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Conflicts of Interest in Practice Comparative Study Conflicts of Interest in Practice ReSPA Dragan Djuric Programme Manager Authors National authors Albania Alma Osmanaj, anti-corruption expert (contributing expert: Helena Papa, Director of Cabinet at HIDAACI) Bosnia and Herzegovina Emir Djikic, anti-corruption expert Kosovo* Fadil Mitari, anti-corruption expert (contributing expert: Hasan Preteni, Director, Anti Corruption Agency) Macedonia Dr. Slagjana Taseva, anti-corruption expert Montenegro Boban Saranovic, anti-corruption expert Serbia Nemanja Nenadic, anti-corruption expert International author Dr. Tilman Hoppe, LL.M., anti-corruption expert 2 ReSPA is a joint Initiative of European Union and the Western Balkan countries working towards fostering and strengthening the regional cooperation in the field of public administration among its Member States. It seeks to offer excellent innovative and creative training events, networking activities, capacity building and consulting services to ensure that the shared values of respect, tolerance, collaboration and integration are reaffirmed and implemented throughout the public administrations in the region. LEGAL NOTICE Neither the Regional School of Public Administration nor any person acting on its behalf is responsible for the use which might be made of the information contained in the present publication. The Regional School of Public Administration is not responsible for the external web sites referred to in the present publication. The views expressed in this publication are those of the authors and do not necessarily reflect the official views of Regional School of Public Administration on the subject. COPYRIGHT © Regional School of Public Administration, 2015 This publication is the property of ReSPA. Any unauthorized reprint or use of this material is prohibited. CONTACT Regional School of Public Administration Branelovica P.O. Box 31, 81410 Danilovgrad, Montenegro Telephone: +382 (0)20 817 200 Internet: www.respaweb.eu E-mail: [email protected] 3 Foreword By Mr. Suad Music ReSPA Director ReSPA has been actively working in the area of ethics and integrity since 2012 and has established a successful network regarding this topic. This network is composed of the heads of anti-corruption agencies and their deputies (or similar bodies) of the Western Balkans countries and Kosovo* who are meeting regularly in different places under the supervision and leadership of ReSPA. ReSPA successfully drafted and published the comparative study “Income and Asset Declarations in Practice” in 2013.1 It provided the basis for achieving a relevant and substantial impact with comparatively few resources: reform measures in several countries are under way; an international standard following the study is serving as a benchmark for future monitoring of reforms in the region and beyond (and which already indicates some conflicts of interest aspects); and an adopted template for an international agreement facilitating data exchange in the region. Dovetailing the success of this comparative study on asset declarations, a comparative study on conflicts of interest will be the trigger for supporting in-country reforms in the region. Conflicts of interest have repeatedly been an issue of concern for the region in the recent monitoring documents of the OECD/SIGMA, EU, and the Council of Europe’s Group of States against Corruption (GRECO). In addition, the OECD/SIGMA Principles of Public Administration count “regulation of incompatibilities and conflicts of interest” among integrity measures in public service (page 54). Thus, further improvement of regulations and the setting up of verification mechanisms are on the strategic or political agenda in the region. ReSPA is ready to contribute to these reform efforts with this study, and with the subsequent support and monitoring of how its recommendations are implemented. The success of the finalisation of the study would have been difficult to achieve without the support of all authors and researchers involved in this study. Therefore, I would like to express my gratitude to all regional and international experts, who have contributed with their inputs to this activity. * This designation is without prejudice to positions on status, and it is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence. 1 ReSPA, Asset Declarations in Practice – A regional study of Western Balkan countries, 2013, 219 pages, http://www.respaweb.eu/download/doc/Comparative+study+-+Income+and+asset+declarations+in+practice+- +web.pdf/485ce800f0a3f55719e51002d0f75b5e.pdf. 4 Table of content Foreword ....................................................................................................................................... 2 Introduction ................................................................................................................................... 7 1. Conflicts of interest framework ............................................................................................... 9 1.1 Overview ............................................................................................................................. 9 1.2 Albania .............................................................................................................................. 17 1.3 Bosnia and Herzegovina .................................................................................................... 34 1.4 Kosovo* ............................................................................................................................. 39 1.5 Macedonia ......................................................................................................................... 45 1.6 Montenegro ....................................................................................................................... 53 1.7 Serbia ................................................................................................................................ 61 2. Real life cases......................................................................................................................... 71 2.1 Overview ........................................................................................................................... 71 2.2 Albania .............................................................................................................................. 75 Case 1: Member of Parliament elected but not yet appointed ............................................ 75 Case 2: A judge with undeclared business ........................................................................ 77 Case 3: General State Advocate representing a case against a relative ............................ 79 Case 4: Medical supplies by deputy minister’s husband .................................................... 81 Case 5: Ombudsman cooperating with an NGO ................................................................ 82 2.3 Bosnia and Herzegovina .................................................................................................... 84 Case 1: Multiple functions for single, private interest ......................................................... 84 Case 2: Blurred line between state budget and private pockets ......................................... 85 Case 3: Abuse of public office – Our way or the highway .................................................. 87 Case 4: Raid the messenger ............................................................................................. 89 2.4 Kosovo* ............................................................................................................................. 91 Case 1: Two positions – banker and vice-chancellor of a state university .......................... 91 Case 2: Two-time director ................................................................................................. 92 Case 3: Father voted for the interests of his son’s company .............................................. 94 Case 4: Deputy appointed to executive function ................................................................ 95 Case 5: Self-appointment in order to employ family members ........................................... 97 2.5 Macedonia ......................................................................................................................... 99 5 Case 1: Medical institute director supports his wife’s business with public money ............. 99 Case 2: Director of the health fund bypasses procedures to employ wife ........................ 100 Case 3: Brother audits sister’s company.......................................................................... 101 Case 4: Premature reaction to two officials who are brothers .......................................... 102 Case 5: Bankruptcy trustee selling assets to relatives ..................................................... 103 Case 6: An auditor participates in a decision on freezing shares ..................................... 104 2.6 Montenegro ..................................................................................................................... 107 Case 1: He is an expert ................................................................................................... 107 Case 2: The best analysis comes from my own company ............................................... 109 Case 3: Multiplied by seven ............................................................................................. 110 Case 4: Procurement for father
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