ANNUAL REPORT2010

THE HIGH INSPECTORATE OF DECLARATION AND AUDIT OF ASSETS

The High Inspectorate of Declaration and Audit of Assets (HIDAA) in the realization of the purpose of his legal control of private interests of elected officials and certain public employees, and in view to identifying, avoiding and preventing conflicts of interest in exercising public duties, in 2010 has done its utmost to fulfill all duties and responsibilities.

  • VISION

HIDAA acts in fulfillment of legal obligations set out in two basic laws governing the operation of this institution, Law Nr.9049, date 10.04.2003 "On the declaration and audit of assets, financial obligations of elected officials and certain public officials" and Law 9367, dated 07.04.2005 "On prevention of conflicts of interest in the exercise of public functions", as well as strictly adhering to the recommendations of the Assembly of the Republic, presented the Resolution "On evaluating the work of High Inspectorate of Declaration and Audit of Assets for the year 2009. "

Also, in compliance with legal responsibilities, HIDAA is also referred to European Commission recommendations, which on the Progress Report for Albania, published in November 2010, said: "HIDAA has started to produce satisfactory results. However, it is imperative to strengthen the law and cooperation with the Prosecution Office for a more thorough investigation of the assets declared. "

  • METHODOLOGY

During many professional activities, the High Inspectorate during 2010 has had as top priority the prevention and avoidance of conflicts of interest in public administration.In this regard, HIDAA is committed to strengthening institutional capacity, conducting training seminars with officials from central and local administration in the main districts of Albania.In cooperation with international organizations, USAID, the OSCE, the High Inspectorate has trained on the identification, prevention and avoidance of conflicts of interest over 600 officers, most of whom are employees of some central ministries.

High Inspectorate has shown willingness at any time to provide legal assistance to various officials for the prevention and avoidance of conflicts of interest in the exercise of public functions.

Treatment and prevention of conflicts of interest

Commitment in this regard has given positive results, in order to prevent conflicts of interest, but the fulfillment of legal obligations, provided in the law on conflict of interest, for 2010, are interpretations for treatment and solution of concrete cases, as follows:

  • 38 cases followed for interpretation and solution of the officials, institutions, etc. Responsible Authorities institutions.
  • 47 cases of alleged conflict of interest presented by the various institutions of public administration (mainly in tax and customs administration), treated and performed in collaboration with the High Inspectorate.
  • 110 cases treated with the Responsible Authorities of central institutions of local government (municipality, the municipality, county) during periodic meetings held in them, in the time frame to prevent cases of conflict of interest.

TREATED CASES AND PREVENTED CASES

OFCONFLICT OF INTEREST

Besides the preventive role, the High Inspectorate has exercised his powers and sanctions, which occasionally has applied administrative measures for public officials caught in a conflict of interest.

If we refer to a statistical performance, we will have:

  • February-June, settled administrative measures "fine" for 18 officials, who, after the verification and collection of relevant documentation, have not resulted in avoiding conflicts of interest within the time specified and according to legal provisions.Some of these officials against whom administrative action was taken, are employees of tax and customs administration and local government leaders.
  • in July, is determined and set administrative measure "fine" for the two local government officials (namely Saranda Municipality) who resigned from public functions, as well as simultaneously exercise the profession of "auditor" for some companies, a part of which had received public funds in tendering procedures developed at their institution.
  • During this same period,there was a case of 1 officer and a manager of a state enterprise in the same administrative unit, which once resulted in a conflict of interest, has made ​​resolution of this conflict, functional incompatibility, by withdrawing from active practice of the profession of private free.
  • A member elected deputy, was fined with 300,000 All fine, because of conflict of interest at the time of exercise of office as Minister, having appointed as a member of a supervisory board someone under his institution, a person who a few days before being appointed in the administration, had administeredthewife’s official assets, under the quality of the "trusted person".
  • Mayor of the VajguroreBridge was fined in the amount 200,000 leks, because he participated in the examination and discussion of building permit application for a Construction Companywhich had his brother as a partner in shares.

ADMINISTRATIVE MEASURES "fines" for conflict of interest

Penalties for conflict of interest in 2009 / Penalties for conflict of interest in 2010
8 cases / 20 cases

Data for 2010

Role of Responsible Authorities

Training of officials and responsible authorities has significantly increased the capacity of the institutions themselves to identify and prevent conflicts of interest.Only the General Tax Directorate, in close cooperation with the High Inspectorate has identified, prevented and resolved 120 cases of conflict of interest in the administration of this institution.

Also, cases of conflict of interestshave been solved by these institutions:

- 1 case by the Public Procurement Agency

- 2 cases, the Municipality of Tirana

- 1 case the Bank of Albania

–1 case The Ministry of Labor, Social Affairs and Equal Opportunities

- 10 cases of alleged conflict of interest in the Ministry of Defense are still in the joint review with the High Inspectorate of Declaration and Audit of Assets

Meanwhile, many other institutions of central and local level have increased their sensitivity in terms of avoiding conflicts of interest.However, the number of cases referred for investigation and solution of conflicts of interest is still far from the expectations of public opinion.High Inspectorate is the central authority responsible for preventing conflicts of interest, in addition has a controlling and punitive role, and the institution designs and strategies for law enforcement.However, it is the duty of public institutions themselves to take measures to avoid conflicts between public office and private interests of officials who are part of their staffing.

High Inspectorate, which is currently controlling authorities in charge, including the structure that coordinates activities and collaborates with the HIDAA to about 90 central institutions, concludes that the difficulty is in applying in practice the requirements of the law.

To facilitate the implementation of tasks related to preventing conflicts of interest, the High Inspectorate has asked during 2010, inter alia, amending the 9367 law date;7.4.2005, which consist of strengthening these structures; annual evaluation of their work, and if possible move from the current placement to a new one, they should obtain the opinion of the High Inspectorate.

Through these amendments regarding the role of the Responsible Authority, is intended to further extend the commitment to preventing conflicts of interest and corruption in public administration.Because these structures are a very important link in the chain of avoiding conflicts of interest, HIDAA is convinced that the more rapid adoption of these amendments will significantly increase these positive results.

Technical Support Officers

HIDAA staff has been engaged in providing technical assistance and legal ways of completing the declaration of private interests, as well as awareness of the subjects to respect the legal deadlines for submission of this official document.Consequently, in 2010 there has been a decline to about 70%, compared with a year ago, the officials, who in the High Inspectorate are recalled due to technical errors in filling in the form of property.

Also, the number of officials fined for the delay in submission of the declaration of private interests has been decreasing.More specifically, during the reporting year, HIDAA has applied the measure "fine" to 46 entities for violations of legal limits.

Control Mechanisms

The Assembly of Albania, on the Resolution on the High Inspectorate for the year 2010, requires "enforcement of a closer administrative investigation instrument, especially in sectors of public life, where the phenomenon of corruption is more widespread and public confidence lower." Pursuant to this recommendation, the High Inspectorate has added significantly to the field investigations on the application of various assets of officials, as one of the measures for discovery of assets of officials, for which there is reasonable suspicion to arise as a result of abusive and corrupt actions.This measure is one of the most important one being applied by the High Inspectorate and based also on collected information is providing concrete results.

Also, worth mentioning is that the form of "case-to-case" regarding conflict of interests, was drafted a year ago by the High Inspectorate in cooperation with the Public Procurement Agency, and is now standard document for each procurement procedure has significantly reduced in cases of abuse among the public officials.In the detailed format of the statement are clearly written the limitations of private interests of certain categories of officials, who because of their public function, are allowed to benefit directly or indirectly from public funds.By completing this declaration, the representative of the economic operator declares under its responsibility, that any official specified in Chapter III, Section II of the Law 9367, dated 7.4.2009, owns private interests directly or indirectly with legal entity he represents.Application of declaration of conflict of interest to economic operators in the standard documents is an important instrument for preventing conflicts of interest in public procurement.

Internal Collaboration

High Inspectorate, to strengthen the preventive role against corruption, continues close cooperation with other public institutions including nongovernmental organizations. More specifically, during 2010, the institution has signed cooperation agreements with:

  • With the Office of the Commissioner for Personal Data Protection, to respect international principles of conservation officialsethics
  • With the High Council of Justice was once again reaffirmed the determination to deepen the investigation and initiating a long series of two-way control over the private interests of judges.
  • Department of Internal Anti-Corruption Council of Ministers, to exchange data on cases of alleged corruption.

During 2010, the High Inspectorate has focused on concrete and rigorous cooperation with the Common Unit Task Force against corruption under the Prosecutor General and other institutions as the NationalRegistrationCenter, NationalLicensingCenter, the Public Procurement Agency, etc. To create a more detailed data source on the assets of officials, the High Inspectorate has included among the cooperating institutions and some non-bank financial institutions, whichhave shown utmost correctness of any requests made ​​by our institution.

High Inspectorate, through financial support of international partners, especially USAID and the OSCE Presence in Albania, has been very active in drafting and publication of awareness materials, in order to direct the preventive role.Thus the High Inspectorate has finalized:

  • Manual No. 4 on the administrative investigation and treatment of cases of criminal offenses in the declaration of private interests
  • Legal Commentary No. 5

Despite the initiatives taken by the High Inspectorate regarding the improvement of investigative techniques, in 2010, the institutional practice found that the subjects declaring in periodic statements, incomes were reflected in informal ways, through related persons, such as significantly gifts values ​​, borrowing or lending in informal ways, etc...

Verification of the authenticity of the source of creation of such income is a necessity of declaringthe administration persons connected with the officer.The application of this legal obligation is fulfilled by the institution and this is demonstrated in the increasing number of statements on request, compared with last year.However, this mechanism can not be applied in full by the High Inspectorate, as, there are persons related to the official who refuses to declare their private interests, and there is no sanction in the Criminal Code to foresee these cases.This has ledin some cases the investigation, especially in those that had a high sensitivity in public opinion, the High Inspectorate has failed to give full conclusions.For these cases of refusal, HIDAA has applied only legal remedy available to it, putting in 3 casesan administrative measure of "fine", which is of little value and easily affordable by persons associated with subjects who refuse to declare theirprivate interests at HIDAA.

To improve the investigation in this direction, but also for other problems that are found during the investigation, the High Inspectorate has introduced the proposal to amend the two laws on which it works, as well as Article 257 / a of the Code Criminal Code, defining criminal sanctions on persons affiliated with the officialrefusing to declare assets.

Strengthen investigative capacity

Assembly of Albania in the 2010 recommendations of the High Inspectorate, required;"proposing the necessary changes in legislation to regulate the legal consequences caused by the conflict of interest situations and to punish the officials or persons connected with them, responsible for conflict of interest.”

Referring to this request, and given the difficulties encountered during the practical implementation of two laws on which the institution operates, has submitted the relevant draft amendments, in order to strengthen the role of preventive and punitive control of the institution.Through the amendments, is aimed precision in each specific law obligations, responsibilities, means of legal procedures for their implementation in practice and sanctions for certain violations, thus avoiding excessive referrals and making both more comprehensive laws, and effective and more accurate view of legislative framework.

Laws preventing conflicts of interest

Draft law changes introduced in Law No.9367, date 7.4.2005 "On prevention of conflicts of interest during theexercise of public functions" is changed, aimed at strengthening the effectiveness in avoiding conflicts of interest in public administration, which emphasizes:

  • Forecast legal instruments for fighting the act issued as conflict of interest and legitimacy of the High Inspectorate of Declaration and Audit of Assets as a party to the proceedings.
  • Application of punitive measures in cases of conflict of interest for specific cases and decisions, whenprivate interests of officials affect the performance of public duties.
  • Building capacity and increasing the role of the authorities responsible for preventing conflict of interest in the exercise of public functions.
  • Strengthening of restrictions and banning the private interests of elected local government

Practical implementation of the law on conflict of interest has faced difficulties in striking cases of conflict of interest.The findings and punishment of officials who have acted in conflict of interest, is not at the same rate following the investigation of the act.Public institutions, which have the responsibility to act to get the shock of a conflict of interest generally, do not perform this legal duty by not giving the expected results in the fight against corruption.

The High Inspectorate has concluded that it should be put in motion the legal instruments that act to regulate the legal consequences of acts taken in a conflict of interest when institutions do not provide solutions.This phenomenon found in most cases, makes it an imperative need for not only individual / parties affected by an act of conflict of interest, but others to be more active in reporting specific cases,\ and require the intervention of HIDAA, as the central authority responsible for law enforcement to prevent conflicts of interest.

In order to increase the effectiveness of the controls exercised in cases of conflict of interest and the regulation of the legal consequences of acts taken in a conflict of interest, the High Inspectorate should be legitimized as a party to launch any trial in order finalization of an administrative proceeding to start his own initiative or at the request of interested parties, helping to regulate the legal consequences of an act taken / issued in terms of conflict of interest.

Proposal for amendments to the law has provided legitimacy as a party to the High Inspectorate for the regulation of the legal consequences of acts adopted under a conflict of interest; thereby realize a higher performance in full prevention of conflict interests.

Law declaration and control of assets

Draft amendments presented by the High Inspectorate, based on the law nr.9049, dated 10.04.2003 "On the declaration and audit of assets, financial obligations of elected officials and certain public institutions" require change, aimed at strengthening the legal mechanisms and intensify the legal procedures in terms of verification of the private interests of officials who have the obligation to declare and related persons, stating:

  • Inclusions in the declaration of directors declaring entities of the health sector, education or other important institutions at the regional level, who perform public functions in areas that have a direct impact on the public and high-risk for involvement in situations of corruption.
  • Also intended to be included under the subject to the "Declaration on the request" the "cohabitant" within the meaning of sections 163 and 164 of the Family Code, the circle of persons who are required to declare private interests, at the request of the Inspector-General when the resulting persons associated with the entity has the obligation to declare.
  • Determination of the scheme on how will be carried full control over entities that have the obligation to declare
  • Setting before legal responsibilities the family liability of officials for cases of "refusal to declare" or "hidden assets"
  • Necessaryproposals required to guarantee independence and institutional integrity.
  • Strengthening of administrative sanctions for violations of the declaration process and legal timing by declaring entities and related persons.

With the approval of Law 9367, dated 7.4.2005 the provisions on administrative violations of law nr.9049, dated 10.4.2003 was abolished and was included in Article 44 of Law 9367, dated 7.4.2005.This has created difficulties in its implementation in practice has led to excessive use of references that make the two laws are unclear and difficult in practical application.This draft law aims at bringing to the declaration of assets, provisions for violations of its sanctions, making it more comprehensive, clearer and avoiding references to its implementation in practice, both by officials and by the Inspectorate High.