OECD Public Governance Reviews OECD Public Governance Reviews OECD Integrity Review of Peru ENHANCING PUBLIC SECTOR INTEGRITY FOR INCLUSIVE GROWTH OECD Integrity Review of Peru ENHANCING PUBLIC SECTOR INTEGRITY FOR INCLUSIVE GROWTH OECD Public Governance Reviews OECD Integrity Review of Peru ENHANCING PUBLIC SECTOR INTEGRITY FOR INCLUSIVE GROWTH This document was approved by the Public Governance Committee on 23 December 2016 and prepared for publication by the OECD Secretariat. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2017), OECD Integrity Review of Peru: Enhancing Public Sector Integrity for Inclusive Growth, OECD Public Governance Reviews, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264271029-en ISBN 978-92-64-27203-3 (Print) ISBN 978-92-64-27102-9 (PDF) Series: OECD Public Governance Reviews ISSN 2219-0406 (print) ISSN 2219-0414 (online) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: Cover © Jerome Stubbs/Shutterstock.com Corrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm. © OECD 2017 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD 3 Foreword - economic progress stem from the historic and structural weaknesses of its public governance system. A sound governance system that delivers inclusive policies and effective public services and mitigates risks of corruption is indispensible if Peru is to sustain the significant results it has achieved in reducing poverty and inequality and improving well-being. This peer review which is part of the OECD Peru Country Programme provides strategic guidance on how to enhance the public integrity system based on a comparative analysis of its structures, instruments and processes. The revie examining the broad range of issues and implementation challenges the country is experiencing, both at national and subnational levels. The review analyses the institutional settings of Per such as internal control and risk management, the promotion of public ethics and conflict- of-interest management, whistleblower protection, lobbying, political finance, as well as the disciplinary regime and the role of the criminal justice system in combating corruption. The peer review acknowledges the steps Peru has taken to strengthen its integrity system. For example, the High-level Commission against Corruption (CAN), created in 2010, recognises the need to involve actors from the public and private sectors and civil society in promoting an inclusive and co-ordinated integrity and anti-corruption policy across all levels. The Commission also promotes and supports the establishment of Regional Anti-corruption Commissions (CRAs) in all 25 regions to develop regional anti- corruption plans and respond to context-specific challenges. The review also addresses existing gaps and reflects on how the country could build a coherent and comprehensive public integrity system, cultivate a culture of integrity across government, and enable effective accountability in line with the 2017 OECD Recommendation on Public Integrity. At the system level, for example, the CAN currently does not include all key actors, and thus may not be able to effectively ensure co-ordination and policy coherence, steer the development of the National Anti-corruption Plans and monitor their implementation. The peer review recommends steps to strengthen Regional Integrity Systems by establishing effective co-ordination mechanism between central and regional levels, as well as between regions. fragmented, and therefore has a limited impact on changing the actual behaviour of public officials. Peru would benefit from developing a single policy framework for promoting public sector integrity and managing conflict-of-interest situations. Also, there is a need OECD INTEGRITY REVIEW OF PERU: ENHANCING PUBLIC SECTOR INTEGRITY FOR INCLUSIVE GROWTH © OECD 2017 4 FOREWORD to clarify the respective roles and responsibilities of the actors involved in these policies, and to ensure that they co-ordinate effectively. actual implementation could be improved. Ways to do so include better integrating internal control into public management, making a clearer distinction between internal control and external audit, and introducing a dedicated corruption risk management policy. ence on the design of laws and policies, Peru needs to strengthen regulations on lobbying and political finance and ensure their effective implementation. Finally, both disciplinary and criminal justice systems could be reinforced to reduce impunity. Peru has a unique opportunity to further advance its fight against corruption by moving away from a case-driven and reactive approach towards deeper structural changes. Realising this ambitious agenda does not hinge upon a single entity; rather it requires a co-ordinated effort across the public sector that also involves the private sector a strong foundation for sustainable and inclusive development. OECD INTEGRITY REVIEW OF PERU: ENHANCING PUBLIC SECTOR INTEGRITY FOR INCLUSIVE GROWTH © OECD 2017 ACKNOWLEDGEMENTS 5 Acknowledgements Under the guidance of Janos Bertók and Julio Bacio Terracino, this review was coordinated by Frédéric Boehm. The chapters were written by Natalia Nolan Flecha, Giulio Nessi, Angelos Binis, Yukihiko Hamada, Chad Burbank, Jovana Blagotic, and Frédéric Boehm. Leah Ambler and Liz Hart from the OECD Directorate for Financial and Enterprise Affairs, Anti-Corruption Division, drafted the chapter on Enhancing the Peruvian Criminal Justice System for Enforcing Integrity . Felicitas Neuhaus, Frédéric St-Martin, and Carissa Munro contributed various sections and provided comments. Editorial and administrative assistance was provided by Thibaut Gigou, Alpha Zambou, Anaisa Goncalves, Pauline Alexandrov, Ivan Stola, Kate Lancaster, Jill McCoy and Julie Harris. Furthermore, the report benefitted from the insights and comments of Emma Cantera, Paqui Santonja, Natalia Sandoval and Daniel Gerson (OECD), Gonzalo Guillén (Minister Counsellor at the Embassy of Peru), Patricia Villasana Rangel, Oscar Solórzano (Basel Institute on Governance), Yvan Montoya, and the GIZ Governance Programme Peru. The OECD expresses its gratitude to the Peruvian Government, particularly the High-level Commission against Corruption (Comisión de Alto Nivel Anticorrupción), Attorney General s Office (Ministerio Público), the Judiciary (Poder Judicial), Ministry of Justice and Human Rights (Ministerio de Justicia y Derechos Humanos), Anti-Corruption Prosecutor s Office (Procuraduría Anticorrupción), Comptroller General (Contraloría General de la República), Financial Intelligence Unit (Unidad de Inteligencia Financiera), Public Administration Office (Secretaría de Gestión Pública), Executive Director of the Supervisory Body of Public Contracting (Organismo Supervisor de las Contrataciones del Estado), National Civil Service Authority (Autoridad Nacional de Servicio Civil), Ombudsman Office (Defensoría del Pueblo), National Jury of Elections (Jurado Nacional de Elecciones), National Office for Electoral Processes (ONPE), Executive Secretary of the National Agreement (Acuerdo Nacional), the Regional Governments of Piura and Ayacucho (Gobierno Regional de Piura y Ayacucho), Executive Director of the Peruvian Press Council (Consejo de la Prensa Peruana), National Council for Public Ethics (Consejo Nacional para la Ética Pública, Proética), Business associations: National Society of Industries (Sociedad Nacional de Industrias), Chamber of Commerce of Lima (Camera de Comercio de Lima), National Confederation of Private Business (Confederación Nacional de Instituciones Empresariales Privadas). Finally, this review benefited from invaluable input provided by OECD peers. Terry Lamboo, Ministry of the Interior and Kingdom Relations, Netherlands, and Francisco Sánchez Lay, Probity and Administrative Transparency Commission (Comisión de Probidad y Transparencia Administrativa), Office of the Secretary-General of the Presidency (Ministerio Secretaría General de la Presidencia), Chile, participated in the fact finding mission to Lima, Ayacucho and Piura in October 2015. Liliana Caballero, Administrative Department of Civil Service, Colombia, and Monika Kos, Ministry of Finance, Poland, presented and guided the discussions at the Workshop held in Lima on 30-31 March 2016. All peers significantly contributed to the policy dialogue with the Peruvian counterparts and enriched the Integrity Review