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Business Integrity Country Agenda Turkey

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Business Integrity Country Agenda Turkey BUSINESS INTEGRITY COUNTRY AGENDA TURKEY BUSINESS INTEGRITY COUNTRY AGENDA-TURKEY Transparency International is the global civil society organization leading the fight against corruption. Through more than 100 chapters worldwide and an international secretariat in Berlin, we raise awareness of the damaging effects of corruption and work with partners in government, business and civil society to develop and implement effective measures to tackle it. TI-Turkey (Uluslararası Şeffaflık Derneği) was founded in 2008 by voluntary efforts. The association aims to set the rule of transparency, integrity and accountability principles in all segments of the society for the democratic, social, and economic development of the country. TI-Turkey predicates on collaboration of public sector, businesses, unions, universities, professional chambers, and non-governmental organizati- ons in the scope of its anti-corruption efforts. It expects legibility, integrity, legal conformity, accountabi- lity, and traceability from all individuals and institutions in society who constitutes the social structure and/ or holds public power, and conducts its activities within the frame of these principles. Authors Dr. Asuman Sönmez Country Context, Private Sector Assessment Dr. İmren Borsuk Public Sector Assessment Yalın Hatipoğlu Civil Society Assessment Editors E. Oya Özarslan Yalın Hatipoğlu Advisory Committee Bülent Tarhan Mete Demirci TI-Turkey extends thanks and appreciation toDr. Leyla Ateş, Dr. Murat Önok, Dr. Habibe Akşit, Kayra Uçer, Fikret Sebilcioğlu, Sevi Fırat, and Olgu Kama to for their contributions to the research. Design: Kurtuluş Karaşın This publication has been prepared within the context of the “Business Integrity Country Agenda: Strengthening the transparency of business sector in Turkey” project with the support of the UK Prosperity Fund. Transparency International Turkey is responsible from the content of this document” Every effort has been made to verify the accuracy of the information contained in this report. All informa- tion is believed to be correct as of February 2017. Nevertheless, Transparency International Turkey cannot accept responsibility for the consequences of its use for other purposes or in other contexts. © 2017 Uluslararası Şeffaflık Derneği. All rights reserved. ISBN 978-605-82771-2-0 www.seffaflik.org CONTENTS List of Tables, List of Graphics, List of Figures ........................................................................................5 Abbreviations ............................................................................................................................................6 Methodology of Business Integrity Country Agenda (BICA) ...................................................................8 1 The Role of Business Integrity in Fighting Corruption ...................................................................................8 2 Why A New Business Assessment Tool? ......................................................................................................9 3 BICA - Turkey ..........................................................................................................................................10 4 Methodology ...........................................................................................................................................11 5 Structure of the Report ............................................................................................................................14 Executive Summary ................................................................................................................................15 BUSINESS INTEGRITY COUNTRY AGENDA TURKEY COUNTRY CONTEXT .................................................................................................................................26 1 PUBLIC SECTOR ASSESSMENT .........................................................................................................49 1.1 Prohibiting bribery of public officials .......................................................................................49 1.1.1 Laws prohibiting bribery of public officials ...........................................................................49 1.1.2 Enforcement of laws prohibiting bribery of public officials .....................................................51 1.1.3 Capacities to enforce laws prohibiting bribery of public officials ............................................57 1.2 Prohibiting commercial bribery ................................................................................................61 1.2.1 Laws prohibiting commercial bribery ................................................................................... 61 1.2.2 Enforcement of laws prohibiting commercial bribery .............................................................63 1.2.3 Capacities to enforce laws prohibiting commercial bribery .....................................................63 1.3 Prohibiting laundering of proceeds of crime .............................................................................64 1.3.1 Laws prohibiting laundering of proceeds of crime ................................................................64 1.3.2 Enforcement of laws prohibiting laundering of proceeds of crime ..........................................68 1.3.3 Capacities to enforce laws prohibiting laundering of proceeds of crime .................................70 1.4 Prohibiting collusion .................................................................................................................73 1.4.1 Laws prohibiting collusion ..................................................................................................73 1.4.2 Enforcement of laws prohibiting collusion ............................................................................74 1.4.3 Capacities to enforce laws prohibiting collusion ...................................................................74 1.5 Whistleblowing .........................................................................................................................75 1.5.1 Whistleblower laws ............................................................................................................75 1.5.2 Enforcement of whistleblower laws .....................................................................................77 1.6 Accounting, auditing and disclosure ........................................................................................78 1.6.1 Accounting and auditing standards .....................................................................................78 1.6.2 Enforcement of accounting and auditing standards ..............................................................81 1.6.3 Professional service providers .............................................................................................84 1.6.4 Beneficial ownership ..........................................................................................................85 1.7 Prohibiting undue influence .....................................................................................................87 1.7.1 Laws on political contributions ............................................................................................87 1.7.2 Enforcement and public disclosure on political contributions ..................................................93 1.7.3 Laws on lobbying ...............................................................................................................96 1.7.4 Enforcement and public disclosure on lobbying ....................................................................96 Business Integrity Country Agenda-Turkey 3 1.7.5 Laws on other conflicts of interest .......................................................................................97 1.7.6 Enforcement and public disclosure of other conflicts of interest ...........................................100 1.8 Public Procurement ................................................................................................................102 1.8.1 Operating environment .....................................................................................................102 1.8.2 Integrity of contracting authorities .....................................................................................105 1.8.3 External safeguards .........................................................................................................109 1.8.4 Regulations for the private sector ......................................................................................110 1.9 Taxes and customs .................................................................................................................112 1.9.1 Operating environment .....................................................................................................112 1.9.2 Integrity of tax administration authorities ...........................................................................114 1.9.3 External safeguards .........................................................................................................115 1.10 Open data ................................................................................................................................118 1.10.1 Data ecosystem ..............................................................................................................118 2 PRIVATE SECTOR ASSESSMENT .....................................................................................................121
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