International Journal of Government Auditing – January 2012
Peru
II International Conference against Corruption
The SAI of Peru—an active member of the INTOSAI Working Group on the Fight against Corruption and Money Laundering—hosted the II International Conference against Corruption in Lima October 3–4, 2011. Attendees included international anticorruption experts, government officials, businessmen, and other representatives of the private sector. In discussions and presentations throughout the conference, participants acknowledged the latest developments in the fight against corruption and shared their related experiences.
At the conference, Peruvian Comptroller General Fuad Khoury Zarzar gave an overview of the anticorruption strategy his SAI is proposing. The strategy encompasses seven components: a high-level government commitment, 360-degree legislation, state policy, education and values, involvement of the private sector, communication, and the measurement and monitoring of results.
This model will promote the development of instruments in the legal and operational framework of government audit. It will also appeal to and actively involve institutional and citizen stakeholders in strengthening tools to promote internal control, prevent corruption, and address civil complaints. Most importantly, it will encourage a cooperative and integrated approach among institutions responsible for fighting corruption.
Daniel Kauffmann, a researcher with the Brookings Institution, stated that corruption is an important symptom of institutional failures and that the causes of the systemic fault must be identified. While causes may vary from one institution or country to another, they are mostly due to the lack of transparency. Whenever there is impunity, the incentives are so great that officials take the risk and become corrupt.
He also stated that in order to establish a winning strategy in the fight against corruption, essential aspects of democracy must be at work. The media, instead of being monopolized and corrupt, must be effective and competitive. Most importantly, the government must be open and transparent, aware of the problems, and able to measure indexes of corruption.
In this context, Kauffman pointed out that if problems in the institutional, government, and corruption frameworks are not addressed, countries such as Peru will not be able to maintain the level of growth they have experienced during the past 5 or 6 years.
Patrick Alley, one of the founders of Global Witness and a 2003 Nobel Peace Prize nominee, discussed the global necessity of a frank discourse with the governments of countries that have low levels of corruption but whose banks may be receiving funds from corrupt sources and concealing the identity of the perpetrators of corruption.
János Bertók, an official of the Organisation for Economic Co-operation and Development, affirmed that preventing corruption should involve the carrying out of legislation, the training of human resources, the implementation of internal controls, the strengthening of external controls, the commitment of leadership, and a “meritocracy” in public administration and accountability.
On a similar note, Francesca Recanatini, head of the World Bank’s Anticorruption and Governance Thematic Group, recommended the implementation of e-government to reduce the risk of corruption and improve transparency and accountability. She also pointed out the need to implement an integrated legal framework, as well as the need for oversight of institutions responsible for monitoring and presenting results to citizens.
Taryn Vian, an associate professor at Boston University, charted the extent of damage caused by corruption, stating that it may be costing the public sector in Latin American countries $28 billion dollars a year. Furthermore, it has limited the impact of improvements envisioned in the health sector, such as lowered child mortality rates. Although health costs in the region have doubled during the past 14 years, services have not improved, with the greatest impact being felt by the poorest sectors.
She added that a map of risks in the Latin American health sector had identified problems such as the absenteeism of medical staff, the robbery of supplies, patients not receiving health care or being overcharged for services, and the withholding of reimbursements to patients. She noted that measures that had demonstrated success included promoting social control and accountability and publishing the international drug price indicator guide in order to compare prices.
By hosting the II International Conference against Corruption, the SAI of Peru highlighted the challenges to reducing corruption in government institutions. This task is not the sole responsibility of institutions investigating, monitoring, and penalizing cases of corruption; rather, it is the responsibility of administrators and public sector managers charged with establishing order, presenting results, and fighting against corruption in their own areas, institutions, programs, projects, and sectors.
For additional information, contact the SAI of Peru:
E-mail: contraloria@contraloria.gob.pe
Web site: www.contraloria.gob.pe