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Anti-Corruption Reforms in Mongolia

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Anti-Corruption Reforms in Mongolia ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ANTI-CORRUPTION NETWORK FOR EASTERN EUROPE AND CENTRAL ASIA Anti-Corruption Reforms in Mongolia Assessment and recommendations Report The report was adopted at the Istanbul Anti-Corruption Action Plan plenary meeting on 18 April 2014 at the OECD Headquarters in Paris. This report is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. © OECD 2014 2 About the OECD The OECD is a forum in which governments compare and exchange policy experiences, identify good practices in light of emerging challenges, and promote decisions and recommendations to produce better policies for better lives. The OECD’s mission is to promote policies that improve economic and social well-being of people around the world. Find out more at www.oecd.org. About the Anti-Corruption Network for Eastern Europe and Central Asia Established in 1998, the main objective of the Anti-Corruption Network for Eastern Europe and Central Asia (ACN) is to support its member countries in their efforts to prevent and fight corruption. It provides a regional forum for the promotion of anti-corruption activities, the exchange of information, elaboration of best practices and donor coordination via regional meetings and seminars, peer-learning programmes, and thematic projects. ACN also serves as the home for the Istanbul Anti-Corruption Action Plan. Find out more at www.oecd.org/corruption/acn/. About the Istanbul Anti-Corruption Action Plan The Istanbul Anti-Corruption Action Plan is a sub-regional peer-review programme launched in 2003 in the framework of the ACN. It supports anti-corruption reforms in Armenia, Azerbaijan, Georgia, the Kyrgyz Republic, Kazakhstan, Mongolia, Tajikistan, Ukraine and Uzbekistan through country reviews and continuous monitoring of participating countries’ implementation of recommendations to assist in the implementation of the UN Convention against Corruption (UNCAC) and other international standards and best practice. Find out more at www.oecd.org/corruption/acn/istanbulactionplan/. 3 Contents Executive summary .......................................................................................................................... 5 Anti-corruption policy ............................................................................................................... 5 Criminalisation of corruption .................................................................................................... 5 Prevention of corruption ........................................................................................................... 6 Review of Mongolia .......................................................................................................................... 8 Country background information ............................................................................................... 9 Economic and social situation ................................................................................................... 9 Political system ........................................................................................................................ 9 Trends in corruption ................................................................................................................. 9 Acronyms .......................................................................................................................................... 11 1. Anti-corruption policy ............................................................................................................. 12 1.1.-1.2. Political will to fight corruption, anti-corruption policy documents ............................. 12 1.3. Corruption surveys .......................................................................................................... 15 1.4.-1.5. Public participation, awareness raising and public education ..................................... 16 1.6. Specialised anti-corruption policy and co-ordination institutions ...................................... 19 1.7. Participation in international anti-corruption conventions ................................................ 23 Pillar 2. Criminalisation of corruption................................................................................... 25 2.1.-2.2. Offences and elements of offence ............................................................................. 25 2.3. Definition of a public official ............................................................................................ 28 2.4.-2.5. Sanctions and confiscation ........................................................................................ 30 2.6. Immunities and statute of limitations ............................................................................... 32 2.7. International co-operation and mutual legal assistance .................................................... 35 2.8. Application, interpretation and procedure ....................................................................... 36 2.9. Specialised anti-corruption law-enforcement bodies......................................................... 37 Pillar 3. Prevention of corruption ........................................................................................... 39 3.1. Corruption prevention body ............................................................................................. 39 3.2. Integrity of public service ................................................................................................. 39 3.3. Promoting transparency and reducing discretion in public administration ......................... 44 3.4. Public financial control and audit ..................................................................................... 46 3.5. Public procurement ......................................................................................................... 50 3.6. Access to information ...................................................................................................... 51 3.7. Political corruption .......................................................................................................... 57 3.8. Integrity in the judiciary ................................................................................................... 60 3.9. Private sector .................................................................................................................. 64 Annex 1. Legal acts of Mongolia ................................................................................................ 68 1. Criminal Code (excerpts) ..................................................................................................... 68 2. Law on Anti-Corruption ...................................................................................................... 72 Annex 2. Law enforcement statistics on corruption offences ........................................ 87 4 Executive summary Anti-corruption policy Combatting corruption is recognised to be a high-priority issue in Mongolia and is mentioned in main political documents and statements of public officials. At the same time, no anti-corruption policy document was approved in Mongolia since the expiration of the previous one which covered period of 2002-2010. The review report welcomes the on-going development of the new anti-corruption strategy, which included extensive public consultations, and recommends adopting the new strategy and action plan as soon as possible. An effective high-level mechanism (e.g. a national council) should be set up for anti-corruption policy co-ordination and implementation; it should be sufficiently independent from the government, represent different branches of power and include a meaningful representation of the civil society, be supported with adequate resources including dedicated staff. The report recommends that reports on anti-corruption strategy and action plan implementation be regularly prepared and made public. Mongolia should continue conducting regular corruption surveys, including on specific sectors, with focus on public trust, corruption perception and experience. While welcoming numerous awareness- raising activities in the anti-corruption area Mongolia is recommended to regularly assess their results and ensure that civil society organisations are involved in a meaningful way in the development and implementation of anti-corruption policy measures, including designing, implementing and evaluating awareness-raising and public education campaign. Mongolia has a strong anti-corruption institution – the Independent Agency Against Corruption that deals with both prevention and investigation of corruption. The report recommends strengthening its capacity, in particular, by guaranteeing institutional, functional and financial independence, putting in place effective mechanisms to prevent various forms of hierarchical pressure and undue interferences with corruption investigations and prosecutions, introducing competitive and transparent merit-based selection of the agency’s leadership and main staff. Criminalisation of corruption Mongolia has basic
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