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Empirical Study of Anti-Corruption Policies and Practices in Nordic

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Empirical Study of Anti-Corruption Policies and Practices in Nordic Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries The purpose of this research is to compile turally, Nordic countries tend to see a high Introduction and analyze information on corruption in level of social cohesion, and thus ordinary Nordic countries as well as the tools and citizens feel less of a need to engage in acts practices used to combat corruption in of corruption such as bribery. However, the order to identify effective practices which construction and service industries are ma- then could be implemented in Latvia. The jor sectors contributing to the shadow econ- countries we studied are Denmark, Iceland, omies of Nordic countries. Foreign bribery Finland, Norway, and Sweden. also remains a problem in most of Nordic countries, and the major example of the Te- The research is constructed by separately lia case will be examined. Despite thorough analyzing each country’s anti-corruption regulations on political party financing and framework, and the nature of its public asset disclosure for public officials, no Nor- and private sectors in regards to combat- dic countries have regulations on lobbying ting corruption, as well as the role played in place. by civic empowerment in each country. The sources used aim to be as recent as pos- Though there is some overlap in terms of sible, with most coming from the past five legislation combatting corruption in Nor- years, however older sources are occasion- dic countries, there are tools and practices ally referenced when pertinent. specific to individual countries as well. For example, Norway’s National Authority for In- Certain trends regarding corruption can be vestigation and Prosecution of Economic and identified across the Nordic countries. Cul- Environmental Crime (Økokrim) is a highly Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries 2 of 88 effective national organization which both investigates and prosecutes crimes of cor- Country reports ruption. Iceland’s International Modern Me- dia Institute seeks to promote whisleblower have the following protection as well as improved media legis- lation both domestically and internationally. structure: Overall, this research seeks to provide • Introduction empirical data and information one ffective • Legal Framework anti-corruption practices and the state of cor- • Institutional Framework ruption in Nordic countries. Though corruption • Corruption at local government level is pervasive across all societies, there are • Transparency of lobbying nonetheless many positive examples of prog- ress towards eliminating corruption from Nor- • Transparency of Financing of political parties dic countries that can be emulated in places • Asset disclosure such as Latvia. Anti-corruption practices will • Fighting Foreign Bribery be more effective if they are standardized and • Shadow economy and money laundering implemented across a number of countries. • Whistleblowing • Identified Good practices Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries 3 of 88 Content I Denmark ……….…………………………………….. 5 II Iceland ….………...…………………………..……. 14 III Finland ………………………………………….… 26 IV Norway …………….…………………………..…. 39 V Sweden …………………………………...…….…. 51 VI Conclusions …….…………………………………… 63 VII Sources ………………………………………………. 71 VII Appendix ………………….…….…………………. 85 Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries 4 of 88 INTRODUCTION Development Agency (DANIDA) within the Whilst corruption in Denmark is limited, Dan- Ministry of Foreign Affairs has established ish companies are becoming international procedures for reporting corruption, provid- and, indeed, global in their orientation. Thus, ed training on integrity issues and conduct- they are frequently faced with corrupt mar- ed corruption risk management. kets. According to Barforte et al. (2016) Den- mark along with other Nordic countries has In the Danish culture a lot of attention is presented itself numerously as the least cor- being focussed on the openness of infor- rupt country in the history of Corruption Per- mation, and on an informed public. Open ceptions Index (CPI). Nevertheless, Holmes and transparent governance is considered (2015) claims that the CPI does not reach a precondition for preventing and revealing definite conclusions regarding successful corruption and maladministration (Danish corruption control anywhere, much less pro- Institute for Human Rights, 2005). Another vide a full explanation of Denmark’s record. notable point about Denmark is that its top political and administrative leaders lead de- Denmark has a well-developed system of cidedly modest lifestyles, and that the visible legislation, law enforcement and judicial perquisites of political leadership are quite authorities to deal with corruption, although limited (Gilani, 2012). While the Danish royal there is no national anti-corruption strategy. family enjoys considerable outward prestige, I Denmark Few studies and statistical analyses have the political leadership is much less given examined the nature or extent of corrup- over to cults of personality or the symbolism tion in Denmark. The Danish International of power (Holmes,2015,p.14). The climate for Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries 5 of 88 discussions remains open and free. None- four years. Access to information is regu- tion of high ethical standards and transpar- theless, the fear of retaliation and tougher lated by law and anyone may access doc- ency in public procedures, few formal rules whistle-blower protection remains on the uments of any public administrative figure. regulating integrity and anti-corruption are agenda in Denmark. It has only recently tak- Additionally, in 2013 the Danish Parliament in place in the public administration. Den- en action to strengthen the legal protection adopted a law that increases openness in mark has had a Code of Conduct for public for whistle-blowers (DLA-PIPER, 2015). the public administration and makes it easi- officials since 2007. The Code deals with sit- er to access documents. However, Denmark uations that may arise in the public admin- LEGAL FRAMEWORK has not implemented the recommendations istration, including ‘fundamental values and Danish criminal legislation covers all forms of the Council of Europe Group of States principles,’ ‘freedom of expression,’ ‘duty of of corruption offences contained in the against Corruption (GRECO) aiming to im- confidentiality,’ ‘impartiality’ and the ‘accep- Council of Europe Criminal Law Convention prove the Danish regulation on financing of tance of gifts.’ The Code has been distrib- on Corruption and the Additional protocol, political parties, individual candidates, and uted in public-sector workplaces, and infor- except trading in influence. In 2013, Parlia- election campaigns. mational activities have been carried out in ment adopted legislative amendments in- order to raise awareness about the Code. In tended to strengthen the prevention, inves- INSTITUTIONAL FRAMEWORK 2007, The Ministry of Justice issued the bro- tigation, and prosecution of cases regarding The Public Prosecutor for Serious Econom- chure ‘How to Avoid Corruption.’ The bro- economic crimes. Regarding bribery, the ic and International Crime is the main body chure gives examples and interpretations of maximum penalty for active bribery in the responsible for investigating corruption, the Danish anti-corruption legislation. public sector increased from three to six whose multidisciplinary team is composed years. For bribery in the private sector and of prosecutors and investigators. The Dan- GOOD PRACTICES bribery of arbitrators, the maximum penalty ish civil service is considered to have a high According to the Code of Conduct the pub- increased from one year and six months to degree of integrity. Due to Denmark’s tradi- lic sector is predominantly build upon values Empirical Study of Anti-Corruption Policies and Practices in Nordic Countries 6 of 88 such as openness, democracy, the rule of law, integrity, independence, impartiality A case study of local government and loyalty. The public sector is, at the same corruption in Denmark time, expected to perform tasks in a flexi- ble and efficient manner, and to deliver a With the background knowledge that Den- sted). This consitutes corruption in this high-standard of services. mark is one of the least corrupt countries, case. After similar cases appeared in the this explores the case of a mayor that for media and a court process of more than CORRUPTION AT A LOCAL eight years worked “miracles” for “his” six years, Brixtofte was sentenced to two GOVERNMENT LEVEL municipality (Langsted, 2012, p.1). years of imprisonment in 2008, and again The case study below provides information for additional two years in 2009 (Langsted, The mayor of the Farum, (a town of 18,000 concerning one of the most well-known sit- 2012). inhabitants 20km from Copenhagen) Peter uations of corruption on a local government Brixtofte, and his administration imple- level in Denmark. Despite this example, the In the aftermath of the Farum Commis- mented several projects between 1986 sions report this year, some debate was general facts and figures about the local and 2002. It turned out that the mayor rai- raised whether Peter Brixtofte might have government corruption in Denmark remain sed loans up to EUR 134 million without been stopped at an earlier stage if the unidentified. the agreement or consultation of the na- municipality had
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