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National Integrity System Assessment Azerbaijan NATIONAL INTEGRITY SYSTEM ASSESSMENT AZERBAIJAN Transparency International is a global movement with one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. Through more than 100 chapters worldwide and an international secretariat in Berlin, we are leading the fight against corruption to turn this vision into reality. www.transparency.az ISBN: 978-9952-8251-5-2 © 2014 Transparency Azerbaijan. All rights reserved. Printed on 100% recycled paper. Author: Transparency Azerbaijan Research Team © Cover photo: Jahangir Yousif Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of July 2014. Nevertheless, Transparency Azerbaijan cannot accept responsibility for the consequences of its use for other purposes or in other contexts. This document is funded by the European Commission. The content of this document is the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the donors. ACKNOWLEDGEMENTS Transparency Azerbaijan would like to thank the following individuals for their careful review and kind contributions (in alphabetical order): Akif Gurbanov, member of Central Election Commission Alakbar Guliyev, head of the office of Public Procurement Agency Alimammad Nuriyev, coordinator, Constitution Research Foundation; coordinator of the Information and Cooperation Network of Non-Governmental Organisations for Combating Corruption Alipasha Qeybullayev, National Productivity and Competitiveness Centre Aydin Safikhanli, head of the office, the Commissioner for Human Rights (Ombudsman) of the Republic of Azerbaijan Elgun Tagiyev, independent expert Faiq Najafov, head of legal department of the Chamber of Accounts Farid Gahramanov, media expert, Turan Information Agency Fuad Agayev, independent lawyer Fuad Suleymanov, independent legal expert Gulagha Aslanly, a former member of Central Election Commission Gultekin Hajibeyli, former Member of Parliament Gulamhussein Aliyev, chairman of Aydinlar party; associate professor Law school, Baku state University Hafiz Hasanov, Law and Development Public Association Ilyas Ismaylov, Member of Parliament, leader of the Adalat party Islam Bayramov, managing partner, HLB LLC Azerbaijan, member of Chamber of Auditors Javid Huseynov, head of the office, Judicial Legal Council Kanan Aslanli, Public Finance Monitoring Center Mehman Aliyev, Director of Turan Information Agency Muzaffar Bakhishov, Constitution Research Foundation Legal Reforms Murad Nasibov, independent expert Nazir Guliyev, Legal World Public Union for Legal Advocacy Panah Huseynov, former Prime Minister of the Republic of Azerbaijan Gubad Ibadoglu, Center for Economic Research Ramil Iskandarli, Legal Analysis and Research Public Union Ramin Huseynov, Senior Prosecutor, head Anti-Corruption department under the Prosecutor General Rovzat Gasymov, head of office, Election Commission Secretariat Sabit Bagirov, Entrepreneurship Development Foundation Sahib Mammadov, Citizens’ League for Labour Rights Samir Isayev, independent lawyer Samira Agayeva, independent lawyer Vasif Movsumov, Fund of Struggle against Corruption Vugar Bayramov, Center for Economic and Social Studies Vugar Askerov, head of the legal department, Civil Service Commission Vusal Huseynov, secretary to the Anti-Corruption Commission Zafar Guliyev, independent political expert Zaur Ibrahimli, senior researcher, Constitution Research Foundation TABLE OF CONTENTS I. INTRODUCTORY INFORMATION 2 II. ABOUT THE NATIONAL INTEGRITY SYSTEM ASSESSMENT 3 III. EXECUTIVE SUMMARY 9 IV. COUNTRY PROFILE 13 V. CORRUPTION PROFILE 22 VI. ANTI-CORRUPTION ACTIVITIES 24 VII. NATIONAL INTEGRITY SYSTEM 28 1. LEGISLATURE 28 2. EXECUTIVE 40 3. JUDICIARY 51 4. PUBLIC SECTOR (INCLUDING PUBLIC PROCUREMENT) 63 5. LAW ENFORCEMENT AGENCIES 80 6. ELECTORAL COMMISSION 90 7. OMBUDSMAN 101 8. CHAMBER OF ACCOUNTS 111 9. ANTI-CORRUPTION AGENCIES 122 10. POLITICAL PARTIES 139 11. MEDIA 150 12. CIVIL SOCIETY 161 13. BUSINESS 174 VIII. CONCLUSIONS AND RECOMMENDATIONS 189 I. INTRODUCTORY INFORMATION Corruption is generally of a systemic nature, and fighting it requires a holistic approach and a comprehensive strategy. This is why in 2001 Transparency International developed the concept of the National Integrity System assessment. The purpose of the study is to assess systemic corruption risks faced by a country and to produce a set of recommendations on how to mitigate those risks in the future. While acknowledging the challenges of the comprehensive assessment of governance institutions, the National Integrity System assessment points out key gaps in the anti-corruption legal framework, as well as weak spots in the execution of those laws, and it provides a road map for future reforms. Those recommendations can then be used by actors in government, civil society and the private sector for promoting integrity in the country. To date, assessments have been completed in more than 100 countries. Transparency International has conducted several assessments in the region, including Ukraine (2011), Georgia (2011) and Moldova (2014), among others. Transparency International began a National Integrity System assessment for Azerbaijan in 2013, funded by the European Commission. The assessment focuses on an evaluation of the key public institutions and non-state actors in the country’s governance system with regard to (1) their overall capacity, (2) their internal governance systems and procedures, and (3) their role in the overall integrity system. The assessment examines both the formal legal framework of each pillar and the actual institutional practice. The analysis highlights discrepancies between the formal provisions and the reality on the ground, making it clear where there are gaps in the integrity system. It is Transparency International’s hope that the concrete recommendations for the country’s key institutions and actors to strengthen transparency, accountability and integrity will be taken up by the relevant bodies. This assessment should also provide a set of good governance benchmarks for the citizens of Azerbaijan to hold their government and elected officials to account through public dialogue and policy engagement, whereas public institutions can use recommendations in designing their anti-corruption programmes. 2 TRANSPARENCY AZERBAIJAN II. ABOUT THE NATIONAL INTEGRITY SYSTEM ASSESSMENT The National Integrity System assessment approach used in this report provides a framework to analyse both the vulnerabilities of a given country to corruption as well as the effectiveness of national anti-corruption efforts. The framework includes all principal institutions and actors that form a state. These include all branches of government, the public and private sector, the media, and civil society (the “pillars” as represented in the diagram below). The concept of the National Integrity System has been developed and promoted by Transparency International as part of its holistic approach to fighting corruption. While there is no blueprint for an effective system to prevent corruption, there is a growing international consensus as to the salient institutional features that work best to prevent corruption and promote integrity. A National Integrity System assessment is a powerful advocacy tool that delivers a holistic picture of a country’s institutional landscape with regard to integrity, accountability and transparency. A strong and functioning National Integrity System serves as a bulwark against corruption and guarantor of accountability, while a weak system typically harbours systemic corruption and produces a myriad of governance failures. The resulting assessment yields not only a comprehensive outline of reform needs but also a profound understanding of their political feasibility. Strengthening the National Integrity System promotes better governance across all aspects of society and, ultimately, contributes to a more just society. NATIONAL INTEGRITY SYSTEM ASSESSMENT AZERBAIJAN 2014 3 Definitions The definition of corruption which is used by Transparency International is as follows: “The abuse of entrusted power for private gain. Corruption can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs”.1 Grand corruption is defined as “acts committed at a high level of government that distort policies or the functioning of the state, enabling leaders to benefit at the expense of the public good”.2 Petty corruption is defined as “everyday abuse of entrusted power by low and mid-level public officials in their interactions with ordinary citizens, who often are trying to access basic goods or services in places like hospitals, schools, police departments and other agencies”.3 Political corruption is defined as “manipulation of policies, institutions and rules of procedure in the allocation of resources and financing by political decision makers, who abuse their position to sustain their power, status and wealth”.4 Objectives The key objectives of the National Integrity System assessment are to generate: An improved understanding of the strengths and weaknesses of Azerbaijan’s National Integrity System within the anti-corruption community and beyond. Momentum among key anti-corruption stakeholders in Azerbaijan for addressing priority areas in the National Integrity System. The primary aim of the assessment is therefore
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