NORWAY’S INTEGRITY SYSTEM - NOT QUITE PERFECT? AUTHOR www.transparency.no Helge Renå Date 3 June 2012 ISBN 978-82-998222-6-8 (print) ISBN 978-82-998222-7-5 (electronic) Copyright © Transparency International Norway and authors Graphic design: Kaland Marketing Press: Konsis Thanks to Charlotte Bäckström who inspired the design and layout Translation from Norwegian to English by Vassal Translation (www.vassaltranslations.com) NORWAY’S INTEGRITY SYSTEM - NOT QUITE PERFECT? AUTHOR Helge Renå Contents CONTENTS Foreword ............................................................................................... p. 5 Abbreviations ........................................................................................ p. 6 Introduction: A study of Norway’s integrity system ............................. p. 7 Summary ............................................................................................. p. 13 Country profile .................................................................................... p. 25 Corruption profile ............................................................................... p. 33 Anti-corruption work .......................................................................... p. 45 1. The Storting .............................................................................. p. 59 2. The Government ....................................................................... p. 81 3. The Courts/Judiciary ............................................................... p. 101 4. The Public Sector .................................................................... p. 123 5. Police and the Prosecuting Authorities ................................... p. 157 6. The Electoral System ............................................................. p. 179 7. The Parliamentary Ombudsman ............................................. p. 195 8. The Office of the Auditor General .......................................... p. 211 9. Political Parties ....................................................................... p. 227 10. The Media .............................................................................. p. 251 11. Civil Society ............................................................................ p. 271 12. The Business Sector ................................................................ p. 285 Literature ........................................................................................... p. 307 Appendix 1 - List of interviewees ..................................................... p. 320 Appendix 2 – NIS indicator sheet ..................................................... p. 321 Transparency International, Norway 4 Foreword FOREWORD National Integrity System (NIS) measures the vulnerability and risk of corruption in key public institutions. The report forms the final result of the first national integrity study (hereinafter NIS study) conducted in Norway. The NIS study is based on a methodology developed by Transparency International. The study was conducted in the summer/autumn 2011 and spring 2012. The report is drawn up by researcher Helge Renå at the Norwegian Institute for Urban and Regional Re- search (NIBR). The chapter on political parties is written by a PhD student at the University of Oslo, Anders Ravik Jupskås. Renå has conducted the study on behalf of Transparency International Norway (TI-N). Researcher Staffan Andersson (Lin- néuniversitetet) has been a supervisor. Special Adviser Gro Skaaren-Fystro in TI-N has headed the project. TI-N would like to thank the Finance Markets Fund and the Ministry of Government Administration, Reform and Church Affairs for financial support for the project. A reference group comprising of representatives with extensive experience in var- ious areas relevant to this study was established. The group consisted of Kari Hes- selberg (Norwegian Association of Local and Regional Authorities), Tina Søreide (Chr. Michelsen Institute), Dag Nenningsland (Office of Auditor General), Trygve Laake (Agency for Public Management and eGovernment), Åsfrid Betten (Price- waterhouseCoopers), Anne-Mette Dyrnes (Court of Appeal), Lise Stensrud (No- rad), Beate Slydal (Amnesty International) and Erik Lundeby (NHO). The group has had three meetings. They have also provided written comments and input on several occasions. The members’ participation has been voluntary, and they have put in a significant effort in this work. The reference group deserves a big thank you. Thanks are also extended to all the informants who agreed to participate in interviews for this study, many of these have also commented on certain draft chapters. The report has been subjected to NIBR procedures for quality assurance. The researcher is responsible for the analysis portion of the NIS study. The ref- erence group has provided input and advice during the research process. TI-N is responsible for the report’s recommendations. TI-N hopes that the study helps to promote awareness on corruption risks and strengthens the work towards integrity and transparency in Norwegian social in- stitutions. Secretary General Guro Slettemark Chairman Christian Hambro 5 Transparency International, Norway Abbrevations ABBREVIATIONS GDP Gross domestic product CPI Corruption Perception Index DA Courts Administration DnD The Norwegian Judges’ Association Difi Agency for Public Management and eGovernment Doffin Database for public procurement EITI Extractive Industries Transparency Initiative EU The European Union EEA European Economic Area FAD Ministry of Government Administration, Reform and Church Affairs FO The Storting’s rules of procedure FOA Regulations on Public Procurement FVL The Public Administration Act GCB Global Corruption Barometer GRECO Group of States against Corruption Const. The Constitution Kofa The Complaints Board for Public Procurement LGA Local Government Act KS Norwegian Association of Local and Regional Authorities LDO The Equality and Anti-Discrimination Ombud CBCR Country-by-country reporting LOA The Public Procurement Act MLGRD Ministry of Local Government and Regional Development NHO The Confederation of Norwegian Enterprises NIS National Integrity Systems Study NKRF Norwegian Municipal Auditors Association Norad The Directorate for Development Cooperation OECD Organisation for Economic Co-operation and Development PWYP Publish What You Pay SSB Statistics Norway strl The Penal Code TI Transparency International TI-N Transparency International Norway TJN Tax Justice Norway tml Civil Service Act tvml Civil Procedure Act UD Ministry of Foreign Affairs Transparency International, Norway 6 Introduction: A study of Norway´s system of integrity INTRODUCTION: A STUDY OF NORWAY’S SYSTEM OF INTEGRITY This report constitutes the final result of the first national integrity study conducted in Norway, and is based on a methodology developed by Transparency Interna- tional, in collaboration with international experts and specialists. This methodo- logical framework is applied in this study with certain modifications that have been made to adapt the framework to Norwegian conditions. In 2011 NIS studies were launched in 23 European countries with financial support from the European Commission, which will result in 23 country reports (corresponding to the one you are currently reading), as well as a regional report on overall similarities and dif- ferences between countries. The regional report and most of the country reports are now complete and available on Transparency International’s website. The Norwe- gian NIS study has taken place in parallel with these processes, and findings from the Norwegian study are included in the basis of the regional report. Previously almost 70 Transparency International departments have completed NIS studies. Initially, it is emphasized that this report and the NIS methodology employs an anti-corruption perspective – the report’s assessments are made on the basis of such a perspective. That is not to say that there are not other considerations that may be relevant. For example, the need for new laws and regulations, or new control measures, must always be weighed against other considerations such as management efficiency. READER’S GUIDE It is recommended that this introductory chapter on how the NIS methodology is structured is read first. Thereafter each pillar chapter may be read independently of one another. The summary highlights some of the weaknesses that this study points out. For a broader review of a pillar’s strengths and weaknesses, one should therefore read the pillar chapter. It should be noted that the set of sub-questions that underlie each individual indicator question in the pillar chapters is attached as an appendix. The reader can thus, if desired, see what the individual indicator questions emphasize. 7 Transparency International, Norway Introduction: A study of Norway´s system of integrity WHAT IS MEANT BY A NATIONAL INTEGRITY SYSTEM? In Transparency International’s definition, a country’s national integrity system consists of the institutions in a country that are important in the struggle against corruption. When these institutions function well, they comprise a healthy and robust national integrity system – a system that is effective in the struggle against corruption as a part of the greater struggle against abuse of power and other cor- rupting behaviour more generally. On the other hand, when these institutions are characterized by inadequate regulation and lack of accountability, there is reason to believe that the risk