budapest, 8 March 2012 – As the EU initiates infringement procedures against
Hungary, Transparency International Hungary publishes its second National Integrity
System study (NIS), which provides a comprehensive picture of corruption risks in
13 institutions and sectors, and their strengths or weaknesses in combating
corruption.
The report warns that Hungary’s political and economic crises are symptoms of
structural weakening of the country’s checks and balances, anti-corruption
organisation. The inability of oversight institutions to limit the power of the
government could allow private interests prevail over public interests, with new
forms of corruption compromising key functions of the state.
“It also warns that even where legislation enacted provides adequate grounds of
independence, it is doubtful that control institutions such as the State Audit Office
or the new organs of judicial administration can operate free of interference in
practice,” says Noémi Alexa, executive director of TI.
The report document signals that the Hungarian state has been captured by
powerful interest groups, with corruption risks arising from:
• the symbiotic relationship between the political and the business elite,
• commonly voiced doubts regarding the independence of control institutions,
• and the lack of transparency in the legislative process.
Party financing and the business sector face most alarming corruption risks
Party financing and the business sector are found to face the most alarming
corruption risks by the NIS, which assesses the performance of, and corruption risks
in, institutions and sectors from politics and judiciary to media and business. It is
the second time that Hungary’s integrity system has been assessed, with the first
report being issued in 2007. Similar research is ongoing in 25 European countries.
Rules on campaign financing do not ensure transparency and accountability, with
the result that political parties finance their operations though funding obtained
from opaque, non-identified sources.

In the business sector, the economic crisis and the fast-paced legislative process
have created an even more chaotic environment for companies than has ever been
the case; companies face a heavy regulatory burden and unpredictable state
interventions. High corruption risks are present in common business transactions
such as bankruptcy, liquidation, procurements, and obtaining official permits.
TI has compiled a broad list of recommendations
Among the most crucial steps to take are the reduction of political influence on
independent institutions, tighter regulation of party and campaign financing,
effective protection for whistleblowers and the implementation of a
comprehensive anti-corruption programme covering all sectors and institutions
concerned.
“Hungary's weak integrity system undermines economic stability, and blocks
efforts aiming at rebuilding confidence among the players of economy. The
government should implement a systemic and effective anti-corruption programme
in addition to the one focusing on integrity in the central administration,”
emphasized Noémi Alexa, adding that the anti-corruption organization is ready to
support the government’s work with expertise, proven techniques and best
practices.
Transparency International Hungary has been functioning as an independent civil society
organisation since 2006. It raises awareness of the law-makers to corruption risks by conducting
researches, preparing policy papers and statements. TI Hungary operates a legal aid service as well
as promotes international best practices and runs educational projects. More information on TI
Hungary is available at the www.transparency.hu website.
The full study and the recommendations can be downloaded from here.
You can find the results of other NIS studies by several European chapters of Transparency
International here.
Media contact:
Diana Sebestyen
Transparency International Hungary
Email: diana.sebestyen@transparency.hu; info@transparency.hu
Phone: +36-1-269-95-34

Transparency International: the EU must not be
a safe haven for dirty assets
– Crime doesn’t pay, and corruption shouldn’t either –
Brussels, 14 th March, 2012 – On Monday the European Commission released new
EU rules for the identification, freezing and recovery of criminal assets. Whilst
Transparency International (TI) welcomes the new legislation, which furthers
European Union (EU) efforts to fight corruption and illicit financial flows, TI calls on
the EU to also deal much more systematically with the recovery of stolen assets from
non-EU countries.
“Time and again we have seen that it is all too easy for corrupt individuals to invest
and launder their ill-gotten gains in the EU’s financial markets” said Jana Mittermaier,
Head of the TI EU Liaison Office. “The EU needs an asset recovery framework which
will make the corrupt think twice before stashing their stolen loot in the EU. We call
on the EU to make sure that its improved framework for the freezing and return of
assets does not just tackle corruption and organised crime within the Union, but also
assists asset recovery efforts initiated by countries victim to corruption outside of the
EU.”
Closer cooperation between Member States and, as appropriate, harmonisation of
asset recovery procedures across Member States will make it easier for assets to be
traced and returned, whilst measures for the precautionary freezing of assets will
allow Member States to hold assets which they deem to be at risk of disappearing.
“The new and improved framework for asset recovery should assist third countries
get back assets stolen by corrupt individuals and laundered in the EU” Ms.
Mittermaier said. She continued, “This starts with stringently and consistently
enforcing anti-money laundering regulations, to ensure that dirty money cannot enter
the EU in the first place.”
Whilst the new rules focus exclusively on procedures between Member States, TI
calls on the EU to systematically follow-up on the commitments made on stolen
assets at the Cairo and Lisbon Africa-EU Summits, in 2000 and 2007 respectively,
by:
• Extending avenues for mutual legal assistance for asset recovery efforts to
countries outside of the Union;
• Promoting legislation that enables Member States to freeze assets from
countries outside of the Union on an emergency basis if there is sufficient
evidence that the assets are the proceeds of corruption. This should be done
without the need for a request from the victim state;
• Promoting in Member States establishment of a non-conviction-based asset
recovery process, which enables them to determine that recovering assets
identified as the proceeds of corruption is in the public interest, even if the
crime was committed outside of the EU. Such measures would apply in
instances where bringing a criminal case against the allegedly corrupt official
is impossible or impractical.

Media Contact:
Jana Mittermaier
Head of Office
Transparency International
Liaison office to the EU
Rue Breydel 40, B-1040 Brussels, Belgium
T. + 32 (0) 2 23 58 643
F. + 32 (0) 2 23 58 610
E. jmittermaier@transparency.org

Transparency International: Italy needs anticorruption
watchdog
Transparency International report highlights weakness in state bodies and media independence
Milan/ Berlin/ Brussels, 30 th March 2012 – Italy needs an independent anti-corruption watchdog to hold the
country’s politicians, public officials and institutions to account and enforce new measures, such as the anticorruption
law currently debated in parliament, says Transparency International-Italy in a new report launched
today.
The survey is the first to evaluate the effectiveness of Italy’s politics, public service, businesses and media in
the fight against corruption, indicating that the country needs specific codes of conduct for members of
parliament and an end to parliamentary immunity for prosecution.
Transparency International-Italy states that reforms are essential to restore integrity in public life and to restabilise
the economy. It calls for tougher sanctions for and preventative measures against corruption as well
as more public education about it.
“Without an anti-corruption law, a watchdog institution, and a code of conduct, Italy will lag behind other
countries in the fight against corruption. To catch up at a time when Europe and Italy are facing an economic
crisis, Italy needs to reinstate a culture of integrity, professionalism and respect for the public interest, from
our schools to the highest levels of government,” said Maria Teresa Brassiolo, Head of Transparency
International-Italy. “Of utmost importance is the credibility of political representatives and public servants, who
must be chosen with the greatest care, to show absolute proof of their integrity and transparency.”
The report shows that Italy’s justice system and state auditor lead the way in tackling corruption. Creating a
body responsible for investigating and enforcing anti-corruption laws would bring the country in line with
international anti-corruption treaties from the United Nations and the Council of Europe. According to a recent
EU survey, 89 per cent of Italians believe that sanctions for corruption are currently too weak.
Ranked 69 th out of 183 countries, Italy is one of the worst performing EU countries on Transparency
International’s Corruption Perceptions Index, which measures perceptions of public sector corruption.
Today’s report seeks to explain the structural problems underlying this score, looking at how institutions
perform when it comes to transparency, accountability and integrity. Italy’s public sector is the weakest with
problems both in law and in practice including nepotism, lack of access to information and lack of oversight.
Corruption and the economic crisis
Transparency International-Italy warned that these institutional problems are in part also underlying the
country’s economic crisis, with mismanagement of resources being of particular concern, since the public
sector manages resources equal to about 55% of Italy’s Gross National Product (€800 billion in 2009).
“In recent years, Italy’s leaders have not done half as much as they should have done to fight corruption,”
said Brassiolo. “Their failure to act has left systems of accountability and control of public spending weak and
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expensive, leading to enormous waste. We see examples of this on an almost daily basis and it can no
longer be accepted.”
European leaders should support change at national level by ensuring that tackling corruption is at the
forefront of its new Special Committee on organised crime, corruption and money laundering recently
established by the European Parliament.
The report also cautions against the lack of independence in the media, citing a “super concentration” of
political influence in the sector.
Political parties, parliament and the executive also score poorly, weakened by conflicts of interest, impunity
against sanctions as well as conflicts with other state institutions. According to a 2010 Transparency
International survey, Italians think that political parties are the most corrupt institution in their country.
###
Transparency International is the civil society organisation leading the fight against corruption
Background:
Transparency International is analysing the institutions of 25 European countries and their effectiveness
in fighting corruption, a project part-funded by the European Commission.
The first Italian report of its kind, the National Integrity System report takes an in-depth look at Italy’s anticorruption
structures, comparing thirteen institutions and sectors: anti-corruption agencies, business,
central electoral services, civil society, the court of auditors, executive power, judiciary, law enforcement,
media, the ombudsman, parliament, political parties, and public administration.
The full study and the recommendations can be downloaded from here
http://media.transparency.org/nis/cogs/assets/it/pdf/NIS%20ITALIA%202011.pdf
An executive summary in English is available here:
http://media.transparency.org/nis/cogs/assets/ei/pdf/Executive%20Summary_NIS%20Italy.pdf
Info graphics are available here: http://media.transparency.org/nis/cogs/?Country=ei
You can find the results of other NIS studies by several European chapters of Transparency International
here
Media Contact:
Davide Del Monte
Jana Mittermaier
Transparency International-Italia Transparency International Liaison Office to the EU
Email: ddelmonte@transparency.it Email: jmittermaier@transparency.org
Phone: +39-02-40.09.35.60 Phone: +32-(0)2-23.58.621
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EU Neighbourhood reports move in the right
direction
Brussels, 16 th May, 2012 - Transparency International, the global organisation leading the
fight against corruption, calls on the European Union (EU) to raise its political voice against
corruption in its dialogues with neighbourhood partner countries.
Yesterday the European Commission published its annual monitoring reports for the
European Neighbourhood countries, measuring progress in various areas including
corruption. Progress in the 12 countries– Armenia, Azerbaijan, Belarus, Egypt, Georgia,
Jordan, Lebanon, Moldova, Morocco, Syria, Tunisia, Ukraine, Algeria, Israel, Libya and the
Occupied Palestinian Territory- was described as “rapid, if uneven, progress”.
This year’s reports are particularly interesting as they are the first reports to be published
following the major review of the Neighbourhood Policy last summer. With the new approach,
the EU monitoring reports will for the first time help determine the EU’s “more for more “
principle: countries performing better in implementing reforms will receive more funding and
assistance. For 2011-2013, the EU has made over EUR 1 billion more available for the
neighbourhood.
"We welcome the EU’s new approach to its neighbourhood partners, which builds on their
reputation as a norm setter and enables them to more effectively support transition processes
in neighbourhood countries ", said Jana Mittermaier, Head of the EU Liaison Office,
"However, the risk remains that the EU will underuse its influence, to the detriment anticorruption
reforms, where other interests prevail. Promoting anti-corruption reforms needs to
be a cornerstone in the EU’s approach to the neighbourhood”.
While the EU has enhanced its support for civil society through the policy, trends in several
neighbourhood countries show worrying signs. Transparency International has demanded
greater civil society engagement and space to operate freely across the neighbourhood, so
that citizens can hold their governments to account. In Egypt, where civil society
organisations have been put under serious pressure, TI has called for access to information
legislation and the removal of restrictions on civil society. Following the events of the Arab
Spring, it is essential that the EU channels its efforts into supporting anti-corruption reforms in
these countries and encourage transparent and accountable governance.
The EU-Ukraine political dialogue on the Association Agreement has also been an important
opportunity for the EU to exercise its political influence and financial clout to encourage
further reform. According to the 2011 Corruption Perceptions Index Ukraine scored 2.3,
indicating endemic corruption and ranked 152 nd of 183 countries globally. Importantly, the EU
report for Ukraine highlighted the “degradation of the rule of law” in Ukraine and called on
authorities to address selective justice, conflicts of interest and corruption. An assessment of
the national integrity system in Ukraine conducted by TI in 2011, found that all branches of
public power of Ukraine are affected by corruption. Fighting corruption in Ukraine has too
often been substituted by declarations and showcase punishment of political opponents.
These new EU country reports are an important step forward in providing specific
recommendations to partner countries, and applying an incentive-based approach.
Nevertheless, despite the progress that has been made it continues to be essential for the EU
to do more to challenge its neighbours on important reforms.

Media Contact:
Jana Mittermaier
Head of Office
Transparency International
Liaison office to the EU
Rue Breydel 40, B-1040 Brussels, Belgium
T. + 32 (0) 2 23 58 643
F. + 32 (0) 2 23 58 610
E. jmittermaier@transparency.org

RISE IN PROSECUTIONS MAKES IT HARDER TO GET
AWAY WITH FOREIGN BRIBERY
TRANSPARENCY INTERNATIONAL CALLS ON GOVERNMENTS
TO KEEP UP PRESSURE ON COMPANIES
Berlin/Brussels, 6 September 2012
Laws forbidding companies from bribing abroad to win contracts or dodge local regulations
have resulted in rising prosecutions, anti-corruption group Transparency International said in
a new report today.
The report, Exporting Corruption? Country Enforcement of the OECD Anti-Bribery
Convention. Progress Report 2012, shows that bribery charges increasingly lead to fines, jail
time and reputational damage. With 144 new cases in 2011, the total number of cases
prosecuted by 37 major exporters rose from 564 at the end of 2010 to 708 at the end of 2011,
with a further 286 investigations ongoing.
“The growing momentum behind anti-bribery enforcement is making it harder to get away with
the use of graft to win business,” said Huguette Labelle, chair of Transparency International.
More governments must deter corporate crime and encourage clean business the report
warns. 18 countries have not yet brought any criminal charges for major cross-border
corruption by companies, while only seven out of 37 countries are actively enforcing bribery
law. Governments should resist lobbying efforts aimed at weakening anti-bribery laws such as
the US Foreign Corrupt Practices Act (FCPA), Transparency International said.
"Individual cases presented in the report underline that bribery happens even between EU
member states or between EU members and candidate countries," Jana Mittermaier, Director
of the Transparency International EU Office, highlighted. "These cases demonstrate again
that the EU and its member states should step up their fight against corruption and to facilitate
cross-border prosecutions for corruption cases, for example by creating the European Public
Prosecution Office."
PROSECUTION A NECESSARY DETERRENCE TO COMPANIES
PAYING BRIBES
Over 250 individuals and almost 100 companies were sanctioned as a result of foreign
bribery-related cases in OECD Convention countries to the end of 2011, according to the
OECD. 66 people have gone to jail in those countries for the crime of bribing overseas
officials in business deals.
The United States shows the highest enforcement with 275 cases completed to end 2011.
Germany is the only other country to have completed more than 100 cases (176).
With 34 ongoing investigations, Canada joins Australia and Austria as the most improved
enforcers, all three conducting their first major case in 2011. There were six new cases in the
UK, where new bribery laws apply to foreign companies that do business there and also
increased enforcement activity in the United States, Germany, Italy, Luxembourg, Switzerland
and Turkey.
Japan is the biggest economy to have brought less than 10 major cases. In another big
exporter, France, there are concerns about the slow progress of cases initiated and lack of
deterrent sanctions, according to the report.

One in four business executives (27%) believe bribery by a competitor resulted in direct costs
to their business in the last 12 months, according to a Transparency International survey also
published today.
“It is vital that the climate of economic crisis does not tempt governments to seek to cut
enforcement, or companies to seek an unfair advantage in global markets,” said Labelle.
BACKGROUND
Under the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions, governments are committed to making foreign bribery a
crime. Signatory countries account for two-thirds of world exports and three-quarters of
foreign investment. Russia became the 39 th party to the convention last year. G20 members
India, China, and Indonesia took similar legislative steps in the last two years.
# # #
Transparency International is the global civil society organisation leading the fight against
corruption.
Note to editors:
The report, national factsheets and case studies of prominent foreign bribery cases involving
multinational companies in developing countries and Eurozone crisis countries are
available here.
The report is prepared by independent assessments of number of cases carried out, weighted
according to share of world trade, by Transparency International’s national chapters in 37 of
the 39 signed up countries (excluding Iceland and Russia).
PRESS CONTACTS:
Brussels:
Ronny Patz
+ 32 2 23 58 640
rpatz@transparency.org
Berlin:
Chris Sanders
+49 30 343820666
press@transparency.org

Advance notice of EC proposal on political party financing:
European political parties need robust rules on financing
Tomorrow (12 September), the European Commission will propose new rules on the
financing of political parties at European level (“Europarties”) and their foundations.
Maros Sefcovic, Commissioner for Inter-institutional relations and
administration, informed that he will also present new rules that govern the
existence of such parties.
“We would like to see political finance rules at European level that allow fair and
clean European Parliament elections in 2014,” says Jana Mittermaier, Director of the
Transparency International EU Office. “We welcome a revision of the current rules as
these are not adequate when it comes to reporting obligations, monitoring and
sanctions, in particular during EP election campaigns.”
In 2011, Transparency International called on Members of the European Parliament
to step up transparency of political finance of Europarties and their foundations, in
particular the timely publishing of private donations, including all types of in-kind
support. Transparency International also called for rules on reporting campaign
income and expenses during and after European Parliament elections.
Transparency International’s 2012 report “Money, Politics, Power: Corruption Risks in
Europe,” which assessed corruption risks in 25 European countries, recommended
that national laws regulating political party finance ensure that corporate and
individual donations are limited and published. The rules should also prevent the
use of loopholes that allow political parties and candidates to bypass transparency
obligations. There is also a need for independent regulatory agencies that are
sufficiently equipped to perform their oversight role and to impose suitable
sanctions where rules are breached.
Transparency International will publish more in-depth assessment following
the release of the Commission’s proposal.
###
Transparency International is the global civil society organisation leading the fight against corruption
Press contact
Ronny Patz, Transparency International EU Office
brussels@transparency.org
Phone: 0032 2 2358640

MEDIA ADVISORY
EU oil, gas, mining and forestry
transparency rules:
crucial European Parliament vote
on 18 September
Brussels – Next Tuesday 18 September at 10.00, the Legal Affairs (JURI) committee of the
European Parliament will vote on potentially ground-breaking legislative proposals that will
shed light on murky deals in the oil, gas, mining and forestry sectors globally. MEPs will
decide whether to endorse European Commission proposals that would require multi-national
extractive companies to disclose their payments to governments around the world. The vote
comes hot on the heels of the recent decision by the US Securities and Exchange
Commission (SEC) to adopt similar rules for US-listed extractive firms, which requires them to
list detailed payments for every project they operate. This advisory provides some context for
that vote.
What’s the issue?
Oil, gas and mining companies transfer billions of dollars to host governments around the
world. In 2010, exports of oil, gas and minerals from Africa were worth roughly 7 times the
value of international aid to the continent (€252 billion vs €36 billion). When revenues from the
extractive sector are not managed with transparency and accountability, natural resource
wealth can fuel large-scale corruption, as well as poverty, injustice and conflict.
US extractive transparency law.
In 2010, President Obama passed into law the Wall St Reform and Consumer Protection Act
(“Dodd-Frank Act”). The final provision of that Act (Section 1504) required “resource
extraction issuers” listed on US stock exchanges to disclose all payments to governments in
all countries where they have operations. Extractive companies are required to list payments
such as taxes, royalties, signature bonuses and in-kind payments for every project that they
operate. In order for the law to become operational, the SEC is required to draw up detailed
reporting requirements. Over one year after deadline for this process expired, the SEC finally
published the new rules on August 22 2012. The text of these rules is available here. A
helpful Q&A is here.
In the course of the delay, the SEC was lobbied intensively by commercial interests to carve
out exemptions, introduce very high thresholds for reporting payments ($1m) and to define
“project” in a way that would provide a loophole for the affected companies. US regulators
have resisted these pressures and adopted a very robust set of rules. Unfortunately, some
MEPs have placed amendments to the EU proposals that would support these changes and
would weaken the legislation.
What are the main differences between the US and EU laws?

The intention of the US and EU laws is exactly the same – to enable citizens of resource-rich
countries to hold companies and governments to account for the revenues generated by
natural resource wealth. Both require oil, gas and mining companies to disclose their
payments to host-country governments for every project that they operate (“project-by-project
reporting”). There are some important differences however:
- EU proposals also apply to the forestry sector.
- EU proposals apply to unlisted companies incorporated in the EU, as well as EUlisted
companies.
- EU proposals currently contain exemptions in cases where the host country’s criminal
law prohibits disclosure, a clause that has been labelled a “tyrant’s veto”. There are
no such provisions in the US law.
- EU proposals define a project as a company reporting unit. SEC guidance for the US
law explicitly rejects such a definition.
- US law contains provisions for easy electronic access to the company information
that will come on stream as a result of the law. There are no such provisions in the
EU proposals and access to the information will be more difficult for ordinary citizens.
The European Commission proposals can be found here as part of the revised Accounting
Directive. A more detailed comparison is available here.
What is the current state of play in the industry?
In 2011, Transparency International and Revenue Watch Institute published the results of an
assessment of the transparency of 44 of the world’s biggest oil and gas companies - 31 of
those companies were assessed on the basis of their disclosure of payments to governments
worldwide, as well as their disclosure of other financial and operational information in the
countries where they operate. This was found to be the worst aspect of company reporting,
with an average score of 16%. EU-listed companies such as Shell and Total were well below
this average.
Companies often cite “difficult operating environments” as a reason for their failure to
disclose. However, Norwegian company Statoil has a good track record of transparency
despite operating in some of the most difficult environments, e.g. Angola and Qu’addafi-era
Libya. The report demonstrates wide divergences in reporting by companies operating in the
same country.
Azerbaijan: Statoil scored 69%, whereas Total scored 8%.
Angola: Statoil scored 69%, whereas Total scored 15% and BP scored 8%.
Kazakhstan: Eni scored 92%, whereas BP scored 8%.
With an average score of 15%, EU companies score less than Australia (26%) or US (22%).
8 EU companies in the report operate in Egypt, Libya and Algeria. They do not operate
transparently. None reveal royalties, only three reveal anything other than production
volumes.
Who will benefit?
There are a wide range of beneficiaries. They include investors, who will have a better
understanding of the risks that extractive companies are taking in their global operations, and
EU citizens, who will benefit from better governance and stability in the resource-rich
countries on whom they depend for raw materials. But perhaps the biggest beneficiaries of
the legislation will be the citizens in countries that have been blighted by the “resource curse”
– the corruption and conflict that too often accompanies great natural resource wealth. They
will finally have access to detailed information about financial transfers between companies
and governments, so that both can be held to account. Thanks to the requirement to report by
project, local communities in particular will be able to assess the benefits of extractive
projects, as well as the sometimes all-too-evident costs.

You can read about some examples of these benefits here and hear directly from TI activists
working on this issue in Ghana, Liberia and Zimbabwe.
###
Transparency International is the global civil society organisation leading the fight against corruption
Media Contacts:
For further information and to arrange interviews please contact:
Jana Mittermaier
Director of TI EU Liaison Office
T: + 32 (0) 2 23 58 621
brussels@transparency.org
http://www.transparencyinternational.eu/
Carl Dolan
Senior EU Policy Officer
T: +32 (0)2 23 58 603
M: +32 (0)488 563 435
cdolan@transparency.org
http://www.transparencyinternational.eu/focus_areas/eu-extractives/
------------------------------
Carl Dolan
Senior EU Policy Officer
Transparency International
Liaison Office to the EU
Rue Breydel 40
B-1040 Brussels (Belgium)
T: +32 (0)2 23 58 603
M: +32 (0)488 563 435
F: +32 (0)2 23 58 610
E: cdolan@transparency.org

Brussels, 18 September 2012
Transparency International: MEPs vote to end
secrecy over corporate payments
Transparency International (TI) today welcomed the decision of the European
Parliament Legal Affairs Committee (JURI) to support strong anti-corruption rules in
the oil, gas and mining sectors that will require them to reveal details of their
payments to governments worldwide. It also welcomes the decision to extend the
mandatory corporate disclosure regime to the forestry, construction,
telecommunications and banking sectors.
The JURI Committee has endorsed strong disclosure rules for the extractive sector
that requires companies to report payments of €80,000 or more that are made to
officials at all levels of government. Companies are required to link the payments to
individual oil, gas, mining and forestry projects. This will provide detailed information
on the financial terms of deals done with host governments. The Parliament has also
rejected the Commission’s proposals to exempt companies in cases where such
disclosures are prohibited by host countries – an exemption widely regarded as a
“tyrant’s veto.” Firms in other sectors will report on a less detailed “country-bycountry”
basis.
“The result of this vote in the European Parliament will be welcomed by millions in
resource-rich developing countries who have been deprived of stolen oil and gas
funds,”., said Jana Mittermaier, Director of the TI EU Office. “Wealth in some of the
poorest countries should no longer stay in the hands of corrupt elites, politicians and
industry insiders. The publication of business information on a country-by-country
and project-by-project basis is an important step toward greater accountability of
governments and corporations worldwide. MEPs have listened to the concerns
expressed by thousands of EU citizens about the secrecy surrounding these deals
and acted accordingly. We hope that Member State governments take note when
they finalise their position in the coming months”.
TI research has highlighted the low levels of transparency and corporate reporting
across all the sectors concerned. A report published in July 2012 [1] demonstrated
the poor performance of the financial sector compared to its peers. Financial
corporations scored an average of 2.3% for their reporting by country of
operation. Furthermore, a 2011 TI survey ranked the construction sector worse than
oil and gas in terms of perceived corruption. [2]
Following on from a landmark ruling in August 2012 by the US Securities and
Exchange Commission that requires extractive companies to report by country and
project, the result of this vote is another milestone in creating a global transparency
standard. Similar initiatives are underway in Canada and Hong Kong.
Following this decision, negotiations will take place between the Parliament, EU
Council and European Commission on the final text of the legislation.
[ends]

Notes:
[1] Transparency in Corporate Reporting: Assessing the World’s Largest Companies
[2] Transparency International Bribe Payers Index 2011
Media Contacts:
For further information and to arrange interviews please contact:
Jana Mittermaier
Director of TI EU Liaison Office
T: + 32 (0) 2 23 58 621
brussels@transparency.org
http://www.transparencyinternational.eu/
Carl Dolan
Senior EU Policy Officer
T: +32 (0)2 23 58 603
M: +32 (0)488 563 435
cdolan@transparency.org
http://www.transparencyinternational.eu/focus_areas/eu-extractives/
E: cdolan@transparency.org

Corruption continues to be of chief concern for EU
Enlargement countries
Brussels, 5 October 2012 - Transparency International EU calls on the EU to prioritise support
for anti-corruption reforms and give particular attention to the issue of enforcement and
corruption in the judiciary in EU Enlargement countries.
Next Wednesday, on 10 October, the European Commission is expected to publish its
Enlargement strategy for the coming year as well as the Progress Reports for each of the EU
candidate and potential candidate countries, which include Albania, Bosnia and Herzegovina,
Kosovo, Macedonia (FYROM), Montenegro, Serbia and Turkey. For Croatia the EU will
publish its 'Comprehensive Monitoring Report', ahead of its expected accession next year.
“The EU needs to fine-tune its approach and become more holistic in its support for the fight
against corruption in prospective members,” said Jana Mittermaier, Director of the
Transparency International liaison office to the EU.
The EU accession process is a unique opportunity to encourage reforms in EU candidate and
potential candidate countries. However, TI’s anti-corruption monitoring in the countries shows
that progress has been uneven and several countries continue to grapple with systemic
corruption in their public institutions. The Corruption Perceptions Index in 2011 found that
accession countries in the Western Balkans and Turkey all scored under 4 (0 being highly
corrupt, and 10 very clean).
Common issues for accession countries include the lack of implementation of anti-corruption
reforms, inadequate infrastructure and weak capacities for key institutions to carry out their
work.
“Before EU accession, future members should have mechanisms in place that prevent all
forms of corruption, as an important safeguard against economic crisis,” said Jana
Mittermaier.
Past experience has also shown that if laws are being passed in a hurry to meet EU
requirements, this was to the detriment of their quality. In order to build strong anti-corruption
mechanisms, the EU should encourage national governments to respect proper democratic
consultation procedures.
NB: Transparency International National Chapters and partner organisations in the accession
countries will evaluate the European Commission progress reports once they have been
published, and are available for interviews on national anti-corruption issues.
For more information on TI EU’s work in the area of Enlargement please visit our website
here: http://www.transparencyinternational.eu/focus_areas/enlargement/
Media contacts:
Jana Mittermaier, Director
Transparency International liaison office to the EU
T. + 32 2 23 58 621
E. jmittermaier@transparency.org
Nienke Palstra, Policy Officer
Transparency International liaison office to the EU
T. + 32 2 23 58 643
E. npalstra@transparency.org

European Parliament should not backtrack on
its Code of Conduct and transparency
Brussels, 8 November 2012
Almost one year on from the adoption of the Code of Conduct for Members of the
European Parliament, the question must be asked: how has the Code been
implemented so far and what are the lessons learned?
Jana Mittermaier, Director of the Transparency International EU office in Brussels
said “We firmly believe that an effective and well-functioning Code will allow
European parliamentarians to demonstrate their high standards of integrity given
their role in serving the public interest and holding other European institutions to
account.”
When the Code was adopted in December 2011 in the wake of the ‘cash-foramendments’
scandal, Transparency International stated that a regular review of the
Code would be necessary to ensure that its provisions are not abused or watered
down. The European Parliament has recently created a new ‘working group’ to look
at implementing measures.
Here are a number of issues of concern:
Although Transparency International supports that the European Parliament
is addressing the issue of implementing measures, it is of concern that the
drafting process is being conducted behind closed doors. The Code of
Conduct should be implemented in a public and transparent manner. This
includes the drafting of any related provisions by the working group.
The issue of gifts and hospitality must be addressed adequately. How the
Parliament deals with this point should be considered a litmus test for whether
the institution is serious about closing the institution’s integrity gaps.
Potential conflict of interest that may occur due to secondary employment or
other remunerated activities. The disclosure of financial interests by Member
of the European Parliament must be more detailed. Transparency
International calls for complete disclosure of the details of all activities and the
exact income earned.
In addition to these calls, Transparency International has published a number of
recommendations to strengthen the working group process and the Code on its
website.
“A strong Code rigorously enforced will signal a clear commitment to high integrity
safeguards and help to strengthen the public’s trust in the European parliament and
their members,” added Jana Mittermaier.
Note to editors: Transparency International EU Office is organising an event on
Tuesday 13 th November entitled ‘Ethics & Integrity in Parliaments – How to best
implement Codes of Conduct?’ where the European Parliament’s new Code of
Conduct will be one of the key issues discussed amongst others. It will be held in

Brussels between 17.00 and 19.30 in the Luxembourg Room of the Science14
Atrium, 14b Rue de la Science. To register please email: eu@transparency.org.
For further information, please contact Jana Mittermaier at the address below.
Transparency International is the global civil society organisation leading the fight
against corruption.
Jana Mittermaier
Director
Transparency International
Liaison office to the EU
Rue Breydel 40, 1040 Brussels, Belgium
T. + 32 2 23 58 621
F. + 32 2 23 58 610
E. jmittermaier@transparency.org
www.transparencyinternational.eu

Transparency International uses award to
highlight need for ethical lobbying
Brussels, 20 November 2012
On 14 November, the European Public Affairs Award granted Transparency International EU
Office the "NGO of the Year" award. Transparency International views this award as
recognition of past accomplishments but more importantly as a renewed call to continue to
confront corruption and advocate for integrity, accountability and transparency in Europe and
a broad range of European policies areas. The Transparency International EU Office has
been given the award because it raised awareness about integrity gaps in institutions at both
European and national level and it advocated for more transparent and ethical lobbying.
This award puts the spotlight on public affairs in Brussels - or "lobbying" as many would call it.
At a recent OECD survey, nearly two-thirds of public affairs professionals indicated they
would welcome mandatory regulation and disclosure of lobbying activities.
Jana Mittermaier, Director of the Transparency International EU office suggested to the
audience that “public affairs should be public by default. We believe that lobbyists should
never lose sight of the public interest and should abide by high ethical standards with respect
to the democratic process. This includes all of them joining the lobby register – which should
be mandatory – and supporting the idea of detailed disclosure of (financial) interests and a
‘legislative footprint’ when interacting with EU stakeholders.”
The European Union politics are not free from doubt whether these ethical standards are
always respected: The cash-for-amendments scandal last year exposed weaknesses in the
ethical rules of the European Parliament. Many important companies and law firms clearly
involved in public affairs in Brussels still refuse to register in the EU Transparency Register.
Jana Mittermaier added: “It's in all of our interests that ethical lobbying rules are respected –
in word and in deed - and we very much hope to work together to achieve this.”
--- end ---
Jana Mittermaier
Director EU Office
TRANSPARENCY INTERNATIONAL
Rue Breydel 40
B-1040 Brussels (Belgium)
Phone: +32 2 23 58 621
Email: brussels@transparency.org
www.transparencyinternational.eu

Robust rules needed for fair and clean
European Parliament Elections 2014
Brussels, 26 November 2012
In a resolution passed with a large majority last Thursday (22 November 2012), the European
Parliament has called on European Political Parties to put forward candidates for the
President of the European Commission for the 2014 European Parliament elections to boost
the profile of these elections. At the same time, Parliament and Council are discussing new
rules regarding the statute and funding of European Political Parties.
In the light of these debates, the Transparency International EU Office has published an EU
Position Paper on the recent proposals of the European Commission regarding the statute
and financing of European Political Parties. The Position Paper puts forward 10
recommendations on how to further improve the proposed rules in order to ensure a more
robust framework ahead of the 2014 European Parliament elections.
“We would like to see political finance rules at European level which ensure fair and clean
European Parliament elections in 2014,” says Jana Mittermaier, Director of the Transparency
International EU Office. “We welcome the proposal for a revision of the current rules as they
are not adequate when it comes to reporting obligations, monitoring and sanctions, in
particular during European Parliament election campaigns. However, our analysis shows that
the new proposed rules would still leave loopholes if adopted as they stand today.”
Research by Transparency International synthesised in the 2012 report “Money, Politics,
Power: Corruption Risks in Europe” has highlighted systemic corruption risks in the financing
of political parties across Europe. These risks concern, among others, the lack of registration
and disclosure of political donations or the failure to enforce political party financing rules
even when irregularities have been discovered. Only in a framework where transparency,
monitoring and enforcement of the rules are effective at national and European level can the
European Parliament elections be used as a driver for more accountability in Europe.
Note to editors:
--- Ends ---
The new rules for European Political Parties are expected to be discussed this afternoon,
Monday 26 November at 15h00, in the European Parliament’s Constitutional Affairs
Committee (agenda + procedural file).
Next week, Thursday 6 December 2012 from 18h00 – 20h00, the Transparency
International EU Office will organise an event on “Political Party Integrity in Europe”.
Jana Mittermaier
Director EU Office
TRANSPARENCY INTERNATIONAL
Rue Breydel 40
B-1040 Brussels (Belgium)
Phone: +32 2 23 58 640
Email: brussels@transparency.org
www.transparencyinternational.eu

Transparency International EU Office welcomes Annual
Report of the Transparency Register
Brussels, 28 November 2012.
The Transparency International EU Office (TI EU) welcomes yesterday’s publication of the
Annual Report of the EU’s lobbyist register, referred to as the Transparency Register. The
report has been produced by the Secretaries General of the European Parliament and
European Commission and has been sent to the Vice-Presidents of each of the institutions.
The Transparency Register is an integral part of the EU’s transition towards greater
transparency over lobbying and the first annual report shows that progress has been
achieved. However, significant weaknesses and short-comings still exist as highlighted in the
recommendations Transparency International published last September.
Reference in the report to the new objectives for the register’s second year of operation, in
particular with regards to improving the quality of the information provided “by enforcing strict
compliance with the rules by registrants” is strongly welcomed. Ensuring that the rules are
respected by all is not only important for the credibility of the system in the eyes of the citizens
but also for other organisations who register in good faith.
Jana Mittermaier, Director of the TI EU Office, said that “the fact that the Transparency
Register exists at all is a credit to the European Parliament and European Commission. We
should not forget that compared to many member states the EU is committed to
continuously improving lobbying transparency standards. However, we believe the system
could and should be improved in many ways. The non-mandatory nature of the register is still
the main weakness.”
Increasing visibility of the system amongst institutional staff is very important. TI EU would like
to see a situation where checking whether an individual or organisation is a member of the
Transparency Register becomes the default response of staff members (or MEPs) when
being contacted by lobbyists.
In addition, TI EU strongly believes that not only should the Council become a member of the
Register but the European Central Bank (ECB) should also join, particularly in light of the new
supervisory powers it will assume. That the Council has taken a first step to become an
‘observer’ of the Secretariat is particularly welcome. Transparency International EU urges the
ECB to make a similar move in the coming months, with a view to full participation in 2013.
Jana Mittermaier
Director EU Office
Transparency International
Rue Breydel 40, 1040 Brussels, Belgium
T. + 32 2 23 58 647
E. jmittermaier@transparency.org

TI EU welcomes move to block "revolving door"
between ECB and Banks
Brussels, 29 November 2012.
The Transparency International EU Office (TI EU) today welcomed the strong
measures adopted by MEPs to prevent conflicts of interest in the European Central
Bank (ECB). The European Parliament's Economic and Monetary Policy
(ECON) Committee overwhelmingly voted for a two year "cooling-off period" that
would prevent members of the proposed ECB Supervisory Board from taking up paid
work in the banking sector when they leave office.
The European Commission has proposed that the ECB takes over responsibility for
supervision of the Eurozone banking sector from 1 January 2013.
The ECON committee has also voted for a tough regime to deal with possible
conflicts of interest resulting from the new supervisory role, including a
standing ethics committee which will draw up rules on employment after
leaving the ECB. The results of the ethics committee's assessments would be
disclosed, allowing the public to decide whether the prospect of private sector
employment has unduly affected the Bank's actions in this area.
"Too often in the field of banking supervision, we have seen gamekeepers
turn into poachers overnight", said Jana Mittermaier, Director of the TI EU
Office. "This vote is recognition that the revolving door between supervisors
and the banking industry can lead to undue influence and corruption if not
properly regulated. These measures to deal with conflicts of interest would be
the strongest yet for an EU institution - if implemented properly they will help
shore up public confidence in the ECB's new mandate".
Next month, the European Parliament will begin negotiations
with Member States on the final text of the legislation underpinning the new
supervisory powers.
-- ends --
Transparency International is the global civil society organisation leading the
fight against corruption.

For Further information contact:
Jana Mittermaier
Director EU Office
Transparency International
Rue Breydel 40, 1040 Brussels, Belgium
T. + 32 2 23 58 640
E. jmittermaier@transparency.org
Carl Dolan
Senior EU Policy Officer
T: +32 (0)2 23 58 603
M: +32 (0)488 563 435
E: cdolan@transparency.org
Editors Notes:
1. On 12 September 2012, the European Commission published proposals to
transfer supervisory powers over Eurozone banks to the ECB. The
Commission has proposed that the ECB will have the authority to grant and
withdraw banking licences, ensure compliance with capital requirements,
remove members of a bank’s board and impose fines. The full text of the
proposal is available here. The legislation will be agreed by Member States
through a Council regulation. The European Parliament will issue an owninitiative
opinion on the proposals.
2. Transparency International has published a position paper on improving
accountability and transparency in the ECB, which highlights five areas of
concern, including the management of conflicts of interests.

Perceived corruption ranking shows two-speed Europe
Brussels, 05 December 2012.
Transparency International today launched the 2012 Corruption Perceptions
Index ranking 176 countries/territories - including all EU member states and
Croatia - by their perceived levels of public sector corruption.
The results for EU countries show huge variations: Denmark, Finland and
Sweden are not only leading the EU ranking but find themselves on top of the
global list. Greece, Bulgaria, Italy and Romania at the bottom of the EU list,
and languishing in the middle ranks globally, show that old as well as new EU
member states continue to face great challenges in the fight against
corruption.
“EU and national leaders must step up and lead by example to accelerate
anti-corruption reforms in Europe” said Jana Mittermaier, Director of the
Transparency International EU Office. “A two-speed Europe, where some
citizens’ lives are still blighted by corruption, is unacceptable. All EU countries
should move towards a culture of transparency and integrity, with no impunity
for those involved in corrupt acts. Closing integrity gaps in the public sector
will not just raise the public’s trust in national and European institutions; it will
also be a safeguard preventing corruption from causing future economic
crises.”
Transparency International has consistently warned Europe to address
corruption risks in the public sector to tackle the financial crisis, calling for
strengthened efforts to corruption-proof public institutions. The 2012 TI report
"Money, Politics, Power: Corruption Risks in Europe" has highlighted the risks
to public sector integrity posed by the interface of money and politics in such
areas as lobbying, political party financing and public procurement.
-- Ends --
Transparency International is the global civil society organisation leading the
fight against corruption.
Note to editors: In 2013, the European Commission will publish the first EU
Anti-Corruption Report covering all EU countries.
For Further information contact:
Jana Mittermaier
Director EU Office
Transparency International
Rue Breydel 40, 1040 Brussels, Belgium
T. + 32 2 23 58 640
E. brussels@transparency.org