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Risks of Corruption in Montenegrin Sports

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Risks of Corruption in Montenegrin Sports Risks Of Corruption In Montenegrin Sports December 2012 SUMMARY INTRODUCTION Fight against corruption in Montenegrin Harmful effects of corruption in sports are two- sports is underdeveloped and implemen- tation of the existing anti-corruption mea- is the danger of irrational and illegal waste of publicfold. Apart resources, from the emergence financial ofaspect, corruption and that in susceptibility to corruption, especially in sports, given its popularity and public interest sures is inefficient. This results in a greater, con- for its promotion, can have a negative impact struction of sports facilities and potential the sports organizations co-financing on the whole society. match-fixing. from the local budgets is especially un- onlyAt international recently started level, having the issues a more of comprehen integrity in- The sports organizations co-financing sports and fight against corruption in the field, local governments should provide public withtransparent an insight and into worrying. a precise Therefore, amount allof sive treatment. In the European Union1 (EU), the- first step in that direction was the adoption of- sport organizations, and into the criteria rarythe White sports Paper in the on member Sport in states, 2007. among This docuthem money, allocated for the co-financing of ment recognized key threats to the contempo Construction and re-construction of sports upon which that money was allocated. being corruption and money laundering. The facilities is another area susceptible to aimedEU, based at increasing on previously integrity conducted in sports analyses, - the ef- the misuse of public interest, given the undertook the whole range of other activities strategic orientation of the Government to increasingly employ the concept of Public- activityforts of Europeanin a row Council to adopt conclusions Private Partnership (PPP) in important on match-fixing in2 late 2012 being the last such . implementation of this concept in sports, theinfrastructure special Law projects. on PPPs, For thewhich successful would In Montenegro, however, activities on prevention introduce the obligation of publishing the and fight against corruption in sports are at early- details and the way the PPP contracts were stage. The Government’s strategic documents area,insufficiently despite the recognize certain allegationsthe need for and prevent indica- ing and minimizing the corruption risks in the - realized, needs to be brought. sport clubs and about sports betting-related veloped countries but Montenegro still does tions about irregularities in the work of certain notMatch-fixing have the is system taking pacewhich even would in more detect de the dubious payments to the sport betting aimfrauds. of the Given paper the is internationally thus to pinpoint recognized the means and potential “national” risks in the field, the shops and possibly reveal the influence on of advancing the fight against corruption in authoritiesmatch result. and With their the coordination aim of preventing need Montenegrin sports. White tomatch-fixing, be strengthened, capacities primarily of the through competent the Paper On Sport establishment of the system of the on-line 1 Commission of the European Communities, , July 2007 supervision of payments and pay-outs to 2 See: EU Council busy with sport issues: health, statistics, doping, match-fixing, possible European Week of Sport, na: http://ec.europa.eu/sport/news/20121204-eu- the sport betting shops. council-sport-issues_en.htmAuthor: Milena Milošević, M.A. This research has been conducted in the framework of the project "Corruption and Organized Crime in Sport", supported by the Commission for Allocation of the Part of the Revenues from Games of Chance. (Un)recognized Risks ing is closely related to the sport betting, and it often appears in the form of bribery of referees - and players with the aim of reaching a certain Contrary to the develop countries of the West theern biggestEurope, footballbudgets club, of sports Buducnost, organizations amounts in result. Some estimation says that the money Montenegro are modest.3 The annual budget of turnover at the global grey market of games7 of accounts of the 19 sport organizations (clubs chances reaches even 1,000 billion euro . andfor 800,000 associations), euro . includingAs of November the most 30, famous 2012, 8, and this phenomenonNot even the oftencountries represents with low an opportunity corruption forindex money are immunelaundering to9 match-fixing duefootball to their clubs, debts Buducnost and inability and toSutjeska, settle certain were obligationsblocked by the Central Bank of Montenegro the services of on-line. Additionalsports betting, challenge whose in 4 tracking the dubious money flows is posed by . allegations already point to doubts about frauds the Montenegrin sports does not minimize the committedlargest illegal by market Montenegrins, is situated which in Asia. included Certain Nonetheless, the small amount of money within risks of corruption and other criminal acts in vulnerability of sports organizations can direct betting on fictive matches of10 Montenegrin clubs themthe field. towards On the dubiouscontrary, waysprecisely and the sources financial of in the Asian betting shops . 5 Montenegrin Sports: Marginal Target of Anti- corruption Policies financing . among the sources of sports organizations Despite the numerous corruption risks in sports, In many countries, state and local budgets are neither are measures for combating these phe- payers is being spent on the activity of sport nomena in Montenegro sufficiently developed clubsfinancing. and Theassociations mere fact increasesthat the money possibility of tax nor is the need for new measures sufficiently for arbitrary allocation of the money and for recognized. favoring certain sport organizations and activi- ties, which do not necessarily lead to the sports Strategy for the fight against corruption and - organized crime for the period 2010 – 2014 and development. pering the integrity in sports also include cor- Innovated action plan for its implementation for ruptionOther, internationally during construction recognized and re-construction risks of ham clubs,the period sports 2010 associations – 2012 envisage and Montenegrin obligation of publishing financial and audit reports of sports of sport facilities and during the public pro- Fraud In Sport – Putting The Pieces Together, Kako regulisati igre na sreću i klađenje u Evropi? the money trail and the way the international Dosadašnja dostignuća I buduće perspektive – 2012Rezime transferscurement of procedures, players are contracteddifficulties andin following realized, 7 debata 6 - , Brisel, Evropski parlament, 27. jun 2012. godine, str. 30 as well as the match-fixing . Danger of match fix- 8 Robert Hoyzer, referee of the German national football 3 Information obtained during the interview of Institute league, was convicted in 2005 after his involvement in Alternative researcher with Momir Djurdjevac, Secre Corruptionthe match-fixing and Sport: fraud Building - all that, Integrity related and to the Preventing work of tary General of Football Association of Montenegro Abusessport betting shops (See: Transparency International, 4 Spisakavailable blokiranih at pravnih lica i preduzetnika koji se Match Foxing And Fraud In Sport – Put- ne nalaze u evidenciji CRPS-a na dan 30.11.2012 god.,- ting The, 2009) Pieces Together, 2012; European Commission, http://www.cb-mn.org/slike_i_fajlovi/ 9 CommunicationSee: Bozkrut, E, From The Commission to the European fajlovi/fajlovi_platni_promet/preduzeca_u_blokaMoney Laundering Through The Football Parliament, the Council, the Economic and Social Com- Sectordi/2012-11-30_blokirani_-_ne_postoje_u_crps.pdf mittee and the Committee of the Regions: Towards a 5 FATF Report, Money Laundering Through The more comprehensive European framework for online Football, 2009, Sector p. 15 - gambling 6 tional,See: FATF Corruption Report, and Sport: Building Integrity and Međunarodna prevara sa crnogorskim pečatom, Vijesti, Preventing Abuses,, 2009, 2009, p. Bozkrut, 24, Transparency E, Match Foxing Interna And , 2012 10 oktobar 2012. godine 2 - formation about sports pension holders11 Olympic Committee, as well as publishing in theGiven remainder the previously of the paperlisted corruptionwill focus on risks those in . sports and idiosincracy of Montenegro’s context, - sivelyIn practice, treat corruptionnot even this in sports, measure, is adequately being the risks which point to the most striking form of only one in the Innovated action plan to exclu- ofthe public corruption funds to- the sport misuse organisations of public andfunds. on implemented. In other words, the 2011 finan theTherefore, construction the paper and re-constructionwill focus on allocation of sport thecial reportsreports onabout people the whowork acquired of sport theclubs rights and onMontenegrin sports pensions, Olympic were Committee, made but asthey well were as prominence at the global level, and due to the facilities. Still, since the match-fixing is gaining not published information about dubious sport betting in 12 Montenegro, the attention will be devoted to . In 2011, Government adopted the National- this issue as well. tionProgram plan for itsSports implementation Development in (hereafter:the period Co-financing Sports Organizations: National Program) and the accompanying ac No Obligations recognised certain threats to the integrity of System of sports financing in Montenegro is between 2012 and 2016.
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