GOVERNMENT ACCOUNTABILITY INITIATIVE
QUARTERLY REPORT (May 1 – July 31, 2020)
Submission Date: August 14, 2020
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 (May1 – July 31, 2020)
Submission Date: August 14, 2020
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 ...... 5 ACTIVITY IMPLEMENTATION PROGRESS ...... 10 Local Government Accountability ...... 10 Independent Oversight Institutions ...... 12 Adjudication of Corruption Cases ...... 31 PMP UPDATE ...... 40 MANAGEMENT AND ADMINISTRATIVE ISSUES ...... 48 PLANNED ACTIVITIES FOR THE THIRD QUARTER OF GAI YEAR 3 INCLUDING UPCOMING EVENTS ...... 50
Checchi and Company Consulting, Inc.
ACRONYMS
ACA Anti-Corruption Agency AMELP Activity Monitoring, Evaluation and Learning Plan CSO Civil Society Organization CPI Commissioner for Information of Public Importance and Personal Data Protection ERCC Electronic Register of Corruption Cases GAI Government Accountability Initiative INL US Department of State International Narcotics and Law Enforcement Bureau IOI Independent Oversight Institution LAP Local Anti-Corruption Action Plan LSG Local Self-Government MOJ Ministry of Justice PMP Performance Management Plan PPO Public Prosecutor’s Office SAI State Audit Institution TS Transparency Serbia USAID United States Agency for International Development
Checchi and Company Consulting, Inc. i
EXECUTIVE SUMMARY
The second quarter of the third year of the United States Agency for International Development (USAID) Government Accountability Initiative (GAI) was marked with the effects of the COVID- 19 pandemic. The Serbian authorities declared a country-wide State of Emergency and implemented restrictions of movement and gathering in March 2020. The State of Emergency was rescinded in May 2020 prior to central and local level elections held on June 21, 2020. Due to spikes in COVID-19 cases in July 2020, the Serbian Government re-introduced restrictive measures and some of GAI’s local government counterparts declared states of emergency. To mitigate this set of unforeseen events, GAI successfully implemented alternative strategies.
GAI delivered technical assistance and products without significant disruption to activities planned for this period, consistent with the approved GAI Work Plan for Year 3 implementation covering the period February 6, 2020 – February 5, 2021 (Year 3). GAI has maintained proactive communication with counterparts and subcontractors, adapting technical assistance delivery methods to suit all parties ensuring timely delivery of support.
To obtain feedback on the receptivity of beneficiaries to Covid-19 mitigation measures GAI applied during this reporting period, GAI included questions in its training participant questionnaire on the participant’s preference for online or in-person training. The survey was conducted with participants from local governments twice, in May and in July. In both surveys the majority of respondents (63% in May and 73% in July) responded that they do not see any significant difference between online or in-person training1.
Notable achievements in the second quarter (Q2) of GAI Year 3 include:
• GAI successfully supported Local Anti-Corruption Action Plan implementation in the cities of Novi Pazar and Šabac, and the Municipality of Raška. In close cooperation with the local governments, GAI developed four model acts envisaged by the Local Anti-Corruption Action Plan, adjusted to the dynamics of the individual local governments. The model acts
1 More information on this is available under the PMP Update in this report.
Checchi and Company Consulting, Inc. 1
are pending adoption by each new local government administration once it is officially in place.
• To further enhance the capacities of the Local Anti-Corruption Action Plan independent monitoring bodies, GAI held online training for the members of these bodies in all 13 counterpart LSGs on the new Law on Public Procurement.
• In cooperation with the Commissioner for Information of Public Importance and Personal Data Protection, training for local governments and public companies on data protection was completed, with the last online training held for representatives of counterpart local governments of Pirot, Dimitrovgrad, and Vrnjačka Banja, as well as neighboring Kraljevo and Trstenik.
• GAI increased transparency in local government operations through website improvements in Q2. GAI finalized the development of a new website for the City of Vranje, focusing on improving the structure and data availability, ease of access, and quality of information available on the new website. Also, based on the website assessments of Group 2 local self-governments (Niš, Kragujevac, Novi Pazar, Sremska Mitrovica, Stari Grad, Žabalj), GAI organized three online workshops to present findings and discuss opportunities for website improvement in the six local self-governments. All local governments have expressed high interest to use the assessment results to improve the content, structure, and technical performances of their websites.
• GAI held training for Group 2 local governments on communication strategies and use of social media which was particularly timely given the increased need for strategic communications resulting from the COVID-19 pandemic. The training provided an introduction to modern communications for 22 participating local government officials.
• GAI developed new internal rulebooks on public procurement for three counterpart local governments: Šabac, Sombor, and Novi Pazar. The rulebooks are aligned with requirements of the new Law on Public Procurement, which came into force in July 2020, as well as to the organizational and structural specifics of each of the three local self- governments.
Checchi and Company Consulting, Inc. 2
• Assessments of budgeting and capital investment planning practices in Sremska Mitrovica and two public utility companies in the City resulted in recommendations to improve budgeting and local finances that were presented in a workshop for City administration and the companies’ representatives.
• In response to prior technical assistance and recommendations to enhance use of advanced analytics in audits, SAI leadership assigned a core group of five auditors to sustain auditors’ application of analytical methods that GAI previously introduced in trainings for SAI performance audit teams. GAI held an advanced Data Analytic Training for the core group of auditors.
• GAI facilitated a roundtable between Anti-Corruption Agency representatives and thirteen misdemeanor court judges from Belgrade, Niš, and Kragujevac to present the GAI-supported draft Plea Agreement Guidelines and gather input from the judges. The inputs received will be incorporated into Guidelines to improve resolution of ACA filings before the courts.
• The Commissioner for Information of Public Importance and Personal Data Protection adopted a comprehensive Communications Plan that GAI developed for the Commissioner’s use to raise the public’s awareness on the importance of the freedom of information. GAI also delivered to the Commissioner a comparative analysis of legal frameworks on free access to information of general importance for consideration of improvements to Serbia’s law as well as an integrated Informational Booklet covering the two complementary laws in the Commissioner’s remit: on personal data protection and free access to information, which will serve as a resource for civil society organizations to better understand the two laws • In cooperation with U.S. Department of State’s International Narcotics and Law Enforcement Bureau and the Judicial Academy, GAI convened a series of financial investigation trainings for deputy prosecutors and law enforcement officers from specialized units. Workshops were held in Vrnjačka Banja, Niš, and Novi Sad on financial investigations and the use of financial forensics based on the Practicum for Investigation and Adjudication of Corruption Cases produced with GAI support.
Checchi and Company Consulting, Inc. 3
• In cooperation with the Supreme Court of Cassation, GAI organized the third Case Law Harmonization meeting for judges and judicial advisors from specialized anti-corruption units. Sixteen judges and judicial assistants from the four anti-corruption court units, as well as the President of the Higher Court in Kraljevo participated. Discussed were contested issues in law and practice in relation to the application of the Law on Organized Crime and Corruption and amended provisions of the Criminal Code (criminal offences against official duty and economic activity); the use of circumstantial evidence; use of new procedural institutes under the Law and their evidentiary value; problems in the application of the provisions of the Law on Criminal Asset Recovery; and proving that proceeds are the benefit from criminal conduct in money laundering cases/predicate offense.
• In cooperation with the Judicial Academy and Appellate Misdemeanor Court, GAI launched a series of training sessions for misdemeanor judges on the new Public Procurement Law. The trainings are tailored to assist appellate and first instance misdemeanor judges in handling cases of misdemeanor offences and unlawful conduct in public procurement prescribed by the new Law on Public Procurement that entered into force on July 1, 2020.
• GAI prepared technical specifications and published a tender for development, design, and pilot testing of an Electronic Register of Corruption Cases, having incorporated feedback received from the Working Group for the development of an Electronic Register of Corruption Cases and hardware requirements from the Ministry of Justice.
• GAI assisted the University of Belgrade Faculty of Law to finalize the practical segment of the Anti-Corruption Legal Clinic for a select group of twenty students in their final year of studies. The students worked on the topic of their choice mentored by the Clinic’s presenters, and prepared research papers which were published on the Law Faculty’s website.
Checchi and Company Consulting, Inc. 4
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 2020 – 5 February 2021
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 (LSG), the State Audit Institution (SAI), 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:
o Component 1. Local Government Accountability
GAI is supporting local governments’ efforts to increase inclusion of the public in government decision-making regarding public policy development and resource allocations; 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 with the development of local anti-corruption plans and set-up of independent bodies to monitor their implementation.
Checchi and Company Consulting, Inc. 5
o Component 2. Independent Oversight Institutions
GAI is providing technical assistance to oversight institutions, such as SAI, ACA, and CPI, to strengthen monitoring of government performance and public officials and encourage them to exercise their duties as defined in the institutions’ 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 anti-corruption units established in courts and Public Prosecutor’s Offices, relevant ministries, and relevant National Assembly Committees. 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 know.
o 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 that distinguishes clearly between different types of criminal offences, 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. 6
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 2 – Component 1 – Component 3 – Independent Local Government Adjudication of Oversight Accountability Corruption Cases Institutions
Impact Level Impact Level Impact Level Increased Public Increased Follow-up to Increased Adjudication of Participation in Local Oversight Institutions’ Corruption Cases Government Decision- Recommendations making and Oversight
Output Level Output Level Output Level • Increased Effectiveness • Increased Case • Increased opportunity of Independent Investigation and for public input to local Oversight institutions in Management government Corruption Cases • Clearer processes for • Strengthened public participation Monitoring of decision-making Government
Performance
Improving Government Responsiveness on the Local Level
GAI activities are designed to provide support to local governments to enable them to more effectively respond to citizens’ needs, as well as to implement standards and good practices in the field of accountable government 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
Checchi and Company Consulting, Inc. 7
whistleblower protection. To share lessons learned, GAI is supporting the exchange of experiences and successes among local governments.
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 assistance to SAI that included training in performance auditing to build SAI’s capacities to assess whether public entities are achieving economic, efficient, and effective use of available resources.
GAI’s support to ACA includes a manifold capacity building effort to implement ACA’s specific strategic goals, derived with GAI’s support in Y1 and Y2, and focus 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. GAI continues its focus on development of awareness raising campaigns in support of CPI’s mission while also planning with the new Commissioner support to implement the strategies to enhance their oversight of laws on access to information and data protections.
Checchi and Company Consulting, Inc. 8
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). The Law, adopted by the National Assembly in 2016, 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 will also facilitate the creation of 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. 9
ACTIVITY IMPLEMENTATION PROGRESS
In response to the COVID-19 pandemic, the Government of Serbia instituted a State of Emergency in March 2020 and rescinded it during the reporting period. However, the Government reintroduced restrictions on gatherings and travel in July 2020, prompted by an elevation in the number of newly infected COVID-19 cases. The USAID Government Accountability Initiative (GAI) continued to work with counterpart institutions and subcontractors throughout the period, utilizing a mix of in-person and online, audio-visual communications platforms to mitigate the restrictions on movement and gathering of persons while practicing safe distancing.
GAI also surveyed subcontractors to obtain feedback on their experiences with GAI. GAI requested their feedback on the clarity of GAI’s advertised scopes of work, GAI’s procurement process and contracting practices, as well as their experiences in delivery of technical assistance and cooperation with counterparts. With a response rate just over 50%, GAI received high scores on its cooperation with subcontractors, and readiness and commitment of beneficiaries to implement activities. Respondents also provided insights into what was most helpful to them including counterparts’ commitment and involvement of decisionmakers in activity implementation, GAI’s involvement in all stages of support delivery, and GAI’s direct involvement in activities and personal contacts.
To optimize GAI’s online delivery of trainings and workshops, GAI obtained licenses for Zoom to enable simultaneous translation, video recording of trainings, and instructor monitoring of breakout sessions.
I. Local Government Accountability
The reporting period was marked with counterpart LSGs focused on handling the consequences of the COVID-19 pandemic locally, as well as preparing for the postponed elections that were held on June 21, 2020, both of which directly affected the implementation of activities under Component 1. Several GAI counterpart LSGs were severely hit by the COVID-19 infection and,
Checchi and Company Consulting, Inc. 10
following the resurgence of COVID-19 in late June, Novi Pazar, Sjenica, Kragujevac, Vranje, Šabac, Raška, Sremska Mitrovica, and Vrnjačka Banja introduced states of emergency locally, throughout July. Niš — as a regional health center and the third largest city in Serbia — and Belgrade have sustained high numbers of COVID-19 cases and faced numerous challenges.
Due to the effects of the COVID-19 pandemic in Serbia, general elections were postponed for two months. This postponement extended the period in which local administrations were focused on continuing ongoing issues, while decisions on new activities were left to be made after the elections, by new governments.
Based on scheduling dynamics for constitutive local assemblies, GAI expects new local governments to be established by late September. Election results indicate a mostly unchanged political situation in counterpart LSGs, with the Serbian Progressive Party (SPP) maintaining a dominant role. In Šabac, the only city that was not managed by SPP, the elections are due to be repeated in a number of voting places, as soon as the state of emergency declared in this local government, due to a high rise in the number of newly infected by COVID-19, ends. In Belgrade’s City Municipality of Stari Grad, as the elections were boycotted by the parties that formed the previous local government, the party that will now lead this local government is the SPP.
In this challenging period, GAI adjusted activity dynamics to match the capacities and available resources of counterpart LSGs. It was notably easier to work with cities with larger administrations that were not entirely consumed by addressing the COVID-19 situation. Counterpart LSGs were willing to receive all support remotely, thus meetings and trainings were held online without any major issues. Despite the above-mentioned challenges, progress of activities under implementation has been satisfactory. Counterpart LSGs confirmed their dedication to the technical assistance provided by GAI. They were able to allocate resources, time, and technical capacities to foster completion of support activities. The only delays are related to the reluctance of current LSG administrations to make decisions about planned GAI technical assistance activities in deference to the incoming, post-election administrations.
Checchi and Company Consulting, Inc. 11
LOCAL GOVERNMENT ACCOUNTABILITY
SUPPORT INCLUSIVENESS TRANSPARENCY to 7 LSGs in fortifying engaging the PUBLIC in the work of the LSGs ACCOUNTABILITY in in policy development to BATTLE their daily work and MONITORING CORRUPTION
Source: Clipart from shutterstock.com
1.1. Local Anti-Corruption Action Plan Development and Oversight
In Q2, GAI through Transparency Serbia (TS) continued to provide technical assistance to eight LSGs including five Group 1 LSGs2 and three Group 2 LSGs.3 The assistance consists of three sets of activities: support for Local Anti-Corruption Action Plan (LAP) development for the City Municipality of Stari Grad; support for implementing LAPs in three LSGs (Novi Pazar, Raška, and Šabac); and capacity building for eight independent monitoring bodies to monitor LAP implementation.
LAP Development – GAI and Transparency Serbia (TS) held an initial kick-off meeting in Q1 with the representatives of Stari Grad to confirm their interest and commitment to develop a LAP (Activity 1.1.A). This activity was interrupted when the state of emergency was declared in March and April, followed by the election campaign throughout May and June. Municipal leadership decided to boycott the local elections. GAI will postpone this activity until the new local
2 Group 1 LSGs include seven local governments. GAI counterparts from November 2018 – Sombor, Vranje, Vrnjačka Banja, Šabac, Dimitrovgrad, Raška, and Sjenica. 3 Group 2 LSGs include six local governments. GAI counterparts from November 2019 – Niš, Kragujevac, Novi Pazar, Sremska Mitrovica, Žabalj, and Belgrade City Municipality of Stari Grad.
Checchi and Company Consulting, Inc. 12
government is established, which is expected by the end of September 2020, and then confirm their support to this activity.
LAP Implementation – Throughout the second quarter of Year 3, GAI and TS continued to support LAP implementation in the cities of Novi Pazar and Šabac and the Municipality of Raška. Support included developing model acts, decisions, and procedures that are envisaged by the LAP and for the selected LSGs that GAI and TS identified needed support. In the reporting period, TS worked in close cooperation with representatives of LSGs to finalize four model acts that were provided to LSGs for adoption:
• Rulebook on the Conflict of Interest of Employees of the Local Administration (City of Novi Pazar),
• Decision on the Procedure for Establishment of Supervisor Committees of Local Public Companies (cities of Novi Pazar and Šabac),
• Decision on the Local Public Officials’ Obligation to Declare their Private Interests in the Assembly of Local Self-Government (City of Novi Pazar),
• Regulation on Publishing of Documents Related to Financial Management of Public Companies, and Other Institutions, Bodies and Organizations Established by the Local Self-Government (cities of Novi Pazar and Šabac).
Adoption is expected after new local administrations are constituted.
Capacity Building of Independent Monitoring Bodies – In Q2, GAI and TS provided technical assistance to the independent monitoring bodies established in seven counterpart LSGs (Vranje, Novi Pazar, Sombor, Kragujevac, Šabac, Raška, Vrnjačka Banja). The assistance was designed to increase understanding of anti-corruption efforts, as well as LAP implementation monitoring and reporting. Given that local Assemblies were dissolved on March 4, the independent monitoring bodies will submit their reports to the new Assemblies once they are established. In anticipation of their formation, TS continued to work intensively with the independent monitoring bodies to 1) identify LAP activities that should be addressed in their annual reports, 2) collect LAP implementation data, 3) develop recommendations for further LAP implementation and monitoring, and 4) produce comprehensive and clear reports, to be presented both to local institutions and the public. The independent monitoring bodies have shown different capacities, knowledge and commitment to work on LAP monitoring – some of them already have drafted
Checchi and Company Consulting, Inc. 13
and shared parts of their reports with TS for feedback (Novi Pazar, Raška, Sombor, Šabac), while others need additional technical support to become fully operational and more proactive.
While working with the independent monitoring bodies, TS identified that they lacked sufficient knowledge and understanding of some topics in the LAPs, which are crucial for better understanding of LAP implementation and monitoring. TS also surveyed the independent monitoring bodies’ members to identify the topics for which additional training was required. Based on the results received, GAI through TS organized the first in a series of online trainings for the members of independent
monitoring bodies, focusing on the new Public Procurement Law (PPL), which was adopted in 2019 and came into force from July 1, 2020. During this training, held in June, participants had the opportunity to hear about novelties the new Law has introduced, the requirements for cities and
municipalities serving as contracting Screenshot of the presentation: Training for LAP Implementation authorities, and initiatives that members of Topic I- New Public Procurement Law the monitoring body can take to improve the accountability in this area of the LAP. The second training, organized in July, was on conflicts of interest. During this training, independent monitoring bodies’ members learned about the concept of conflict between private and public interests, types of conflict of interest, and recognizing conflict of interest situations encountered by local civil servants and elected public officials. Independent monitoring body representatives also were trained on methods for managing conflict of interest, including to whom conflict of interest on local level should be reported and appropriate consequences of decisions adopted when a conflict of interests has been identified, among other topics. GAI will organize additional, online training on other topics that independent monitoring body members need support, such as the functioning of local public enterprises and public-private partnerships.
Checchi and Company Consulting, Inc. 14
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 (LTI) where improvements can be made and then providing technical assistance through Transparency Serbia to ensure sustainable improvement of their (LTI) scores. Second, GAI recommends improvements to LSGs’ websites, based on the 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 a large volume of information, resources, tools, and examples of best practices for LSGs to significantly improve their transparency and set examples for others to follow.
Website Improvement – A new website for the City of Vranje (Activity 1.2.A) was finalized in Q2, resulting in improved structure, data availability, ease of access, and quality of information available. The website was developed in line with the legal requirements for public entities, as well as good governance and Website Improvement Workshop transparency best practices. In with the City of Niš held online - May 22, 2020 addition to the website, GAI developed a draft procedure for the City that includes protocols for publishing information, specifying the type of format and content of information, and identifying persons within the City’s organizational structure that are responsible for publishing that type of information. The City of Vranje suggested launching and promoting the new website after the local elections, once the new local institutions are constituted.
Having finalized website assessments of Group 2 LSGs (Niš, Kragujevac, Novi Pazar, Sremska Mitrovica, Stari Grad, Žabalj), based on the LSG website model GAI developed in March, GAI and subcontractor Development Consulting Group (DCG) organized three online workshops to present findings and discuss opportunities for website improvement in the six LSGs. The
Checchi and Company Consulting, Inc. 15
workshops were offered individually for each LSG, to enable more focused and detailed discussion toward individual municipal websites.
Workshops were organized in May with representatives of the three largest Group 2 local governments – Niš, Novi Pazar and Kragujevac. Representatives of the LSG’s IT, PR and communication, local economic development, and service providers’ departments participated in the “Sombor is committed to constantly improving workshop. Each workshop focused on the results of transparency, openness, and citizen involvement in the assessment of individual LSG websites. The decision-making. The result of these efforts can be seen, among other things, through Sombor’s 2020 results are based on the evaluation of over 100 LTI score. Sombor recorded a growth of 28 points, indicators in the following 7 areas: website content, which is one of the largest scores increases made by a local government. This shows that, with will and electronic services for citizens and private sector, good intentions, in a relatively short time and few website language and script, graphic solutions and resources, various aspects of local government work design, navigation, domain name, website can be significantly improved. USAID GAI has worked with us since November 2018. Together we have maintenance and content available on the carried out numerous activities, which have directly eGovernment portal. The assessments were contributed to improving our result. In addition to working directly on meeting the indicators that conducted from the viewpoint of the website users measure the transparency of local governments, GAI and included consideration of government mandated has assisted us to improve our website, to engage the public, especially youth, in local budget planning, and information and extensive recommendations for to improve the efficiency of administration through improved transparency and good governance. All establishing single administrative points. This support, local governments expressed high interest to use the strengthened by the understanding and engagement of the City Administration, has contributed to us assessment results to improve the content, becoming a local self-government that is taken as an structure, and technical performances of their example of good practice in many areas of good governance. We expect that this cooperation will websites. continue with the same success in the coming years.”
Based on the assessment, Novi Pazar and Niš Ms. Dušanka Golubović expressed interest in receiving technical assistance to Mayor of Sombor develop internal rulebooks for website maintenance and content creation. The assistance would also include guidance on the type of information for the website and individual responsibilities, and for inclusion of data on the Open Data Portal. Similarly, Kragujevac requested assistance for the
Checchi and Company Consulting, Inc. 16
development of an internal rulebook and e-registry, initiated during COVID-19 but significantly expanded to enable electronic tracking of all cases submitted to this local government.
Based on the 13 LSGs’ website assessments and LTI results, GAI has identified four LSGs that would benefit from development of completely new websites – Šabac, Dimitrovgrad, Raška, and Žabalj. As the first two were able to develop new websites with their own resources, GAI offered technical assistance for new website development to Žabalj and Raška. To date, Žabalj has accepted the offered assistance, while Raška has postponed this decision until new local government bodies are established.
Local Transparency Index (LTI) – Transparency Serbia and USAID presented the Local Transparency Index (LTI) for 20204 on May 29, 2020. The event was held online, with introductory speeches from representatives of TS and USAID. Mayors from the three highest scoring local governments spoke of their experiences and motivation to work on strengthening the transparency of their local governments: The Mayor of Bečej, as well as two GAI counterpart mayors from Novi Pazar and Sombor.
The national average 2020 LTI score is 46 out of 100, which, in comparison to the average 2019 LTI score of 40, represents an improvement of 6 points. This is also the first improvement in the overall LTI score since 2015. In comparison to the 2019 LTI, almost three quarters of local governments have improved their scores. The largest increases were noted in the areas of publishing budget information and in developing and publishing local anti-corruption action plans.
From December 2019 to March 2020, GAI targeted technical assistance for improvement in transparency indicators used for the LTI, analyzing the LSGs’ 2019 LTI scores and identifying areas and activities to improve them. The local governments worked both individually and with GAI’s support and improved their transparency. This is reflected in the increase in their overall average scores of more than 11 points, as the GAI counterpart 2019 average LTI score was 44.7, while their 2020 average LTI score is 56.
Among Group 1 LSGs, the highest increase was measured in the City of Sombor. This City improved its LTI score by 54% (28 points) from 52 points in 2019 to 80 points in 2020. GAI technical assistance implemented in Sombor contributed to this significant achievement. The
4 For more information on the 2020 Local Transparency Index Report, please visit Transparency Serbia’s website.
Checchi and Company Consulting, Inc. 17
support has included recommendations GAI made and Sombor implemented for website improvement, increased public participation activities, support to improved efficiency of public services. Also, GAI has assisted Sombor to significantly increase budget transparency and improve the availability of documents adopted by the City Assembly and City Council. In 2020, these efforts contributed to Sombor being ranked third of 145 local governments, a substantial rise from 2019’s thirteenth place.
2020 2019 80 Sombor 52 73 Vranje 60 63 Vrnjačka Banja 62 57 Šabac 41 51 Dimitrovgrad 38 47 Raška 44 39 Sjenica 34 59 Average Score for Group 1 LSGs 47 46 National Average Score 40
0 20 40 60 80 100
GAI counterpart Group 1 LSGs LTI scores for 2019 and 2020
Other LSGs that had a significant improvement in their 2020 LTI scores are the City of Šabac, the Municipality of Dimitovgrad, and the City of Vranje.
Among Group 2 LSGs, the highest score increase was obtained by the Municipality of Žabalj – 19 points or an increase of 53%, which raised this LSG to 33rd position from 2019’s 92nd. Žabalj significantly improved its transparency in open calls and tenders, public procurement, and citizens interaction, mostly through public debates and consultations. The City of Novi Pazar scored 82 points in the 2020 LTI, improving its score by 16 points (or 24%) in comparison to its 2019 LTI
Checchi and Company Consulting, Inc. 18
score. It ranked second out of the 145 LSGs in which the LTI was measured. Relatively good results were also measured in the cities of Kragujevac and Niš 5.
82 2020 2019 Novi Pazar 66 55 Žabalj 36 55 Kragujevac 42 51 Sremska Mitrovica 45 28 City Municipality of Stari Grad 23 46 Niš 34 53 Average Score for Group 2 LSGs 41 46 National Average Score 40
0 20 40 60 80 100
GAI counterpart Group 2 LSGs’ LTI scores for 2019 and 2020
Based on GAI’s analysis of LTI 2020 scores, GAI explored opportunities in Q2 to further support counterpart LSGs to overcome deficiencies in transparency common to all local governments. All LSGs are lacking good Information Booklets and need to improve the form, structure, and quality of information in the Booklets. GAI discussed this opportunity with the City of Sombor and the Municipality of Žabalj, and will support both LSGs to improve their Information Booklets. Revised Information Booklets will be also used as good practice/models for cities and municipalities, and shared with other LSGs.
5 For a detailed analysis of the LTI scores, please refer to GAI’s Quarterly Report covering the period February 6 – April 30, 2020.
Checchi and Company Consulting, Inc. 19
Social Media Training – GAI and its subcontractor Executive Group (EG) delivered online training on communications strategies and social media for Group 2 LSGs (May 26 - 28, 2020). The training was based on the social media training developed and held for Group 1 LSGs in 2019. Given the increased interest in strategic communications by Group 2 LSGs triggered by the COVID-19 pandemic, the training was updated to include more details related to creating communication strategies and crisis communications. The online training included an introduction to modern communications – marketing, public relations, digital and social media, social media principles and strategy, defining content strands (communicational thematic units) for local
Steps for Efficient Crisis Communication in Local Governments- Taken from the training materials for the development and implementation of a Communication Strategy
Checchi and Company Consulting, Inc. 20
governments, community management and key principles of good practice for building relations with citizens and online crisis communication management. Twenty-two counterpart LSG officials participated in the training. In addition to this training, GAI and EG prepared and presented individual analyses of social media presence for the LSGs who expressed an interest to develop or improve their communication strategies (Stari Grad, Niš, and Novi Pazar). These LSGs received practical, focused advice and recommendations on how to improve their social media presence and online communication with the citizens.
Implementation of the New Public Procurement Law – During Q2, GAI and subcontractor Law Office Varinac assisted the cities of Šabac, Sombor, and Novi Pazar to develop new internal rulebooks on public procurement that are aligned with requirements of the Law on Public Procurement, which came into force in July 2020. Three separate draft rulebooks were developed based on the common requirements of the new Law, but they are also aligned with the specifics of the organization and structure of each of the three LSGs. The proposed model acts include procurements not subject to the Law (below the threshold), as well as procurement of social and other special services. The solutions regulated through the internal acts represent added value in local public procurement regulation that was not required by the new Law but will improve procedures and decrease discretionary power and potential abuse of public funds through public procurement.
GAI and representatives of the City of Sombor discussed open questions in the draft model act for the city, after which a second version of the rulebook was provided to the City. The state of emergency that was introduced in the local governments of Novi Pazar and Šabac due to a heightened number of newly infected by COVID-19, has slowed down the finalization of their rulebooks as the local governments cannot devote time and capacities to the initiative. One of the experts’ recommendations is that these regulations should be adopted by local assemblies rather than by heads of local administration, which has been the standard practice to date. The LSGs are interested in implementing this recommendation and it is expected that the rulebooks will be adopted after new local assemblies are constituted.
Following a request from the City of Kragujevac for similar technical assistance, GAI obtained USAID approval to include such support to this city. This area of support was not included in the Memorandum of Understanding that USAID signed with Kragujevac. The city is one of the few
Checchi and Company Consulting, Inc. 21
LSGs in Serbia that have centralized public procurement for all local public entities. This system was audited by SAI and reported on in the Performance Audit Report on Ensuring Competition in Centralized Public Procurement in 2019.
1.4 Local Finances and Budget
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.
Subcontractor Economic Alternatives has finalized the assessment and recommendations for improving budgeting and local finances in Sremska Mitrovica (Activity 1.4.A). Even though the subcontractor was working remotely, they were able to collect data and reports from the City Administration, indirect local budget users, as well as two local public companies: a water supply company and a company for solid waste management, cleaning and maintaining public space; and conduct a series of interviews and consultations required for the assessment. The draft assessment was presented at the online workshop held on July 30-31, for 12 representatives from all relevant sectors of the city administration and the two local public companies. The workshop included presentation of the financial analysis with recommendations for improvements of the financial position of the City as well as local public companies’ recommendations to improve the budget process and capital investment planning. The workshop served to obtain comments and inputs from participants to finalize the report with recommendations.
Comprehensive City Portal for Šabac – GAI subcontracted Inbox, a local IT company, to develop a unified city portal for Šabac (Activity 1.4.B). The Portal will support exchange of documents and information between the public service providers (the city administration, local public companies and public institutions) and the users of those services (individuals and businesses) and support the financial management and controls system implemented in LSG. During the reporting period, the design of the portal has been developed and approved by the City of Šabac.
During the reporting period, GAI subcontracted the Center for Regional and Local Sustainable Development to provide technical assistance to the City of Novi Pazar for establishment of financial management and controls system (Activity 1.4.C). Initial meetings and planning have been completed. The establishment of the working group for implementation of financial management
Checchi and Company Consulting, Inc. 22
and controls system in Novi Pazar is postponed until after election of the Assembly and local bodies.
Following the completion of the budget portal for the City of Vranje, GAI surveyed counterpart LSGs regarding their interest in budget portal development, which was previously expressed by a few counterparts. The decisions on whether a budget portal will be developed for counterpart LSGs (Activity 1.4.E) is delayed until new local governments have been established in September.
Due to the COVID-19 pandemic, the training on municipal budgeting, public engagement, and services — prepared by Mr. Raoul Lanvin, Assistant City Manager in the City of Tallahassee, Florida — was postponed from planned implementation in Q1. GAI worked on reshaping the training for an online format to be delivered in early Q3 as the situation in the local governments does not allow for this training to be organized earlier. The two-day in-person training has been redesigned into five shorter online sessions that will be delivered via Zoom, with simultaneous interpretation. The aim of this support is to enable counterpart LSGs to learn from the U.S. experiences, exchange information and discuss and identify good practices and models of sound budget management, public participation, and efficient service delivery (Activity 1.4.G).
1.5 Public Services
In the reporting period, GAI continued to improve local public services, providing local service providers with a better understanding of the importance of personal data protection, and facilitating identification of procedures that can be simplified and merged into single administrative points for more efficient service delivery.
GAI subcontracted Borealis Advisory (with Ms. Tatjana Pavlović) to provide technical assistance to establish Single Administrative Points (SAP) in the City of Kragujevac (Activity 1.5.A). The support reflects GAI’s prior experience with development of SAPs in Šabac and Sombor, relying on models that have already been tested, as well as the identification of new models. On May 27, 2020 GAI organized an introductory workshop with representatives of the City of Kragujevac to present the SAP concept and models, and to discuss opportunities to create SAPs in Kragujevac. Ms. Pavlović facilitated the establishment of SAPs in Sombor and Šabac for the local tax administration, enabling automatic registration of change of property ownership in local utility companies. She presented the experiences and based on analysis of local and national regulation
Checchi and Company Consulting, Inc. 23
of taxi transportation provided recommendations to Kragujevac for the establishment of an SAP for city taxi licensing. On June 17, 2020, GAI organized a second workshop for representatives of the City of Kragujevac focused on taxi licensing and possible SAP models. In addition, GAI provided the City of Kragujevac a draft document necessary for the establishment of the agreed single administrative point that relates to issuing taxi drivers permits.
In cooperation with the municipality of Žabalj, GAI developed a scope of work and solicited technical assistance for improvement of municipal services and services provided by two local public companies (Activity 1.5.B).
During the reporting period, GAI and CPI finalized a series of trainings organized for 19 LSGs, including six LSGs who are neighbors of GAI counterparts. The final trainings for Sremska Mitrovica, Dimitrovgrad, and Vrnjačka Banja, scheduled for March and April, were postponed due to the government-imposed restrictions on movement and gathering responsive to the COVID- 19 pandemic. Given inability to organize in-person trainings, GAI and the CPI agreed to organize online training for representatives of these three LSGs, in addition to neighboring Pirot, on July 29, 2020. The training was attended by 22 participants from the four LSGs. These joint trainings gathered a total of 318 participants from 18 LSGs in the period from December 2019 until July 2020. (Activity 1.5.D).
1.6 Whistleblower Protection
GAI subcontractor Pištaljka adjusted regional trainings on whistleblower protection for representatives of local public companies that were planned for May, to deliver them online. As in the previous trainings, the agenda will focus on case studies, discussions, and interaction with whistleblowers.
Pištaljka also augmented its website to accommodate creation of a network of designated persons for receipt of whistleblowers reports at the local level. Technical assistance to Novi Pazar for development of internal systems for handling whistleblowers complaints has been initiated but delayed due to extremely difficult situation with COVID-19 in this LSG. GAI and Pištaljka agreed to plan delivery of online trainings starting in early September.
Checchi and Company Consulting, Inc. 24
II. Independent Oversight Institutions
In this quarter, activities were largely implemented as planned, using alternative strategies for their implementation where needed due to COVID-19 restrictions. Focus was on further strengthening SAI’s performance audit skills, recommendation follow-up and the continued mentoring of SAI’s 13 performance audit teams by GAI. Support to ACA focused on enhancing cooperation with Misdemeanor Courts through harmonization of application of plea agreements. Also, GAI has developed a comprehensive communication strategy for the CPI that will focus on youth and crisis communication.
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
With the timely identification and introduction of mitigation measures to counter restricted movements, GAI was able to sustain momentum with SAI through online workshops and trainings. SAI is implementing its newly adopted performance audit policies and procedures for ongoing performance audits while expanding their knowledge on data analytics. Within the reporting period as government-imposed restrictions on gatherings evolved, so did the work arrangements of SAI which quickly adapted to GAI’s offer of online training and ensuring uninterrupted delivery of GAI technical assistance.
Checchi and Company Consulting, Inc. 25
In early May, GAI finalized mentoring of SAI’s 13 performance audit teams on appropriate audit criteria, scope, potential auditees, and the proposed evaluation methodologies in initial performance audit design (Activity 2.1.B). SAI Council adopted performance audit topics, audit scopes and auditees at end of May. Teams transitioned their work to data and evidence collection, appropriate to audit objectives.
Recommendation Follow-up and Performance Measurement – SAI leadership and performance audit teams reviewed GAI’s comments and suggestions on the proposed recommendation follow- up plans prepared by individual audit teams for their respective 2019 performance audits. GAI also commented on SAI’s update of policies and procedures on performance measures (Activity 2.1.A), and held an online workshop with SAI on July 3, 2020 designed to enhance SAI’s
procedures and methodologies for Participants of the Workshop on Audit Report developing audit report. Participants Recommendations, held July 3, 2020 included SAI Auditor General/President Mr. Pejović, Sector Heads, the Sector for Audit Methodology and Development, and the thirteen team leaders of the 2019 performance audits. The agenda focused on the need for SAI to refine its policies and processes to draft practical and measurable recommendations and improve methodologies to evaluate the financial and non-financial benefits derived from auditees’ implementation of SAI recommendations. The training also emphasized appropriate methodologies to assess outputs and outcomes versus impacts of past audit recommendations. GAI will further assist SAI to establish institutional performance targets and measures once relevant policies related to recommendation follow-up are in place.
SAI Research and Analytical Skills – GAI successfully completed Data Analytics Training (July 13 to 16, 2020) to continue to build SAI’s research and analytical skills (Activity 2.1.I). The online training was delivered by Ms. Laurie Ekstrand for SAI officials assigned to support audit teams’ use of advanced audit methodologies. Through lectures, group exercises, scenario-based learning,
Checchi and Company Consulting, Inc. 26
and discussion, training participants covered sampling techniques, data collection, and application of analytical methods, including quantitative and qualitative analytics and research methods, and descriptive and inferential statistics.
Prior to the training, SAI President Pejović informed GAI that he has assigned auditors who have academic training and expertise in analytics, IT, econometrics, and statistics to form a core of specialized, analytical support for all performance audit teams. Five auditors attended the four- day training: Ms. Milena Leković, Mr. Jovan Vuković, Mr. Danilo Masković, Mr. Milos Mandušić and Ms. Bojana Dragović, as well as Mr. Ivica Gavrilovic, Sector Head of Audit Methodology and
Development, and Mr. Pejović, Auditor General.
The designation of the experts is SAI’s response to GAI’s recommendation that the institution create a dedicated group with specialized experts to assist audit teams to apply more advanced evaluation methods that are critical to successful implementation of more complex audits. Training participants Online Data Analytic Training July 13-16, 2020 evaluated the sessions as highly successful and relevant to their work. SAI President requested that GAI familiarize more SAI team leaders with Data Analytics. GAI agreed to repeat the training for a larger group, tailor-made to their professional backgrounds.
, GAI subcontractor Mr. Stephen Caldwell began reviewing SAI’s current quality assurance framework and existing procedures, to draft policy and procedures for indexing and referencing draft reports – a step currently missing in SAI’s quality assurance framework for performance audits (Activity 2.1.D). In previous years’ training, GAI identified the importance of having in place a formalized fact-checking practice for draft audit reports with use of indexing and referencing. SAI has not drafted these policies to date but has agreed to give emphasis to quality controls to ensure fact-checking practices are applied during performance audit report writing.
Strengthening SAI Auditors’ Fraud Risk Assessment Skills – GAI delivered a draft fraud risk assessment training outline to SAI for comment. The SAI President remains cautious about its
Checchi and Company Consulting, Inc. 27
role in corruption investigations, whether they are to be conducted independently by SAI or as part of the Public Prosecutor Offices’ investigations. To counterbalance this, GAI’s subcontractor Mr. Stephen Lord has added explanations of the fraud risk assessment framework main institutes related to state audit institutions, with the aim to facilitate SAI’s appreciation of the institution’s potential contribution to corruption investigations conducted by cognizant institutions. This training has been delayed by COVID-19 imposed restrictions to travel and gathering, as it is envisaged as a hands-on, field-based training delivered in person by an international expert, designed to introduce completely new skills and strategies to SAI. GAI will continue to evaluate the environment to determine if in-person training or if online training is more prudent in Q4.
2.2 Assistance to the Anti-Corruption Agency
Performance Measurement Assistance (Activity 2.2.A) – In the reporting period, Ms. Laurie Ekstrand, Research Evaluation Specialist who was contracted to support building ACA’s various analytical and research skills, including performance measurement, delivered the final draft training outline on evaluation research methodologies for ACA. ACA accepted the proposed training outline. The workshop on performance measurement, including data collection and reporting, is planned to be delivered in September.
Risk-Based Oversight of Asset and Income Declaration Statements (Activity 2.2. B) – On May 11, GAI held a kick-off meeting with Mr. Stuart Gilman, Anti-Corruption Specialist, contracted to assist ACA to develop a risk-based methodology for analyzing asset and income declarations. On May 25, GAI held an introductory meeting for the subcontractor and ACA’s Director, Mr. Predrag Sikimić, and two Assistant Directors to discuss the delivery of technical assistance. At the GAI COP’s request, Director Sikimić agreed to send introductory letters to the Tax Administration Office, the Office for Prevention of Money Laundering, the Republic Geodetic Authority, and the Ministry of Interior, informing them of GAI technical assistance and the desire for GAI to meet to discuss their interaction with ACA regarding the Agency’s request for information.
In June, GAI and Mr. Stuart Gilman held meetings with ACA’s Heads of Department for Asset Control and Department for Registries and Records to examine how ACA maintains the registries of officials and of asset and income declarations, and to discuss procedures for officials’
Checchi and Company Consulting, Inc. 28
asset and income control. Also, online meetings were held with Mr. Jovan Božović, Head of the Department for Legal Affairs; Ms. Verka Atanasković, Head of the Conflict of Interest Department; Nataša Božić, Head of the Asset Oversight Department; and Marijana Obradović, Head of the Prevention and Integrity Department, to further examine internal cooperation between ACA departments in asset declaration control.
GAI and Mr. Gilman met with Ms. Irena Živković, Senior Advisor from the Administration for Prevention of Money Laundering, Sector for Analytics and Prevention of Terrorism Financing, Department for Cooperation with Other State Authorities; Ms. Dobrila Jeremić, Head of Operational Affairs Department for Field Services of the Tax Administration; Mr. Čedomir Lemaić, Assistant Head of the Directorate for Administrative Affairs, Department of the Police, within the Ministry of Interior; and Mr. Saša Djurović, Head of Department for Development and Application of IT within the Republic Geodetic Authority. The purpose of the meetings was to obtain additional insight on interactions and the exchange of information between ACA’s Department for Asset Control and these institutions that is critical to regarding ACA’s examination of public officials’ asset and income declaration submissions.
Mr. Gilman submitted his draft assessment of ACA’s current procedures used to analyze asset and income declarations as a fundamental component of ACA’s mandate to prevent corruption. The methodology will be designed to include specific procedures which prescribe how ACA should verify declarations for data accuracy, completeness and timely submission, and assess whether there is a discrepancy between the data from the declaration and data gathered from sources external to ACA. The procedure will also anticipate using means beyond the declaration itself to detect any financial irregularity or conflict of interest situation. A workshop for selected ACA officials on the recommended risk-based methodology for analyzing asset and income declarations by Mr. Gilman will be held in September and likely online given the ongoing epidemiological situation in Serbia and the U.S.
Analytical Skills Building for ACA (Activity 2.2.C) – As reported under Activity 2.2.A, Ms. Laurie Ekstrand delivered the final draft training outline on evaluation research methodologies, which was reviewed and accepted by ACA. The course includes 12 modules that focus on specific methods and analytical tools. The objective of the training is to present an overview of research design, data collection methods and analytics, and strategies for developing performance
Checchi and Company Consulting, Inc. 29
indicators to track progress towards goals, and provide training on effective presentation of evaluation and analytic findings for annual reports and other publications. The training will also include questionnaire design and implementation, sampling, performance indicator development, data analysis, and combining data sets.
Improved Conflict of Interest Prevention and Resolution (Activity 2.2.E) – The GAI-supported Conflict of Interest Manual, prepared at the end of last year, has been designed for publication in anticipation of the Law on Corruption Prevention, which comes into force on September 1, 2020. The Manual will be published on ACA’s website as soon as the Law comes into force. The Manual is an important guide for officials to use in managing ethical standards and conflicts of interest in the workplace. On June 19, GAI met with the Head of ACA’s Conflict of Interest Department and discussed GAI assistance to promote the Conflict of Interest Manual to public officials and representatives of public administration bodies on conflict of interest regulations.
Enhancing Cooperation Between ACA and Misdemeanor Courts – Following the e-roundtable for ACA’s Working Group to discuss the first draft of the Plea Agreement Guidelines that was facilitated by GAI in April, GAI hosted another roundtable between ACA and the Misdemeanor Court (MC) judges to collect the inputs of MCs judges on the Guidelines in order to ensure the harmonization of the legal practice (Activity 2.2.F). At the roundtable held on June 15, Mr. Jovan Bozović, Assistant Director for Legal Affairs, who has been coordinating the Working Group, presented the draft provisions of the Guidelines.
The roundtable included 24 participants, with 13 judges from Belgrade, Niš, Kragujevac, and Kraljevo, and 11 ACA representatives. The President of the Misdemeanor Court Judge Olivera Ristanović reiterated the need for organizing training for misdemeanor judges in order to make the plea agreement mechanism effective. Many judges issue warnings or sanctions below the legal minimum prescribed in the ACA Law, resulting in offenders opting to go to court rather than to enter into plea agreements with ACA. The draft ACA Guidelines envisage sanctions starting at the legal minimum consistent with the Law on Prevention of Corruption. ACA believes that for the mechanism to become effective, offenders should have an understanding that it is a better solution to enter into a plea agreement with ACA than to go to the court. According to Belgrade MC judges, this would require judges on the one hand to pronounce stricter sanctions, while on the other hand it would require ACA to revise the draft guidelines to include the possibility for
Checchi and Company Consulting, Inc. 30
sanctions to be below the legal minimum. The judges also suggested that 1) the Guidelines be an internal ACA document to allow easy revision whenever practice shows that some provisions could be improved; and 2) ACA leadership authorize persons in addition to the Director to sign plea agreements on behalf of ACA. ACA also asked whether courts would accept electronic signatures and received a positive reply.
Participants agreed that the plea agreement mechanism and the Guidelines will be presented to a wider audience of MC judges before their adoption to raise awareness of MCs’ judges on the Guidelines and the need for harmonization of legal practice. The final draft Guidelines are expected to be adopted in Q3.
Improved Interactions with PPOs (Activity 2.2.G) – Given the impacts of COVID-19 on the ability to organize in-face preparatory meetings, the workshop with ACA and PPOs to explore the possibilities for enhancing the cooperation between ACA and PPO that was envisaged in June has been replaced with an online planning session. GAI and ACA had planned to organize the planning session in the second week of July, however, it has been postponed because key ACA officials responsible for interactions with PPO have tested positive for COVID-19.
2.3 Support to the Commissioner for Free Access to Information of Public Importance and Personal Data Protection (CPI)
In the reporting period, GAI delivered to CPI a comparative analysis of legal frameworks in other countries for use in strengthening Serbia’s implementation of the Law. To raise the government and the general public’s awareness of rights and obligations for free access to information, particularly during this period of time when CPI has received numerous complaints about government denials or delays, GAI delivered to CPI a Communication Plan which the CPI subsequently adopted. GAI began planning support for an awareness raising campaign selected from CPI’s Communication Plan which could be implemented this year. GAI also supported and delivered an Informational Booklet on the integral relationships of personal data protection and free access to information to be distributed to public authorities as well as other external stakeholders.
Checchi and Company Consulting, Inc. 31
Support to the CPI on Legal Framework for Access to Information (Activity 2.3.A) – On June 1, Legal Expert Ms. Anamarija Musa delivered a comparative analysis of other countries’ legal frameworks for oversight of free access to information of public importance. The analysis covered competencies and organization of oversight by the counterpart institutions, identification of public bodies that are obliged to provide information of public interest under their law(s), exceptions and their justifications, appeal procedures for a requestor who has been denied access to requested information by a public body, and options for the refusal of a public body to reply to a request for information of public importance on the basis of cost. CPI intends to use the analysis to advance implementation of Serbia’s access to information practices consistent with Serbia’s own law.
Public Dialogue on Use of Public Information (Activity 2.3.B) – GAI engaged subcontractor the Executive Group (EG) to facilitate drafting a Communication Plan for raising citizens’ awareness of their rights to free access to information of public importance. The plan delivered by EG includes communication goals and a strategic framework for a campaign, definitions of and objectives for CPI communication with target groups, a key message outline, and communication activities in line with the strategic framework. The proposed activities are designed to enhance CPI’s external outreach and better inform the public, including youth, of government obligations and citizen rights to free access to information and personal data protection. It also considered the constraints associated with the COVID-19 pandemic. CPI adopted the Communication Plan in June.
GAI and the CPI reviewed selected activities stemming from the Plan, which could be implemented with GAI’s support, including an awareness raising campaign and youth engagement. GAI and the CPI considered activities that could be implemented, having in mind the restrictive and protective measures introduced by the Government of Serbia as a response to the COVID- 19 pandemic, which included social distancing and restrictions in numbers of persons at gatherings. The suggested activities include: developing a Facebook page for CPI; holding a Facebook Live Discussion on selected topics; interviews with a selected print/online media, print magazine and/or web portal; TV/radio survey-based guest appearances with a mini poll to collect quick responses from viewers/listeners; an exhibition in Belgrade on the Right to Free Access to Information; a thematic workshop with university student parliaments; and engagement with the
Checchi and Company Consulting, Inc. 32
Faculty of Dramatic Arts in Belgrade and students to produce a 3-minute movie or animated video with real-life scenarios to be placed on the Commissioner’s website and social networks and used at CPI events, as deemed appropriate. Final decisions on a prioritized selection of these activities to be undertaken over the next 6 months will be made in early August.
Integrated Manual on Personal Data Protection and Free Access to Information of Public Importance (Activity 2.3.C) – In the reporting period, GAI subcontractors, Ms. Anamarija Musa and Mr. Tihomir Katulić, delivered an integrated informational booklet on personal data protection and free access to information of public importance. The booklet describes the relationship between public access to documents and privacy and data protection and presented the complementary nature of personal data protection and free access to information. GAI has shared the draft booklet with CPI for comments.
Youth Engagement – Personal Data Protection and Free Access to Information of Public Importance – On June 4, GAI met with subcontractor the Executive Group to discuss the development of a campaign to engage and educate youth on the importance of personal data protection and the right to know (Activity 2.3.D). GAI will assist CPI to raise awareness of youth on these two important topics and will cooperate with the Executive Group on development and implementation of the campaign, that will include selected activities from the CPI Communication Plan developed with GAI assistance.
III. Adjudication of Corruption Cases
In the reporting period, GAI continued to support the anti-corruption court units and public prosecutors’ offices in improved adjudication and prosecution of corruption cases. The focus in this period was on organization of series of financial investigation trainings for deputy prosecutors and law enforcement officers from specialized anti-corruption units. GAI in cooperation with the Supreme Court of Cassation also organized the third Case Law Harmonization meeting for judges and judicial advisors from specialized units beginning with implementation of public procurement training for Misdemeanor Courts. During Q2, GAI prepared technical specifications and published a tender for development, design, and pilot testing of an Electronic Register of Corruption Cases.
Checchi and Company Consulting, Inc. 33
ADJUDICATION OF CORRUPTION CASES
ELECTRONIC CHAPTER 23 REGISTRY assisting Serbia to to improve corruption meet the case MONITORING EU REPORTING and REPORTING REQUIREMENTS SHARING
Clipart source: shutterstock.com
3.1 Support to the Specialized Anti-Corruption Units
In the second quarter of Y3, GAI conducted training and workshops for judges, public prosecutors, and other legal specialists based on the GAI’s publication Practicum for Investigation and Adjudication of Corruption Cases. The training focused on raising awareness of the significant contributions of financial forensic experts in financial investigations and adjudication of corruption cases, misfeasance in public procurement, and case law harmonization.
Anti-Corruption Practicum Training – In cooperation with U.S. Department of State’s International Narcotics and Law Enforcement Bureau (INL) and the Judicial Academy, GAI initiated a series of training sessions for deputy prosecutors and law enforcement from specialized units, which are based on the GAI-assisted Practicum for Investigation and Adjudication of Corruption Cases (the Anti-Corruption Practicum) (Activity 3.1.A) .
Nineteen representatives of the Anti-Corruption Units of the Higher Public Prosecutor’s Offices in Kraljevo, Ministry of Interior (Anti-Corruption and Financial Investigation Units), Tax Police and Customs Administration participated in the first workshop held in Vrnjačka Banja on June 4-5. The workshop covered four thematic areas:
Checchi and Company Consulting, Inc. 34
improved interagency cooperation; access to open and closed databases; financial investigations and use of financial forensics with money flow analysis; and police operative work and mutual legal assistance.
Participants worked on a comprehensive case study (modeled after an actual closed case scenario from the Belgrade Higher PPO specialized unit) and a set of practical exercises including drafting an investigative and implementation plan; income and expenditure table analysis; analysis of a report prepared by a financial forensic expert; and application of special investigative measures during the investigation phase. Based on participants` feedback from the first training, GAI and the instructors slightly modified the main case study and the set of practical exercises. Two additional workshops were held on June 25-26 in Niš and in Novi Sad on July 2-3.
All workshops were evaluated by the participants as advanced training. The main case study and accompanying materials were praised as very thorough and well structured. The instructors also established good communication and encouraged interaction between the participants while working on development of the practical exercises. According to the evaluation results, participants deemed the main takeaways from the workshop to be the use of financial forensics during the investigation phase and utilization of open and closed databases of other state institutions as a reliable source of information. Participants also evaluated the part of the workshop related to mutual legal assistance as very beneficial for their work.
Status and Role of Financial Forensic Experts – The 2018 Law on Organized Crime and Corruption introduced the possibility for prosecutors to rely on expertise provided by financial forensic experts during investigations. Building on the Anti-Corruption Practicum and expert
Checchi and Company Consulting, Inc. 35
roundtables held in 2019, GAI subcontracted Professor Rob McCusker, International Crime Consultant, to provide comparative study analysis of the use of financial forensics in legal systems comparable to Serbia (Activity 3.1.C). Mr. McCusker provided the draft comparative study analysis in July.
The study comprises three key sections: 1. Analysis of the Serbian legal system in terms of the status and role of the forensic accountant within criminal proceedings; 2. Analysis of comparable legal systems on the status and role of the forensic accountant within criminal proceedings; 3. Provision of recommendations on the potential refinement of the Serbian normative framework.
Misfeasance in Public Procurement – The 2019 Law on Public Procurement introduced new sets of instruments and procedural tools for conducting public procurement procedures, such as a new public procurement portal, electronic submission of bids, e-appeal, e-catalogue, and increased value thresholds, as well as new sets of competencies of state institutions in this area. In response to the new sets of competences for the misdemeanor courts introduced by this Law, GAI subcontracted public procurement experts Mr. Filip Vladisavljević and Mr. Saša Varinac to develop a training syllabus and materials to provide trainings to misdemeanor judges (Activity 3.1.F).
The support is provided through thematic interactive trainings with practical case simulations aimed at addressing some of the most relevant legal issues. The trainings contribute not only to strengthening the principle of legality in public procurement procedures, but also to detecting and reducing common corruptive practices in public procurements. Also, this kind of support will help to make it easier for the misdemeanor courts to start with efficient use of penalty provisions foreseen by the Public Procurement Law, whose enforcement to date has not been consistent and systematic.
In cooperation with Judicial Academy and Appellate Misdemeanor Court, GAI organized the first in the series of two-day training sessions for misdemeanor judges on the new Public Procurement Law. The training was held in Belgrade on June 22-23. The participants included 25 misdemeanor judges from the Appellate Misdemeanor Court and Misdemeanor Courts in Belgrade, Pančevo, Obrenovac, Loznica and Valjevo. Judge Leonida Popović, President of the Appellate Misdemeanor Court, delivered the opening remarks. The training introduced the novelties in the new Law and
Checchi and Company Consulting, Inc. 36
legal matters and challenges relevant for facilitation of public procurement procedures as well as analysis of each public procurement misdemeanor offence.
Initially, GAI planned to organize four other such trainings in July throughout Serbia. However, given the recent increase in COVID-19 cases in Serbia and the re-introduction of restrictive mitigation measures by the Government of Serbia, GAI has decided to postpone the in-person trainings for later dates. GAI continues to work with the Appellate Misdemeanor Court and Judicial Academy to develop an online training alternative or to delay the scheduled in-person trainings.
Case Law Harmonization – In cooperation with the Supreme Court of Cassation, GAI organized the third working meeting of judges from the four anti-corruption court units (Activity 3.1.H). The meeting was organized in Novi Sad on June 18-19. Sixteen judges and judicial assistants from the four anti-corruption court units, as well as the President of the Higher Court in Kraljevo participated.
The main objective of the meeting, which is the only regularly held such forum for discussion among judges from the specialized units, was to discuss contested issues in law and practice in relation to the application of the Law on Organized Crime and Corruption and amended provisions of the Criminal Code (criminal offences against official duty and economic activity). Additionally, the meeting served as a forum to present and discuss the latest statistics of four A/C Units, their challenges and success stories in adjudicating corruption offences.
The second day of the meeting was moderated by the Supreme Court Judge Biljana Sinanović. Judges and judicial assistants discussed a variety of topics during the two sessions including: the use of circumstantial evidence; use of new procedural institutes under the Law on Organized Crime and Corruption and their evidentiary value; problems in the application of the provisions of the Law on Criminal Asset Recovery; proving that proceeds are the benefit from criminal conduct in money laundering case/predicate offense.
Checchi and Company Consulting, Inc. 37
Youth Engagement – Anti-Corruption Legal Clinic – During Q2, the Legal Clinic of the Belgrade University Faculty of Law continued (Activity 3.1.J) with GAI support implementation of practical module of the Clinic’s curriculum. The practical module was designed to allow the students to work in pairs on the topic of their choice. The mentorship program developed by GAI’s subcontractors, Mr. Jovan Nicić and Ms. Ana Arsenijević, includes a list of mentors, research topics proposed by the lecturers, and channels of communication between the students and the mentors. Initial meetings between the students and mentors were held in early May to discuss the research work plans and methodology, and guidelines for drafting the research papers and relevant reference materials. After the completion of the initial round of meetings, all students and mentors submitted their plans for mentoring support to the Legal Clinic. During May, the students and their respective mentors held several online and in-person meetings to discuss research progress and contested legal issues. Students had the opportunity to ask questions and to get first-hand experience from their respective mentors on implementation of anti-corruption measures and provisions in practice. All research papers prepared by the students and approved by the mentors were submitted to the Anti-Corruption Legal Clinic on May 20. The students’ research papers were published on the Law Faculty’s website.
Subsequently, the external associates of the Legal Clinic started with collection of texts prepared by mentors and the institutions that took part in the theoretical section of the Clinic’s program: the Anti-Corruption Court and Public Prosecutor’s Units in Belgrade, Anti-Corruption Agency, Transparency Serbia, and Pištaljka. The texts will be incorporated in the Anti-Corruption Textbook that will be available at the beginning of Q3. Due to COVID-19 restrictive measures to gathering the University of Belgrade Law Faculty will remain closed for students until September. GAI plans to organize an event to hand over certificates to the students who successfully completed the Clinic’s program in the fall.
3.2 Electronic Register of Corruption Cases
GAI and IT subcontractor Mr. Goce Armenski prepared the tender documentation and opened the solicitation on July 3 for the design and testing of an ERCC. GAI worked with the RPPO to identify the list of proposed prosecutorial reports that will be generated in the ERCC. Mr. Armenski prepared hardware and software cost estimation for the ERCC, offer qualifications, and a detailed list of expected deliverables with delivery timeframes. The solicitation is open until
Checchi and Company Consulting, Inc. 38
August 3, 2020. GAI informed the members of the ERCC Working Group and MOJ/eJustice Division that the solicitation for design and testing of an ERCC has been published.
At the last meeting of the ERCC Working Group held in March 2020, the representatives of MOJ/eJustice Division offered to contribute and provide hardware for an ERCC. On May 13, GAI sent a letter to the Ministry of Justice and Assistant Minister Jelena Deretić informing them of GAI plans to issue a solicitation for the design and testing of an ERCC. GAI informed the MOJ of the requirements needed for establishing an ERCC and requested input on the existing MOJ’s IT infrastructure. Specifically, GAI asked whether it is possible to house the registry on existing MOJ infrastructure. The MOJ responded that it is unable to provide the requested items. GAI informed the President of the ERCC Working Group Prosecutor Radisavljević and, based on it, decided to include all necessary IT infrastructure into estimated cost construction for the ERCC tender. GAI has notified the MOJ of this decision.
On July 14, GAI wrote to the acting President of the Supreme Court of Cassation, Judge Dragomir Milojević to initiate steps to help standardize and elevate greater use of digital videoconferencing tools for the facilitation of trainings for professional advancement of judges and court staff, in line with the provisions of the Law on Judges and the Law on Judicial Academy. GAI advised that this process should be done in close partnership with the High Judicial Council and Judicial Academy, and that it should be seen as establishing the minimum standards for a greater use of digital learning tools in the judiciary. GAI suggested that it could be best done through formation of a Working Group that would help draft a stand-alone, supporting by-laws of the High Judicial Council. GAI offered assistance in the process.
GAI also held a Zoom meeting with Miljko Radisavljević, Deputy Republic Prosecutor, to discuss ongoing and planned activities. The issues discussed included: 1) Training of public prosecutors on the new Law and Public Procurement and the functionalities of the new Procurement Portal (jointly with Public Procurement Office); 2) initiatives to improve cooperation between RPPO and SAI. Prosecutor Radisavljević extended his support to the public procurement training for A/C Units and Organized Crime Prosecutor’s Office.
Checchi and Company Consulting, Inc. 39
PMP UPDATE
GAI Learning Session – As reported previously, an early learning session in Q1 enabled GAI to act quickly when the COVID-19 pandemic outbreak was declared, and the Serbian Government implemented protective and restrictive mitigation measures in response. GAI introduced distance working and use of video conferencing technology to communicate with and deliver support to counterparts, counterbalancing restrictions on in-person gatherings and movement introduced by the Government. During the initial State of Emergency in Serbia (March 15 – June 6, 2020), GAI counterparts introduced remote working. Most institutions GAI supported and GAI subcontractors embraced online tools for meetings and trainings.
Throughout Q2, dialogues among GAI components and with counterparts has been key to understanding and adapting to the pandemic. GAI’s weekly staff meetings in the reporting period transformed into weekly learning sessions, where we examined the activities we were implementing, reflected on challenges and successes, and brainstormed on how to benefit from lessons learned while re-designing delivery of planned support.
To better understand how counterparts reacted to the mitigation measures and new methods of activity implementation, GAI revised its training participant questionnaire to include questions on the preference of type of training, asking participants whether they preferred online or in-person training.
The survey was conducted twice, in May after the Social Media Training and in July after the training on personal data protection that was organized with the CPI. All participants of the training were from local governments, which usually have lower capacities than central government institutions. In both cases the response rate was approximately 50%. Both surveys showed that the majority of respondents (63% in May and 73% in July) claimed that they do not see any significant difference between having online or in-person training. Interestingly, in May almost twice as many respondents claimed that they preferred in-person trainings: 25% compared to the 12% that stated that they preferred online training. In the July survey, the response rate was quite different –with only 9%
Checchi and Company Consulting, Inc. 40
claiming they prefer in-person training, while twice as many (18%) claimed they preferred online training.
LSG Participants’ Preferences on Method of Training Delivery May 2020 July 2020
25% 9% 18% 12% 63% 73%
In person In person
Online Online
There is no difference, both types of trainings There is no difference, both types of are equally acceptable to me trainings are equally acceptable to me
On July 21, GAI held a learning session, to reflect on the activities implemented and challenges encountered, examine the learning questions, and to sum up the lessons learned from the effects and mitigation measures used during the COVID-19 pandemic.
Each component presented activities implemented, linking the outcomes to GAI’s Theory of Change6, answering the following questions: 1) What was supposed to happen? 2) What was reality? 3) What went well? 4) What did not go well? and 5) What should be changed? The results achieved were examined, GAI impact evaluated, and result sustainability was assessed.
Discussions also reflected the accomplishments and challenges of activity implementation during the COVID-19 pandemic, success of mitigation measures and feedback from
6 GAI’s current Theory of Change is available in GAI’s approved Activity Monitoring, Evaluation and Learning Plan (AMELP).
Checchi and Company Consulting, Inc. 41
counterparts and implementation partners/subcontractors. Counterpart capacities, reactions, and mitigation measures during COVID-19 were also examined.
Team GAI examined the learning questions and confirmed the answers agreed at previous sessions: 1. What factors are most conducive to adoption of durable good governance measures at the local self-government level?
o Introduction of new policies and new procedures that become part of the business culture of the local governments is crucial. GAI’s tailored support is still relevant, matching local needs, providing ownership, and ensuring sustainability of the policies and procedures.
o Particularly important is the introduction of transparency of the work of the LSGs and availability of information for the public, CSOs, and media.
o It is important to improve the design and content of websites to make information easily accessible, but as important to change the corporate culture within the administration, change the understanding of LSG employees on the need for their access to information of public importance, as well as the need to make the information easily accessible and available in a timely fashion.
o LSGs need to have the capacities, interest, willingness, and commitment to introduce and integrate new policies and measures.
o 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.
o Increasing sustainability of GAI-assisted good governance measures (procedures) should be ensured by replicating successful interventions with the second group of LSGs.
o Knowledge, understanding, and credibility of local experts and/or CSOs that GAI subcontracts is crucial to success and continual commitment of LSGs to activities.
Checchi and Company Consulting, Inc. 42
2. How can committed local self-governments be insulated from national political pressures?
o Personnel need to be trained to perform their jobs more efficiently, offering high-quality citizen-centric services.
o Building transparent and accountable business environments in local governments is key. Assistance should focus on the development of accountable LSGs, with transparent procedures and an information-sharing culture.
o Citizens need to know their rights and create a demand for accountable and transparent governance. Promoting the practice of good governance in committed LSGs, their work and the values they represent, will not only ensure that citizens know their rights and demand accountability, but will also strengthen the commitment of the LSGs.
o Create networks to share knowledge and best practices with the other LSGs, so as not to succumb to political or other pressure.
o Identify areas where they can work with CSOs to improve residents’ life in the local communities, generate interest from residents, and jointly work on important initiatives.
o Ensuring that the local governments are supported by credible and trustworthy CSOs. The public opinion of CSOs that GAI works with to assist LSGs is as important as their expertise. These further build trust with LSGs, fostering relationships that will last beyond GAI’s life span.
3. How can IOIs continue to play an important role in government oversight during a time of changing leadership?
o Develop key messages including good examples of institutional good governance and systemic weaknesses in government, and consistently communicate messages to external stakeholders in ways that targeted audiences can understand, own, and act upon.
Checchi and Company Consulting, Inc. 43
o Strengthening open, accountable business cultures in the IOIs with the introduction of relevant methodologies, procedures, and models ensures they remain relevant and continue to perform their duties.
o Enhancing relationships with external champions of good governance can strengthen the position of IOI. For SAI this means strengthening relationships with the National Assembly Committees beyond the Committee on Spending, CSOs, and media. For ACA, it is continued support to improve the Agency’s interaction with the Misdemeanor Courts, PPOs, and CSOs to improve impact on accountable governance. For the CPI it is strengthening relationships with public administration bodies, CSOs, youth, and the media.
o Focus SAI and ACA resources on high-impact, high-value “targets” that will increase the public trust in IOIs and their impacts to combat corruption.
4. Why do IOI recommendations not lead to substantial concrete follow- up action? • For SAI:
o Legislation constrains SAI’s ability to aggressively follow-up on recommendations made to an auditee. Current legislation limits the SAI follow- up with auditees to only one-time at the 6-month post-audit recommendation mark. Beyond that 6-month follow-up, SAI must initiate a new audit, which results in an inefficient use of SAI resources.
o SAI’s communication of audit results and recommendations in a manner that convinces recipient auditees and the National Assembly of the need to take action and sustain improvements is lacking.
o SAI recommendations are often not written in a manner to enable measurable progress. SAI also lacks a consistent and reliable methodology used by all audit sectors to calculate measurable, financial, or qualitative benefits for government derived from auditee implementation of SAI recommendations.
Checchi and Company Consulting, Inc. 44
• For ACA:
o ACA lacks aggressive follow-up on filings before the Misdemeanor Courts and prosecutors’ offices.
o Consultations between ACA and the PPOs are insufficient to build relationships for decisive action on ACA filings. • For CPI:
o Public institutions, the Government, and the NA lack commitment to follow- up on CPI recommendations.
o Legislation constrains the ability of the CPI to aggressively follow-up on recommendations/referrals.
o CPI’s mandate is limited and does not include oversight over the Law on Free Access to Information of Public Interest.
o New personal data protection legislation has not allowed enough time for public administration and public entities to learn and implement all the requirements.
o Lack of citizen awareness on their rights to access information and personal data protection, so that they do not know when and how to effectively complain to the CPI.
5. What are the key reasons for limited adjudication of corruption cases?
o The important decisions on the use of new procedural institutes introduced by the new Law on Organized Crime and Corruption are not harmonized because there is no body of court case law.
o Specialization of the new units has not been fully implemented in practice.
o Counterparts have limited resources: they lack IT equipment, case- management software, and staff.
Checchi and Company Consulting, Inc. 45
6. Are the Serbian executive and judicial branches committed to fair, impartial resolution of corruption cases?
o CeSID’s public perception survey commissioned by GAI found for the past two years that people have very limited trust in government institutions’ commitment to address corruption. The public perceived low levels of commitment from PPOs (13%) to the President (32%). In other words, there is no single institution for which more than one-third of the public perceive that government is highly committed to fight corruption.
o Findings of the survey also indicate that citizens are losing confidence in the commitment and ability of institutions to fight corruption. Compared to the previous research cycle in 2018, when 19% of the respondents indicated that none of these institutions is sufficiently dedicated to the fight against corruption, in 2019 as many as 26% of citizens agreed with this statement.
o The Anti-Corruption Agency is one of the institutions with the highest drop in percentage points when it comes to citizens' confidence in institutions’ ability to spearhead the fight against corruption. In late 2019, 7% of respondents see the Agency as a leader in the fight against corruption, which is six percentage points lower than in November 2018.
o The results of the 2019 survey show that 54% of respondents consider the Government to be ‘mostly ineffective’ or ‘not effective at all’ which is two percentage points higher than November 2018. Thus, more than one-half of Serbian citizens perceive that the institutions they believe should spearhead the fight against corruption are not effective enough.
o 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.
During the learning session it was underlined that GAI has exercised adaptive management quickly and as efficiently as possible, as have counterparts who have had to make significant
Checchi and Company Consulting, Inc. 46
adjustments in their workplaces. Components noted the benefits of all GAI counterparts remaining interested in continuing activities, even though their attention was largely focused on managing daily life circumstances arising from the COVID-19 outbreak. LSGs, CPI, and SAI were quick to adopt GAI’s introduction of online support delivery mechanisms. The introduction of online learning and use of new technology took more time in ACA, which was challenged by lack of audio-video capability on official laptops and desktop computers. The courts were similarly challenged by a traditional practice of not engaging in business online and the lack of similarly equipped technology.
A sum of the lessons learned is identified below.
• The method of providing technical support (in person or using electronic platforms) does not affect the quality of the support provided. Key to successful implementation of technical assistance activities is the selection of quality subcontractors as well as counterparts’ interest, commitment, and willingness to adapt to the existing conditions and circumstances.
• Counterparts’ interest, commitment, and willingness to adapt to the conditions are crucial to activity implementation. This was underlined time and again, during the State of Emergency, as well as when it ended in June, and counterparts resumed normal office hours. Some counterparts, like the courts requested that support delivery, meetings, and trainings be held in person. LSGs on the other hand continued to communicate and receive support via online tools.
• GAI has a better appreciation of the advantages and challenges of online work has been acquired. Working with LSGs, GAI identified heightened efficiency in organization of meetings with local counterparts, and implementation of some activities that involve larger number of counterparts that would normally involve travel out of Belgrade. Less time has been needed to gather information, communicate, and to deliver the support. As travel and in-person events were completely excluded throughout most of the quarter, the costs of trainings were severely reduced, which was reflected in all components.
Checchi and Company Consulting, Inc. 47
• Although the pre-election period anticipated while planning activities for GAI Y3, due to the COVID-19 pandemic, the regular elections were postponed for almost two months, during which activities were planned to begin but could not as administrations were unwilling to begin something a new leadership would potentially not support. With the elections finalized, GAI continued to implement ongoing activities, while waiting for the local government bodies to be formed. An additional challenge has been the drastic increase of new COVID-19 cases in Serbia in July, during which a number of GAI counterpart LSGs declared state of emergency on their territory and, again, introduced remote work completely or to a certain extent. GAI has adjusted to both situations, implementing activities for which the local governments were showing interest in and focusing implementation of activities with local governments where the COVID-19 situation is under control.
• When implementing activities, GAI remains inflexible in executing Serbian Government and USAID recommendations, to ensure that the health of all GAI counterparts and GAI staff remains a priority.
With the introduced mitigation measures, GAI was able to continue to complete activities, mostly as planned. The GAI activity timeline has undergone some change, as the effects of the COVID-19 pandemic have caused some GAI activities to be postponed within the Y3 workplan, while a few activities have been deterred to GAI Year Four.
MANAGEMENT AND ADMINISTRATIVE ISSUES
Building on the previous quarter challenges in activity delivery brought on by the COVID-19 pandemic , in the reporting quarter, the increasing spread of COVID-19 in Serbia as well as the United States further challenged GAI delivery leading to GAI’s learning and implementing more flexible work arrangements. The COP departed Serbia for a three-week personal leave in the US
Checchi and Company Consulting, Inc. 48
at the end of February. The closure of Serbia’s borders and airports mid-March prohibited the COP’s immediate return. The worsening epidemiological situation in the US and Serbia has led to the COPs prolonged absence from country and remote working arrangements for GAI’s local staff, but created a new reliance on video conferencing tools to conduct daily business.
On March 15, the first date that the COP was expected to return to Serbia, the Government of Serbia declared a State of Emergency and imposed curfews, restrictions on gatherings and movement, and closed Serbia’s airports and borders. GAI closed its office and implemented a remote working policy for all GAI local staff. International subcontractors were similarly affected precluding their entry into Serbia and requiring reconsideration of delivery methods for technical assistance activities planned by local and international subcontractors. The Chief of Party and all local staff have continued working full-time, but remotely, to exercise an abundance of caution until the epidemiological circumstances improve.
Numerous solicitations have been issued and contracted for short-term technical assistance using Firm Fixed Price Subcontracts to support technical assistance delivery across all three GAI Components, such as support for the development of an Integrated Communication and Public Participation Strategy of the City of Niš; for improving Information Booklets in the City of Sombor and Municipality of Žabalj; for improving accountability in public procurement in Sombor, Šabac, and Novi Pazar; for the establishment of Single Administrative Points (SAPs) in the City of Kragujevac; for strengthening SAI’s capacity to assess the risk of fraud in audited entities, as well as the solicitation for the ERCC.
On May 6, 2020, the National Assembly of the Republic of Serbia rescinded the state of emergency which was introduced on March 15. GAI staff and subcontractors remained engaged in project activities, successfully implementing alternative strategies identified in early March to implement technical assistance activities with little or no disruption to timelines, as approved in GAI’s Y3 Work Plan.
While Serbian administration began a return to full operational capacities, the parliamentary and local elections were held. Due to the COVID-19 pandemic effects in Serbia, the elections that were initially planned for April 26 were held on June 21, 2020. This caused a longer than anticipated period of transitional (post-election) governments at all levels, which has left most
Checchi and Company Consulting, Inc. 49
counterpart LSGs unwilling to move forward with new support activities identified in GAI’s Year 3 Workplan, until new administrations are established. Additionally, a second spike in new infected cases in Serbia in July 2020 resulted in the re-introduction of restrictive measures throughout Serbia, as well as local governments with high numbers of newly infected COVID-19 cases declaring a state of emergency in their territories.
GAI has maintained communication with USAID on implementation progress during the state of emergency. GAI continued to proactively communicate with counterparts and subcontractors. Information sharing with counterparts and contractors has been key to sustaining momentum of project implementation.
In the reporting period, no changes to GAI’s permanent staff have been made.
PLANNED ACTIVITIES FOR THRID QUARTER OF GAI YEAR 3 INCLUDING UPCOMING EVENTS
Local Government Accountability
• Support for LAP Development and Implementation and IMB Capacity Building – During the third quarter, GAI will support three LSGs to implement specific measures envisaged by their LAPs, and further capacity building of independent monitoring bodies in seven LSGs. • Local Government Model Website – In Q3, GAI will initiate the development of the new website for the Municipality of Žabalj, according to the model developed in Y2, and based on the assessment of existing websites. • Support for improvement of Information Booklets – GAI will provide technical assistance to two counterpart LSGs – the City of Sombor and municipality of Žabalj – to revise the structure and content of their Booklets in line with legal requirements and
Checchi and Company Consulting, Inc. 50
transparency best practices. These Booklets will serve as best practice models for other counterpart LSGs as well as for all other LSGs in Serbia. • Development and Implementation of Communication Strategies – In Q3, GAI will start providing assistance to the City of Niš to draft an integrated communication and public participation strategy to be developed as local public policy and adopted in highly participatory manner. Also, GAI will provide support to the City of Novi Pazar to implement a communication strategy. • Public Procurement Law Implementation – GAI will finalize work with three cities (Šabac, Novi Pazar, and Sombor) on the development of model internal acts for public procurement, aligned with the new Law on Public Procurement, and share them as models with other LSGs. Additionally, GAI will initiate technical assistance to the City of Kragujevac to develop a new internal public procurement act, in response to SAI’s performance audit recommendations and explore opportunities to develop an IT solution for the efficient management of centralized public procurement. • Development of City Portal in Šabac – The work on the design and programming of the portal will span through Q3 (and beyond), aiming to finalize the design by September 2020. • Financial Management and Controls (FMC) System in Novi Pazar – In Q3, GAI will provide technical assistance to the City of Novi Pazar to introduce a financial management control system in the City Administration. The assistance is based on the methodology determined by the Ministry of Finance. Activities in Q3 will be dedicated to train the City representatives on FMC, to review of all internal procedures, and to conduct risk assessments that should be incorporated in future FMC system. • Improvement of Public Services in Žabalj – In Q3, GAI will start to implement activities aimed to improve local public services in Žabalj, through citizen satisfaction surveys, identifying the most problematic services that are provided by two local public companies and the Municipal Administration. Based on the survey, GAI will provide recommendation on how these services can be improved, aiming to increase their quality and efficiency, as well as transparency and citizen oversight of local public services. • Workshops on Municipal Budgeting, Public Engagement and Services – In Q3, GAI will facilitate the first workshops for LSGs to learn about U.S. experiences to ensure
Checchi and Company Consulting, Inc. 51
sound budget management, public participation in budgeting, and providing efficient services to citizens. Workshops will be held online due to the travel restrictions. • Public Participation – Support to LSGs to improve public participation in adoption of local policies has been planned for the second half of GAI Year 3. The delayed elections and subsequent establishment of new local governments have delayed some local decision making in deference to newly elected local leadership. GAI has reconfirmed the agreement with the City of Sombor to expand the budget planning participation process with high schools for the 2021 local budget, following the highly successful GAI-assisted high school student participation in the planning of the 2020 local budget. The activity will be implemented in Q3 and through Q4. • Whistleblower Protection – As activities in Q2 have been postponed within Year 3, GAI will move with mostly online implementation of:
o Trainings for Local Public Companies – GAI and Pištaljka will deliver training on the implementation of internal whistleblower systems to public procurement officers and persons in local public companies authorized to receive whistleblowers’ reports.
o Establishment of a Network of Authorized Persons at the Local Level – Work will continue the establishment of a network of persons authorized to receive whistleblowers’ reports in LSGs and local public companies, to facilitate the exchange of information relating to the legal framework and skills required for the work with whistleblowers.
o Development of an Internal Whistleblower Protection System in Novi Pazar – The assistance will include the revision of the LSG’s internal whistleblowing procedures and their alignment with the recommended model developed by GAI and Pištaljka in Y2. • The Third Open Call for New Counterpart LSGs – In Q3, GAI will launch an open call for a new group of LSGs to join the Initiative.
Checchi and Company Consulting, Inc. 52
Independent Oversight Institutions
• Mentoring SAI Performance Audit Teams – In the third quarter GAI will continue to support the 13 SAI performance audit teams and SAI leadership, through remote consultations, on the 2020 performance audits, focusing on development of evidence for message development and report writing. • Basic Performance Audit Training for Financial and Compliance Auditors – GAI will deliver Basic Performance Audit training for SAI financial and compliance auditors who previously did not receive such training. This training will aim to enhance SAI’s internal stakeholder contributions to the annual selection of audit topics, performance audit design and quality controls during message development. • Data Analytics Training – GAI will continue to support SAI in building capacity for evaluation research and analytics applied during complex performance and compliance audits. SAI’s President assigned a core group of auditors to provide advanced analytical assistance to audit teams to sustain application of analytical methods learned during GAI training. • Fraud Risk Assessments in Audits – GAI will initiate fraud risk assessment training for SAI. The training is aimed to better prepare and position SAI for participation in corruption task forces envisioned by the March 2018 Law that allows for institutions to appoint liaisons to task forces. • Enhancing Utilization of SAI Performance Audit Reports by External Stakeholders - Having discussed with SAI strategies to enhance the understanding by external stakeholders, including the public, of SAI’s key findings and the necessity for action on recommendations, GAI will develop specific activities for stakeholder engagement. The strategies will be consistent with SAI’s recently adopted Communication Strategy, that GAI has previously supported. Strategies will be designed to enable SAI’s more effective, post-election engagement with National Assembly Committees to increase utilization of SAI audit products and recommendations and enhance the impact of SAI’s work on legislation and government regulation and performance. The tasks will also include identification of strategies to support SAI’s interface with academia and CSOs and a productive engagement with professional
Checchi and Company Consulting, Inc. 53
associations, to inform audit planning and amplification of SAI report recommendations to improve governance • Enhanced Income and Asset Declaration Oversight for ACA – In Q3, GAI will finalize the assessment of ACA’s current procedures and practices for verification and analysis of asset and income declarations and develop a risk-based methodology for examining asset and income declarations. Also, GAI will hold online training for selected ACA officials on how to make the best use of the developed methodology. • Analytical Skill Building for ACA – Based on the draft outline for the ACA analytics and research training, GAI will deliver interactive tailor-made workshops with the aim to build ACA’s analytical and research skills focused on research design, data collection methods and analytics, including performance measurement. The training on analytical skills, as agreed with ACA, will be delivered in September. • Enhancing Cooperation Between ACA and Misdemeanor Courts – GAI will continue to support ACA to harmonize application of plea agreements. GAI will organize an e-roundtable between ACA and Misdemeanor Court judges to support harmonization of legal practice. • Enhancing ACA Cooperation with PPOs – Planning session with ACA and PPO to explore the possibilities for enhancing cooperation and define the topics for the joint thematic workshop. • Conflict of Interest Manual – In Q3, GAI will work with ACA to promote the use of the Conflict of Interest Manual by public officials and representatives of public administration bodies. GAI anticipates the potential engagement of the Ministry of Public Administration and Local Self-Government in this initiative as the institution responsible for revisions to job descriptions for integrity and ethics officers as the likely responsible parties for monitoring implementation of conflict of interest in state bodies. • Support to the CPI on Legal Framework for Access to Information – As agreed with the CPI, GAI will in the coming quarter organize an e-Roundtable on Free Access to Information of Public Importance on the occasion of Right to Know Day. • Personal Data Protection and Free Access to Information Booklet – Having finalized the text and design of the booklet, in Q3 GAI will liaise with the CPI publishing and promotion.
Checchi and Company Consulting, Inc. 54
• Communication Strategy for the CPI – GAI will create and facilitate opportunities for the Commissioner to engage with the media to raise the public’s awareness of freedom of information and data protection especially during the current epidemiological environment when, according to CPI, requests for information have been frequently denied. GAI will also explore with CPI awareness raising campaign targeted for youth engagement.
Adjudication of Corruption Cases
• Anti-Corruption Practicum Training – During Q3, GAI and INL, in cooperation with the Judicial Academy, will organize the last in the series of trainings based on the Practicum for Investigation and Adjudication of Corruption Cases. The workshop for deputy prosecutors, law enforcement, and regulatory bodies from Belgrade appellate region is scheduled for September 10-11. In case the restrictive measures introduced by the Government of Serbia continue to apply throughout September, the workshop will be held online via Zoom on the proposed dates. • Internal Whistleblower Protection Training for PPO – During Q3/Q4, GAI and Pištaljka will develop and deliver training for public prosecutors on the implementation of internal whistleblower strategies including internal whistleblowing, ethics, and integrity within PPOs. • Misfeasance in Public Procurement – GAI, in cooperation with the Judicial Academy and Misdemeanor Appellate Court, will continue with organization of trainings for appellate and first instance misdemeanor judges on handling cases of misdemeanor offences and unlawful conduct in public procurement. Four regional trainings for misdemeanor judges are planned in Niš, Novi Sad, Kragujevac, and Belgrade. • Status and Role of Financial Forensic Experts – Based on the findings of the comparative analysis of the use of financial forensics in legal systems comparable to Serbia, GAI plans to convene a regional event with participation of legal professionals from selected countries with Serbian stakeholders to advance the greater use of financial forensics in complex financial criminal cases, and legal reasoning in the case law. Online delivery options will be explored.
Checchi and Company Consulting, Inc. 55
• Public Procurement Training for PPOs – During Q3, GAI will liaise with the Public Procurement Office to organize trainings for Anti-Corruption Units in PPOs on the new Law on Public Procurement and the functionalities of the new Procurement Portal. • Training on Delineation of Misdemeanor and Criminal Offences – This training initiative builds on the previously mentioned training on misfeasance in public procurement. The purpose is to provide guidance to misdemeanor court judges, public prosecutors, and employees of public institutions, that will prevent double jeopardy in cases related to public procurement. • Annual Judges’ Conference – GAI will support a roundtable and/or workshop on targeted A/C topics, during the Annual Judges’ Conference, traditionally organized in Vrnjačka Banja during October. Due to the COVID-19 outbreak in Serbia, it is still unclear if the Supreme Court of Cassation will convene this year`s Conference. If the event is cancelled, GAI will follow the Supreme Court of Cassation’s course of action toward implementation of different knowledge sharing practices for judges. • Development of ERCC – During Q3, GAI plans to complete the solicitation and subcontractor selection for design and testing of an ERCC. During this period, GAI will also organize a kick-off meeting with the selected subcontractor, the ERCC Working group, and MOJ.
Other Technical Assistance
• 2020 Survey of Citizens’ Perceptions of Anticorruption Efforts in Serbia – GAI and subcontractor CeSID will assess whether the methodology and survey should be re- examined and updated, as well as discuss possible mitigation methods for conducting a nationwide survey of Citizens’ Perceptions of Anticorruption Efforts in Serbia, if the COVID-19 imposed restrictions continue. The survey is planned for early Q4, while the findings will be presented to the public in December 2020, to mark the International Anti-Corruption Day (December 9).
Checchi and Company Consulting, Inc. 56
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. 57