GOVERNMENT ACCOUNTABILITY INITIATIVE
QUARTERLY REPORT (February 6, 2021 – April 30, 2021)
Submission Date: May 14, 2021
Contract Number: 72016918C00002 GAI; Activity Start and End Dates: 6 February 2018 – 5 February 2022 COR: Milena Jenovai
Submitted by: Checchi and Company Consulting, Inc. 1000 Wilson Blvd. Suite 2520 Arlington, VA 22209 Tel: 202-452-9700 Email: [email protected]
This document was produced for review by the United States Agency for International Development (USAID/Serbia). It was prepared by Checchi and Company Consulting, Inc. GOVERNMENT ACCOUNTABILITY INITIATIVE Contract Number 72016918C00002
QUARTERLY REPORT (February 6, 2021 – April 30, 2021)
Submission Date: May 14, 2021
Submitted by: Checchi and Company Consulting, Inc. 1000 Wilson Blvd. Suite 2520 Arlington, VA 22209 Tel: 202-452-9700 Email: [email protected]
DISCLAIMER: The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development.
Checchi and Company Consulting, Inc.
CONTENTS
ACRONYMS ...... i EXECUTIVE SUMMARY ...... 1 PROJECT OVERVIEW ...... 3 ACTIVITY IMPLEMENTATION PROGRESS ...... 7 I. Local Government Accountability ...... 7 II. Independent Oversight Institutions ...... 19 III. Adjudication of Corruption Cases ...... 28 PMP UPDATE ...... 36 MANAGEMENT AND ADMINISTRATIVE ISSUES ...... 40 PLANNED ACTIVITIES FOR THE SECOND QUARTER OF GAI YEAR 4 ...... 40
Checchi and Company Consulting, Inc.
ACRONYMS
AMELP Activity Monitoring, Evaluation and Learning Plan APC Agency for Prevention of Corruption AVP Automated Case Management System COP Chief of Party CPI Commissioner for Information of Public Importance and Personal Data Protection CSO Civil Society Organization ERCC Electronic Register of Corruption Cases GAI Government Accountability Initiative IMB Local Anti-Corruption Action Plan Independent Monitoring Bodies IOI Independent Oversight Institution LAF Local Anti-Corruption Forum LAP Local Anti-Corruption Action Plan LSG Local Self-Government MOJ Ministry of Justice PMP Performance Management Plan PPO Public Prosecutor’s Office RPPO Republic Public Prosecutor’s Office SAI State Audit Institution SAPO Standardized Application for the Prosecution Organization TS Transparency Serbia USAID United States Agency for International Development
Checchi and Company Consulting, Inc. i
EXECUTIVE SUMMARY
The reporting period marks the beginning of the final year of implementation of the United States Agency for International Development (USAID) Government Accountability Initiative (GAI). The first quarter of GAI’s Year 4 was marked by initiation of support to 13 local self-governments that joined GAI’s 12 existing local counterparts. GAI now reaches over 1.3 million potential beneficiaries of USAID technical assistance to enhance transparency, accountability, and engagement of citizens in governance throughout Serbia. GAI also focused on scaling up risk- based oversight within and across independent oversight institutions and specialized anti- corruption units in courts and the Public Prosecutor’s Offices. Notable achievements and highlights in Quarter 1 of Year 4 include:
• GAI created a reference library in the form of a periodic newsletter for local governments to more broadly share models, practices, knowledge, and training materials developed in cooperation with local government counterparts. The Local Self-Government (LSG) Newsletter will enable local governments, beyond those directly benefiting from GAI’s technical assistance, to have access to knowledge and tools.
• GAI supported the Local Anti-Corruption Action Plan’s Independent Monitoring Body in Kragujevac to organize an art and literary competition on corruption and nepotism for students of the city’s 32 primary and high schools. The competition was used to raise awareness in the local communities on the Independent Monitoring Body’s role in monitoring local government anti-corruption activities and supporting the fight against corruption.
• Rulebooks for the maintenance and update of websites in three local governments (Kragujevac, Novi Pazar, and Vrnjačka Banja) have been developed. They address an important and widespread problem of undefined internal procedures and lack of clear delegation of responsibilities for the timely and accurate disclosure of information on local governments. The rulebooks will be used as models for other local governments, to significantly improve the process of updating local websites with accurate and timely information and documents to enhance local governance.
• With GAI’s support, two Local Anti-Corruption Action Plan Independent Monitoring Bodies (Kragujevac and Raška) have adopted their annual reports on the Local Anti- Corruption Action Plan implementation and informed the public. The reports provide information on the status of implementation of activities envisaged by local anti-corruption action plans as well as recommendations for their revision and timelier implementation of activities. Both reports have been submitted to the respective local assemblies for adoption.
Checchi and Company Consulting, Inc. 1
• GAI successfully mentored the State Audit Institution’s 14 performance audit teams’ designs for the 2021 performance audits. Preliminary Design Summits were held with all performance audit teams to refine audit objectives and scope, selection of relevant audit methodologies, and appropriate data collection instruments. The State Audit Institution’s commitment to institutionalize performance auditing was bolstered with GAI training 30 newly employed auditors on performance auditing. Almost one third of the trained new hires are now members of performance audit teams.
• GAI helped the State Audit Institution reach targeted audiences for all 2020 audit reports through press conferences attended by civil society organizations, donors, and the media, among others. The performance audits received positive feedback and subsequent civil society organizations’ requests for the Institution to hold local sessions to further communicate its findings and recommendations on topics covered including urban and suburban transportation availability and cost and environmental protection issues.
• The conflict of interest training for government officials that GAI has implemented with the Agency for Prevention of Corruption has sparked high interest from public officials in the Serbian government, with 56 officials, including State Secretaries, Assistant Ministries, and Secretaries of the Ministries, attending the two online sessions. GAI also facilitated a third online training on conflict of interest for the members of the Serbian National Assembly.
• GAI facilitated two roundtables between the Agency for Prevention of Corruption and the specialized anti-corruption units in the Public Prosecutor’s Offices. The roundtables identified key areas to be included in operational protocols to improve collaboration and information exchange in pursuit of the prosecutors’ investigation of corruption by public officials.
• GAI facilitated knowledge sharing in the Regional Conference on Best Practices in Adjudication of Corruption Cases convened by USAID Ukraine. Judges from the Belgrade Higher Court participated in the Regional Conference and focused on key elements related to making anti-corruption courts effective and trusted by the public in Serbia.
• GAI organized two workshops to train deputy prosecutors and law enforcement officers in the specialized anti-corruption units on the new Public Procurement Law and the use of new eProcurement portal for detection and investigation of procurement fraud.
• GAI began Phase 2 Analysis and Design of the Electronic Register of Corruption Cases development. The Electronic Register of Corruption Cases Working Group finalized and approved all reporting templates from the Automated Case Management System for Courts and the Standardized Application for the Prosecution Organization and transmitted to the Ministry of Justice the templates and a draft dashboard to monitor case progress.
Checchi and Company Consulting, Inc. 2
PROJECT OVERVIEW
Activity Name Government Accountability Initiative Activity (GAI) Start and End Dates 6 February 2018 – 5 February 2022 Prime Implementing Partner Checchi and Company Consulting, Inc. Contract Number 72016918C00002 GAI Local Governments Main Projected Counterparts Independent Oversight Institutions Anti-Corruption Court Units Work Plan Period 6 February 2021 – 5 February 2022
PROJECT DESCRIPTION The Government Accountability Initiative is a four-year United States Agency for International Development Activity initiated in February 2018 with an overall objective to strengthen the capacities and connections of key Serbian government institutions and stakeholders resulting in increased government accountability at the national and local levels. GAI consists of three components: Local Government Accountability, Independent Oversight Institutions (IOIs), and Adjudication of Corruption Cases. GAI counterparts include local self-governments (LSGs), the State Audit Institution (SAI), the Agency for Prevention of Corruption (APC, formerly the Anti- Corruption Agency - ACA), the Commissioner for Information of Public Importance and Personal Data Protection (CPI), specialized anti-corruption units in courts and the Public Prosecutor’s Office (PPO), and civil society organizations (CSO). The Activity is structured around three components:
• Component 1. Local Government Accountability GAI is supporting local governments’ efforts to increase inclusion of the public in government decision-making on public policy and resource allocation; to encourage and incentivize local governments to operate in a more transparent and responsive manner, optimize service delivery, and strengthen whistleblower protection; as well as, to foster accountability through the development of local anti-corruption plans and independent bodies to monitor their implementation. In total GAI is now supporting 25 local governments, making GAI’s technical assistance available to an estimated 1,361,000 people, or roughly 19.6% of the total population of Serbia.
• Component 2. Independent Oversight Institutions GAI is providing technical assistance to oversight institutions, such as SAI, APC, and CPI, to strengthen monitoring of government performance and public officials and encourage these
Checchi and Company Consulting, Inc. 3
institutions to carry out their duties as defined in their respective legislative mandates. To increase responsiveness to findings and implementation of recommendations of oversight institutions, GAI is working closely with relevant authorities, such as the specialized Public Prosecutor’s Offices, and civil society organizations. GAI is also working with the CPI to enhance personal data protection, particularly at the local level, and to raise awareness of the importance of the right to access information held by government institutions.
• Component 3. Adjudication of Corruption Cases GAI is providing technical assistance to specialized anti-corruption units established in courts and the Public Prosecutors’ Offices to strengthen prosecution and adjudication of corruption cases and to establish a system for the collection of unified statistics on corruption cases such as that which distinguishes clearly between different types of criminal offenses, the length of cases, and outcome of the proceedings. The Results Framework for GAI, as depicted below, provides the basis of operation for the three components that form this Initiative. GAI’s overall goal – strengthening the accountability of key democratic institutions in Serbia (DO.1) – aims to deliver two important Interim Results: IR 1.1 – Government Institutions More Responsive to Citizens, and IR 1.2 – Rule of Law and Oversight Improved.
Checchi and Company Consulting, Inc. 4
Results Framework – Government Accountability Initiative
DO1: Accountability of Key Democratic Institutions Strengthened
IR 1.1 Government Institutions More IR 1.2 Rule of Law and Oversight Improved Responsive to Citizens
Sub IR 1.1.1 Capacity of Government Bodies to Engage Sub IR 1.2.2 Oversight Institutions Enhanced Citizenry
Component 1 – Component 2 – Component 3 – Local Government Independent Adjudication of Accountability Oversight Institutions Corruption Cases
Impact Level Impact Level Impact Level Increased Public Participation Increased Follow-up to Increased Adjudication of in Local Government Decision- Oversight Institutions’ Corruption Cases making and Oversight Recommendations
Output Level Output Level Output Level • Increased opportunity for • Increased Effectiveness of • Increased Case public input to local Independent Oversight Investigation and government institutions in Corruption Management • Clearer processes for Cases public participation • Strengthened Monitoring decision-making of Government Performance
Improving Government Responsiveness on the Local Level GAI activities are designed to provide support to local governments to enable them to respond to citizens’ needs more effectively, as well as to implement accountability standards and good practices consistent with local governments’ legal obligations. GAI’s technical assistance assumes that each local government has unique characteristics with differing capacities, so technical assistance is tailored to the specific needs of each local government. GAI has offered local governments support in areas of importance to citizens, including adoption, implementation, and monitoring of local anti-corruption plans; improving transparency of their work; enhancing civic participation; and providing the prerequisites for whistleblower protection. To share lessons learned, GAI is supporting the exchange of experiences and successes among local governments.
Checchi and Company Consulting, Inc. 5
Independent Oversight Improved To optimize the results and impact of the work of SAI, GAI is supporting the institution to fulfill its mandate consistent with current international professional standards and reflective of risk- based oversight of government. Assistance is designed to enhance the utility of SAI’s work to the National Assembly, to elevate the level of public understanding of anti-corruption efforts, and to increase the likelihood that SAI’s audit report recommendations lead to concrete, meaningful improvements in Serbian public sector governance and government delivery of services to the public. GAI aims to achieve sustainable, long lasting results and build on prior USAID training to build SAI’s capacities to assess whether public entities are achieving economic, efficient, and effective use of resources. GAI’s support to the APC includes a manifold capacity building effort to implement APC’s specific strategic goals, derived with GAI’s support in Year1 and Year 2, and focusing on strategies to prevent and detect corruption and enhance productive collaboration with key stakeholders, such as the misdemeanor courts and specialized anti-corruption PPOs. Oversight of government and public engagement in governance is highly correlated with public access to information. GAI’s support to the Commissioner for Information of Public Importance and Personal Data Protection focuses on promotion of the public’s right to know; raising awareness of the importance of free access to public information while placing appropriate attention and balance on data protection; and encouraging institutions to be more open in response to public, CSO, and media requests for public information.
Adjudication of Corruption Cases The Law on the Organization and Competences of State Organs in Fight Against Organized Crime, Terrorism and Corruption (hereinafter: Law on Organized Crime and Corruption), established specialized anti-corruption court units and Public Prosecutor Offices (PPO and came into force in March 2018. GAI supports the specialized anti-corruption courts and Public Prosecutors’ Offices to enhance their capacities to perform duties newly defined in the Law, identify information critical to improve efficiency in adjudication, and enhance procedures for data collection to ensure data quality and security. GAI is also creating an Electronic Register of Corruption Cases (ERCC) to enable a seamless interface for specialized anti-corruption court and PPO data, leading in turn to improved case management, monitoring, and adjudication of corruption cases.
Checchi and Company Consulting, Inc. 6
ACTIVITY IMPLEMENTATION PROGRESS
The first quarter of GAI’s final year of implementation was marked by the kick-off of technical assistance to the third group of local governments, whose leaders each signed a memorandum of understanding with USAID at the end of Year 3. GAI’s tailored support to now 25 LSGs throughout Serbia focuses on training, implementation of previously developed models, knowledge sharing, and creation of targeted opportunities for new initiatives to improve governance. In March 2021, GAI launched publication of an electronic newsletter to communicate to LSGs nationwide success stories and share models and tools created and operationalized by GAI counterparts. GAI has continued to mentor SAI’s 14 performance audit teams supporting the initial audit designs for the 2021 performance audits. GAI has drafted an initial set of sector-specific guidelines to audit for risk of fraud in government programs and functions. Support to the APC has focused on increasing its interactions with key stakeholders - the PPOs and misdemeanor courts - while supporting its training of government officials and Members of Parliament on conflict of interest guidelines. GAI has re- established CPI’s visibility and interactions with media, after a COVID-imposed hiatus, to advance its messaging on free access to information and personal data protection. Activities on the design and implementation of the ERCC have gained momentum, with completion of draft ERCC reporting templates in the second phase of the ERCC development and the full constitution and engagement the ERCC Working Group empowered by the Ministry of Justice with decision making over ERCC reporting design. All components continued to coordinate activities with other donors’ implementing partners to avoid overlaps and increase synergies.
I. Local Government Accountability In line with the approved Y4 Work Plan, GAI has focused on designing technical assistance and on subcontracting service providers to ensure approaches and timeframes are responsive to intended beneficiaries’ needs and are realistic for the final year of project. GAI is scaling up successful models and practices previously developed for the 12 local governments that became
Checchi and Company Consulting, Inc. 7
project counterparts in 20211. Assistance is also designed to rely on cooperation among municipalities, joint work on specific initiatives, and the use of training, documents, and approaches developed with long-term CSO partners of GAI such as Transparency Serbia (TS) and Pištaljka, and subcontractors such as DCG and others. In parallel with design of new initiatives, support provided to Group 1 LSGs2 and Group 2 LSGs3 has resulted in important new models which may be utilized by other local governments in Serbia, such as the model internal procedures for maintenance and update of websites and the model for preparation of reports on implementation of local anti-corruption action plans (LAPs). To enable continued sharing of models and practices developed in cooperation with counterpart local governments, GAI designed and published a newsletter for local governments that will be periodically issued in Y4. The USAID GAI Newsletter for LSGs presents resources in the form of models, practices, and experiences accumulated over the course of the project. The Newsletter, published both in Serbian4 and English5, has been shared with local governments, relevant ministries, CSOs, donors, and other stakeholders.
LOCAL GOVERNMENT ACCOUNTABILITY
SUPPORT INCLUSIVENESS TRANSPARENCY to 7 LSGs in fortifying engaging the PUBLIC in the work of the LSGs ACCOUNTABILITY in policy development to BATTLE in their daily work and MONITORING CORRUPTION
Source: Clipart from shutterstock.com
1 Group 3 LSGs, selected in 2020, include: Inđija, Šid, Sremski Karlovci, Požega, Priboj, Čajetina, Varvarin, Bela Palanka, Krupanj, Veliko Gradište, Ljubovija, and Mionica 2 Group 1 LSGs, selected in 2018, include seven LSGs: the cities of Vranje, Šabac, and Sombor; and the municipalities of Raška, Vrnjačka Banja, Sjenica and Dimitrovgrad 3 Group 2 LSGs, selected in 2019, include six LSGs: the cities of Niš, Kragujevac, Sremska Mitrovica, Novi Pazar, and the municipalities of Žabalj and Stari Grad. 4 The Serbian version of GAI’s Newsletter is available for download on GAI’s website at: https://www.odgovornavlast.rs/wp- content/uploads/2021/04/USAID-ov-Projekat-za-odgovornu-vlast_Bilten-za-lokalne-samouprave.pdf 5 The English version of GAI’s Newsletter is available for download on GAI’s website at: https://www.odgovornavlast.rs/wp- content/uploads/2021/04/USAID-GAI-Newsletter-for-Local-Self-Governments.pdf
Checchi and Company Consulting, Inc. 8
The situation caused by the COVID-19 pandemic continued to pose significant challenges as the whole country experienced a new COVID-19 wave in 2021 and significant health emergencies in many local governments. GAI has continued to navigate these challenges and adjusted technical assistance to match the local counterpart’s capacities and worked with counterparts using various online tools.
1.1 Local Anti-Corruption Action Plan Development and Oversight GAI, through subcontractor Transparency Serbia, has continued to assist eight LSGs to perform LAP oversight, extending the originally planned time frame for an additional six months6 due to pandemic challenges. The assistance consists of three sets of activities: support for LAP development, support for implementing LAPs, and capacity building of independent monitoring bodies to monitor LAP implementation. Development of LAP for the City Municipality of Stari Grad (Activity 1.1.A) – Following the completion of the restructuring of municipal administration, initiated in November 2020, and completed in Q1 2021, the municipal leadership reconfirmed readiness to work on LAP development and become the first city municipality to adopt LAP. The municipality was provided with information relating to the process of LAP development, appointment of the working group, and other relevant information in November 2020. In April, the municipality adopted the decision on development of LAP and established the Working Group, enabling LAP implementation. Capacity Building of Independent Monitoring Bodies (IMB) (1.1.C) – During the quarter, GAI and TS continued to provide technical assistance to IMBs to support them with the collection of required data and documents on LAP implementation, and in the preparation of reports that were due in March 2021 (Activity 1.1.C.). The most active IMBs — Kragujevac, Raška, Novi Pazar, and Vrnjačka Banja — used the assistance to prepare reports. Kragujevac and Raška IMBs adopted the 2020 LAP implementation reports and informed the public about their findings. The reports, submitted to local assemblies, indicate the status of implementation of activities in LAPs, as well as recommendations for faster implementation and revisions of specific parts of the LAP (mostly due to expired deadlines and changes in legal framework). The IMBs in Vranje, Šabac, and Sombor have been significantly slower to absorb the technical assistance, following changes in membership and the lack of active support from the local government administration. The fifth training in a series of trainings for IMBs members was organized online on April 27, 2021.The training focused on measures and activities in several areas of the LAP. The selected measures were: Management of donations received by LSGs, Allocation of Local Government Budget Funds for the Implementation of Projects of Public Interest in Local Communities and Strengthening Internal Financial Control Mechanisms.
6 The support was initially planned to be provided to the LSGs until December 30, 2020.
Checchi and Company Consulting, Inc. 9
With GAI and TS support, the City of Kragujevac created a separate page on the City’s website for their IMB. On this page, the Local Anti-Corruption Forum (LAF) will publish relevant news, documents, and reports regarding LAP monitoring activities and other activities and results of this IMB7. This will improve both the visibility and transparency of the LAF as well as facilitate public access to information on the work of the IMB. Enabling IMBs to have a web page on the official LSG’s website is one of the recommendations given in the GAI-developed local government website model. Public Awareness Raising Campaign on LAPs and IMBs (Activity 1.1.D) – In line with GAI’s Y4 strategy to focus support on promotion and raising public awareness about roles and functions of IMBs in "Through this competition, we wanted to motivate primary and secondary school local communities, GAI supported the Kragujevac IMB students to reflect on corruption and and coordinated with the city administration to nepotism and to realize that such behavior is organize an art and literary competition related to unacceptable in modern democratic societies. Local Anti-Corruption Forum, as an nepotism in education for elementary and high school independent working body, in addition to pupils. The competition ‘You can buy a title, but you monitoring the implementation of the Local Anti-Corruption Plan, has the authority to cannot buy knowledge’ was publicly announced as a promote initiatives to combat corruption in joint effort of Kragujevac IMB, the City of Kragujevac, the local community" GAI, and TS. It was open to students of 32 elementary Zorica Sorak, president of the Local Anti- schools (grades 5 to 8) and high schools from March Corruption Forum in Kragujevac. 22 to April 20, 2021. The students had an opportunity to share their thoughts and say why corruption and nepotism in education are harmful to society, why it is "Developing a culture of resistance to corruption is a long process, but it is the only important to follow the rules and respect principles of right way to create an environment in which fair play, and the role of school and education in it. people have the knowledge, skills and social power to resist the problem that afflicts our While the PR service of the City of Kragujevac worked society. Working with young people is with GAI to inform local media about the competition invaluable. In this way, we strengthen the and the role of IMB, GAI additionally created and integrity and knowledge of corruption of future leaders and decision-makers. Along the implemented an Instagram campaign targeting way, in devising effective mechanisms that can Kragujevac youth. prevent the problem, we decided to organize an art and literary competition on the topic of The social media campaign was used instead of nepotism. We want to inform young people about this problem, to draw attention to all posters/flyers, since due to COVID-19 schools in the dangers that this problem brings, but also Serbia were having classes online at the time the to point out the effective mechanisms competition was announced. The competition also available to them." Dusan Aleksic, Member of the Kragujevac served to introduce IMB members to the public, create City Council for Education. a presence for them on local media, and raise citizen awareness on the role of IMB.
7 The page is available at https://www.kragujevac.rs/lokalna-samouprava/lokalni-antikorupcijski-forum/
Checchi and Company Consulting, Inc. 10
As a highly targeted local media campaign, its results were very positive, reaching more than 196,500 persons. Media analysis iidentified more than 540,000 reactions to the posts (likes, comments, re-posts, shares). The awards to winners of the competition will be presented on May 12, 2021.
Visuals used in the competition’s media campaign
1.2 Transparency GAI’s support to LSGs to enhance transparency in government is three-fold. First, GAI supports counterpart LSGs by identifying areas of the Local Transparency Index where improvements can be made and then providing technical assistance through TS to ensure sustainable improvement of their (LTI) scores. Second, GAI recommends improvement to LSG websites, based on the earlier GAI-developed model website for local governments but customized for each LSG. Third, GAI supports improvement of public outreach and communication strategies, including improving the use of social media by local governments. These interventions jointly provide information, resources, tools, and examples of best practices for LSGs to significantly improve their transparency and set examples for others to follow.
New Website Development (Activity 1.2.A) – As agreed with the municipalities of Žabalj and Stari Grad, GAI is guiding them through the process of developing new websites consistent with the GAI-developed model. Under GAI guidelines, both municipalities have established working groups for the development of new websites, ensuring the involvement of all relevant organizational units and to avoid the widespread understanding that website development is the sole responsibility of the IT unit. To ensure continuity in work, GAI has set up regular weekly meetings with the working groups in each LSG that should result in development of the final structure of new websites. By the end of Q1, the working group in Žabalj finalized its website structure, enabling GAI to define requirements and solicit services for website development and design. Work progressed more slowly in Stari Grad as a significant number of staff, including working group members, were on sick leave due to coronavirus. As the municipal website will be developed by the City of Belgrade,
Checchi and Company Consulting, Inc. 11
within development of the new city and city municipalities’ websites, this delay is not affecting planned IT work. Rulebooks for Maintenance and Update of LSGs Websites (Activity 1.2.A) – GAI and subcontractor DCG, with active participation and in close cooperation with representatives of three LSGs (Novi Pazar, Kragujevac, and Vrnjačka Banja) finalized internal rulebooks that contain procedures, steps and responsibilities for regular maintenance and update of their websites. These rulebooks will significantly improve the process to update local websites, improve local governance transparency, and allow the public to have accurate, updated, and timely information and documents they need. In this quarter, the Municipal Council in Vrnjačka Banja adopted the rulebook8, while Kragujevac and Novi Pazar fully accepted the latest version of the document. It is expected that these latter two LSGs will adopt the rulebook in May, due to their internal procedures for adoption of legal acts. GAI will share information, link the adopted rulebooks with all other LSGs, and invite them to consider developing and adopting similar procedures. In this quarter, GAI and DCG started assessments of websites for Group 3 LSGs, based on the model website and IT tool for scoring website content, structure, and legal requirements developed in Y1. Improving Transparency of Local Public Companies (Activity 1.2.C) – GAI is assisting four counterpart LSGs to introduce a procedure for the collection and publishing on their websites of data on local public enterprises and other local public institutions. GAI, with subcontractor TS, assessed existing practices of local public enterprises (LPEs) and institutions (LPIs) in counterpart LSGs for publishing data. The assessment included analysis of the LPEs’ and LPIs’ websites, available workplans and reports, LAPs, and data published by other central level institutions responsible for oversight of public companies, such as the Business Registers Agency. The assessment indicates that insufficient data and information is being published by the LSGs and their public companies. Even information that is required to be published by law is not always available. Some of the reviewed public companies do not even have websites, while municipalities mostly do not have separate pages on their websites where they can publish data on public companies. Based on these findings, TS is developing methodology for LSGs to collect, publish, and update data on LPEs and LPIs. Communication Strategies and Social Media Use (Activity 1.2.E) – Technical assistance for development of the Communication and Public Participation Strategy in Niš was resumed following adoption of the decision to do so by the City’s Assembly on March 19, 2021. The work on the Strategy had been delayed following substantial organizational restructuring of the City Administration and work on other priority strategic documents. According to the Plan for Development of the Strategy, which is an integral part of the Assembly’s Decision, the work will be organized in line with the Law on the Planning System, which requires an ex-ante analysis of
8 Document is published in Municipal Official Gazette and posted on website, available at https://www.vrnjackabanja.gov.rs/images/clanak/2123/dokumenta/sluzbeni-list-broj-12-21.pdf
Checchi and Company Consulting, Inc. 12 the current situation, establishment of a City working group and a Partners Forum, consisting of public representatives, and the development of the strategy with an implementation plan. GAI has provided necessary inputs to the City to establish the working group and the public invitation to establish the Partners Forum, expressing the urgency to form both bodies by May, given the limited remaining time for GAI to provide support. In parallel and in line with the agreement made with the City Administration, GAI is preparing the ex-ante analysis of the current situation. The analysis will involve a public opinion survey with focus groups on preferences for engagement in local decision making and transparency of local administration, as well as a media presence analysis. The City of Novi Pazar has postponed publication of the first issue of the city quarterly publication based on the GAI-developed design and structure. The local government has experienced continuing health emergencies due to recurring coronavirus outbreaks, which has significantly diminished its capacities, and as a result postponed implementation of new initiatives, such as this one. During the quarter, GAI initiated technical assistance to five Group 3 LSGs Ljubovija, Veliko Gradište, Krupanj, Inđija, and Sremski Karlovci to develop their communication strategies. Given that there are similarities among these LSGs, GAI has encouraged joint work on development of communication strategies between Sremski Karlovci and Veliko Gradište (small municipalities on the Danube river with tourism as the main economic sectors), and between Ljubovija and Krupanj (small, underdeveloped, and rural municipalities with older populations and significant unexploited natural resources). On the other hand, Inđija is among the most developed municipalities in Serbia, with a very strong presence of foreign investors and different communication priorities. Besides looking into competitive advantages of these municipalities that need to be reflected in their strategic communications, GAI will also focus on strengthening communication of municipalities with public and local businesses, as well as public engagement practices. In this quarter, GAI interviewed representatives of all municipalities, assessed their current communication practices (websites, use of social media, public engagement practices, characteristics of local economies) and is working on draft communication strategies. The aim is to have these municipalities adopt communication strategies with action plans by June and provide them support implementing selected initiatives in the second part of the year. The strategies will follow the very practical model developed by GAI for Novi Pazar last year and include strategic objectives with the list of communication channels, target groups and communication activities that will be implemented on a regular basis.
Checchi and Company Consulting, Inc. 13
GAI completed the third round of Social Media Training for Local Governments. The training, developed in Y1 for the first group of local governments, proved to be very useful in introducing local governments to strategic communications and the use of social media for improved engagement with the public. The training included the most relevant topics for local governments, including strategic communication, principles and key elements of social media platforms that can be used by LSGs, creating content for social media profiles, community management, and crisis communications. This training was tailored for representatives of local governments responsible for public relations and communication with the public and media, and management of social media. This year, participants came from the Group 3 LSGs as well as new representatives from LSGs that have already taken part in this training. For example, eight additional representatives Vrnjačka Banja took part in this year’s training. In total, 21 participants from 7 municipalities attended the two-day online training.
1.3 Public Participation Public Participation in Kragujevac (Activity 1.3.A) – GAI continued its work with the City of Kragujevac to support the strengthening of procedures for citizens’ engagement, and the organization of public discussions and consultations relating to the budget adoption process. A meeting with City representatives organized in March was concluded with GAI’s agreement to focus support on: engagement of youth in the budget planning process, the development of recommendations and an action plan to improve public engagement practices, and support for the implementation of selected initiatives within the budget adoption process during the second half of the year. The activity is closely coordinated with the development of the budget portal in Kragujevac (Activity 1.4.E).
Youth Engagement in Local Budget Planning (Activity 1.3.C) - GAI continues to focus and expand youth engagement in local decision making. In this phase, GAI is gathering lessons learned from participants from the previous two years, summarizing the input and experience into a guidebook for student parliaments and a guidebook for LSGs. As a follow up to successful implementation of high school budget planning participation, GAI presented the twenty-seven student parliaments with certificates of appreciation, noting their active participation in the initiative. A certificate of appreciation was also presented to a student from the School for Arts and Design in Novi Pazar for his contribution in designing promotional materials used to promote the initiative. GAI and subcontractor Mr. Leopold Rollinger held an online workshop with 35 student parliament members, teachers, and local government representatives from the four cities that participated in GAI’s Year 3 initiative for youth engagement in the budgeting process (April 27). Experiences were exchanged, the process was examined, and ideas for improvement suggested. GAI and LSG representatives provided an update on projects selected for 2021 local budget financing. During the discussions, participating students shared how this activity changed their perspective on the importance of citizen engagement. They commented that students who were
Checchi and Company Consulting, Inc. 14
reluctant to participate were skeptical that their participation would result in any improvement (Kragujevac, Sremska Mitrovica) and they were unaware of the success of the previous year’s process in Sombor. They all stated that the process empowered their student parliaments with a new purpose and the ties among the members of the parliament have grown. Individually, . Individually, students stated that now they better understand the way democracy works, and the importance of having a voice. They said that they would contribute again to similar processes in the future. The senior year students said that they are now interested in participating in the student bodies of the universities they plan to attend and that they now have a heightened interest in what occurs in their local communities. Consistent with the model of high school engagement in the local budget planning process, GAI is assisting the Municipality of Dimitrovgrad to replicate this initiative in its one elementary and one secondary school. In late February, GAI facilitated initial meetings of the LSG’s and schools’ representatives (attended by representatives of the student parliaments, principals, and teachers) to launch the process to include students in the local budget planning process. The Municipality of Dimitrovgrad has allocated 400.000 RSD per school for projects that will be proposed and selected by students by the end of May 2021. Also, GAI is supporting Dimitrovgrad to improve overall communication with youth and establish a more active and constant involvement of youth in the process of planning youth-related activities. Understanding the needs of youth and responding to them is among the priorities of Dimitrovgrad. Similar to other underdeveloped municipalities in Serbia, this LSG is facing a substantial outflow of young people who move to neighboring Bulgaria or to more developed towns in Serbia for education and work. GAI is working with the Municipality to develop and implement its 2021 Municipal Youth Program, that will be based on consultations with young people, and included in the budget. Strengthening Youth to Fight Corruption and Participate in Local Decision-Making (Activity 1.3.D) – As detailed above under Activity 1.1.D, in Q1 GAI organized an art and essay competition of elementary and high school students aimed at raising their awareness about corruption and the impact it may have on their lives.
1.4 Local Finances and Budgets GAI is working with LSGs to facilitate a culture of openness, engagement, and information sharing on public spending, as well as to improve oversight and control mechanisms over public spending. Implementation of Financial Management and Controls in Novi Pazar (Activity 1.4.B) – This activity was affected by an unfavorable health situation in the municipality. However, in Q1 work on development of financial management and controls (FMC) picked up. The City formed a working group that has been collaborating with a GAI subcontractor through a series of weekly meetings supplemented by individual consultations with heads of organizational units. Weekly workshops are used to train participants on the implementation of the different phases of FMC implementation, followed by work within organizational units. GAI has prepared and provided each organizational unit within the City Administration with list of possible business processes to
Checchi and Company Consulting, Inc. 15
help them identify business processes in their organizational units and indicate owners of each process. This phase took longer than originally anticipated as the dedication and capacities of organizational units varied. The FMC system implementation is demanding, especially during the pandemic, as priorities change, and people are frequently absent from work due to illness. GAI is investing a significant effort to navigate these issues and adjust to counterpart capacities. By the end of quarter, most of organizational units completed the first phase related to identification of business processes. Based on the support thus far, it is evident that a significant effort is required to raise Municipal leadership and staff awareness of the benefits and importance of a properly implemented and functioning FMC system. On 27 April, GAI organized an introductory workshop with representatives of the City of Kragujevac to discuss and agree on the structure and content of the open budget portal that will be developed for this local government during the Y4. The City representatives were introduced to the Vranje budget portal and agreed that this model would be a good basis for Kragujevac’s budget portal.
1.5 Public Services GAI has continued to support the improvement of local public services, facilitating identification of procedures that can be simplified and merged into single administrative points for more efficient service delivery. Improvement of Public Services in Kragujevac (Activity 1.5.A) – In this quarter, GAI completed technical assistance that resulted in identification of three Single Administrative Points (SAPs) that the city administration can establish. GAI initiated its technical assistance by reviewing city procedures related to: 1) welfare protection, 2) economic development, and 3) provision of the utility services. Areas were selected based on the SAPs previously developed by GAI in the cities of Šabac and Sombor, and targeting those with the highest volume of received requests for delivery of services. Primary emphasis was placed on welfare and child protection, because families in need, users of social benefits, and children from vulnerable social groups represent the most numerous and the most deprived group of citizens in every local government, including Kragujevac. Their sensitivity and insecurity are further intensified during periods of social crisis, such as the ongoing COVID- 19 pandemic, which provided an additional basis for SAP consideration. GAI has offered counterparts a methodology of merging inter-related procedures into an SAP, which is straightforward – it basically allows the official administering subsequent procedures initiated by the same applicant to use documents and proof from the previously resolved case. For example, documents provided in the procedure for granting social allowance or child allowance can be easily used in a subsequent procedure for granting the recipient the status of privileged user of utility services. In the Serbian legal system, beneficiaries of social allowance and child allowance are entitled to several other allowances and benefits and all those procedures should be easily
Checchi and Company Consulting, Inc. 16
merged into one procedure, allowing citizens to submit all supporting documentation only once, resulting in a shortened and simplified procedure. Another area in which an SAP was proposed is licensing taxi drivers. Currently, an individual taxi driver who is a sole entrepreneur and not member of the taxi association, must submit three and in some cases even four sets of documents to obtain a taxi license. This will require the individual to initiate three (or four) subsequent procedures including an application to obtain a taxi drivers license, an application to register a vehicle, an application to obtain a taxi plate and sign, and, in some cases, an application to obtain approval for additional signage/marking on the vehicle for marketing purposes. The proposed SAP should allow for a simpler, faster and more straightforward licensing process as documents already reviewed in one procedure would be used in all subsequent procedures, significantly shortening all subsequent procedures to secure vehicle registration, and plate and taxi signage. The third SAP allows public utility companies to obtain information on change of ownership of properties and thus update their users databases without contacting service users/property owners. In the process of development of this third SAP, GAI facilitated the coordination and cooperation between the Republic Geodetic Authority, Kragujevac City Administration, and the local Public Utility Companies (PUC) on property transaction data exchange needed for the PUC database updates. GAI performed detailed assessments of the legal, organizational, and technical requirements for SAPs, developed action plans for their implementation and presented details to city officials and city councilors. In Q1, the City of Kragujevac established one SAP. The City’s Public Company for Unified Billing established cooperation with the Republic Geodetic Authority to provide data on property transactions, which has been used for improvement of the customers database of all public companies in Kragujevac. It is expected that in 2021, between 2,000 and 3,000 citizens/households will benefit from the establishment of this SAP, as their property transactions will be automatically recorded in databases of the Public Utility Companies “Čistoca” and “Energetika”. As a result, owners of the properties will not be required to document change of ownership themselves to the public utility companies/service providers. The City of Kragujevac has received the necessary documentation and action plans to establish the remaining two SAPs and GAI will continue to monitor efforts in that regard. Improvement of Public Services in Žabalj (Activity 1.5.B) – Having finalized a customer satisfaction survey in the previous quarter, GAI completed surveying focus groups on local public services to establish a baseline and identify the most problematic services that may be improved with GAI’s support. Three focus groups were organized based on the outcomes of the survey, with a goal of identifying which services need to be improved, why citizens are not motivated to take part in the monitoring and evaluation of the Municipality’s and local public utility company’s performance, as well as identifying ways to motivate the public to engage in the monitoring and evaluation processes. GAI collected and analyzed the survey and focus groups findings, as well as other
Checchi and Company Consulting, Inc. 17
sources of information, such as the annual reports of the municipal administration and public utility companies (PUC), budgets and reports on budget performance, and baseline studies on administrative capacities of municipal administration (SCTM baseline study from 2020). GAI then reviewed the self-assessment tool Municipal Capacity Index developed by SCTM for 2018 and 2020. GAI identified several areas for improvement that will be recommended and discussed with municipal and PUC management:
• PUCs’ technical capacities to professionally organize annual surveys need to be improved to engage citizens, create a higher citizen response rate, and improve the quality of citizen involvement. PUCs will need a simple survey toolkit with (1) a printed questionnaire, (2) an online Google questionnaire, and (3) a report template on survey results to be used in mandatory annual surveying of customers.
• On-line complaint form – PUC management needs development of an online complaint form that will be available on the Municipal website, enabling easy access for citizens to post complains on billing, provision of services or repairs and to receive timely answers, in the time indicated.
• Irregularity form — A short online form for reporting irregularities in communal, environmental, construction and market inspection issues, should be developed, to be available on both the eGovernment portal and the Municipal website.
• Increase of available eServices – Up to 10 eServices for the most frequent municipal procedures on the eGovernment portal should be created.
• Citizen engagement – Enrollment of 10-15 prominent citizens is needed for the Citizens’ Advisory Council (CAC), an advisory panel in each of the three villages (Gospodjinci, Djurdjevo, Čurug) that are part of the Municipality, as well as in the urban settlement of Žabalj. The CAC should provide municipal bodies with information and recommendations from the community on the public problems with municipal services and urgent service needs.
• Budget expenditure prioritization — Due to limited budget resources, it is crucial to allow villages to prioritize budget revenue collected from property tax for purposes they perceive as urgent and most important. In discussions with the LSG, GAI will prioritize activities that LSG wants to implement to provide technical assistance for their implementation.
1.6 Whistleblower Protection The second training for local public companies to strengthen internal whistleblowing protection procedures and capacities was organized on March 31- April 01, 2021. GAI organized an online whistleblower protection training for the representatives of public companies, and
Checchi and Company Consulting, Inc. 18
representatives of Group 3 LSGs that had not attended this training before. The training was implemented by subcontractor Pištaljka and focused on the establishment of internal whistleblowing systems in municipalities and public companies, implementation of the Law, as well as case studies and discussions. Fourteen participants from four local governments and seven local public companies attended the training.
II. Independent Oversight Institutions In this quarter, activities were largely implemented as planned with the focus on SAI Annual Audit planning, further strengthening of performance audit skills, and mentoring teams performing the 2021 performance audits. GAI worked with APC to increase interactions with stakeholders, namely the PPOs and misdemeanor courts, to improve utilization of the APC referrals and improve the adjudication of misdemeanor offences as defined by the Law on Prevention of Corruption. With the aim to enhance CPI’s engagement with the public, GAI provided support to build the institution’s strategic communication on the laws related to access to information and personal data protection.
INDEPENDENT OVERSIGHT INSITUTIONS
SKILL COMMUNICATION POLICIES AND DEVELOPMENT leading to common PROCEDURES advancing IOIs UNDERSTANDING of are introduced to CAPACITIES and the IOIs findings to STRENGTHEN IOIs EFFECTIVENESS BOOST FOLLOW-UP internally
Clipart source: shutterstock.com, freepick.com, canstockphoto.com
2.1 Assistance to State Audit Institution In Q1, GAI has engaged SAI leadership, performance audit teams, and the Sector for Audit Methodology and Development to strengthen the use of appropriate audit and evaluation methodologies, and analytical skills on the 2021 performance audit designs. GAI facilitated preliminary Design Summits, engaging a cross section of internal stakeholders to discuss appropriateness of audit objectives, selection of methodologies, and data collection methods as
Checchi and Company Consulting, Inc. 19
a joint learning lesson. Newly employed auditors were trained in the basics of performance auditing, in support of the Auditor General’s plan to expand utilization of performance audits and SAI’s performance audit team capacities. GAI also obtained the Auditor General’s concurrence to apply GAI’s proposed methodology for the whole of the institution to uniformly calculate and report financial and non-financial benefits derived from auditees’ implementation of SAI audit report recommendations and to advance the institution’s focus on detecting risk of fraud in the sectors of government most vulnerable to corruption. Evaluation Methodologies, Research and Analytical Skill Enhancement (Activity 2.1.A) – Prior to the SAI Audit Council approval of audit topics, auditees, and timing of audit reporting, GAI began mentoring sessions with the 14 performance audit teams to refine their audit proposals. GAI built on lessons learned the prior two years and reiterated the need for teams to ensure the scope of the proposed audits is manageable given expected data availability and time anticipated to perform the audit. The 2021 performance audit teams demonstrated a commanding grasp of performance audit principles and standards in their presentations of draft audit designs. GAI reiterated the need for controlling the scope of the audits, especially given the known or anticipated availability of data during the design phase of the audits. GAI subcontractors Dr. Laurie Ekstrand and Mr. Stephen Caldwell, with GAI Chief of Party (COP), Ms. Williams-Bridgers, facilitated joint sessions of performance audit teams, their sector colleagues, the Auditor General, and the Sector for Audit Methodology and Development. The teams briefly presented their audit designs and participated in the discussion of audit objectives, selection of methodologies, and data collection methods appropriate to audit design. GAI identified a variety of questions and raised possible concerns that may arise during audit implementation. With 14 ongoing performance audits, SAI has encompassed a wide range of topics that will help the Serbian Government improve management and use of budgetary resources in the areas of environmental protection, entrepreneurship, public procurement, health and social care, and IT security. All of these audit topics reflect SAI’s growing attention to focus its performance audits on sectors and programs highly vulnerable to fraud, waste, abuse and corruption. Mentoring Performance Audits (Activity 2.1.B) – Throughout the first quarter of Y4, GAI mentored 14 audit teams on their performance audits designs. GAI subcontractors Dr. Laurie Ekstrand and Mr. Stephen Caldwell reviewed the initial research auditors developed to support the audit topics. Consultations resulted in the refinement of scopes of audits, researchable objectives, anticipated data limitation, audit methodologies and data collection instruments, and the audit teams’ consideration of what they are likely to be able to conclude given the researchable questions. Dr. Ekstrand assisted teams in their consideration of a variety of evaluation methodologies, such as focus groups, sampling, and statistical and comparative analysis strategies as well as evaluation of survey results obtained during the pre-audit design phase to support the teams’ ability to answer the audit objectives as defined.
Checchi and Company Consulting, Inc. 20
Performance Audit Skill Development (Activity 2.1.C) – GAI committed its resources to the continued training of SAI auditors in performance auditing, including performance audit basics, evaluation methodologies, data analytics, root cause analysis, reporting, and strategic communication in report writing. Basic performance audit training for the newly hired auditors was held online from March 2 to March 5, 2021. The training was delivered by GAI COP Ms. Williams-Bridgers and subcontractors Dr. Ekstrand and Mr. Caldwell. It is part of the continuous technical assistance to SAI to increase its resources dedicated to performance auditing, in accordance with the leadership’s plan to increase reliance on performance auditing within the Institution. The training focused on the delivery of basic performance auditing skills and tools, advanced research and evaluation methodologies, quality control, root cause analysis, report writing and reporting. The training has been carefully timed and aligned with SAI’s staff expansion, as some of the newly employed auditors have been assigned to the 14 performance audit teams that are conducting performance audits for 2021. Enhancing Stakeholder Utilization of Audit Reports (Activity 2.1.I) – GAI has been working with SAI to improve the Institution’s message delivery to target external stakeholders and to better communicate the results of its audits of high-risk sectors and functions of government. To enhance stakeholder utilization of audit reports, GAI supported SAI’s strategic communication to external stakeholders by facilitating a single press conference to report the results of last three performance audits conducted in 2020. This final event was held on February 18, with three performance audit reports presented: Information Security in Health Information Systems, Internal Financial Control in Health Care Institutions, and Efficiency of the Energy Management System in the Public Sector.
• Information Security in Health Information Systems – SAI reported on the need to enhance information security measures and make more reliable health information systems in the Republic of Serbia. SAI directed recommendations to the Ministry of Health, Institute of Public Health of Serbia “Dr Milan Jovanović Batut”, and the Vojvodina Provincial Secretariat for Health to ensure data availability, confidentiality, and integrity of the Integrated Health Information System (IHIS). This requires, among other tasks, the adequate organization of IT security, and regulation of contracting processes for service provision and establishment of the reliable system of handling data.
• Internal Financial Control in Health Care Institutions – SAI reported that in order to achieve more economical, efficient and effective spending of the funds allocated for the provision of healthcare services, it is necessary for healthcare institutions to establish an efficient system of internal financial control, with education and awareness raising for all employees about responsibility for this process. In its audit, SAI concluded that healthcare institutions have insufficient understanding of their obligations, the necessity of and strategies for establishing a FMC system within their organizations.
Checchi and Company Consulting, Inc. 21
• Efficiency of the Energy Management System in the Public Sector – SAI reported that there was no significant improvement in the energy management system as a result of the lack of commitment of all public sector entities. The majority of audited entities have appointed an energy manager but have failed to adopt planning documents that would define the policy for efficient use of energy. Energy consumption management was not fully established to include continuous planning, monitoring, analysis, reporting, and supervision. The Ministry of Mining and Energy has not conducted inspections of the energy management system. SAI concluded that supervision over the management of projects in efficient use of energy should be intensified. The Press Conference optimized SAI’s strategic outreach to civil society organizations active in the areas discussed. CSOs participating included: Transparency Serbia, Standing Conference of Cities and Municipalities, the Serbian Association of Accountants and Auditors, the Chamber of Certified Internal Auditors, Centre for European Policy, CSO Pakt, Toplički centar, and Bum- Bečej. Representatives of public administration and audited entities also participated. The event was broadcast live for a wider audience on the UNS Press Center YouTube channel, with over 50 participants following the live YouTube broadcast. Serbian civil society organizations have acknowledged the benefits of SAI’s strategic outreach and readily engaged during the sessions. TS openly welcomed CSO participation at all press conferences, stating that with the introduction of performance audits, SAI has been able to fully realize its role. TS believes that SAI now provides members of parliaments, councilors, and citizens with answers to questions that cannot be found when the final budget spending reports and data on certain types of public spending are, although rarely, being considered. According to one TS official, SAI’s reporting goes beyond what constitutes basic transparency, because not only are citizens informed as to whether funds have been spent in accordance with the approved budget and in a legal procedure, but whether the cost has led to expected results, whether the problems have been resolved and what needs to be done to make better use of public funds. TS noted that this type of SAI analysis is especially important for local governments, because through a comparative overview of the actions of other cities and municipalities in similar situations, it serves as a guide for LSGs to avoid problems faced by other local governments. Representatives of the Standing Conference of Cities and Municipalities also voiced their support for SAI’s engagement of CSOs in communicating its findings. A Conference representative stated that they would share SAI’s reporting with the Standing Conference members, as well as make them available for discussion through the various boards within the Standing Conference’s structure. Performance Measures and Recommendation Follow-up (Activity 2.1.A) – GAI continued working with SAI on performance measurement and recommendation follow-up policies and during this quarter reached final consensus with SAI leadership on calculation of financial and
Checchi and Company Consulting, Inc. 22
non-financial benefits of audits. Prior to the meeting with SAI leadership on April 19, and a follow- on workshop held on April 22 for performance audit team leaders, Sector Heads, and the Sector for Audit Methodology and Development, GAI updated the draft paper on performance measures and recommendation follow up with expanded explanations of a methodology for calculating net present values of financial benefits, and proposed use of a logic model for determining causal links between audit recommendations and actions taken by auditees. The Auditor General expressed final agreements on the proposed performance measures and recommendation follow up methodology to be used in SAI and adopted as policy. At the Auditor General’s request, GAI convened a workshop with SAI sector heads and performance audit team leaders to present the policy and methodology for calculation of financial and non-financial benefits, and in all phases of performance audit planning and implementation moving forward. Fraud Risk Assessment (Activity 2.1.D) – GAI subcontractor Mr. Stephen Lord produced a working draft of sector-specific Guidelines for Fraud Risk Assessment in Performance Audits. The Guidelines are designed for use by SAI leadership and experienced performance, financial, and compliance auditors to identify red flags of fraud during their audits of government programs and activities. The draft includes detailed questions that will be used in upcoming meetings with SAI leadership and senior auditors to refine the Guidelines by incorporating elements of past audit findings related to weaknesses in internal control environments and operational deficiencies. The draft Guidelines also incorporate red flags to be used during performance audits of public procurements and health sector programs. Mr. Lord will develop similar red flags for other fraud- prone government sectors.
2.2 Assistance to the Agency for Prevention of Corruption (APC) GAI’s assistance to the Agency focused on building the support to improve its interactions with external stakeholders who are key to realizing the impact of APC’s oversight of corrupt practices. GAI convened the second roundtable in a series between APC and PPOs with the aim to increase the utilization of APC referrals to PPOs. GAI also began planning training for misdemeanor court judges on the Law on Prevention of Corruption to ensure harmonization of the institutions’ legal practices. GAI facilitated APC’s delivery of trainings on conflict of interest to government officials and Members of Parliament. Improved Interactions with PPOs (Activity 2.2.A) – In the reporting period, GAI designed and convened the second roundtable in a planned series with APC and PPOs to map areas for improvement in their cooperation for prosecutors’ use of information developed by APC during its examination of public officials' asset and income declarations and conflicts of interest. Both institutions recognize the potential to enhance the utilization of APC’s identification of suspicious information that might result in prosecutors’ identification of evidence sufficient for pursuit of corruption cases. The objective of the roundtables is to define specific operational protocols to detail what, when, who, and how APC will share information with PPOs in their pursuit of criminal offenses within the purview of the Law on Prevention of Corruption and the general duty of
Checchi and Company Consulting, Inc. 23
public institutions to report criminal offences prosecuted ex officio (Article 332 of the Criminal Code). Similarly, specifics on PPO interface with and provision of feedback to APC on the latter’s referrals or filings to PPOs should be included in the protocols. Principals in the APC and PPO consider the development of protocols to be the necessary next steps to implementation of the cooperation that was expected by the March 2018 Law on Corruption that envisaged better collaboration between PPOs and other oversight and enforcement institutions to enhance prosecution of corruption cases. Prior to the roundtable, GAI facilitated a meeting between Republic Public Prosecutor’s Office (RPPO) Mr. Miljko Radisavljević and APC Assistant Directors, Ms. Nataša Božić, Ms. Verka Atanasković, and Mr. Jovan Božović to agree on the issues to be addressed, including the agency's powers and capacities, and the possibilities for detecting undeclared property and determining its origin. The roundtable between APC and the Public Prosecutors’ Offices was held on April 15, 2021 with the APC Director, APC Assistant Directors, Deputy Republic Prosecutor, prosecutors from each of four A/C units and from the 1st, 2nd, and 3rd basic PPOs. The 21 participants agreed that the intent to commit any criminal offence, including intended non-disclosure of required information or disclosure of false data within the purview of the Law on Prevention of Roundtable held between APC and the Public Corruption is hard to establish, which could Prosecutors Offices - Deputy Public Prosecutor Vidak Daković, Specialized Anti-Corruption Unit, Higher PPO explain the high rejection rate of APC filings by the Novi Sad Basic PPOs. Therefore, it is important that APC collaborate early with the PPOs to decide whether there is sufficient evidence for initiating an investigation. Mr. Miljko Radisavljević proposed to discuss in the next roundtable whether, in addition to income and assets, citizen complaints and conflict of interest situations related to public procurements should also be covered by the operational protocols. It was agreed that APC will prepare information on categories of public officials involved in conflict of interest cases and typical conflict of interest situations, which will be the basis for further discussion and facilitate the decision making regarding the scope of the protocols. The need for early collaboration between APC and PPOs was confirmed by all participants. The situations in which APC should contact PPOs, the format in which the information should be rendered, and the appropriate points of contact in the PPOs and APC for early communication and exchange of information will be defined in the operational protocols. Mr. Radisavljević
Checchi and Company Consulting, Inc. 24
suggested that the points of contact in the PPOs would be special A/C units and Prosecutor's Office for Organized Crime, and the Liaison Officer in APC. Improved Interactions with Misdemeanor Courts (Activity 2.2.B) – GAI developed plans with Mr. Nenad Vujić, Director of the Judicial Academy, and Mr. Aleksandar Kostić, Advisor for International Cooperation, to respond to request of Ms. Olivera Ristanović, the President of the Belgrade Misdemeanor Court, to train MC judges on the Law on Prevention of Corruption to ensure harmonization of the institutions’ legal practices. Mr. Vujić confirmed that the topic has been included in the Annual Program of the Judicial Academy and welcomed GAI support. Mr. Vujić and Judge Olivera Ristanović agreed to establish a working group to prepare and organize training for trainers to ensure sustainability. GAI agreed to support the development of the training curriculum and training materials, including court best practices, and facilitate the training. Analytical Skill Building for APC (Activity 2.2.C) – GAI initiated support to the Agency’s Department for Research and Analytics, and other Agency departments, to continue to build its analytical skills, including use of quantitative and qualitative analysis, and evaluation research methods.
The training will be developed consistent with implementation of the Research and Analytical Training Plan GAI developed for APC. The training is expected to cover the following modules: (1) data analysis and reporting (descriptive statistics and data visualization), (2) advanced statistical analysis (inferential statistics), and (3) analyzing data from multiple datasets. APC participants will include staff from the Departments for Research and Analytics, Legal Affairs, Registries and Records, Asset Oversight, Prevention and Integrity Strengthening, Control of Financing of Political Activities, and Foreign Affairs and Strategic Development. Enhancing Awareness of Conflict of Interest in the Parliament and Government (Activity 2.2.D) – GAI’s Year 4 Workplan included planned assistance requested by APC to improve their strategies to resolve conflict of interest. During this quarter, APC informed GAI that they had reconsidered their priorities and, given that the 2020 elections resulted in transitions of public officials, APC would rather refocus its resources on a target of opportunity to train public officials
Conflict of interest training for public officials led by APC Assistant Director Ms. Verka Atanaskovic
Checchi and Company Consulting, Inc. 25
on their obligations related to conflict of interest. The training is based on APC guidance recently published with GAI support. The current Action Plan for Chapter 23 places emphasis on this issue, leading APC to declare it a priority. Following the request, GAI convened two trainings on conflict of interest for ministry officials via Zoom on March 11 and 17. The invitations were extended to ministry secretaries, state secretaries, and assistant ministers. The training was designed to facilitate a better understanding of conflict of interest definitions, legal requirements, obligations, restrictions, and possibilities for public officials. Ms. Verka Atanaskovic, APC Assistant Director for the led the training sessions. The training was attended by 14 participants - State Secretaries, Assistant Ministries and Secretaries of the Ministries from 10 ministries - those for European Integration; Trade, Tourism, and Telecommunications; Family Welfare and Demography; Environmental Protection; Education, Science, and Technological Development; Culture and Information; Labor, Employment, Veterans, and Social Policy; Village Care; Finance; and Mining and Energy. The opening remarks were given by Mr. Dragan Sikimić, Director of the Agency for Prevention of Corruption and GAI COP, Ms. Williams-Bridgers. Ms. Verka Atanaskovic, APC Assistant Director Department for Conflict of Interest and Lobbying delivered a presentation on a legal framework and practical implementation of the new conflict of interest guidance. The participants received guidance on how to identify occurrence of conflict of interest, the indicators, or red flags of conflict of interest, functions, and activities to avoid, and what to do when in such situations or upon learning that someone else is in a conflict of interest. The second training on conflict of interest for the public officials in ministries was held on March 17. The training was attended by 42 participants — State Secretaries, Assistant Ministries and Secretaries of 10 Serbian ministries: Youth and Sport; Justice; Trade, Tourism, and Telecommunications; Health; Education, Science, and Technological Development; Culture and Information; Construction, Transport, and Infrastructure; Public Administration and Local-Self Government; Labor, Employment, Veterans, and Social Affairs; Finance; Interior; and Foreign Affairs. A third training workshop was facilitated by GAI and delivered by APC Assistant Director Ms. Verka Atanasković on April 13 and introduced twenty-two National Assembly officials to the concepts of conflict of interest and enabled them to identify and manage conflict of interest situations. The opening remarks were given by Mr. Dragan Sikimić, Director of the Agency for Prevention of Corruption, and the GAI COP.
Checchi and Company Consulting, Inc. 26
2.3 Support to the Commissioner for Free Access to Information of Public Importance and Personal Data Protection (CPI) GAI has continued to support CPI in building its public presence by improving CPI’s website and creating a logo for CPI, facilitating media interviews for the Commissioner, training public officials on their legal obligations under the laws on free access to information and personal data protection, and creating opportunities for CPI to inform and engage the public, particularly youth, on the two laws. Enhancing the CPI’s Website (Activity 2.3.A) – The existing platform and IT technical specifications of CPI’s current website were developed almost a decade ago and have been revised several times in efforts to meet the technological and content-related upgrade requirements over time. However, due to the rapid change in technology user expectations, and shifts in the digital landscape, CPI now requires a more user-friendly Content Management System that would enable more efficient and secure management, storage, and organization of data. The new website should have enhanced functionalities and have more attractive and searchable formatting. GAI is finalizing the procurement of services for the assessment of CPI’s website, including technical requirements and recommendations to improve website content and accessibility of information by the public. CPI does not have an official logo for the institution. GAI worked with CPI and GAI-contracted designer Mr. Nikola Stevanović to develop and present options for a logo that communicates the institution’s two citizen's rights which CPI oversees — free access to information and personal data protection. The design also is expected to communicate the complementarity of these two rights. CPI selected a logo design presented by GAI and will shortly finalize the design with color combination selections.
Facilitating Interviews with Media (Activity 2.3.B) – GAI, with the assistance of the Executive Group, has been creating messaging and scheduling media appearances for Commissioner Marinovic. During the first media appearance held in April, the Commissioner introduced the newly appointed Deputy Commissioner, Ms. Sanja Unković, and raised awareness of obstacles to free access to information of public importance as well as the right to personal data protection. The Commissioner also presented key elements of CPI’s Annual Report which was submitted to the National Assembly on March 22, 2021. GAI is scheduling media appearances in May for the Commissioner to highlight privacy concerns and personal data protection in relation to use — especially use by youth — of social media, and the anticipated amendments to the Law on Free Access to Information of Public Importance in which CPI is advocating to strengthen CPI’s presence and authorities for oversight – issues that GAI recommended in its prior comparative legal analysis of CPI counterparts’ legislative frameworks. Training for Public Officials on Personal Data Protection and Free Access to Information of Public Importance (Activity 2.3.D) – GAI and CPI developed plans for training government employees on implementation of the laws on personal data protection and free access to information of
Checchi and Company Consulting, Inc. 27
public importance. A total of four workshops will be held; one at the local level and three at the national level. The Commissioner had publicly proclaimed that the enforcement of the law was premature without the needed preparation for state bodies for its implementation. In response, GAI supported CPI by convening multiple training sessions at the local level that were attended by local government representatives, school administrators and public companies. All participants considered the training sessions extremely helpful to fill the void of guidance associated with the law on personal data protection which recently came into force. CPI expressed its commitment to continue addressing the need for information with a focus on central level institutions with the planned training sessions. Youth Engagement on Personal Data Protection and Right to Know (Activity 2.3.E) – GAI developed the design concept and storyboards for CPI‘s first animated video in a planned series of animations to advance CPI’s strategic communication of citizen rights and government obligations to the public. The animated story focuses on the importance of personal data protection and the right to know. CPI shared questions and answers which provided a concept to be covered by the video. GAI’s subcontracted designer has continued to develop the concept with a visual identity and storyboards incorporating CPI inputs. The video will be made available on the CPI’s website and the YouTube channel.
III. Adjudication of Corruption Cases During the reporting period, GAI provided support to the specialized anti-corruption court units and public prosecutors’ offices for implementation of the 2018 Law on Organized Crime and Corruption and the 2019 Law on Public Procurement. GAI hosted another meeting of the Presidents of Higher Courts and Presidents of A/C Court Units and facilitated the participation of judges from Belgrade Higher Court at the regional conference on best practices in adjudication of corruption cases. Additionally, GAI designed and carried out two online workshops for deputy prosecutors and law enforcement officers in A/C Units on public procurement and the use of the new eProcurement portal for detection and investigation of procurement fraud. Importantly, GAI launched ERCC Phase 2 – Analysis and Design of the Electronic Register of Corruption Cases.
Checchi and Company Consulting, Inc. 28
ADJUDICATION OF CORRUPTION CASES
ELECTRONIC SHARING CHAPTER 23 REGISTRY KNOWLEDGE assisting Serbia to to improve corruption to increase meet the case MONITORING ADJUDICATION and EU REPORTING and REPORTING streamline PRACTICE REQUIREMENTS
Clipart source: shutterstock.com
3.1 Support to the Specialized Anti-Corruption Units Support to the anti-corruption units intensified in Q1, with GAI-developed training on misfeasance in public procurement for public prosecutors and law enforcement from A/C units. Trainings on ethics, integrity, and whistleblower protection were also continued. Online Training on Misfeasance in Public Procurement (3.1.A) – The RPPO and the Public Procurement Office approved the GAI-developed training outline and agenda for training specialized A/C units on the use of the eProcurement Portal. Additionally, GAI and the US Department of State’s International Narcotics and Law Enforcement division jointly facilitated this training. Invitations were extended to participants from the Department for Suppression of Corruption of the Ministry of Interior to encourage them to work with deputy prosecutors on the cases involving public procurement fraud. The first of the two online workshops was held on March 18- 19 and was attended by 45
participants, while the second Training on Misfeasance in Public Procurement, led by Jelena workshop held on April 1-2 was Vlahović, Public Procurement Expert attended by 42 participants from various specialized A/C units around the country. The workshop agenda covered the principal novelties in the 2019 Public Procurement law such as types of procurements, procurement procedures and plans, aggregation rules and thresholds; the use of the eProcurement Portal,
Checchi and Company Consulting, Inc. 29 including access to its non-public section; contested issues in detection, investigation and evidence gathering regarding the public procurement fraud; and monitoring of the procurement process and most common irregularities. Recommendations resulting from participants’ discussions during the workshops were shared with the Republic Prosecutor’s Office and included the following:
• The incrimination of procurement fraud (Article 228 of the Criminal Code) has yet to yield significant results in practice, given a rather low number of convictions. It is necessary to more precisely define this criminal offense to include common actions in the field of public procurement. The existing sentencing policy is regarded as lenient.
• According to the provision of Article 183 of the Public Procurement Law, the Republic Prosecutor`s Office should formally request access to the non-public section of the eProcurement Portal from the Public Procurement Office, by specifying types of information it needs access to for the purposes of collecting information necessary for investigation and prosecution of the procurement fraud.
• Additional training is needed for the staff in specialized units on how to use the eProcurement portal.
• The cooperation and coordination of state institutions under the 2018 Law on Organized Crime and Corruption should be continuous and formalized, especially when it comes to the engagement of the liaison officer, an institution which has still not shown favorable results.
• The Public Procurement Office should communicate irregularities (“red flags”) identified in procurement processes to the PPOs earlier in the process. It was recommended that the Office’s procurement process monitoring report be shared with the prosecution after it is prepared, preferably through the eProcurement portal (currently, the Procurement Office publishes only the annual monitoring report).
• A centralized database should be established containing filed criminal and misdemeanor charges that may indicate the existence of irregularities and corruption in public procurement, including measures taken, as well as the outcome of any proceedings conducted based on those charges. The structure and type of data entered into the electronic database, as well as the manner and authorizations for access to data would be determined by the institutions through special protocols.
• Mechanisms for improved cooperation of state bodies to avoid violating the principle of double jeopardy (ne bis in idem) should be defined. Clear guidelines are needed for the police, judges, and public prosecutors to assess which acts would be appropriate for misdemeanor and criminal proceedings, with precise criteria for rendering a decision.
Checchi and Company Consulting, Inc. 30
• The provisions of the Law on Criminal Liability of Legal Entities should be applied more consistently to prevent legal entities from being used as a cover for committing corrupt criminal offenses. Online Regional Roundtable on Best Practices and Lessons Learned from Selected Anti- Corruption Courts in Europe (3.1.A) – In Q4, GAI was asked by USAID’s New Justice Project in Ukraine to contribute to an online roundtable on best practices and lessons learned from the selected anti-corruption courts, by recommending a judge from Belgrade Higher Court to be a guest speaker at the event. The roundtable took place on February 22, 2021 via Zoom. In a moderated discussion, judges focused on key elements related to making anti-corruption courts effective and trusted by the public, including recommendations for handling corruption cases in a fair and timely manner in the face of ever-increasing pressure to hold government officials accountable for corruption. The participants, most of whom were newly elected judges of the Ukrainian High Anti-Corruption court, were able to:
• Learn about the establishment, day-to-day operations, and challenges facing anti- corruption courts in Bulgaria, Croatia, Serbia, and Slovakia.
• Identify best practices and lessons learned in adjudicating corruption cases in line with European standards.
• Develop professional ties with anti-corruption court judges in the region. Judge Snežana Nikolić-Garotić, President of the Belgrade Higher Court’s A/C Unit, spoke as a panelist at the event and introduced the jurisdiction and experiences of the Serbian Organized Crime Court Department and the Anti-Corruption Court Units. Judge Nikolić-Garotić recommended the GAI-supported approach in holding regular working meetings of anti- corruption judges to discuss contested legal issues and the organization of A/C Court Units and noted GAI’s work on the ERCC to increase the quality of statistical reporting on corruption cases. Three other judges of the A/C Unit in Belgrade also attended the event (Judges Zoran Bursać, Marija Arandjelović-Juresa, and Svetlana Kovačević). The organizers of the conference expressed interest in engaging Judge Nikolić-Garotić as one of the experts who could potentially work one-on-one with selected judge(s) of the Ukrainian High Anti-Corruption Court.
Checchi and Company Consulting, Inc. 31
Internal Whistleblower Protection, Ethics, and Integrity for PPOs (Activity 3.1.B) – In partnership with the RPPO, Judicial Academy, and Pištaljka, GAI organized two additional online trainings for PPO staff to discuss their rights, duties, especially the ethical standards they should adhere to as civil servants, to preserve the public interest and protect the integrity of the institutions they represent. Twenty-four participants took part in the event organized on February 24 for public prosecutors and PPO support staff in Appellate PPO in Novi Sad. The fourth training, for deputy prosecutors and support staff in the Higher Prosecutor’s Office in Novi Sad, took place on March 26. Twenty-eight participants, including staff of the A/C PPO Unit in Novi Sad, took part in the event. Both workshops were delivered by Ms. Gordana Samardžić, RPPO Secretary, and Mr. Vladimir Radomirović, editor-in-chief of Pištaljka, and the attorneys from Pištaljka’s Legal Team.
Internal Whistleblower Protection, Ethics and Integrity Training for PPOs, led by Duško Kovačević from Pištaljka
During the training, participants reviewed legislative provisions, ethical dilemmas, personal and institutional integrity, conflict of interest, gift policy statutes, etc. The section dedicated to whistleblowing was initiated with the presentation of a short video prepared by Pištaljka involving some of the most notable whistleblower cases from their practice. GAI received very positive feedback from the participants on the structure and content of the training. Public Procurement Handbook for Misdemeanor Judges (3.1.C) - GAI subcontracted Law Office Vladisavljević, including prominent public procurement experts Filip Vladisavljević and Saša Varinac, to draft a Handbook for misdemeanor judges on misdemeanor offences that stem from the 2019 Public Procurement Law. The draft outline of the Handbook has been prepared and covers: relevant legal provisions and questions in relation to their enforcement; main elements of misdemeanor offences, including an overview of the most common irregularities highlighted in the decisions of the Republic Commission for the Protection of Bidders Rights; and consideration of specific material and procedural issues relevant for conducting misdemeanor proceedings. The publication will be developed with selected judges from the Misdemeanor Appellate Court and Belgrade Misdemeanor Court. GAI met with Judge Olivera Ristanović, President of Belgrade Misdemeanor Court, and discussed the concept of the publication. Judge Ristanović pointed out the need to amend the Public
Checchi and Company Consulting, Inc. 32
Procurement Law regulating liability of state-owned companies for misdemeanor offences, and to precisely define the responsible person in a legal entity. Judge Ristanović confirmed that there has still been no significant case law on procurement cases brought before the misdemeanor courts and noted the absence of specialization among misdemeanor judges and the absence of case weighting system as the most significant problems in their work. It was also proposed that the publication features a glossary of terms related to procurement proceedings. Online Working Meeting of Presidents of Higher Courts and Presidents of A/C Court Units (Activity 3.1.D) – On February 12, in cooperation with the specialized anti-corruption court units in Higher Courts in Belgrade, Novi Sad, Niš, and Kraljevo, GAI held the fourth working meeting of the Presidents of Higher Courts and Presidents of A/C Court Units, the first ever held online. The meeting was originally scheduled for November 2020, but, due to a spike in the number of new COVID-19 cases, GAI and the presidents of the A/C Units agreed to hold the meeting online in Q1. Opening remarks were given by Judge Aleksandar Stepanović, President of the Court, and GAI COP Ms. Williams-Bridgers. For the first time, three Higher Court presidents (Higher Courts in
Belgrade, Novi Sad and Kraljevo) attended the meeting. Heads of A/C Units presented latest Online working meeting of presidents of higher courts statistics for the period spanning March 1, 2018 — and presidents of anti-corruption court units.
December 31, 2020 and provided an overview of Judge Stepanović, President of the Belgrade Higher current resources and technical capacities for the Court, giving introductory remarks. operation of A/C units. Participants discussed a variety of issues: the continued trend of ‘despecialization’ (judges in some A/C Units are requested to also adjudicate in cases that are unrelated to corruption); progress in the application of new mechanisms for proving the cases of corruption (liaison officers, task forces, forensic accountants); case law harmonization and training; and the recommendations provided to the Higher Court in Belgrade in early 2020 based on the Peer Review performed by the EU experts. Main conclusions from the meeting are the following:
• The overall results of the A/C Court Units (based on the number of resolved cases) were regarded as poor although the performance of judges was regarded as satisfactory.
• The quality of indictments and the performance of PPO A/C Units was assessed as particularly low.
• The number of cases resolved through plea agreements is disproportionally larger than those resolved through trials.
Checchi and Company Consulting, Inc. 33
• There are no cases of high corruption.
• Judges in A/C Units should adjudicate only cases involving corruption and commercial crimes.
• Greater coordination and cooperation are needed between the A/C Court Units and other state organs involved in the fight against corruption.
• The A/C Court Units should work on strengthening their transparency and introducing their work and competences to public.
3.2 Electronic Register of Corruption Cases In Q1 GAI launched Phase 2 — Analysis and Design of the Electronic Register of Corruption Cases (ERCC). The Ministry of Justice (MOJ) eJustice Division provided GAI subcontractor S&T Serbia access to the Automated Case Management System (AVP) test bases for basic and higher court, as well as user instructions and credentials for the registration with the system through VPN connection with SQL server. S&T Serbia was able to access the test bases, but as some of them were empty, S&T informed MOJ that it will start with the analysis of the available data and will inform MOJ of need to authorize access to additional test bases if needed. Q1 was marked with lack of MOJ needed engagement in the Analysis and Design of ERCC development. To resolve issue and mitigate further delays, Ms. Shanley Pinchotti, Acting Mission Director of USAID Serbia, and GAI met with MOJ Assistant Minister Jelena Deretić. The discussion focused on actions needed by MOJ to ensure ERCC progress within required implementation dates in 2021. GAI presented three decision points that GAI and ERCC WG considered priority requirements to address the delays in progress: 1) appointment of a MOJ Business Coordinator able to make necessary decisions; 2) appointment of a Technical Coordinator who can make timely decisions on the technical aspects of the project; 3) appointment of a person from the MOJ to approve inputs and preconditions for future activities in the project in a timely fashion. Assistant Minister Deretić confirmed that the newly designated MOJ Project Manager for the ERCC Mr. Aleksandar Stojanović and his colleague Ms. Stepanović would collectively fulfill the requested roles and responsibilities described as Business Coordinator and Technical Coordinator. MOJ did not provide clear indications of the person(s) appointed to approve inputs for future activities as requested. As a point of clarification, Assistant Minister Deretić confirmed that MOJ will not be the approval authority for reporting templates and offered to have the Minister of Justice send a letter to the ERCC WG confirming that the WG should complete the templates and simply transmit their decisions to MOJ. The Minister subsequently addressed a letter to Prosecutor Radisavljević, President of the ERCC WG, encouraging the ERCC WG to complete templates and stated that MOJ does not need to approve the templates, and that the
Checchi and Company Consulting, Inc. 34
ERCC WG should finalize the templates to its members’ satisfaction and merely provide the templates to MOJ. GAI also requested MOJ action to obtain a Supreme Court of Cassation representative member for the ERCC WG. MOJ subsequently provided GAI a letter from the Supreme Court of Cassation delegating Mr. Rajko Pavlović, database administrator, as the SCC representative to the ERCC. MOJ also confirmed that it will grant formal approval for S&T to access and analyze the new Standardized Application for the Prosecution Organization (SAPO) database and will connect GAI and S&T with the representatives of the contractor (Comtrade) that are maintaining SAPO to resolve technical issues. To facilitate progress, regular weekly coordination meetings were scheduled with Mr. Aleksandar Stojanović. The ERCC WG finalized and approved all reporting templates and GAI forwarded them to MOJ. GAI forwarded the Working Group-approved draft dashboards to MOJ for courts and public prosecutors' offices. The WG has continued to regularly meet through the reporting period. The ERCC WG agreed that that the control table for data should present combined data for court/PPO with separate outlook designed for courts and PPOs. Milan Stanović, IT specialist from Higher PPO in Niš and WG member, offered to prepare the proposal for the structure and functionalities of the control table. It was decided that old cases should be presented as a separate category in the Control Panel. As a follow up to the conclusions from the meeting with MOJ Assistant Minister, on April 8 GAI hosted a meeting to discuss the technical features and reliability of MOJ’s Central Statistics application. The meeting was attended by representatives of S&T, MOJ, IT company Atos (maintaining the Central Statistics application), and GAI’s IT consultant Mr. Armenski. The main conclusions from this meeting were:
• Data in the staging layer of Central Statistics are updated monthly, while the ERCC increment data must be imported daily.
• AVP codebooks are not identical in all courts and it may be necessary to map them.
• In case Central Statistics is to be used as a source of data for generating reports for ERCC, S&T must conduct broader analysis of Central Statistics to establish if all entities needed for the ERCC are contained in the Central Statistics staging layer.
• IT company Atos will provide S&T with the export of Central Statistics Staging 2 Base for the analysis. S&T has completed the internal analysis of Central Statistics application and replica versions of AVP database and identified that the existing replica versions of AVP in four Higher Courts should be sufficient to enable data for the ERCC staging layer (storage area). S&T has requested access to the replicate version of AVP for Higher Courts, for S&T to analyze reporting tables that are being replicated and data therein.
Checchi and Company Consulting, Inc. 35
PMP UPDATE
GAI Learning Session – This quarter’s learning session for GAI included a comprehensive examination of how to ensure sustainability and foster better communication of GAI’s results and outcomes in Year 4 and after the project ends. The session was held on April 20, 2021 and it also served as an introductory session to GAI’s new permanent staff member, with each component reflecting on activities in Q1 Year 4 asking: 1) What was supposed to happen? 2) What actually happened? 3) What went well? 4) What did not go well? and 5) What should be changed? Each component presented activities implemented, linking the outcomes to GAI’s Theory of Change9. In connecting current activities to lessons learned, discussions reflected GAI’s accomplishments and challenges, impacted by the COVID-19 pandemic. The components shared lessons learned, individual counterpart capacities, reactions, and feedback from provided assistance. GAI also examined and re-evaluated the following learning questions
1. What factors are most conducive to adoption of durable good governance measures at the local self-government level?
• Introduction of new policies and procedures which become part of local governments’ culture is crucial. GAI tailored support is still relevant, complementing local needs, providing ownership, and ensuring sustainability of the policies and procedures.
• The emphasis on transparency of the work of LSGs and availability of information for the public, CSOs, and media is crucial.
• Improving websites where information is easily available to interested parties is important. Even more crucial, however, are LSG employees’ behavioral changes, making more information publicly available.
• LSGs need to have the capacities, interest, willingness, and commitment to introduce and integrate new policies and measures.
• With the proliferation of donor support to LSGs in the field of good governance and accountability, constant coordination and cooperation with other implementing partners is crucial, although more complex.
• Increasing the sustainability of GAI assisted good governance measures though the replication of success stories with the second group of LSGs.
9 GAI’s current Theory of Change is available in GAI’s approved AMELP.
Checchi and Company Consulting, Inc. 36
• Knowledge, understanding, and credibility of local experts and/or CSOs that GAI subcontracts is crucial to the success and continual commitment of LSGs to activities.
2. How can committed local self-governments be insulated from national political pressures?
• Capacities need to be strengthened and personnel must be trained to become more capable of efficiently performing their responsibilities, offering high-quality citizen- centered services.
• Assist the development of accountable business environments in the LSGs, with transparent procedures and an information sharing culture.
• Promote the work of the LSGs and the values they represent.
• Create networks, sharing knowledge and best practices with the other LSGs ready to be accountable in their work and not to succumb to political pressure.
• Identify areas where LSGs can work with CSOs to improve residents’ life in the local communities, generate interest from residents, and jointly work on important initiatives.
• The credibility of CSOs which assist local government that GAI works with is important, as is their expertise. This builds trust with LSGs, fostering relationships that will last beyond GAI’s life span.
3. How can Independent Oversight Institutions (IOIs) continue to play an important role in government oversight during a time of changing leadership?
• Develop key messages including good examples of institutional governance and systemic weaknesses in government, and consistently communicate messages to external stakeholders in ways that targeted audiences can understand, own, and act upon.
• Strengthen open accountable business cultures in the IOIs, with the introduction of relevant methodologies, procedures, and models.
• Enhance relationships with external champions of good governance for SAI with National Assembly Committees including the Committee on Spending, CSOs, and media. For APC, continued support to improve interaction with the Misdemeanor Courts, PPOs, LSGs, and CSOs to improve impact on accountable governance.
• Focus SAI and APC resources on high-impact, high-value “targets” that will increase public trust in IOIs and their impacts to combat corruption.
4. Why do IOI recommendations not lead to substantial concrete follow-up action?
Checchi and Company Consulting, Inc. 37
• For SAI:
o Lack of SAI communication of needed action in a manner that convinces the recipient of the need to take sustainable action.
o SAI findings and recommendations do not always identify the root causes of problems leading to the replication of deficiencies and the continuation of systems problems across institutions.
o SAI’s lack of a consistent and reliable methodology used by all audit sectors to calculate measurable financial or qualitative benefits for government, which are derived from auditee implementation of SAI recommendations.
• For APC:
o Lack of committed and aggressive follow-up on filings before the Misdemeanor Courts and prosecutors’ offices.
o Lack of development of sufficient evidence and timely presentation of filings. o Insufficient consultations with PPOs to build relationships for decisive action on APC filings.
5. What are the key reasons for limited adjudication of corruption cases?
• As there is no body of case law, the important decisions on the use of new procedures introduced by the new Law10 are not harmonized.
• The specialization of the new units has not been fully implemented.
• Limited resources: lack of counterpart IT equipment, case-management software, and staff.
6. Are the Serbian executive and judicial branches committed to fair, impartial resolution of corruption cases?
• The public perception survey by CeSID shows that people have limited trust in the work of courts and PPOs, and view their work negatively.
• No single factor can be associated with the resolution of corruption cases.
• The work of law enforcement agencies is heavily reported on by the media, whereas the follow-up of the prosecution and courts is slow and has limited media coverage, revealing existing discrepancies in the close cooperation of the various bodies to combat corruption, as is envisaged by law.
10 Law on the Organization and Jurisdiction of State Organs in the Suppression of Organized Crime, Terrorism and Corruption.
Checchi and Company Consulting, Inc. 38
Several important discussions were held around the roll out of future activities, based on lessons learned, including the examination of risks in Q2 Year 4 activities and in particular the possible impact of the ongoing COVID-19 pandemic. The team confirmed that detailed planning of activities and donor coordination remain crucial for successful implementation and avoiding overlaps. The important conclusions to this session are:
• To build on the successes of the previous years and to utilize the remaining lifetime of the project and resources as optimally as possible. Through Year 4, GAI will focus on sharing and replicating best practices. GAI will share the training materials, models and lessons learned from the previous four years with all, including with their counterparts. The knowledge sharing with ensure that outlets for future use of the developed materials, models, curricula, and processes are available and will be available for further dissemination.
• Adaptability of GAI activities remains important. Fostering continual listening, learning, and adapting remains a priority, as is the development of alternative strategies for unforeseen situations.
• Change greatly benefits from model organizations within institutional counterparts. Reforms that have been implemented by GAI have all had an individual within the counterpart that was the driving force behind the reform/change that was being implemented.
• For the sustainability of results/outcomes, it is important that counterparts not only see and understand the benefits of GAI’s assistance, but have the procedures and systems in place to continue implementing the models, procedures, materials, etc. An important part of the procedures/systems which is often missing are sanctions for non-compliance. Counterparts need to take responsibility and ensure that the procedures are followed through.
Checchi and Company Consulting, Inc. 39
MANAGEMENT AND ADMINISTRATIVE ISSUES
In the reporting period, GAI’s permanent staff changed: GAI has welcomed a new Legal Specialist for Corruption Cases who started on April 19, 2021, to replace the former Legal Specialist. Also, the project’s Communication Specialist submitted a letter of resignation as of April 23, 2021. GAI will bridge the communication position with an STTA agreement until the end of the project, with the existing staff supplementing the position’s responsibilities. In line with the Government of Serbia’s recommendations to curb the spread of COVID-19, GAI staff continued to work both from home and from the office, as needed. Trainings and events were also held on-line, through Zoom meetings and webinars with excellent counterpart participation. Numerous solicitations have been issued and contracted for STTA with Firm Fixed Price contracts to support technical assistance delivery across all three GAI Components. GAI was ranked second in its media presence among all USAID/Serbia projects in Q1 of 2021, with 81 mentions. All mentions were positive. Some examples include the national and local media covering GAI’s selection of a third group of local governments, as well as GAI’s efforts to engage youth in the budget planning process.
PLANNED ACTIVITIES FOR SECOND QUARTER OF GAI YEAR 4 INCLUDING UPCOMING EVENTS
Local Government Accountability
• Local Anti-Corruption Plan Development and Oversight – Completion of ongoing assistance to IMBs and the initiation of a new round of technical assistance consisting of support to newly joined LSGs for LAP drafting, implementation, and establishment of IMBs. Further capacity building support will be provided to existing IMBs.
Checchi and Company Consulting, Inc. 40
• Transparency – Completion of website assessment for Group 3 LSGs. GAI will continue to work with Stari Grad and Žabalj on website development, including subcontracting an IT service provider to design Žabalj’s website. Based on LTI scores, GAI will cooperate with TS to provide Group 3 LSGs with recommendations for LTI improvements. GAI will also continue to work with Niš on communication and public participation strategy development, as well as with five Group 3 LSGs on the development of their communication strategies. In public procurements, GAI will work on the development of a FAQ handbook and trainings for LSGs.
• Public Participation – GAI will provide Kragujevac with recommendations for the improvement of public engagement procedures. GAI will also work on the improvement of public engagement, which will be initiated in five Group 3 LSGs. A guidebook for school parliaments and LSGs regarding the participation of high schools will be developed and presented to LSGs. GAI will also survey all counterpart LSGs on their interest in joining the initiative to include the participation of high schools in the budget planning process. Public opinion surveys in Kragujevac and Nis relating to public engagement will be implemented.
• Personal Data Protection Training for LSGs — In cooperation with CPI, GAI will organize online trainings on personal data protection for local public utility companies.
• Local Finances and Budgets – While ongoing support to Novi Pazar on FMC development continues, GAI will expand technical assistance to four additional LSGs. An emphasis will be placed on making progress on the open budget portal in Kragujevac. GAI also plans to make progress on the design and programming of the budget portal in Kragujevac.
• Public Services – GAI will finalize the support to Žabalj to improve public services and provide further advisory support for the implementation of identified and prioritized activities that aim at improved services. Kragujevac will fully implement recommended SAPs. GAI will also review the needs of the City of Indjija and initiate technical assistance accordingly.
• Whistleblower Protection – Trainings for private companies in counterpart LSGs will be delivered online with more focused technical assistance to a public utility company in Kragujevac.
Independent Oversight Institutions
• Mentoring SAI Performance Audit Teams – Evaluation Methodologies, Research and Analytical Skills Enhancement – GAI will continue to build SAI's audit
Checchi and Company Consulting, Inc. 41
capacities, including data collection, evaluation, and application of analytical methods. GAI will also support performance audit teams during capacity design, and audit execution.
• Enhancing Stakeholder Utilization of Audit Reports – GAI will continue to assist SAI in presenting the findings and recommendations of performance audit reports to stakeholders and wider audiences, and will assist SAI in convening roundtables with stakeholders, LSGs and CSOs, to further discuss performance audit findings.
• Drafting Sector-Specific Fraud Risk Assessment Guidelines – In the coming period, GAI will assist SAI in developing sector-specific fraud risk assessment guidelines for performance audits. This support includes inserting red flags for risk of fraud, as well as creating a comprehensive framework which responds to questions asked during the audit planning and implementation period.
• Fraud Risk Assessment Trainings – Based on the GAI-implemented training in November 2020, developed in line with the US Government Accountability Office (GAO) Framework for Managing Fraud Risks in Federal Programs, GAI will train two more groups of auditors to assess fraud risks during audits, and identify possible “red flags”.
• Training of Trainers for Performance Auditing — As agreed upon with SAI, GAI will prepare a comprehensive Training of Trainers Curriculum in Performance Auditing to train selected SAI staff to become trainers, which will ensure the sustainability of GAI’s support GAI to SAI in developing the performance audit function in this institution.
• Evaluation Methodologies, Research and Analytical Skills Enhancement – GAI will continue to build SAI's use and application of advanced analytics including data collection, evaluation, and application of analytical methods to support performance audit teams during the design and implementation of an audit.
• Analytical Skill Development – A training curriculum will be developed for workshops that will support building APC’s research and analytical skills.
• Improved Interaction with PPO – GAI will support APC and PPO to draft operational guidelines or protocols. These guidelines will define who, what, how and when the APC and PPOs should communicate and collaborate to pursue determinations of criminal offenses within the purview of the Law on Prevention of Corruption and general obligation of public institutions to report criminal offences prosecuted ex officio (Article 332 of the Criminal Code).
• Improved Interactions with Misdemeanor Courts – GAI will develop a curriculum and training materials for the misdemeanor court judges’ Training of Trainers on the Law on Prevention of Corruption.
Checchi and Company Consulting, Inc. 42
• Support in Gathering Information on Citizens’ Perception of Government Efforts to Combat Corruption – APC has requested GAI assistance to collect information on citizens’ perceptions of government efforts to combat corruption. APC is mandated to conduct an impact assessment of anticorruption efforts for reporting on the Action Plan for Chapter 23 progress and for inputs on the new National Strategy on combating corruption. APC considers citizen perception to be an element of the impact assessment and a possible new baseline for future analysis. They also want to reflect on past surveys that have been conducted by GAI, UNDP, and others, as well as to see if the results in GAI’s 2021 survey, once augmented with new questions, may form some basis for comparison. GAI agreed to expand the November survey with questions that will be determined in collaboration with APC and GAI’s subcontractor that performs the survey, CeSID d.o.o.
• Enhancing CPI’s Website – GAI will assess CPI’s current website design, content and functionalities to develop recommendations for the development of a new website. The development includes the selection of the most appropriate CMS, content display consistent with CPI’s mandated mission, and priority areas for communication with intended audiences.
• CPI Media Interviews – GAI will support CPI in raising awareness on the two important rights that are under the mandate of this IOI, through facilitating TV and radio show appearances for the Commissioner, as well as interviews in selected media.
• Public Dialogue on Personal Data Protection and Free Access to Information of Public Importance – GAI plans to assist CPI to develop messaging and facilitate information sharing to the public on environmental protection. The working title of the dialogue is “How Difficult Is It to Access Information of Environmental Protection?”.
• Training on Personal Data Protection and Free Access to Information of Public Importance – GAI will facilitate the first of three CPI national level workshops on Personal Data Protection and Free Access to Information of Public Importance. The training will target Government employees.
• Youth Engagement on Personal Data Protection and Free Access to Information of Public Importance – The first two planned animated videos will be developed and made available on the CPI’s YouTube channel, to better engage youth and raise awareness on the importance of free access to information and personal data protection.
Checchi and Company Consulting, Inc. 43
Adjudication of Corruption Cases
• Internal Whistleblower Protection Training for PPOs – In cooperation with RPPO and Pištaljka, GAI will continue to organize training on the implementation of internal whistleblower protection, and ethics and integrity guidance for PPOs.
• Working Meeting of Anti-Corruption Court Judges – GAI will support the organization of the fifth working meeting of judges of the Specialized Court Units and judges of Appellate Courts in Belgrade, Novi Sad, Niš and Kraljevo to discuss issues related to jurisdiction and organization of work of specialized units. The event is tentatively scheduled for June.
• Public Procurement Handbook for Misdemeanor Judges – Support will be provided to the misdemeanor courts to draft and present the Handbook on the misdemeanor offences from the new Law on Public Procurement.
• Online Learning Materials for Judicial Academy – The Judicial Academy is transitioning to a new eLearning platform, with a larger storage space and functionalities. Materials will be made available in the part of the platform with controlled access for registered users from judiciary. GAI will work with the Academy to receive authorization from the authors and prepare materials to be published on the platform.
• Development of ERCC – In Q2, in coordination with S&T, GAI will focus on the completion of the current Phase 2 (Analysis and Design) and will initiate Phase 3 (Development and Testing). The focus under Phase 2 will be on the completion of Software Requirement Specification and Software Design Document; approved technical document for the web services for communication between AVP/SAPO and ERCC and delivery, installation, and deployment of hardware equipment to the MOJ
Checchi and Company Consulting, Inc. 44
U.S. Agency for International Development Serbia
92, Bulever Kneza Aleksandra Karadjordjevica Belgrade Tel: +381 11 706 4000 Fax: +381 11 3618267 usaid.gov/serbia
Checchi and Company Consulting, Inc. 45