A GUIDE O F DEVELOPMENT A ND IMPLEMENT A TION O F A N A NTI - CORRUPTION ENVIRONMENT A GUIDE OF DEVELOPMENT AND IN IMPLEMENTATION OF AN T H E ANTI-CORRUPTION ENVIRONMENT IN PU B LIC THE PUBLIC SECTOR SECTOR A GUIDE OF DEVELOPMENT AND IMPLEMENTATION OF AN ANTI-CORRUPTION ENVIRONMENT IN THE PUBLIC SECTOR Vilnius 2018 2nd supplemented and revised edition. 2018 1st edition: - The text was edited by UAB „Metropolio vertimai“ - Lithuanian to English translation made by MB “AJ Projects“ - Layout of the text made by UAB „Aktin“ 2nd edition: - The text was edited and designed by UAB “Vaistų žinios” - Lithuanian to English translation of the supplemented parts of text made by UAB „Linearis Translations“ Initiators and coordinators of preparation of the Guide of Development and Implementation of an Anti-Corruption Environment in the Public sector – Egidijus Radzevičius, Deputy Director of the Special Investigation Service (STT) and Romualdas Gylys, Head of the Department of Corruption Prevention of the STT (STT CPD). Prepared by: 1) Chapters 1, 2, 3, 9, 16: Giedrius Būdvytis, STT CPD, Chief Specialist of the Anti-Corruption Assessment Division (ACAD) STT (as well as the direct mentor of preparation of the text and certain individual parts), Audrius Bereišis, Head of ACAD STT, Aloiz Šafranovič, STT Analytical Anticorruption Intelligence Department (AAID) Strategic Analysis Division (SAD) Chief Specialist; Mantas Žemaitis, Chief Specialist of the Legal Division of Administration Department; Margarita Dobrynina, Head of STT AAID SAD; Gerda Jurgelevičiūtė, Specialist of the Investigations Coordination Department (ICD) Metodical Support Division (MSD) of STT; Vytautas Rožanskas, Senior Specialist of the ICD Monitoring and Coordination Division of STT. 2) Chapter 4: Ramūnas Merkininkas, Head of the ICD MSD of STT; Rasa Žibaitė-Neliubšienė, until 2016-06-30 Chief Specialist of ICD MSD of STT; 3) Chapters 4, 7, 12, 13: Tomas Čaplinskas, Advisor of the Investigation Division of the Lithuanian Chief Official Ethics Commission 4) Chapters 4 and 14: Rita Malijauskienė, Head of the Internal Security Division (ISD) of the State Tax Inspectorate under the Ministry of Finance (STI); Irma Sanvaitytė, Head of the Subdivision for Prevention and Control of Corruption (SPCC) of Control of the ISD of the STI; Rasa Virvilienė, Director of the Law Department (LD) of the STI; Virginija Trafimovienė, Chief Specialist of the Division for Direct Taxes (DDT) of the LD of the STI; Gelminė Šareikienė, Chief Specialist of the DDT of the LD of the STI; 5) Chapter 5: Vidmantas Mečkauskas, Head of the CRD of the STT, Rita Malijauskienė, Head of the ISD of the STI; Irma Sanvaitytė, Head of the SPCC of the ISD of the STI; 6) Chapter 6: Jurgita Razmytė, Head of the Anticorruption Education Division of the STT; Kristina Valantinienė, Chief Specialist of the Vocational Education Division of the Ministry of Education and Science; 7) Chapter 7: Andrius Andrejus Fominas, Chief Specialist of the Corruption Risk Division of STT. 8) Chapter 8: Olga Česonienė, Chief Specialist of the CRD of the STT. 9) Chapter 10: Aistė Aleknienė, Chief specialist of the CRD of the STT 10) Chapter 11: Ramunė Gervickienė, Head of the AAID of STT; Jolanta Karalkevičienė, Chief Specialist of the AAID Operational Analysis Division of the STT. 11) Chapter 15: Marius Vainauskas, Division of Administrative Justice of the Administrative and Criminal Justice Department of the Ministry of Justice of the Republic of Lithuania, Egidijus Radzevičius, Deputy Director of the STT (Until 2016 September 14th – Deputy Head of the Adminis- tration Department) of the STT (Deputy Director of the STT since 15 September 2016), and Mindaugas Urmonas, Head of the Complaints Division of the AD. 12) Chapter 16: Jurgita Zacharienė, Advisor at the Ministry of the Interior of the Republic of Lithuania at the Corruption Pre- vention and Internal Investigations Division; Svetlana Krasilnikova, Chief Specialist of the Corruption Risk Division of STT. TABLE OF CONTENTS I part 8 Preamble 9 1.1. Purpose and Objectives of the Guide of Development and Implementation of an Anti-Corruption Environment in the Public-sector 9 2. Concept, PREVALENCE and Harm OF Corruption 13 2.1. Concept of Corruption 13 2.2. Corruption among Public and Private sector Entities 14 2.3. Corruption among Private Sector Entities 16 2.4. Results of Sociological Analysis on the Prevalence of Corruption 17 2.5. Harm Caused by Corruption 21 2.6. Statistics for Corruption-Related Criminal Cases in Lithuania 22 3. Legal Regulation OF Anti-corruption 24 3.1. International Anti-Corruption Legislations 24 3.1.1. The United Nations’ Convention against Corruption 24 3.1.2. Criminal Law Convention on Corruption 24 3.1.3. Civil Law Convention on Corruption 25 3.1.4. Council Framework Decision 2003/568/JHA on Combating Corruption in Private-sector 25 3.1.5. OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions 25 3.2. Legal Acts in Combating and Preventing Corruption in Lithuania 28 3.2.1. Prevention of Corruption Law of the Republic of Lithuania 28 3.2.2. Criminal Code of the Republic of Lithuania 28 3.2.3. Law on the Special Investigations Service of the Republic of Lithuania 29 3.2.4. Law on the Adjustment of Public and Private Interests of the Republic of Lithuania 29 3.2.5. Law on the Chief Official Ethics Commission of the Republic of Lithuania 29 3.2.6. Law on Funding of, and Control over Funding of, Political Parties and Political Campaigns of the Republic of Lithuania 29 3.2.7. Law on the Central Electoral Commission of the Republic of Lithuania 30 3.2.8. Law on Lobbying Activities of the Republic of Lithuania 30 3.2.9. Law on Charity and Sponsorship of the Republic of Lithuania 30 3.2.10. Law on State Control of the Republic of Lithuania 30 3.2.11. Law on the Seimas Ombudsmen of the Republic of Lithuania 30 4. Corruption-related OFFENCES, Their TYPES, CONCEPTS, and Practical EXamples 31 4.1. Bribery (Article 225 of the CC of the RL) 31 4.2. Subornation (Article 227 of the CC of the RL) 32 4.3. Trading in Influence (Article 226 of the CC of the RL) 33 4.4. Abuse of Office (Article 228 of the CC of the RL) 34 4.5. Failure to Perform Official Duties (Article 228 of the CC of the RL) 35 4.6. Nepotism 36 4.7. Conflict of Interests 41 4.7.1. How to Recognize a Conflict of Interest? 44 4.7.2. Management and Elimination of Conflicts of Interest 45 4.7.3. Council Duties and Responsibilities in Implementing the Prevention of Conflicts of Interest 46 4.8. Improper Charity and Sponsorship 47 4.8.1. Which Companies Can Be Provided with Sponsorship? 48 4.8.2. For What Purposes and What Can Be Given as Sponsorship? 48 4.8.3. How the Amount of Sponsorship is Determined? 49 4.8.4. Sponsorship Which May Be Used for Other Purposes 50 4.8.5. Cases of Obvious Abuse of the Privilege of Sponsorship 51 4.8.6. What Reports Must Be Submitted to the Tax Institutions on the Provided and Received Sponsorship? 52 4.9. Improper Gifts, Hospitality 53 4.9.1. When It Is Forbidden to Accept (Give) Gifts? 54 4.9.2. What to Do with a Gift That Cannot Be Accepted? 56 4.10. Other Corruption-Related Offenses 57 II part 58 DEVELOPMENT and IMPLEMENTATION OF AN ANTI-CORRUPTION ENVIRONMENT 59 5. DETERMINATION OF CIVIL SERVANTS’ (EMPLOYEES) TOLERANCE FOR CORRUPTION 61 6. RECOMMENDATIONS FOR PUBLIC-SECTOR EMPLOYEES AND PUBLIC ANTI-CORRUPTION EDUCATION 62 6.1. Preparation of Anti-Corruption Education Programs and Their Contents 63 6.1.1. Anti-Corruption Educational Organization 64 6.1.2. Implementation of Anti-Corruption Education Training 64 6.2. Organization of Public Education in Educational Institutions of All Types and Levels 65 6.3. Information Which Should Be Announced Public 66 7. PROBABILITY OF CORRUPTION MANIFESTATION 67 7.1. Listing of Institutions’ Activities 67 7.2. Assignment of Corruption Risks Factors to the Fields of Activities 68 7.3. Assessment of a Need for the Determination of the Probability of Corruption Manifestation in Certain Activities 69 7.4. Methodological and Practical Provisions on the Evaluation of the Areas of Activities of the Institution Particularly Prone to Corruption 71 7.5. Methodological and Practical Provisions on Drawing up a Reasoned Conclusion Concerning the Activity Areas of the Institution Particularly Prone to Corruption 75 7.6. Reduction of Corruption Risk in Business Activities Which Are Prone to High Probability of Corruption Manifestation 77 7.7. Problems of Probability of Corruption Manifestation 78 8. PREPARATION, COORDINATION AND IMPLEMENTATION OF CORRUPTION prevention programs anD action plans 80 8.1. Corruption Prevention Programs and Their Preparation 80 8.2. Implementation, Monitoring and Other Actions of the Program of Corruption Prevention 82 8.3. Action Plan of the Corruption Prevention Program 83 8.4. Most Common Mistakes in Corruption Prevention Programs and Action Plans 85 9. GUIDELINES FOR AN ANTI-CORRUPTION ASSESSMENT OF DRAFT-LAWS 87 9.1. Concept and Meaning of an Anti-Corruption Assessment of Draft-Laws 87 9.2. Legal Acts Establishing an Obligation to Conduct an Anti-Corruption Assessment 88 9.3. Selection of Draft-Laws for an Assessment 88 9.4. Performance of an Anti-Corruption Assessment of Draft-Laws 90 9.4.1. Issues (Criteria) of an Anti-Corruption Assessment of Draft-Laws 92 9.5. Completion of a Note of an Anti-Corruption Assessment of a Draft-law 93 9.6. The Disclosure of the Note of an Anti-Corruption Assessment of a Draft-Law 94 10.