RESPONDACON III: Third Inter-American Conference on the Problems of Fraud and Corruption in Government
Broadcast Via Satellite from Washington, D.C. Caracas, Venezuela Lima, Peru With the Participation of over 20 countries
June 13, 1996
Final Report
No government or organization is affirming legal points in this study, or judging on the guilt or innocence of individuals. The program is intended to create a public forum in which citizens from all over the Americas can debate current issues related to corruption. At issue is the principle of investigating allegations of corruption. The opinions expressed in this program should not be attributed to any particular government or organization.
TABLE OF CONTENTS
I. II.
EXECUTIVE SUMMARY ACKNOWLEDGMENTS Co-sponsoring organizations Speakers Participating Countries
III.
OPENING REMARKS Mark Schneider
IV.
GUEST SPEAKER SUMMARIES Rafael Caldera, Fighting Corruption: Essential to Strengthen Democracy Carlos Reina, Fighting Corruption in the Public Sector Eduardo Frei, Honesty and Ethics Alvaro Arzú, Restoring Credibility in the Public Sector Edmundo Vargas Carreño, The Inter-American Convention Against Corruption: An Effective Instrument Harriett Babbitt, Leadership Role of the Organization of American States in the Fight Against Corruption Peter Eigen, Role of the Non-Governmental Organization
V.
CASE STUDY OF ITALY: OPERATION "CLEAN HANDS" Summary Luigi Manzetti Stanton Burnett Filippo Vagnoni
VI.
CASE STUDY OF COLOMBIA: "PROCESS 8,000"
Summary Alfonso Valdivieso Alfredo Keller Robert S. Leiken James P. Wesberry Jr. VII. CASE STUDY OF PERU: "The Electric Train" Scandal Summary Martha Chávez Flor de María Maita Andrés Reggiardo Fernando Olivera VIII. CIVIL SOCIETY'S ROLE IN COMBATING CORRUPTION I. Roberto Eisenmann Jr. Hermán Schlageter Luis Moreno Ocampo Flavia Sekles IX. CLOSING REMARKS James P. Wesberry Jr. X. XI. SELECTED COUNTRY SUMMARIES QUESTIONNAIRE RESULTS
I. EXECUTIVE SUMMARY
With 4,000 participants and an estimated 100,000 television viewers throughout Latin America and the Caribbean, RESPONDACON III, the Third Inter-American Conference on the Problems of Fraud and Corruption in Government, was held on June 13, 1996, in conjunction with the Venezuelan national conference on combatting corruption. Reaching participants at 26 viewing sites in 22 countries in the hemisphere, the RESPONDACON III videoconference was broadcast from Washington, D.C. via the U.S. Information Agency's (USIA) WORLDNET satellite program, with direct uplinks from Caracas, Venezuela, and Lima, Peru. The event was sponsored by local and national organizations throughout the Americas committed to the fight against corruption, with support from the United States Agency for International Development (USAID) in collaboration with USIA. RESPONDACON III, the third in a series of videoconferences calling for a swift response against fraud and corruption (hence the name, RESPONDACON), concluded that if democracy is to be preserved, corruption must be strongly opposed by all sectors of society. Its message emphasized the importance of public ethics, citizen participation in demanding public sector accountability and the role of the media in exposing corrupt practices. RESPONDACON III featured the national presidents of four countries, high public officials concerned about corruption, members of the press, representatives from non-governmental and professional organizations, universities, and other leading inter-American organizations. The videoconference had the following goals: Educate the greatest possible number of citizens about the importance of honesty, transparency and integrity in government. Publicize the global nature and threat of corruption; Motivate governments throughout the hemisphere to mobilize in support of the fight against corruption. Provide a forum for free and open exchange on common issues and problems in this area, as well as possible solutions.
A Word from the Presidents In video presentations, four Latin American presidents, Rafael Caldera of Venezuela, Carlos Roberto Reina of Honduras, Eduardo Frei of Chile, and Alvaro Arzú of Guatemala emphasized the danger of corruption to democratic systems and their commitment to fight it. President Caldera defined corruption as fraud against the public and suggested that to stop it, all branches of government must become involved. He called on the executive branch to be vigilant with regard to its activities, the legislative branch to ensure that laws designed to fight corruption are truly implemented, and the judicial branch to ensure that corrupt individuals are brought to trial and that honest judges are protected while corrupt ones are prosecuted. He also cited the InterAmerican Convention Against Corruption, signed this year at the Organization of American States (OAS) conference in Caracas, Venezuela, as a major step in the fight against corruption in Latin America. The Convention demonstrates the will of the guarantor countries to place the fight against corruption at the forefront of the hemispheric agenda. President Reina stressed the importance of increasing civil society‟s participation in the struggle to prevent illicit practices, especially in the management of public funds. He stated that the fight against corruption not only strengthens democratic institutions, but also prevents economic distortion, mismanagement, and the deterioration of public morale. He added that states must work together to overcome corruption since its causes and effects can cross borders without hindrance. President Frei stated that corruption results from the relationship between the public and private sectors. He expressed the need for high ethical standards in public service, as well as in the private sector. He reminded participants that while laws concerning transparency in the public service are frequently enacted, the attitude of every citizen is more important in the end. He called on governments to remember two things: public servants must be responsive to the citizenry and public service and political activity must be marked by a sense of ethics. President Arzú reminded public officials that they should set an example of honesty and transparency since citizens cannot be expected to trust authorities suspected of participating in corrupt activities. He cited activities being carried out at the institutional level in Guatemala, such as draft legislation for probity and good governance being sent to Congress for approval. However, he reminded participants that while it is necessary to have a proper institutionalframework, it is important to realize that success in the fight against corruption will depend on the involvement of all citizens.
Special Addresses In addition to the messages from the presidents, the videoconference included special addresses from Harriett Babbitt, the U.S. Ambassador to the OAS; Edmundo Vargas Carreño, Chilean Ambassador to the OAS and President of the OAS Working Group on Probity and Public Ethics, and Peter Eigen, president of Transparency International, an international non-governmental organization active throughout the world in the fight against corruption. Ambassador Babbitt
reiterated the significance of the Inter-American Convention Against Corruption, which marked the first time in history that a regional bloc agreed to work together on this issue. The signing of this Convention illustrates the global leadership that the OAS member countries have taken in the fight against corruption. This effort, she noted, is essential to strengthening democratic institutions and promoting economic development in the region. Ambassador Vargas Carreño also emphasized that the issue of corruption was a priority on the OAS agenda. He pointed to the Summit of the Americas held in Miami in December 1994, where all participating heads of state agreed to include the fight against corruption in the summit‟s action plan. He also discussed how the OAS Probity and Public Ethics Working Group had drafted the Inter-American Convention Against Corruption, which was approved at the OAS General Assembly Meeting in Caracas, Venezuela, in March 1996. Ambassador Vargas Carreño explained that the document includes provisions for cooperation and assistance among states and defines terms such as corruption, transnational bribery, and extradition. The Convention also reconciled legal principles as a way of effectively combating corruption. For example, it does not alter the principles of asylum, but it does point out that acts of corruption would not justify or warrant the granting of political asylum. Mr. Eigen defined the mission of Transparency International (TI) as building coalitions among the different sectors of society to fight corruption. He emphasized that the role of the NGO community is essential to the success of this effort. While not discounting the importance of government actions, such as the signing of the Inter-American Convention Against Corruption, Mr. Eigen noted that governments have powerful partners in civil society. Thus, he proposed to continue to create more local chapters of TI in Latin America, modeled after the active chapters already existing in Argentina, Ecuador, and Panama. The role of these chapters in the fight against corruption is to bring together different professions and interest groups to be independent, technical partners of the government in designing and implementing strategies against corruption.
Words From Experts on Corruption In addition to the presidents‟ messages and special addresses, experts on four panels examined three country case studies and discussed strategies for citizens to confront corruption and fraud in government. Each panel discussion was followed by a question and answer session where participants throughout the hemisphere were able to interact live with the panelists. Italy The first panel of experts examined the Italian anti-corruption operation known as “clean hands,” which led to the investigation of prominent political and business leaders including then Prime Minister Silvio Berlusconi. Luigi Manzetti, a political science professor at Southern Methodist University spoke on the reasons that led to the successful investigation of the corrupt acts. He emphasized the ability of the judiciary to shelter itself from political interference while conducting the investigations and the role of the media in disseminating information.
Stanton Burnett, senior adviser to the Center for Strategic and International Studies (CSIS), explained why the investigations had taken place in 1992 and not before, even though the problem had existed for a long time. While he remained optimistic about the future of Italian democracy, he raised some concerns about the detrimental impact of recent political changes on democracy and due process. Filippo Vagnoni, director of the Office of the Comptroller General of Venezuela, drew lessons from the Italian example. He emphasized that as a government becomes larger and increases its role in social and economic affairs, the level of corruption is likely to increase. Colombia The second panel analyzed “Process 8,000,” which charges that President Ernesto Samper accepted more than $5 million supplied by the drug cartels to finance the second round of his presidential campaign. Alfonso Valdivieso, Colombia‟s Attorney General responsible for ordering the investigations of many politicians, including the president, offered his perspective on the June 12 exoneration of President Samper by the Colombian Congress. Dr. Valdivieso stated that the decision by the Colombian Congress did not close the cycle of investigations because it only represented one case. He also discussed some of the obstacles faced during the investigation process and the media‟s responsibility to educate and provide objective opinions for society. Alfredo Keller, professor at the Institute for Higher Studies in Administration in Caracas, took a broad view of corruption, emphasizing that the problem of corruption and drug trafficking is not limited to Colombia. It exists throughout hemisphere. He added that the problem is linked to the perception of impunity in the political sphere of Latin America, with the exoneration of President Samper being a perfect example that exposes the deficiency of the judiciary system in the fight against corruption. Dr. Keller drew parallels between the globalization of the economy and the increase in corruption and emphasized the need to educate the citizenry to better confront this problem. Robert Leiken, author, stated that the drug problem in Colombia is a by-product of the demand that exists in the United States for narcotics. He also spoke on the issue of money laundering and the need for an international effort to overcome the problem. The power of money in political campaigns, an issue at the core of the Colombian case, was the main topic of James P. Wesberry Jr.‟s comments. He stated that citizens should be aware of the origin of campaign funds before making a decision to vote for a certain person. Mr. Wesberry called for absolute transparency, accountability, and total auditing of funds from political parties.
Peru
The third panel analyzed the "electric commuter train” construction project in Peru. The construction was begun under the administration of President Alan García, who signed a bilateral agreement with Prime Minister Bettino Craxi of Italy to facilitate a line of credit of 100 million dollars for construction to be completed by the Italian group, Tralima. Project funds were depleted quickly and only 20 kilometers were constructed. Both Alan García and Bettino Craxi were charged with corruption for receiving illicit payoffs associated with the construction. Martha Chávez, President of the Peruvian Congress, emphasized the fight against corruption must be regarded as a principle that underlies all government activities. She spoke about the process begun in Peru of privatizing public firms and reorganizing public agencies and the positive impact it has had on this struggle. Ms. Chávez labeled corruption as the chief cause of poverty and marginalization, stating that citizens need to be educated to use positions in public office to serve their country rather than to profit to themselves. Flor de María Maita, prosecutor of the “electric train” case, reiterated that the investigation had not suffered from any political pressure, demonstrating the independence and autonomy of the judicial branch. She stated that in the case of Peru, both public opinion and the press had played important roles in exposing corruption cases. She urged citizens to engage in greater political participation to counteract the forces of corruption. Congressman Andrés Reggiardo spoke on the importance of strengthening the democratic system and encouraged citizens to strongly demand that their governments be more responsible, efficient and transparent. He also expanded on the need to control and check public accounts to monitor acts of corruption. International cooperation on issues such as the bank secrecy rule and the granting of political asylum to individuals charged with corruption was the central theme of Congressman Fernando Olivera‟s comments. He also noted that democracies should take action against fugitives of the law to send a strong signal that corruption will not be tolerated and to deter similar occurrences in the future. Further, he spoke on the importance of maintaining the independence of the justice system and proposed several measures to combat corruption. Civil Society and the Media The last panel, comprised of media and non-governmental organization representatives, discussed the role civil society in the fight against corruption. I. Roberto Eisenmann Jr., President of the Fundación para el Desarrollo de la Libertad Ciudadana (a Panamanian NGO) and former director of La Prensa in Panama described the press as the first line of defense against corruption because the media are the first to denounce corrupt practices and are responsible for following up on cases of fraud and corruption in government. The Fundación para el Desarrollo de la Libertad Ciudadana conducted a national survey this year on the subject of anti-corruption, citizens‟ power and the role of the media. Herman Schlageter, Vice President of the Latin American Anti-Corruption Institute and President of the Salvadoran Anti-Corruption Association, expressed the need to have a close relationship
between the citizenry and the media. He spoke of the role of NGOs and the media in El Salvador, calling for more citizen participation. Mr. Schlageter also called for stronger application of anti-corruption laws that currently exist. Luis Moreno Ocampo, co-founder of Poder Ciudadano (an Argentinean NGO), emphasized the importance of freedom of the press, greater citizen participation, and enforcement of current legislation. Mr. Moreno Ocampo gave examples of how bribery and corruption are international issues and called on leaders, starting with the president of Argentina, to take action. In addition, he made recommendations for civil society to demand accountability from government. Flavia Sekles, Washington correspondent for the Jornal do Brasil, described how the press in Brazil have responded to different cases of corruption. She noted the importance of exposing and combating all possible cases of corruption rather than just limiting coverage to high profile cases.
Local Arrangements Starting at 10:30 a.m. (EDT) on June 13, 1996, participants at local sites were able to observe, listen, interact and respond to the international broadcast of RESPONDACON III. While over 4,000 people participated at officially sponsored conference viewing locations, nationally televised transmissions increased the estimated audience to over one hundred thousand participants. The program was broadcast to 26 cities in 22 countries in the region. In Brazil, the event was organized in Brasilia, Rio de Janeiro, Sao Paulo, and Recife. There were two viewing sites in Peru. In Venezuela, the local organizing committee incorporated RESPONDACON III into its two-day anti-corruption conference, which drew around 600 participants each day. Following the broadcast, representatives from non-governmental organizations, country comptrollers, journalists, judges, government officials and members of professional associations met locally to focus on national issues related to the problems of fraud and corruption in government. In Argentina, local participants discussed the need to increase the transparency of financial operations and to assert citizen oversight of governmental actions, especially with respect to the privatization process. The creation of a citizens network to fight corruption was proposed in Bolivia. The panel in El Salvador made several recommendations to reform the Office of the Comptroller General of the Republic and called on political leaders to fulfill their promises to fight corruption. Demanding accountability from their government representatives was the central theme of the local discussion in Mexico. The Paraguayan panel agreed that a coordinated attack on corruption, from all sectors of society, was necessary. In Ecuador, participants discussed the importance of public sector accountability. Increasing citizen participation and having a more active press were the main issues presented in Nicaragua, where over 800 participants attended the event. Various countries plan to use portions of the program for follow-up activities. In Jamaica, the Institute for Chartered Accountants has circulated letters to various bodies and government ministries offering to show sections of the program of particular relevance. The ICAC also plans
to use portions of the video for discussion at their next seminar, which is expected to draw about 200 accountants. A one-hour tape was prepared in Honduras with the most important points of the videoconference to be used in a follow-up local conference.
An Opportunity to Interact The teleconference created a forum in which political and social players could interact with participants throughout the Americas on issues of corruption. They were able to examine national corruption issues and generate strategies that would strengthen democracy and preserve economic resources for their intended purposes. The event supports broader hemispheric initiatives agreed to in the Inter-American Convention Against Corruption signed in Caracas in March 1996 and the Summit of the Americas held in Miami in December 1994. Open phone lines to each site afforded concerned citizens and public officials at different sites throughout the hemisphere the opportunity to ask on-the-air questions to the panelists in Caracas, Lima and Washington, DC. Some 150 questions were posed, ranging in scope from "is democracy is a necessary but not sufficient condition for avoiding corruption?" to "what role should international organizations play in national anti-corruption campaigns?" The event was successful at identifying strategies for combating corruption at national and international levels. It also generated interest among the media and the public to participate in the fight against corruption and its damaging effects on the institutional and moral foundations of society.
II. ACKNOWLEDGMENTS
Co-Sponsoring Organizations Asociación de Contadores Públicos - El Salvador Asociación Salvadoreña Contra la Corrupción - El Salvador Centro de Información y Recursos para el Desarrollo - Paraguay Colegio de Contadores Públicos - El Salvador Colegio de Contadores Públicos - Nicaragua Colegio de Contadores Públicos - Uruguay Comisión Nacional de Rescate y Valores - Costa Rica Contaduría Pública de la Nación - Peru Contraloría General de la República - Venezuela Corporación de Contadores - El Salvador Corporación Latinoamericana para el Desarrollo - Ecuador Fundación Institucionalidad y Justicia - Dominican Republic Fundación Simón Bolívar - Colombia Fundación para el Desarrollo de la Libertad Ciudadana - Panama GRUPO FUNDEMOS - Nicaragua Instituto Centroamericano de Administración de Empresas (INCAE) - Nicaragua Instituto Interamericano de Auditoría y Contabilidad - Peru Institute of Chartered Accountants of the Caribbean Movimiento Ciudadano por la Democracia - Mexico Peru 2021 - Peru Poder Ciudadano - Argentina Transparência, Consciência e Cidadanía - Brazil Universidad del Valle - Guatemala United States Agency for International Development (USAID) United States Information Agency (USIA)
Anchor Patricio Bañados
Moderators Diego Asencio Arausi Armand Patricio Bañados Josefina Townsend
Speakers Stanton Burnett I. Roberto Eisenmann Jr. Robert Leiken Flor de María Maita Fernando Olivera Hermán Schlageter Flavia Sekles Alfonso Valdivieso Martha Chávez Alfredo Keller Luigi Manzetti Luis Moreno Ocampo Andrés Reggiardo Mark Schneider Filippo Vagnoni James Wesberry Jr.
Technical Credits USIA Jenifer Bochner Jerry Brown Yolanda Commodore Bill Culley Mike Czuczor Wendy Lyle Casals & Associates Staff
Countries Participating Via Satellite Transmissions Argentina Bahamas Barbados Bolivia Brazil Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Trinidad & Tobago Uruguay Venezuela
III. OPENING REMARKS
Mark Schneider Assistant Administrator, Bureau for Latin America and the Caribbean United States Agency for International Development (USAID) Corruption is a problem that affects all societies, regardless of the country involved. It weakens democratic institutions and contributes to a distortion in the allocation of scarce resources. Corruption impedes economic development and drive citizens away from the political process. Narco-corruption is an even more immediate danger because it generates violence and debilitates democratic governments. Corruption is not just a Latin American phenomenon. It is also a problem in other areas of the world such as Europe and the United States. In the case of Latin America, where institutional conditions under which corruption has flourished still exist, Dr. Ronald McLean, mayor of La Paz, summarizes the problem by means of this equation: “the monopoly of power plus ample discretion, minus accountability equals corruption.” This means first of all that the tradition of pluralism in the area is weak. Second, necessary legal norms to overcome personalist governments have not been established or are not respected. Third, the lack of competition in the political as well as economic realm has also been a key factor in the promotion of corruption. Finally, the citizenry has not assumed responsibility with regard to public transactions. These conditions must be changed in order to reach a new equation: “decentralized power plus transparency plus accountability equals good governance.” The Inter-American Convention Against Corruption could be one of the most significant actions taken by the leaders of our hemisphere in the fight against corruption since the Summit of the Americas in Miami (December, 1994), as it requires each signatory country to make bribery of public officials by national and international companies a crime. I want to emphasize that it is of utmost importance to have the commitment of all legislators and the citizenry, and the pressure of a free and independent press, to do all that is possible -- as well to intensify regional efforts -to overcome the political, economic and social menace that corruption represents.
IV.
GUEST SPEAKERS SUMMARIES
Overcoming Corruption: Essential to Strengthen Democracy A Video-taped Address Rafael Caldera President of the Republic of Venezuela Overcoming corruption is not only a moral imperative; it is essential to the strengthening of democratic institutions. It is a difficult and arduous struggle that requires the serious effort and will of everyone devoted to the task. Public opinion is the most important judge on this subject: the people know who is corrupt. Therefore, the struggle must be directed with great honesty and seriousness. We must also take the corrupt to trial and provide evidence necessary for their convictions. This is a fundamental task of our democratic system, which is matched against the corrupt, who are trying to find ways to divert attention and create confusion among people. Corruption can be defined as fraud against the public. To stop these actions, it is necessary to involve all branches of government in the fight. The executive branch, of course, must be eternally vigilant with regard to its own members so that they operate in a proper manner. The legislative branch must provide effective instruments to fight corruption—laws can often become true shackles that are used not to improve public administration, but to hinder private parties, creating additional dead weight for all. The judicial branch must ensure that corrupt individuals are brought to trial. It must support honest judges and prosecute those who are corrupt. These steps must be taken so that we may once again have a system that is trusted by the public. And finally, there must be cooperation between nations in order to eliminate the opportunity for political asylum and impunity. The Inter-American Convention Against Corruption, signed this year at the OAS conference in Caracas, is a major step, because signatory countries are strengthening the effort to deny political asylum to the corrupt, and are making it possible for those people to be returned to their countries to face the penalties established by their national laws. I am deeply committed to this struggle because I believe that true awareness now exists in our nations regarding the safeguarding of our democratic institutions.
Fighting Corruption in the Public Sector A Video-taped Address Carlos Roberto Reina President of the Republic of Honduras Corruption undermines the legitimacy of public institutions; it taints society, justice and moral order. Representative democracy, stability, peace and development of the region, by their very nature, require that corruption be fought from all fronts, especially those acts that are specifically tied to the exercise of public power. The fight against corruption strengthens democratic institutions and prevents economic distortions, mismanagement and the deterioration of the morale of the society. Thus, it is essential to increase the participation of civil society in the struggle to prevent these illicit practices. In some instances, corruption has international repercussions, thus requiring coordinated actions by states to fight it effectively. Ties are ever closer between corruption and profits from illegal drug trafficking, which undermine and weaken commercial and financial ties that are legitimate at all levels of society. The fight against corruption and the eradication of impunity is a responsibility of states, which must cooperate with each other in order to overcome this problem. There is a need to make every effort to prevent, detect, sanction and eradicate corruption in all its forms, especially those tied to the exercise of public power.
Honesty and Ethics A Video-taped Address Eduardo Frei President of the Republic of Chile Corruption is an evil that, unfortunately, exists throughout the world. We need to fight corruption with great strength. We must have an ethical sense of public service—that is basic— but we must also be concerned with the private sector: Corruption is a result of the relationship between the public and private sectors. In our country, fortunately, we have a long tradition of honor in public service, and this is something we want to preserve. We want everyone to understand that this sense of ethics is extremely important and that we must serve as an example for all sectors of society. It is a matter of understanding what public service is all about. For example, we can draft many laws and we can put forward many measures as far as public sector transparency is concerned, but in the end it comes down to the attitude of every citizen, in both the public and private sectors. From the view point of government there are two things to bear in mind at all times: first, to be public servants we need to work with people and second, public service and political activity must be marked by a sense of ethics. We are going to continue in this direction, and our efforts shall never cease.
Restoring Credibility in the Public Sector A Video-taped Address Alvaro Arzú President of the Republic of Guatemala Citizens cannot trust authorities if they are suspicious of corrupt activities in the government. Citizens will not make any accusations of criminal activities if they believe that these criminals have eyes and ears within the government. They will also reduce their tax payments if they know their resources will not help the development of their country but will be wasted and serve to enrich corrupt members of government. Investors will not invest their money in productive activities if the rules of the game are just hollow words as a result of fraud. Corruption lessens the credibility of the state as a promotor of civilized societies. Guatemala is carrying out intensive activities at the institutional level that will increase our effectiveness. Draft legislation for probity and good governance is being sent to Congress for approval. It is necessary to have the proper institutional framework, but is important to realize that its success will depend on the involvement of all citizens. Therefore, the entire effort is guided at decentralizing government, which at its core must facilitate involvement of the population in public administration.
The Inter-American Convention Against Corruption: An Effective Instrument A Video-taped Address Edmundo Vargas Carreño Ambassador of Chile to the Organization of American States It cannot be denied that corrupt practices have had an adverse impact on the legitimacy of democratic systems and also helped degrade social morale and public trust. It also affects the economic functioning of countries, hampering efforts of modernization. The issue of corruption has been added to the agenda of the Organization of American States. In 1994, the General Assembly established a working group on probity and public ethics. In December of the same year, at the Summit of the Americas held in Miami, all participating heads of state agreed to include the fight against corruption in the Summit‟s action plan. In addition, the President of the Republic of Venezuela, Dr. Rafael Caldera, proposed that an Inter-American Anti-Corruption Convention be drafted by the Probity and Public Ethics Working Group. The proposal was accepted, and after several months of deliberations, the Group approved a preliminary draft, which was then approved and adopted at the Caracas Conference in March 1996. The Inter-American Convention Against Corruption became the first instrument of its kind in history. High ranking officials represented their governments at the signing ceremony, demonstrating the political resolve of their governments to no longer tolerate corruption. This instrument is also useful because it contains provisions for cooperation and assistance among states working together to define terms such as acts of corruption, transnational bribery, extradition and disposition of property seized as a result of corruption. The Convention also reconciled legal principles as a way of effectively combating corruption. It does not alter the principle of asylum, but it does point out that the reasons or purposes for acts of corruption should never be considered as a political crime that would justify or warrant the granting of asylum. It also does not alter the rule of bank secrecy, but it allows a certain period of time so that states whose assistance is requested cannot claim bank secrecy as a reason for denying such assistance.
Leadership Role of the Organization of American States in the Fight against Corruption A Video-taped Address Harriet Babbitt Ambassador of the United States to the Organization of American States The most extraordinary aspect of the Inter-American Convention Against Corruption is that for the first time in history, a regional bloc of countries approved such a document in this field. The member countries of the Organization of American States have taken the global lead in the fight against corruption. Corruption is not only a regional problem, it is a global problem. Taking that into account, the countries of the region have agreed to combat this evil with a global vision, and they are seriously committed to this fight in which they have taken the global leadership. Corruption is a problem that weakens democratic institutions and impedes financial investments in the region. The countries in this hemisphere continue to fight the problems of fraud and bribery. Our opposition against this problem is strong, and we continue to elaborate mechanisms of cooperation to overcome it.
Role of the Non-Governmental Organizations A Video-taped Address Peter Eigen President of Transparency International The mission of Transparency International is based on building coalitions among the different sectors to fight corruption, which has become a nearly deadly issue within the international market, as well as individual governments. While it is important that governments sharpen their tools against corruption, it is also necessary that governments have powerful partners in civil society, thus making the creation of local chapters of Transparency International very important. In Latin America, active national chapters in Argentina, Ecuador and Panama are doing outstanding work, while in countries such as Bolivia and Colombia similar chapters are beginning to emerge. The role of the national chapters in the fight against corruption is to bring together those elements in societies from different professions and interest groups that will be able to be independent, technical partners of the government in designing strategies against corruption and helping to implement those strategies. There are a number of tools that Transparency International is making available, like the TI source book, which puts together in a systematic way all the different elements of an integrity system, which has to be strong and rational if the overall system has to protect society against corruption.
V. CASE STUDY OF ITALY: OPERATION "CLEAN HANDS"
Summary Italy's operation “clean hands" had as its objective the investigation of questionable activities of political leaders. This process was started when a group of young magistrates in Milan began an investigative campaign concerning corruption, tax evasion and other illegal financial procedures used by politicians and business. The investigation implicated the former Prime Minister and presidents of renowned Italian businesses in serious cases of corruption. In only four years, more than 3,000 politicians and businesses were investigated, triggering a serious political crisis. In December 1994, Prime Minister Silvio Berlusconi and his cabinet resigned after failing in their attempt to block the “clean hands” investigation of illegal payments allegedly made by Berlusconi’s businesses. The magistrates of Milan accused Berlusconi’s FININVEST Group of having made illegal payments to tax officials in exchange for favorable audits. Besides Berlusconi and his brother Paolo, various business executives and tax inspectors were also involved in the case. The media reported that the ex-Prime Minister did not deny that his company had paid $237,000 in bribes, but declared that he had no knowledge of the fact.
Panelists: Luigi Manzetti, Associate Professor of Political Science, Southern Methodist University Stanton Burnett, Senior Adviser, Center for Strategic and International Studies Filippo Vagnoni, Director, Office of the Comptroller General of the Republic of Venezuela Luigi Manzetti
One of the biggest differences between Italy and Latin America regarding the justice system is that unlike Latin America, in Italy the state prosecutor‟s office and judiciary are sheltered from political interference.
The judiciary is not accountable to the Minister of Justice, but rather to an independent council of the judiciary, which is organized in a fashion where two-thirds are voted by members of the judiciary and one-third by political nomination. Some of the reasons for the successful investigations of the corruption cases were: - The ability of the judiciary to shelter itself from political interference. The magistrates sheltered themselves from political attacks from Rome by leaking the information to sympathetic journalists. In turn, the media strongly supported the investigations. - By using the media effectively, the magistrates were able to gather public support. - State prosecutors were sympathetic to the opposition, which in turn supported and cooperated with the magistrates. - An opposition coalition of “outsiders” (people who were important players in the political arena but did not hold office) gathered and maintained strong support for the magistrates, thus helping keep the investigative process moving forward every time it was questioned or threatened to be stopped. For example, when Prime Minister Berlusconi issued a decree in 1994 to stop the investigations, there was a social uproar protesting the decree. This was a result of the skillful organization of the pro-judiciary parties, the true resentment the public at large had against corruption, and, most important, the public awareness due to the information leaked by the magistrates to the press about the illicit enrichment of politicians. The role of military personnel in the crisis was limited because traditionally the military has distanced itself from politics. In terms of corruption charges, most of the military personnel and the police were untainted, with the exception of a small group that was attached to the Ministry of Finance, which was accused of being corrupt. In fact, the state prosecutor's office worked very closely with the police in investigating the cases. The police were perceived to have had a positive role in the investigation process because they cooperated, and their actions were guided by the state prosecutor. In terms of the correlation between privatization and corruption, whenever the government carries out a process of privatization without transparency in the divestment process, there is a high possibility of corruption. Business and government officials enter into practices of collusion such as passing and selling information to companies that are willing to pay for it or simply payoff government officials.
There is concern in many Latin American countries where, because of lack of independence of the judiciary, including the prosecutorial arm, political pressure can be brought to bear not to investigate corruption.
Stanton Burnett Italy has been rocked by two scandals, a southern scandal and a northern scandal. The southern scandal related to organized crime and had no impact on national politics. The one that triggered the political change was the northern scandal, which dealt with the financing of the political parties and the violation of party financing laws. Before this recent “revolution,” political parties in Italy were huge operations. They conducted expensive campaigns, paid big money for media time and had enormous staffs, big offices in all major cities, and palaces in Rome. Did the Italian magistrates think that members‟ dues had been paying for all this for the last few decades? The magistrates launched their investigations into the system of bribes and kickbacks in 1992. This raises questions about the timing of the investigations and the lack of action by the magistrates prior to the “Clean Hands” Operation. Why then and not before? The answer is political. The public and media support received by the magistrates, which they would not have had before 1992, enabled them to move. They had political support and protection then and, important for the political operation, they passed all the information, in detail, about the cases (including transcripts of conversations and witness-grilling information that is supposed to be protected by judicial confidentiality) to the newspapers and magazines that supported the operation. It was these news stories, not any courtroom trials, that destroyed a long list of political and business leaders, led to about thirty suicides, and overthrew the First Republic. While one should certainly be optimistic about the future of Italian democracy, there are reasons to be concerned. What happened was a kind of coup d‟etat. The current government arrived in power because all of their principal opponents had simply been eliminated from the scene. In the aftermath of the crisis, the three largest remaining political parties are: - Berlusconi‟s party (which is still just a loose alliance of support clubs, not a real party) - the former Communist party (with the name changed) - and the former Fascist party (with the name changed). That‟s not a pretty picture. All the other parties (Christian Democrats, Socialists, Social Democrats, Liberals) who had governed Italy for fifty years, including the Republicans, who were considered the guarantors of the spirit of the Italian Constitution, have been wiped out.
One must ask if the Italian case is a good model for other countries seeking to identify political corruption. The Italian operation was carried out by people of a strong political ideology, was therefore done selectively, leaving huge areas of corruption unexamined (those of the supporters of the magistrates), and with such flagrant disregard for Western norms of due process that Italy is cited in the State Department‟s annual human rights report, and concern has been expressed publicly by Justice Scalia of the Supreme Court. Italy is more a cautionary tale than a model.
Filippo Vagnoni To support the superstructure of the deeply rooted, traditional powerful parties, politicians made use of illegal assets, and the level of corruption rose dramatically. Lessons from the Italian experience regarding democracy and corruption are: - a democratic system is not a guarantee that corruption will be eliminated; - in a democratic system, which erroneously may fall into a pathological case of corruption, democracy itself can self-correct; - to overcome a case of pathological corruption, it is not necessary to have a coup d‟etat. These conclusions can be drawn from the Italian case. Italy was dealing with a pathological case of corruption in a democratic society, and they are overcoming the situation without the need for a coup d‟etat. To the extent that a government is omnipotent and takes part in everything, it is easier to have corruption. To the extent that the government is reduced and does not take part in activities that do not belong to the state, then there is less of a possibility for corruption to occur. In Italy, agencies became too large and were involved in activities that had no relationship to them.
VI. CASE STUDY OF COLOMBIA: "PROCESS 8,000"
Summary The Colombia study focuses on “Process 8,000," where Colombian President Ernesto Samper was charged with using 5 billion Colombian pesos, more than $5 million, supplied by the drug cartels, to finance the second phase of his presidential campaign. Once the charges were made public, the Colombian president denied having any knowledge of the situation. The case went through numerous phases, each one generating new revelations that further complicated the country’s political crisis. In June 1994, the media announced the existence of “narcotapes,” where conversations had been recorded providing evidence that the Cali Cartel had financially assisted the presidential campaign. Since then, various politicians have allegedly been involved in “Process 8,000" and have either been investigated or arrested. Among them are the Defense Minister, Fernando Botero, a senator and various members of Congress. Alfonso Valdivieso, Colombia’s Attorney General, ordered the investigation of the Congressmen who had received payments from Export Café, a Cali Cartel business. The drama shook the very roots of the drug Cartel and the various drug barons associated with “Process 8,000". Those Cali Cartel barons included the brothers Miguel and Gilberto Rodríguez Orejuela, Guillermo Palomari, the accountant for the Cartel, and Henri Loaiza, also known as the “Alacrán”. These people either surrendered or were arrested.1
On the eve of Respondacon III, June 12, the Colombian Congress exonerated President Samper of all charges.
1
Panelists: Alfonso Valdivieso, Attorney General of the Republic of Colombia Alfredo Keller, Professor, Institute of Higher Studies in Administration, Caracas, Venezuela Robert Leiken, President of New Moment, Inc. James P. Wesberry Jr., Principal Adviser on Accounting & Auditing for Latin America & the Caribbean, The World Bank
Alfonso Valdivieso The decision by the Colombian Congress to exonerate President Ernesto Samper does not close the cycle of investigations. The process has led to a change in public opinion in Colombia that has prompted further investigations in an attempt to resolve this crisis. If Congress decides not to take the investigation to the courts, then it will not be taken because legal procedure must be followed. However, the case of the President is just one case in the whole process, and it will not prevent the investigations from continuing forward. An obstacle in the investigation is the government officials who could help in the investigation but have not cooperated with the justice system. Currently, drug traffickers are no longer people accepted socially, not even in the circles of power. The contribution of the media has been very positive to the extent that it has provided the public with some points of reference, even though, at times, the media have hindered the investigation. It is important when dealing with this subject, and the vision that Latin America has of this situation, to have responsible media aware of their role, which is to educate and provide objective opinions for society. In the fight against corruption, it is more effective to be aware that there is a problem and to have the determination to attempt to resolve it than to continue to set up new rules, which will be overlooked if the political will to implement them does not exist. The government needs to explore options to reestablish the management of the nation, to the extent that credibility and confidence can be reconstructed.
Alfredo Keller The problems of corruption and drug trafficking are not limited to Colombia, but occur throughout Latin America and are linked to the perception of impunity in the political sphere of Latin America.
The exoneration by the Colombian Congress of President Ernesto Samper affects the credibility of the system in terms of its ability to overcome its deficiencies and fight corruption. The consensus among the public in Latin America is that poverty and underdevelopment are mainly caused by corrupt actions. A vital part of the struggle against corruption has to be the teaching of honesty. There needs to be clarification in defining corruption: what is legitimate? and what is not? Latin American leaders have failed to educate the citizens; thus one cannot challenge citizens to be honest if they are not taught properly. Globalization has had an impact on corruption. For example, one of the consequences of drug trafficking is money laundering, which knows no borders. The movement of money by cable is another aspect of globalization that is closely linked to corrupt practices. Corruption can be defined as a market opportunity with a small risk of the application of sanctions. As the economy becomes more global, corruption does as well; thus there must be an attack on all fronts simultaneously and internationally. In Latin America, financing political parties and campaigns is a subject that has taken on more importance as the costs of political campaigns rise. When a politician who does not have access to money competes with a candidate who does, the politician with less money becomes a potential target for corruption. Thus the role played by the state in contributing to the balance in campaign financing is very important.
Robert Leiken The drug problem in Colombia is a by-product of the demand for narcotics that currently exists in the United States. The amount of money contributed to President Samper‟s campaign helped to determine the margin of victory in what was a very close election. There has been work on a hemispheric level in the fight against money laundering as demonstrated last fall in the agreement in Buenos Aires, where ideas of a joint hemispheric development initiative emerged. It is important that each country acts strongly against money laundering and cooperates with other nations. Money laundering is a problem that can be dealt with successfully if there is political will. It seems that this will currently exists in Latin America.
James P. Wesberry Jr.
A big difference between Colombia and Brazil is that when Brazil was facing a similar situation, people took to the streets to protest and voice their opposition, which in turn did not allow the Brazilian Congress to exonerate their president like in the case of Colombia. One of the Achilles' heel of democracy is the power of money in political campaigns, an issue that is at the core of the Colombian case. Absolute transparency of the funds that are contributed to political campaigns is necessary, regardless of the sources. This enables the citizens to know the origin of the funds for the campaigns before making a decision on whether to vote for a candidate. There is a need for transparency, accountability and total auditing of funds from political parties.
VII. CASE STUDY OF PERU: "THE ELECTRIC TRAIN" SCANDAL
Summary The electric commuter train construction project created a great deal of political commotion, with repercussions to this day. The construction project was started during the government of President Alan García. It was already part of Lima’s metropolitan infrastructure plan to improve the city’s congested traffic conditions. To carry out the project, the government of Alan García signed a bilateral agreement with the Italian government under Prime Minister Bettino Craxi. Italy donated cars for the proposed train and facilitated a line of credit of more than $100 million for the construction to be completed by the Italian group, Tralima. The scandal broke out when the representatives of Tralima alleged that President Alan García had received illicit money from the Italians in exchange for the project’s approval. President García denied the accusations, and a series of investigations into the case began. Once public funds were depleted, the project was suspended leaving only 20 kilometers under construction, a third of the proposed line between San Salvador and downtown Lima. The construction pillars remain standing today as a testimony of wasted public investment. Currently, Alan García is living in exile. In Italy, Bettino Craxi has been indicted on various corruption charges. He was accused of having received illegal payments from Italian businesses for bilateral contracts with developing countries, including Peru.
Panelists: Martha Chávez, President of the Congress of Peru
Flor de María Maita, Prosecutor of the “electric train” case in Peru Andrés Reggiardo, Congressman of Peru Fernando Olivera, Congressman of Peru
Martha Chávez The fight against corruption must be regarded as a principle that underlies all government activities and the state as a whole. The process begun in Peru of privatizing public firms and reorganizing public agencies has had an positive impact in the fight against corruption.
It is important to fight corruption because it is one of the chief causes of poverty, lack of education, backwardness and the marginalization of many citizens from their minimum human needs. The fight against corruption is a national campaign. Corruption must be fought because the state cannot perform its function of achieving welfare while coexisting with widespread corruption. The campaign to work honestly is subverted by those who go unpunished for corruption. A culture of honesty must be created. Citizens must be educated to use positions in public office to serve their country rather than to profit themselves. The electric train case shows that corruption spills over the borders of a single country, which is why the Inter-American Convention Against Corruption is welcomed. The Convention establishes mechanisms by which countries may, in orderly form, fight corruption. This new movement against corruption can enable the international community to come together to establish a society of peace and solidarity.
Flor de María Maita The exchange of information (in this case between Italian and Peruvian sources) is an extremely important contribution in the investigation of a case. The case of former President Alan García is yet to be decided. The Prosecutor General is asking for a sentence of ten-years' confinement. However, according to Peruvian law, the charges cannot be brought to trial unless he is extradited. In the case of Peru, both public opinion and the press have helped in clarifying corruption cases. Just as important, there has been no political pressure during the investigation, demonstrating the independence and autonomy of the judicial branch.
The Public Ministry should have a more important role in the process of investigation to assure transparency and success. Political participation of the citizens is essential for combating corruption. The people must take a positive attitude toward political life. Greater participation produces moderation of the forces of corruption. Monitoring of corruption cases would have to be conducted on the basis of public opinion, the communication media and all components of society that have an interest in combating corruption.
Andrés Reggiardo The case of the electric train highlights the abuse of power by certain individuals in decisionmaking positions. As democracy becomes stronger and more firmly rooted, people will demand an end to corruption and fraud. Citizens will demand that their governments be more responsible, efficient and transparent. Public officials that have access to senior positions in government will have to demonstrate greater honesty and prove that they are not misusing their positions of power. Corruption damages the economy of a country. Just as important, it causes moral damage to future generations, government officials and the history of the country. In Peru, the country showed its morality by standing firm in the fight against corruption. At an international level, all countries need to cooperate to reach a global and comprehensive approach to establish basic principles, apply the law rigorously and educate the citizenry. Governments must control and check public accounts (this was not done in the Alan García case). The media, which have an important role in presenting public opinion, must create awareness among the citizenry and contribute to establishing and shaping a culture that would allow future generations take the correct path.
Fernando Olivera The electric train case in Peru shows how corrupt individuals took advantage of the need for mass transit in the city of Lima to make illegal profits. The methodology used to carry out institutional corruption in both countries (Peru and Italy) was the inflation of prices by consultants and companies to pay the bribes. This money was then used in money laundering schemes in tax havens like the Grand Cayman Islands. Corruption became an institution where even the President of the Republic was involved.
The main obstacle in the investigatory process was the difficulties faced in raising the bank secrecy rules in Grand Cayman (where the money was being laundered) and getting cooperation from that country to unearth the truth. The government of Grand Cayman promised to cooperate, but the necessary information was not released; their words never became action. Another problem is the issue of Colombia granting former President Alan García political asylum. This is clearly not a case of political persecution, yet Colombian authorities are treating the situation as such. Corrupt politicians always claim that they are being politically persecuted when they are investigated for illicit practices. In Peru, with the exception of some of García‟s backers in his party, everyone wants justice served. Democracies must take action against the fugitives of justice that have stolen millions of dollars and continue to remain above the law by: - providing all the necessary information to assist in the prosecution of cases; - not give undue protection to such persons; - supporting legislation that would make it possible to punish all acts of corruption, since in a democracy setting examples is essential in deterring similar events from recurring. When combating corruption in democracies, leaders either govern or negotiate. Individuals, regardless of their rank, should not compromise institutions. A president does not have to bring down the political party that helped him to power. The individual must be responsible for his/her actions. Some measures to fight corruption: - transparency in the management of public funds; - need to go from words to action; - not give political asylum to corrupt individuals; - people who go through due process and are found guilty must fulfill their sentences; and - effective legislation is necessary to prevent impunity. The law must not distinguish between individuals regardless of their institutional affiliation, including the armed forces. However, it must be made clear that a trial against an individual is not a trial against the institution he serves. In the case of the armed forces, military personnel should not feel attacked if one of the members is brought to trial.
Freedom of the press is extremely important because public opinion is essential in mobilizing investigations of acting and sitting governments. There needs to be real guarantees of independence and autonomy of the judiciary and the Ministry of Justice. This will help break the cycle of complicity or the fear of denouncing corrupt practices because of the possibility of retaliation for being a “whistle blower.”
VIII. CIVIL SOCIETY'S ROLE IN COMBATING CORRUPTION
Civil Society Panel I. Roberto Eisenmann Jr., President, Fundación para el Desarrollo de la Libertad Ciudadana, Panama Hermán Schlageter, President, Latin American Anti-Corruption Institute, El Salvador Luis Moreno Ocampo, Co-Founder, Poder Ciudadano, Argentina Flavia Sekles, Washington Correspondent, Jornal do Brasil
I. Roberto Eisenmann Jr. The press is the first line of defense in the fight against corruption because they are the first to expose cases of corruption and those most responsible for following up the cases. In Panama, the Fundación para el Desarrollo de la Libertad Ciudadana just finished a national survey on the subjects of anti-corruption, citizens power and the role of the media in this issue. Results from the survey illustrate that Panamanian society feels that: - the press is actually exposing cases of corruption effectively, - that citizens have access to the press if they have a complaint, - that the press is honest for the most part, with few corruption cases within the media The independent media are the ones who have credibility among the citizenry. However, in order to have an independent media, it is essential to have honest and responsible independent journalists.
Government officials often warn journalists to be careful when making corruption accusations claiming they can hurt democracy. Quite the contrary. People should not be afraid of denouncing corrupt practices. Democracy is not a perfect system, it is semi-chaotic, but citizens should never fear liberty. A free, vigorous press that exposes the truth invigorates democracy. Another problem in Latin America is the attitude taken by leaders regarding legislation. There is a sense that once legislation is passed on a certain issue, the situation has been solved, and there is no need to follow up. Thus, the laws remain on a shelf and are not implemented. Decreasing corruption in our societies depends enormously on public participation.
Hermán Schlageter To fight corruption successfully, there needs to be a close interrelationship between the citizens and the media. In El Salvador, there seems to be this duality in which citizens and the press encourage each other. The press should act as the conscience of the people. In El Salvador, the press and the NGOs have played a very significant role in exposing acts of corruption. If the media are not brave and are not willing to take on established institutions, then the citizens feel vulnerable and powerless. Corruption is antithetical to democracy. As corruption becomes institutionalized, democratic institutions weaken. The Inter-American Convention Against Corruption provides important elements that will be helpful in making the role of the press and the NGOs more important. Citizens need to play a more active role in the struggle against corruption and be responsible for their freedoms, thus preventing a return to the pre-democratic era in Latin America. A big problem in Latin America is that even when strong legislation is passed, the rule of law remains absent because of the lack of implementation. Civil society must demand honesty and probity from their government officials.
Luis Moreno Ocampo Throughout Latin America, the most rapid response against corruption should come from the media, but it is imperative that all sectors of society become involve in this struggle. It is possible that, because in democracies corruption needs to be exposed, certain individuals can manipulate the issue to downgrade democracy, but there are cases that prove otherwise. For example, in the case of Venezuela when numerous scandals were being exposed in the press,
there was as a strong demand to control corruption, and a coup was attempted, but democracy survived. The information exposed in the press helped make headway in the investigations, and even the President was taken to trial. If the press remains quiet, then nothing can be done, and the region will go back to authoritarian systems. The press must not be manipulated to ensure objectivity. One of the roles that NGO‟s have is to cooperate with the press to expose information. Bribery and corruption are international issues, and are more than just legal problems. These cases of corruption have occurred in spite of the fact that strong legislation intended to combat fraud and corruption exists. In Latin America, there are many beautifully written laws, but they need to be implemented. People should not just demand justice from the judges, but from everyone, starting with the president of the republic who is the first official responsible for providing solutions. Civil society should require things of their representatives, not necessarily through accusations, but through other informal means such as writing letters to their representatives. The fight against corruption cannot be done by an individual; it must be an effort from society as a whole.
Flavia Sekles After the censorship under the dictatorship, the press in Brazil emerged with greater credibility vis a vis the public. The media denounced former President Collor de Mello and exposed the BCCI case when it was being investigated by Congress. It is the press involved in investigating charges of misconduct who must pressure the judiciary and other branches of government to take actions against the individuals involved in these acts. In Brazil, the press still does not place enough pressure on the judiciary and other branches of government to take the necessary actions against the cases that are exposed. In Brazil, after the departure of President Collor de Mello, the press was trying to uncover the situation, but did it with very little responsibility. The media frequently did not have evidence to back up charges or allegations, in part because access of information for journalists in Brazil continues to be hindered to some degree, which results at times in erroneous reporting. When dealing with corruption, there needs to be a change at all levels. It is not enough to denounce high ranking officials for corruption charges. It is also imperative to combat the type of corruption that occurs on a daily basis such as pay-offs to lower rank public officials.
IX. CLOSING REMARKS
James P. Wesberry Jr., Principal Adviser on Accounting & Auditing for Latin America & Caribbean, The World Bank The following strategies can help address corruption: -Do not purchase newspapers that are politicized. -Latin American countries do not need to draft new laws. They need to implement existing legislation. -Support the independence of the judiciary. -Strengthen the function of supervision and investigation of legislative power. -Keep track of the money. -Prohibit the asylum of corrupt politicians. -There is a need for transparency in the use of funds, both public and private, as well as political campaign funds. -Encourage citizens to demand accountability from their public representatives.
Summary of Key Findings and Recommendations Panelists and local participants underscored the seriousness of the threat that fraud and corruption represent to the survival of democratic governments and continued economic and
social development throughout the Americas. When the citizenry loses faith in government institutions and political leadership, democracy is left without the dynamic support that it needs. Therefore, not only must the government‟s institutional framework be strengthened, but more importantly, civil society must be empowered and drawn into the struggle against corruption. There was widespread consensus that the press must take a prominent role in exposing cases of corruption and providing the public with objective information. The media cannot retreat: it must scrutinize governmental investigations of corruption to put pressure on all those involved, especially the judiciary, to apply the law with full force. It must be made clear that no one is above the due process of the law. And, the judiciary must be truly independent and honest if corrupt individuals are to be convinced that stealing public resources or abusing their power is not worth the risk. Finally, panelists and local participants alike called for reforms of the political process to bring transparency, accountability, and auditing of funds to election campaigns and political party finances. Educating all sectors of civil society on honesty and ethics was also at the forefront of discussion. The diverse group of panelists, as well as participants at the local level, agreed that the educational system has failed to instill basic values of responsibility and respect for law. Citizens were encouraged to participate more vigorously in the political process and to make their voices heard in demand of public sector accountability. Recommendations included writing to and meeting with government officials, communicating acts of fraud to the press, and joining nongovernmental organizations active in the fight against corruption.
X. SELECTED COUNTRY SUMMARIES The following information is based on the final reports of the local organizing entities and USIS.
ARGENTINA Summary of Activities Poder Ciudadano, a voluntary non-governmental organization that is also the Argentinean chapter of Transparency International, served as the local coordinator of RESPONDACON III. About 100 participants were in the audience including representatives from government, law, journalism and civil society. Following Respondacon III, a panel discussion was held. The panel was composed of: Silvio Huberan, Radio and print journalist (moderator); Antonio Cartaña, Ombudsman of the city of Buenos Aires; Carlos Manfroni, lawyer, advisor to the Minister of Justice and president of a recently created NGO, Foundation for Public Ethics; and Adrián Ventura, Columnist for the Daily La Nación. Conclusions and recommendations included the need to: increase the transparency of financial operations to the furthest extent possible; assert citizens‟ control of government actions, especially with respect to the privatization process; and achieve effective international cooperation to fight corruption. The program was broadcast live on the WORLDNET channel through an estimated 250 cable stations with a viewership of well over two million subscribers countrywide. In addition, excerpts were used on the evening‟s national news programs and on the Marcelo Lombardi‟s highly respected prime-time public affairs show Punto Límite. Three local dailies, El Cronista, El Clarín and La Nación, reported on the conference. In a front page story, El Cronista reported that “in an attempt to try to introduce the issue in the region, there was an inter-American videoconference on corruption in government, during which participants insisted on financial controls and the creation of an international cooperation
network.” The paper also ran a front-page opinion piece stating that finally a videoconference was organized “to deal with one and only one issue: corruption”. Another story in El Cronista, under the headline “Further Financial Control Proposed to Fight Corruption” featured Chilean President Eduardo Frei and Argentine panelist in Washington and co-founder of Poder Ciudadano Luis Moreno Ocampo. The report gave details of the transmission and the local debate that followed the event. Daily La Nación ran two stories on the videoconference. Under the headline “Corruption, Via Satellite” and subheaded “Large screen: Latin American countries in direct connection to debate over lack of honesty; wrongdoing without frontiers,” one of the reports highlighted that “the word corruption was the star of the day....the big screen rescued some strategies aimed at reversing the lack of honesty among public and private persons: a greater participation by civil society, the importance of freedom of the press and true enforcement of current legislation.” The other story focused on the comments of Luis Moreno Ocampo, even using one of his comments, “transparency does not enter into pacts with governments” for the story headline. El Clarín wrote about the videoconference under the headline “Debate over Corruption” and stated “one of the conclusions reached during the program...is that „the power of the press is one of the key instruments to fight corruption.'” It also quoted Salvadoran panelist and President of the Latin American Anti-Corruption Institute Herman Schlageter: “what makes a democracy reel is corruption, not the press.”
BRAZIL Summary of Activities The videoconference was organized by Transparencia, Consciencia e Cidadania, a local NGO and a national chapter of Transparency International. The program, shown by cable NET TV which has about one million subscribers throughout Brazil, was seen at four different sites: Brasilia, Rio de Janeiro, Sao Paulo and Recife. About 100 people participated in the conference at the sites. In Sao Paulo, there was also a seminar on June 24 and 25 entitled “International Experiences in the State and Society Action in Fighting Corruption” that was attended by 150 people. There were representatives from the different sectors of society including the Ministry of Justice, the Congress, the Federal Accounting Office, judges, university professors, journalists, NGO representatives and officials from state governments, the customs office and the federal prosecutor‟s office. The participants found the comparative nature of the discussions to be useful in demonstrating that the problems and challenges facing those fighting corruption are similar throughout the continent. There was also interest on the frequent reference to Brazil throughout the program and the comments by Flavia Sekles, Washington correspondent for the Jornal do Brasil, who was a panelist on the “Combating Corruption” panel of Respondacon III.
TV Manchete covered the event, and leading newspapers Jornal do Brasil and O Globo published stories on the program. Jornal do Brasil used RESPONDACON III as one of the lead stories the day after the videoconference. It stated that one of the principal conclusions of the program was that corruption and democracy go together where there is no effective control of electoral campaign financing. Referring to the Colombian Congress acquittal of President Ernesto Samper, it quotes one of the Washington panelists, World Bank official Jim Wesberry, as saying that “transparency in accounting for campaign funds is fundamental.” The report featured comments by Judge Denise Frossard, a respected figure in Brazil in the fight against corruption, on the legal barriers that impede a unified attack on corruption and quotes him as saying that “Brazil is a legislative desert against money laundering.” The story also notes that Lino Martins de Silva, Financial Chief Controller of the City of Rio who faces accusations of misusing official funds, also watched the showed at the Rio de Janeiro site. O Globo mentions the program in a sidebar to its lead international story on Samper‟s exoneration. It quotes program participant Alfonso Valdivieso, Attorney General of the Republic of Colombia, as saying that the Samper crisis will last a long time but that the entire episode was an open process that will transform Colombia. The story notes there was extensive coverage of this program throughout the region as more than twenty countries participated in the event.
BOLIVIA Summary of Activities Respondacon III was viewed by 55 people. The composition of the audience was diverse as it included prosecutors and auditors from the Comptroller General's office, representatives of NGO‟s, academicians and students from the Masters Program in Financial Control and Financial Auditing of the Human Resources for Development Project. Among the notable figures participating were: Dr. Rend Blattman, Minister of Justice; Dr. Bernardo Wayer, Sub-secretary of Justice; Dr. Willy Luna Barrera, President of the Supreme Court (District of La Paz); H. Antonio Sánchez de Lozada, Senator, and Lic. Juan del Granado Cossio, President of the Banco Central de Bolivia. It was concluded that this type of videoconference is very important because it helps create a generalized conscience among the Bolivian population that all citizens must combat corruption. Among the recommendations were the following: Citizen networks to fight corruption must be created; the role of the press is essential in this issue because they are probably the only ones who are currently denouncing corruption cases; and cross-ranging institutional debate should be generated. A tape of the event was made available to all interested parties. COSTA RICA
Summary of Activities Coordinated by the Comisión Nacional de Rescate de Valores, RESPONDACON III drew about 80 participants and was aired live on cable Channel 40 with an estimated audience of about 15,000 people. Representatives from the executive, judicial and legislative branch were present including Rodrigo Oreamuno Blanco, Vice-President of Costa Rica; Rodrigo Montenegro Trejos, Vice-President of the Supreme Court; and Congressman Ottón Solí Fallas. Other sectors of society such as NGOs, the press, academia and the private sector were also present. The program began with a brief inaugural ceremony where the Costa Rican Vice-President gave the opening statement. This was followed by remarks from Hernán Vega Miranda, President of the National Commission for the Restoration of Values, who emphasized that in Costa Rica as in other places, when corruption penetrates a society, “it does not limit itself to destroy the individual, but also the bases of the society, propitiating anarchy and destabilization to democratic systems.” The fight against corruption, he continued, goes further than just denouncing and persecuting corrupted individuals and the dissemination of information; there must also be a committed effort to accomplish an attitude change in society where honesty becomes a daily practice and the fight against corruption must become a personal responsibility for each citizen. The conference was covered by radio stations, including Radio Columbia, Radio Monumental y Radio Reloj.
DOMINICAN REPUBLIC Summary of Activities Organized by Fundación Institucionalidad y Justicia (FINJUS), a local NGO, RESPONDACON III was viewed by a limited (30 participants), but diversified audience, which included representatives from NGOs, journalists, labor union officials, judges and lawyers. Three of the participants asked questions that were aired on the program. The program was probably most useful in providing encouragement to local NGOs, which sometimes feel they are alone in fighting a losing battle against corruption. Their representatives came out of this program with a renewed sense of solidarity with others in Latin America waging the same battle. The final hour of the program was broadcast live over UHF/CABLE TV station 27/51 in Santo Domingo and nationwide via the AM-FM "Projections and Transmissions" radio network. Channel 27/51 transmitted the first two hours of the program on Saturday, June 15, and the final two hours on Sunday, June 16. The entire program was transmitted live by cable system in San Pedro de Macoris, Bonao and San Cristobal (25,000 total subscribers). A columnist in the largest newspaper in the Dominican Republic, Listín Diario, said RESPONDACON III demonstrated "the healthy intention of seriously confronting the problems of government corruption." He described the videoconference as "a wake-up call that is
attempting to prevent the present democratization process in Latin America from being interrupted, because it seems that corruption is whipping against the foundations of public and private institutions in the region." The daily, El Caribe, headlined its article "Executive Branch Insists on Fight Against Corruption" and emphasized the statements by the four Latin American presidents that the battle against corruption "constitutes not only a moral imperative, but also a necessity in order to clean up and strengthen democratic institutions." The daily, Hoy, also highlighted the presidential statements against corruption, which "poses a danger to moral values, the economy, democracy and the development of nations."
EL SALVADOR Summary of Activities Some 283 Salvadorans participated in RESPONDACON III, which was organized by the Colegio of Academic Public Accountants of El Salvador, the Accountants Corporation of El Salvador, the Association of Public Accountants of El Salvador, with assistance from the Salvadoran Anti-Corruption Association. Raúl Corpeño, President of the Accountants Association of El Salvador delivered opening remarks. This presentation was followed by Pablo Alcides Ochoa, President of the Colegio of Academic Public Accountants of El Salvador, who explained to the audience the objectives and logistics of the program. Following the videoconference, there was a local panel discussion to focus on the issues pertaining to El Salvador. The local program was composed of four panelists: Rafael Hernán Contreras, President of the Court of Accounts; Manuel Enrique López, Division Chief for the Defense of the State‟s Interests, Office of the Attorney General; Ernesto Zelanyadía, Probidad; and René Fernández, President of the Inter-American Accounting Association. The national program resulted in the following conclusions and recommendations: - To prevent fraud and corruption in the Government, public funds must be adequately controlled by the Court of Accounts (Office of the Comptroller General of the Republic). - The nomination of the President of the Court of Accounts in El Salvador should be based on technical expertise rather than political criteria, according to some participants. - The Presidency of the Court Accounts should be filled by a professional from the Contaduría Pública, since this discipline requires an academic basis to perform effectively the functions demanded by the job. - The President of the Court of Accounts of the Republic as well as the Attorney General of the Republic should not have ties to any political parties, and their confirmations to the position should not be based on a simple majority of votes, but rather on a qualified majority in the House of Representatives.
- Many public officials sign international declarations to fight corruption, but upon return to the country, the issue is ignored. Based on this, the participants call on these public officials to implement the promises made to fight corruption. The event was covered in national newspapers, including La Prensa Gráfica, El Diario de Hoy, Diario El Mundo and Diario Latino. Announcements regarding the videoconference were also made in Channels 2, 4 and 6 and in the local radio station Radio Cadena YSKL, which transmitted a Public Service Announcement inviting people to the event every half hour prior to the event. According to national surveys, this radio station is heard by 3,000,000 people in El Salvador, which would be approximately 60% of the population. Channel 12 conducted interviews with some government officials a day prior to the videoconference and had a lengthy interview the day of the event with Ernesto Zelanyadía, President of Probidad, an NGO that often conducts anti-corruption seminars. The four-hour version of the video is being edited to be used for presentations at different universities around the country.
GUATEMALA Summary of Activities Organized by the Universidad del Valle de Guatemala, some 200 participants, including senior government officials, academicians and journalists were present for the event. There was an inaugural session prior to the broadcast led by Dr. Nelson Amaro, Dean of the Faculty of Social Sciences of the Universidad del Valle de Guatemala. The program was received with great interest, as shown by the active participation of the audience during the broadcast. Among the questioners were Mauricio Barrera, the General Manager of the Diario Siglo XXI, which has the second highest circulation in the country. RESPONDACON III was transmitted live, in its entirety, by two cable companies, Red Maya Cable and Comtech. The estimated audience was between 14,000 and 16,000 viewers. In the days following the event, two articles about RESPONDACON III were published in different newspapers: Diario La Hora (Ing. Carlos Asturias Paz, “RESPONDACON III”, June 20, 1996), and Siglo XXI, ( Dr. Nelson Amaro, “Centralism+secretiveness - accountability = fraud and corruption in the government”, June 27, 1996).
JAMAICA Summary of Activities RESPONDACON III was organized by the Jamaican chapter of the Institute of Chartered Accountants of the Caribbean. The videoconference was viewed by 22 participants in Kingston. The audience included representatives from the media, the Fraud Squad of the police, various government departments, the Venezuelan Embassy, the National Consumers League, the
Jamaican Labour Party and the Jamaican chapter of the Institute of Chartered Accountants of the Caribbean. Participants expressed interest in the three case studies and were able to relate much of the material to the Caribbean experience. Participants concluded that the conference was timely and informative and that the level of corruption in Jamaica is comparable with the situation in other countries. Other conclusions were: - The unwillingness of citizens to get involved, the ineffectiveness of international cooperation to limit corrupt acts (e.g. narco-trafficking) and weak legal sanctions are the main reasons why corruption is an issue in Jamaica. - The judiciary is not involved in corruption. The problem is prevalent when dealing with government officials, political parties and elected officials. - Educational programs that instill ethical values and inform of the detrimental effects of corruption are the most effective measure to combat corruption. Special prosecutors are seen as the least effective. USIS videotaped the entire conference and has made a copy available to the Institute of Chartered Accountants. Letters have been circulated to various bodies and government ministries offering to show all or sections of the videotape should interest be expressed. The ICAC also plans to use portions of the video for discussion at their next seminar, usually attended by approximately 200 accountants.
MEXICO Summary of Activities Eighty five participants attended the event organized by the Movimiento Ciudadano por la Democracia. The audience included NGO representatives and journalists. The Ministry of the Comptroller (SECODAM) and the Office of the Attorney General (PGR), two of the most important agencies that deal with official corruption, comprised more than one third of the audience. NGO panelists and audience members represented ten prominent Mexican NGOs interested in corruption-related issues. Following the videoconference, a local panel was organized to focus on the issues as they pertained to Mexico. Panelists were: Marie Claire Acosta, Chair, Mexican Commission for the Defense and Advancement of Human Rights and Professor, National Autonomous University (UNAM); Manuel Canto, Director, Antonio Montesinos Center for Human Rights and Professor, Metropolitan Autonomous University; Jaime González Graf, Deputy Counselor, Federal Electoral Institute (IFE) and Director, Mexican Institute of Political Studies; and Ignacio Peón, Group of Mexican Ecologists (NGO). Panelists analyzed the case studies presented during the videoconference and were able to draw comparisons between the different countries and Mexico. Participants found that the videoconference made it clear that corruption originates at high levels of power that have the
capacity to make decisions in their own favor because they maintain control of the institutions, public officials and markets. Other conclusions were: - The challenge that civil society faces is to demand accountability of their governments and not treat acts of corruption and violence with impunity. Among some of the measures that could be taken are: forming a network of citizens concerned with this issue, keeping track of officials and establishing pressure mechanisms to demand accountability regarding the costs of political campaigns. - It is important to ratify the Inter-American Convention Against Corruption. Mexico still has not ratify the Convention, making this issue one of the short-term tasks for the different sectors that want democracy in this country. - Reducing corruption and fraud in government is not a task that will be accomplished through a single program. However, programs of this kind help place the issue on public agendas and thus serve as important steps in grappling with the problem. This videoconference clearly focused attention on the problems of systemic corruption in government and provided a forum for discussion of those problems among Mexicans. Two of Mexico‟s main television stations, Televisa and Multivisión, along with print media agencies (Agencia Lemus, Excelsior, La Reforma, La Afición, La Noticia, Directores y Columnistas and Uno mas Uno) were present at the event. Initial media placement in Mexico City included a brief segment on the 7 PM news on Televisa's commercial Ch.9 (estimated viewers: 6,200,000); a longer segment on the 9:00 PM news of commercial pay-tv service "Multivisión" (estimated viewers: 50,000); and a page-12 story in the independent daily, Reforma. Tijuana reported five stories from among their 10 attending journalists. The local organizing group also established a “home page” on the Internet, where RESPONDACON III was announced.
NICARAGUA Summary of Activities With coordination from a local NGO, FUNDEMOS, INCAE, and the Colegio of Public Accountants, RESPONDACON III attracted 800 participants in Managua the day of the event. The audience included journalists, government officials, representatives from the private sector and labor organizations, academicians and representatives from NGOs. Before the videoconference, there were opening remarks by FUNDEMOS President Dr. Emilio Alvarez Montalván and Executive Director Licda. Violeta Granera de Sandino. Dr. Montalván emphasized the necessity of transparency in public administration to consolidate the democratic process, while Ms. Granera de Sandino stressed the importance of the event in the fight against corruption and explained the reasons why FUNDEMOS committed itself to the organization of
this event. The audience formulated about 300 questions, of which three were selected to be aired live during the program. Following the videoconference, Amb. John Maisto presented opening remarks for the local panel discussion, entitled, “Fraud and Corruption: Implications for the Development of a Country.” The panel addressed several issues regarding the fight against corruption in Nicaragua. The panel was comprised of: Dr. Emilio Pereira, Minister of Finance; Agustín Jarquín Anaya, Comptroller General of the Republic; Ing. Gerardo Salinas, President of COSEP; Dr. Danilo Lacayo, Director of the Television Program “Buenos Días”; and Dr. Guillermo Rosthschuh. The panel concluded: - Organisms responsible for applying the law often do not take any action against acts of corruption. Even in cases where the Comptroller‟s Office has presented evidence, the corrupt individuals usually are not sanctioned. This creates an atmosphere of impunity, which makes the fight against corruption more difficult. - This atmosphere of impunity leads citizens to start accepting these type of practices as normal in society, resulting in their trying to resolve their problems by unlawful means, such as bribery. - Nevertheless, most of the citizens of Nicaragua have expressed interest in resolving the corruption problem. The consensus shows that there must be more citizen participation in combating corruption, while the press must be more active in uncovering corruption cases and informing the public. Leading Channel 2 featured reports on RESPONDACON III both in its June 13 evening newscast and on the June 14 edition of top-rated morning show Buenos Días. Buenos Días also highlighted U.S. Ambassador John Maisto‟s opening remarks. Channel 6 also reported on the conference in its June 13 evening newscast. The daily newspaper La Prensa ran an article on RESPONDACON III in its June 13 edition, as did the daily La Tribuna on June 14.
PANAMA Summary of Activities Fundación para el Desarrollo de la Libertad Ciudadana, a local NGO, which is also the Panamanian chapter of Transparency International, coordinated the event. Over 50 people attended, including public officials, journalists, academicians, and representatives from the private sector and NGOs. There was effective press coverage of the event by TV, radio and print media. A one-page advertisement of the videoconference appeared in leading newspaper La Prensa. Following the
event, La Prensa also dedicated one page to the conference, featuring each of the four panels and the main highlights of the program. The state educational TV station, Channel 11, recorded the videoconference in its entirety and is planning to transmit it. The videoconference coincided with the release of an anti-corruption survey conducted by the Fundación para el Desarrollo de la Libertad Ciudadana, which has shifted the focus of Panamanian society towards this issue. The President of the NGO, Dr. I. Roberto Eisenmann Jr., participated as a panelist in Washington D.C. during the videoconference and made reference to this survey and to the issue of corruption in Panama.
PARAGUAY Summary of Activities With a host of corruption cases dominating the local press, RESPONDACON III generated strong interest. The program was organized by the Centro de Información y Recursos para el Desarrollo del Comité Paraguay-Kansas (CIRD), which is a local NGO in Paraguay. The participants, which numbered around 250 representing different sectors of society, commented repeatedly on the quality of the discussion and the timeliness of the program. To bring the message into focus for Paraguay, the local coordinating group organized a two-hour panel discussion on the issues as they pertained to the country following the four-hour broadcast. The session featured participation from senior officials; among them were: Dr. Alvaro Caballero, Director of the Central Bank of Paraguay; Dr. Emilio Camacho, Vice-Comptroller General of the Republic; Dr. Dionisio Borda, CADEP (a leading NGO in the fight against corruption in Paraguay); Angel Auad, President of the Paraguayan Chamber of Commerce; Gabriel Cosp, Business leader; Stella Ruffinelli, independent journalist; and José María Caniza, businessman. Before the broadcast, opening remarks were made by Dr. Agustín Carrizosa, President of CIRD. Embassy Charge William Harris also gave a short speech highlighting the need for nations to work together in the battle against corruption. He also reviewed some U.S. history, recalling the reform movement that brought about the civil service system in 1883 and the journalists and writers who fought city halls on corruption issues at the turn of the century. After the videoconference, Terry Davidson, Public Affairs Officer at USIS/Paraguay, opened the panel on Paraguayan corruption with a review of the importance of press freedom in combating corruption. The Paraguayan panel produced two hours of lively discussion. The participants agreed that Paraguay needs a coordinated attack on corruption, but there was disagreement regarding strategy. Alvaro Caballero, one of the directors of the Central Bank of Paraguay, which has been the subject of major corruption investigations, warned the audience that an all-out war on corruption could destroy the Paraguayan economy and bring about civil strife. He told the group he does not want to see a “French Revolution” in which heads roll in the plazas of Asunción.
Angel Auad, President of the Paraguayan American Chamber of Commerce, also cautioned the Paraguayan press and society to think before attacking. He said that corruption is “endemic” to Paraguay. He argued that everyone who buys contraband products is corrupt. Newspapers that accept advertising for illegally imported vehicles (as in the case of some newspapers in Paraguay) are also corrupt. In short, he summarized that corruption is not limited to a few politicians who steal, but rather that the society as a whole is compromised. Business leader Gabriel Cosp focused his comments on the need for transparency in government contracts. He noted personal experiences in which government purchases were designed to benefit one supplier, often costing the nation millions of dollars more than it would have cost with fair and open competition. Press coverage included: Afternoon Ultima Hora (Daily) of June 13 Headline: Efficient Justice System Needed for Corruption War Afternoon Ultima Hora (Daily) of June 14 Headline: Calls for Prosecution of High-Profile Corruption Cases El Día (Daily) of June 14 Headline: Everyone Against Corruption is the Watchword; Teleconference on the Theme in the Teatro de la Américas. ABC Color of June 14 Headline: Without Coordinated Action, No Big Fish Will Go To Jail Channel 9 Television Evening Newscast: Five minute report on the event, with most of the focus on the Paraguayan local panel. Noticias of June 16: devoted its four-page economic supplement to RESPONDACON III. Headline: In the Country of Impunity Subhead: Corruptocracia dominates the political system and the national economy. Excerpt: Via a videoconference called RESPONDACON III, our country was connected last Thursday with the United States, Venezuela and Peru to discuss a common problem: ways to develop strategies to combat corruption and fraud in government. In the Paraguayan-American Cultural Center they also organized a debate on the Paraguayan case. One of the conclusions was that where there is no real political will to combat corruption in the executive, legislative and judicial branches, punishing the guilty remains elusive. Another conclusion was that as long as the state does not modernize, provide more transparency and eliminate impunity, everything said about the theme will just be empty words. But the most important lesson was that there is still time to change history, before it is too late.
PERU Summary of Activities A total of 350 participants viewed RESPONDACON III at two separate sites in Peru. The audiences included public officials, members of the private sector, academicians and journalists, along with representatives from the executive, legislative and judicial branches of the government.
Following RESPONDACON III, a local panel discussion took place at the Colegio de Contadores Publicos, moderated by CPC Manuel Luna Victoria Sanchez, Comptroller General of the Republic. Panelists were Dra. Maria Teresa Moya, Magistrate, National Council; CPC Emilio Aguirre Calderon, Vice-Dean of the Colegio of Public Accountants of Lima; and Dr. Oscar Jasaui Sabat, Dean of the Colegio of Economistas. Dr. Jasaui, Dean of Economics, established as a premise that corruption exists when two individuals voluntarily exchange favors that are illegal. For example, when one individual offers a bribe to a public official, usually in money, the official receives the bribe in exchange for a favor beneficial to the individual giving the bribe. He also noted the deterioration of ethics in the country and called for greater honesty and transparency in the government. Mr. Aguirre, Vice-Dean of the Lima School of Public Accountants, emphasized the need for professionals to abide by the “Code of Ethics” that are approved by their professional institutions. He also emphasized the need for the Colegio Profesionales to take an active role in the fight against corruption, especially in relaying their views and concerns to the media. Dr. Moya noted that high ranking leaders should set an ethical example for the rest of the population by governing with honesty. Also, she stated how professional institutions should be transparent and protect there institutional image. The program was transmitted by two cable channels with an estimated 7,000 viewers each. Also, the daily El Paranee published an article about the videoconference. VENEZUELA Summary of Activities Organized by the Office of the Comptroller General of the Republic, RESPONDACON III formed part of a two-day (June 13-14) anti-corruption entitled, “Democracy Against Corruption: International Conference on the Problems of Fraud in the Governments.” Dr. Rafael Caldera, President of Venezuela, and Dr. Eduardo Roche Lander, Comptroller General of Venezuela, provided opening remarks.
RESPONDACON III was followed by a panel discussion titled: Role of the Media in the Fight Against Corruption. Panelists included: Dr. Alberto Quirós Corradi, Ex-Director of the newspapers El Nacional y El Diario de Caracas; and Sr. Román Orozco, Director of the Magazine Cambio 16- Spain. The second day of the conference in Venezuela included several panels and presentations that discussed a wide range of topics related to the issues of corruption. The program included a panel on The Attorney General’s Office in the Fight Against Corruption, with panelists Dr. Alfonso Valdivieso, Attorney General of Colombia; and Dr. Iván Darío Badell, Attorney General of Venezuela. Other panels were: Ethics Against Corruption, featuring Rev. Dr. Luis Ugalde, Dean of Andrés Bello Catholic University- Caracas, Venezuela; The Public Power Against Corruption, with Dra. Cecilia Sosa Gómez, President of the Supreme Court of Justice of Venezuela; and Dr. Ramón Guillermo Aveledo, President of the House of Representatives of Venezuela; Diagnostics About Corruption in Venezuela, with Dr. Rogelio Pérez Perdomo, Profesor, Instituto de Estudios Superiores de Administración (IESA); and Dr. Humberto Njaim, Academician and Writer; Public and Private Sector Corruption, with Sr. Enrique Sánchez, Venezuelan entrepreneur; and Richard Werksman, Adjunct General Counsel of the United States Information Agency; and Strategies at the Institutional Level to Fight Corruption, with panelists Dr. David Turbay Turbay, Comptroller General of Colombia; C.P.A. Ileana M. Colón Carlo, J.D., Comptroller General of Puerto Rico; Lic. Javier Castillo Ayala, Accountant, Ministry of Finance of México; C.P.C. Víctor Enrique Caso Lay, Comptroller General of Peru; and Dr. Enrique Paixao, General Auditor of Argentina. Among the panels' conclusions were: - The problems of fraud and corruption can destroy the moral, ethical, legal and institutional fibers of any society. - Only a truly independent and honest judiciary can dissuade the corrupt from putting their hands on public funds. - All Venezuelans from all walks of life must fight corruption; - Politicians are only as strong as citizens allow, and only as accountable as citizens insist; - All levels of the educational system must be involved in the process of strengthening ethics and morals.