ADB OECD Anti Corruption Initiative for Asia and the Pacific

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					                                                                             Capacity Development and
                                                                             Governance Division
                                                                             Asian Development Bank
ADB/OECD Anti-Corruption Initiative                                          Anti-Corruption Division

for Asia and the Pacific
                                                                             Organisation for Economic
                                                                             Co-operation and Development

                                                                   www.oecd.org/corruption/asiapacific


.




Combating corruption in Asia-Pacific:
Mongolia’s measures
to implement the Anti-Corruption Action Plan for Asia-Pacific

Review of progress in anti-corruption reform is an essential mechanism of the ADB/OECD Anti-
Corruption Initiative for Asia-Pacific. The Initiative’s member countries and jurisdictions report about
progress in their efforts to implement the Anti-Corruption Action Plan for Asia-Pacific at the
Initiative’s regular Steering Group meetings.
Since the 8th Steering Group meeting, held in May 2006, the Initiative uses a standard format for this
reporting mechanism. It displays the progress that the member countries and jurisdictions have
reported under each element of the Action Plan and shows the reform progress in all areas over
time.
This document covers the measures that Mongolia has reported since the 8th Steering Group
meeting in May 2006. For information on reform progress of the other members of the Initiative,
consult the Initiative’s website.
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                      –2–



Mongolia
                                      Measures reported at the 8th          Measures reported at the 9th         Measures reported at the 10th         Measures reported at the 11th
     Action Plan Standard
                                   Steering Group meeting (May 2006)     Steering Group meeting (Nov. 2006)   Steering Group meeting (Sept. 2007)    Steering Group meeting (May 2008)
PILLAR 1 – DEVELOPING
EFFECTIVE AND
TRANSPARENT SYSTEMS
FOR PUBLIC SERVICE
A. Integrity in Public Service
1. Systems of hiring public
   officials:

 Systems for compensation

 Transparent hiring and                                                                                                                            The Law on Public Service was
  promotion, independence of the                                                                                                                    amended by the resolution of the State
  civil service                                                                                                                                     Great Khural in May 2008. The main
                                                                                                                                                    objectives of the amendment were
                                                                                                                                                    aimed to promote independence of the
                                                                                                                                                    civil service from politics, and create a
                                                                                                                                                    pleasant working environment for civil
                                                                                                                                                    servants in a sustainable manner. The
                                                                                                                                                    purview and authority central state
                                                                                                                                                    organizations has increased in
                                                                                                                                                    accordance with these amendments.
                                                                                                                                                    The aforesaid law states that civil
                                                                                                                                                    servants apart from political positions
                                                                                                                                                    should not belong to a political party.
                                                                                                                                                    In accordance with these legal
                                                                                                                                                    amendments, the National Commission
                                                                                                                                                    for Civil Service is responsible for
                                                                                                                                                    nominating a candidate for a public
                                                                                                                                                    organization in strict order of merit
                                                                                                                                                    based on test results, but the employer
                                                                                                                                                    has authority for appointment.
                                                                                                                                                    According to these amendments,
                                                                                                                                                    should be held to fill any civil service
                                                                                                                                                    posts occupied on a temporary basis.
                                                                                                                                                    The amendments provide that National
                                                                                                                                                    Commission for Civil Service has an
                                                                                                                                                    authority to neglect the resolution on
                                                                                                                                                    illegal dismissal of civil servants. In
                                                                                                                                                    other words, some improvements have
                                                                                                                                                    been made on protecting the rights of
                                                                                                                                                    civil servants.
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                                  –3–


                                        Measures reported at the 8th              Measures reported at the 9th               Measures reported at the 10th         Measures reported at the 11th
     Action Plan Standard
                                     Steering Group meeting (May 2006)         Steering Group meeting (Nov. 2006)         Steering Group meeting (Sept. 2007)    Steering Group meeting (May 2008)

 Oversight of discretionary
  decisions and personnel
  discretionary powers

 Personnel systems such as
  rotation of assignments
2. Ethical and administrative
   codes of conduct:

 Prohibitions or restrictions on   Parliament recently rejected proposed                                                                                       The Law on Public Service imposes the
  conflicts of interest             amendments to the Law on Public                                                                                             following restrictions for civil servants
                                    Service that would have prohibited civil                                                                                    on taking any type of incentives, and
                                    servants from being a member of a                                                                                           loans from a citizen, organization, or
                                    political party.                                                                                                            company while they are fulfilling their
                                                                                                                                                                duties and responsibilities. The
                                                                                                                                                                restrictions were stated herein, to
                                                                                                                                                                prevent civil servants from conflict of
                                                                                                                                                                interests.
                                                                                                                                                                 Anti–Corruption Law states that public
                                                                                                                                                                officials are prohibited from exerting
                                                                                                                                                                pressure on or intervening in other
                                                                                                                                                                organizations‟ activities on matters
                                                                                                                                                                unrelated to his/her official duties, using
                                                                                                                                                                the power of his/her position and
                                                                                                                                                                working contacts and relations
                                                                                                                                                                established based on his/her position.
                                                                                                                                                                The Independent Authority against
                                                                                                                                                                Corruption (IAAC) drafted the Law on
                                                                                                                                                                Prevention of Conflict of Interest in
                                                                                                                                                                Public Service under the technical
                                                                                                                                                                support of the World Bank Governance
                                                                                                                                                                Assistance Project and submitted the
                                                                                                                                                                draft law to the President Office of
                                                                                                                                                                Mongolia for further discussion.
                                                                                                                                                                The Law on Ethical Code for Civil
                                                                                                                                                                Servants was legislated in 1999. In
                                                                                                                                                                addition, most organizations have their
                                                                                                                                                                own codes of conduct. However, as
                                                                                                                                                                regulations on conflict of interest were
                                                                                                                                                                not stated, the procedures for codes of
                                                                                                                                                                conduct were updated and amended to
                                                                                                                                                                prevent conflict of interest.

 Disclosure and/or monitoring                                                 The new Law on Anti-Corruption                                                   The IAAC has developed the manual
  of, for example, personal                                                    obliges public servants to declare their                                         on procedure for asset and income
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                      –4–


                                        Measures reported at the 8th        Measures reported at the 9th         Measures reported at the 10th         Measures reported at the 11th
     Action Plan Standard
                                     Steering Group meeting (May 2006)   Steering Group meeting (Nov. 2006)   Steering Group meeting (Sept. 2007)    Steering Group meeting (May 2008)
  assets and liabilities                                                 assets on a regular basis                                                  declaration, which includes registration,
                                                                                                                                                    monitoring and conducting an analysis
                                                                                                                                                    of assets and incomes. It organized
                                                                                                                                                    training sessions and developed.
                                                                                                                                                    reporting forms which are in use now.
                                                                                                                                                    Income and asset declaration of 99.6 %
                                                                                                                                                    of the higher level of public officials
                                                                                                                                                    were made public through the gazette
                                                                                                                                                    „‟Turiin medeelel‟‟ and IAAC website in
                                                                                                                                                    2008, as required by the Anti-
                                                                                                                                                    Corruption Law.

 Systems regulating contacts                                                                                                                       According to the Anti-Corruption Law,
  between government officials                                                                                                                      public officials are prohibited from using
  and business services users,                                                                                                                      his/her official power in private
  particularly in corruption-prone                                                                                                                  interests, affording preferences to
  areas                                                                                                                                             others, any violation of law, expressed
                                                                                                                                                    in action or failure to act , which
                                                                                                                                                    enables an individual or a legal person
                                                                                                                                                    to benefit from such preferences, as
                                                                                                                                                    well as misuse of public budget.
                                                                                                                                                    The IAAC and Mongolian Employers‟
                                                                                                                                                    Federation organized a one-day open
                                                                                                                                                    consultative workshop on „‟employers
                                                                                                                                                    against corruption‟‟ in March 2008
                                                                                                                                                    under the technical support of World
                                                                                                                                                    Bank Governance Assistance Project.
                                                                                                                                                    As a result of the consultative
                                                                                                                                                    workshop, recommendations were
                                                                                                                                                    developed by the participants,
                                                                                                                                                    employers and businessmen, and
                                                                                                                                                    submitted to the Government for further
                                                                                                                                                    discussions and taking adequate
                                                                                                                                                    measures to invalidate such laws and
                                                                                                                                                    regulations which cause bottlenecks
                                                                                                                                                    and corruption. These
                                                                                                                                                    recommendations were discussed
                                                                                                                                                    during the Cabinet Meeting, and a
                                                                                                                                                    resolution was made to amend or
                                                                                                                                                    invalidate illegal laws and orders,
                                                                                                                                                    decisions, procedures and rules that
                                                                                                                                                    cause bottlenecks, corruption or conflict
                                                                                                                                                    of interest based on detailed studies,
                                                                                                                                                    and to broadcast the result through
                                                                                                                                                    mass media as well as to amend laws if
                                                                                                                                                    required.
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                                   –5–


                                        Measures reported at the 8th              Measures reported at the 9th                 Measures reported at the 10th        Measures reported at the 11th
      Action Plan Standard
                                     Steering Group meeting (May 2006)         Steering Group meeting (Nov. 2006)           Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)

 Promotion, training and            The public service oath requires public   Law on Anti-Corruption obliges public                                              Capacity building and training issues
  supervision of officials viz.      servants to refrain from corrupt          and corporate organizations to maintain                                            for civil servants were included in the
  codes of conduct                   practices.                                codes of conduct in the respective                                                 updated codes of conduct for civil
                                                                               institutions.                                                                      servants. The Anti-Corruption law
                                                                                                                                                                  provides that state institutions should
                                                                                                                                                                  seek comments from the IAAC before
                                                                                                                                                                  adopting codes of conduct/ethics for
                                                                                                                                                                  officials of its particular sector; non-
                                                                                                                                                                  governmental organizations have
                                                                                                                                                                  obligations to approve codes of
                                                                                                                                                                  conduct/ethics for the staff and provide
                                                                                                                                                                  transparency of the financial and
                                                                                                                                                                  operational reports; and the private
                                                                                                                                                                  sector should develop and follow
                                                                                                                                                                  operational codes of ethics. The IAAC
                                                                                                                                                                  recommends that codes of
                                                                                                                                                                  conduct/ethics should contain training
                                                                                                                                                                  on ethics for staff. The IAAC is
                                                                                                                                                                  organizing such training sessions as
                                                                                                                                                                  “ethics for public service” and “ethics
                                                                                                                                                                  for lawyers” for civil servants.

 Promoting reporting by officials                                             Law on Anti-Corruption promotes                                                    The IAAC is receiving information and
  of corruption and whistleblower                                              reporting by officials as well as provides                                         complaints in regard of corruption from
  protection                                                                   certain protection guarantees.                                                     citizens and legal bodies through its
                                                                                                                                                                  special hot line 1969 on a 24-hour
                                                                                                                                                                  basis. Law on Anti-Corruption states
                                                                                                                                                                  that, if necessary, witnesses and other
                                                                                                                                                                  persons who assisted in the process
                                                                                                                                                                  shall be placed under the protection of
                                                                                                                                                                  the police.
B. Accountability and
   Transparency
    Accountability of public
    service through effective
    legal frameworks,
    management practices and
    auditing procedures:

 Measures and systems to                                                      A website is established by the Ministry                                           As stated in the Law on Anti-
  promote fiscal transparency                                                  of Finance that enables information on                                             Corruption, state organizations should
                                                                               fiscal policy and state budgeting to be                                            inform the public about the public
                                                                               updated on a regular basis. Also, all                                              revenues and expenditures, foreign
                                                                               negotiations with the IMF and the WB                                               loans and aids and their allocations in a
                                                                               are followed by press releases or                                                  timely manner.
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                        –6–


                                        Measures reported at the 8th        Measures reported at the 9th             Measures reported at the 10th        Measures reported at the 11th
     Action Plan Standard
                                     Steering Group meeting (May 2006)   Steering Group meeting (Nov. 2006)       Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                         conferences.                                                                   Furthermore, the law provides that
                                                                                                                                                        unless otherwise provided for by the
                                                                                                                                                        legislation, procedures of specific
                                                                                                                                                        government institutions for issuing
                                                                                                                                                        licenses and permits, registration,
                                                                                                                                                        monitoring and competitive selection
                                                                                                                                                        processes consistent with their
                                                                                                                                                        functions, shall be open to the general
                                                                                                                                                        public and provide citizens with
                                                                                                                                                        opportunities for review and comment.
                                                                                                                                                        The IAAC delivered recommendations
                                                                                                                                                        incorporating the above mentioned
                                                                                                                                                        issues to all levels of state
                                                                                                                                                        organizations, and monitors the
                                                                                                                                                        implementation of the law and its
                                                                                                                                                        recommendations.
                                                                                                                                                        The state annual budget execution is
                                                                                                                                                        posted on a regular basis at the
                                                                                                                                                        dynamic portal web site under the
                                                                                                                                                        Ministry of Finance.

 International standards and
  practices to regulate and
  supervise financial institutions

 Auditing of the public                                                 A regulatory and practice reform on                                            The IAAC has established a working
  administration and the public                                          internal auditing is under progress                                            group on preventing corruption and
  sector                                                                 supported by the ADB together with the                                         raising public awareness of anti-
                                                                         Ministry of Finance.                                                           corruption in cooperation with the
                                                                                                                                                        Government, and its implementation
                                                                                                                                                        plan is approved. Within this scope of
                                                                                                                                                        work, the IAAC is examining certain
                                                                                                                                                        laws and regulations of a number of
                                                                                                                                                        organizations in terms of organization
                                                                                                                                                        of public service, assessing the legal
                                                                                                                                                        environment for avoiding bottlenecks,
                                                                                                                                                        corruption and economic pressure.
                                                                                                                                                        Degree of quality and transparency and
                                                                                                                                                        effectiveness of the public service will
                                                                                                                                                        be assessed within the scope of work
                                                                                                                                                        mentioned above. Seminars are
                                                                                                                                                        organized on „‟Assessing corruption
                                                                                                                                                        risks and plan for prevention‟‟ in
                                                                                                                                                        collaboration with Government
                                                                                                                                                        Chancellery under technical support of
                                                                                                                                                        Asia Foundation. Methodological
                                                                                                                                                        support is provided for each ministry
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                        –7–


                                     Measures reported at the 8th             Measures reported at the 9th         Measures reported at the 10th         Measures reported at the 11th
     Action Plan Standard
                                  Steering Group meeting (May 2006)        Steering Group meeting (Nov. 2006)   Steering Group meeting (Sept. 2007)    Steering Group meeting (May 2008)
                                                                                                                                                      and agency to develop prevention
                                                                                                                                                      plans on anti-corruption. The IAAC
                                                                                                                                                      studies procedure on compensation
                                                                                                                                                      and fees for such public service
                                                                                                                                                      organizations as the health, civic
                                                                                                                                                      registration, and property registration
                                                                                                                                                      agencies.

 Public procurement procedures   Mongolia has ratified the UNCAC in
  and adequate simplified         November 2005 and is now amending
  administration procedures       its laws to meet the requirements and
                                  standards of the Convention. The
                                  process will likely concern the Law on
                                  Procurement; a new Law on
                                  Procurement has been in force since
                                  February 2006.
                                                                           A new Law on Procurement has been                                          A new Law on Public Procurement by
                                                                           in action since February 2006.                                             the resolution of the State Great Khural
                                                                                                                                                      has been in action since 15th of
                                                                                                                                                      February 2006. A number of
                                                                                                                                                      procedures and orders to implement
                                                                                                                                                      the law were approved by the Ministry
                                                                                                                                                      of Finance. All related legislation,
                                                                                                                                                      procedures, orders, and manuals
                                                                                                                                                      regarding the Law on Public
                                                                                                                                                      Procurement are posted on the web
                                                                                                                                                      site managed by the MoF.
                                                                                                                                                      The IAAC in collaboration with
                                                                                                                                                      Transparency International, Mongolia
                                                                                                                                                      organized training on “preventing
                                                                                                                                                      corruption in the public procurement
                                                                                                                                                      process” for civil servant, general
                                                                                                                                                      managers of public budget, and staff for
                                                                                                                                                      legal institutions and provided them
                                                                                                                                                      with training manuals.
                                                                                                                                                      The recommendations submitted to the
                                                                                                                                                      Government as a result of the
                                                                                                                                                      consultative workshop held in
                                                                                                                                                      collaboration with Mongolian
                                                                                                                                                      Employers‟ Federation were discussed
                                                                                                                                                      during its Government meeting. As a
                                                                                                                                                      result of the meeting, a working group
                                                                                                                                                      including civil society members was
                                                                                                                                                      established for the purpose of
                                                                                                                                                      monitoring public procurement activities
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                                –8–


                                         Measures reported at the 8th              Measures reported at the 9th             Measures reported at the 10th        Measures reported at the 11th
      Action Plan Standard
                                      Steering Group meeting (May 2006)         Steering Group meeting (Nov. 2006)       Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                                                                                                               and procedure for providing special
                                                                                                                                                               licenses.

 Institutions for public scrutiny   In its spring session, Parliament will     Law on Anti-Corruption, adopted by the                                         Resulting from the concrete actions by
  and oversight                      discuss amendments to the Law on           Parliament in July 2006, has been in                                           the Government of Mongolia for
                                     Anti-corruption that is expected to        action since November 2006. An                                                 addressing corruption issues, following
                                     create an anti-corruption body.            independent anti-corruption body will                                          Mongolia‟s signing of the UN
                                                                                be created.                                                                    Convention against Corruption in 2005,
                                                                                                                                                               the revised Law on Anti-Corruption was
                                                                                                                                                               adopted in 2006, and the Independent
                                                                                                                                                               Authority against Corruption (IAAC),
                                                                                                                                                               Mongolia‟s first ever independent
                                                                                                                                                               institution for combating corruption was
                                                                                                                                                               set up in 2007.
                                                                                                                                                               As provided in the Law on Anti-
                                                                                                                                                               Corruption, the IAAC is mandated to
                                                                                                                                                               educate and raise awareness of the
                                                                                                                                                               public on anti-corruption and increase
                                                                                                                                                               the efficiency in the fight against
                                                                                                                                                               corruption. It has authority to
                                                                                                                                                               investigate and inspect corruption
                                                                                                                                                               incidences and compile and analyse
                                                                                                                                                               the annual income and asset
                                                                                                                                                               statements by civil servants.
                                                                                                                                                               Functionally, there are 4 major divisions
                                                                                                                                                               and service lines and units within the
                                                                                                                                                               IAAC including 1. Prevention and
                                                                                                                                                               Public Awareness Division 2.
                                                                                                                                                               Monitoring and Evaluation Division, 3.
                                                                                                                                                               Investigation Division; and 4.
                                                                                                                                                               Administrative Division. The main
                                                                                                                                                               service lines include: Intelligence
                                                                                                                                                               service; Research Unit, Security and
                                                                                                                                                               inspection service and Financial and
                                                                                                                                                               Operational services. The agency
                                                                                                                                                               employees 90 staff members.

 Availability of information on     Recent changes to the Election Law
  the processing of applications,    limit the financing of political parties
  funding of political parties and   and ensure transparency of a
  electoral campaigns and            candidate‟s bank account.
  expenditure
                                                                                                                                                               Law dated 29th of December 2005 on
                                                                                                                                                               election states the amount and type of
                                                                                                                                                               donation for electoral campaigns and
                                                                                                                                                               has obligation to include certain
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                                     –9–


                                        Measures reported at the 8th              Measures reported at the 9th                Measures reported at the 10th         Measures reported at the 11th
     Action Plan Standard
                                     Steering Group meeting (May 2006)         Steering Group meeting (Nov. 2006)          Steering Group meeting (Sept. 2007)    Steering Group meeting (May 2008)
                                                                                                                                                                 activities such as distribution of gifts,
                                                                                                                                                                 etc. in the expenditure report for
                                                                                                                                                                 electoral campaigns.

 Simplification of the business
  regulatory environment
PILLAR 2 – STRENGTHENING
ANTI-BRIBERY ACTIONS AND
PROMOTING INTEGRITY IN
BUSINESS OPERATIONS
A. Effective Prevention,
   Investigation and
   Prosecution
    Effective measures to
    actively combat bribery:

 Sanctions for bribery of public   Mongolia has ratified the UNCAC in         Changes to the Criminal Law and the                                               The amended Criminal Procedures
  officials                         November 2005 and is now amending          Criminal Procedure Law will be                                                    Law, effective as of September 08,
                                    its laws to meet the requirements and      discussed by the Parliament at the                                                2007, provides for the IAAC‟s
                                    standards of the Convention. The           2006 autumn session.                                                              investigative power and 8 categories of
                                    process will likely concern the Criminal                                                                                     crimes.
                                    Law and the Criminal Procedure Law.

 Existence and enforcement of      In its spring session, Parliament will     Anti-Money Laundering and Terrorist-                                              According to the Law on Anti-Money
  anti-money laundering             discuss the Anti-money Laundering          Financing Law has been in action since                                            Laundering and Terrorist–Financing,
  legislation                       Law.                                       July 2006.                                                                        the Financial Information Unit at the
                                                                                                                                                                 Mongol Bank was established on 30
                                                                                                                                                                 November 2006. The FIU has
                                                                                                                                                                 developed required procedure for
                                                                                                                                                                 banks and financial organizations and
                                                                                                                                                                 started to put in place all necessary
                                                                                                                                                                 instruments to communicate with
                                                                                                                                                                 international organizations. In
                                                                                                                                                                 accordance with the Law on Anti-
                                                                                                                                                                 Money Laundering and Terrorist–
                                                                                                                                                                 Financing, the unit collects information
                                                                                                                                                                 on suspicious cash transactions from
                                                                                                                                                                 banks and financial organizations.
                                                                                                                                                                 Mongolia joined the Asia/Pacific Group
                                                                                                                                                                 on Money Laundering in 2004 and has
                                                                                                                                                                 reported its activities successfully.

 Rules concerning investigation                                               Law on Anti-Corruption defines rules for                                          The amended Criminal Procedures
  and prosecution of bribery                                                   investigation of bribery that are in line                                         Law, effective as of September 08,
                                                                               with the provisions of the Criminal                                               2007, provides for the IAAC‟s
                                                                               Procedure Code.                                                                   investigative power and 8 categories of
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                         – 10 –


                                          Measures reported at the 8th        Measures reported at the 9th             Measures reported at the 10th        Measures reported at the 11th
      Action Plan Standard
                                       Steering Group meeting (May 2006)   Steering Group meeting (Nov. 2006)       Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                                                                                                          crimes. Those include namely the
                                                                                                                                                          crimes related to abuse of power by
                                                                                                                                                          civil servants by exceeding the limits of
                                                                                                                                                          their authority, abuse of power by
                                                                                                                                                          officials of NGOs and private entities by
                                                                                                                                                          exceeding the limits of their authority,
                                                                                                                                                          rent seeking, bribery, brokering of
                                                                                                                                                          bribery, and misuse of public money in
                                                                                                                                                          the Criminal Code.

 Availability of bank, financial or                                       Law on Anti-Money Laundering and                                               In exercising its mandate, the IAAC will
  commercial records and secret                                            Terrorist-Financing enables respective                                         follow the above-mentioned procedures
  bank information                                                         authorities to have access to and                                              which are stipulated in the Criminal
                                                                           monitor bank commercial records.                                               Procedures Law and the Law on
                                                                                                                                                          Intelligence Service.
                                                                                                                                                          The IAAC has authority to obtain
                                                                                                                                                          necessary information, survey results,
                                                                                                                                                          explanations, definitions and other
                                                                                                                                                          documents free of charge from
                                                                                                                                                          businesses and entities, officials and
                                                                                                                                                          individuals, review these materials and
                                                                                                                                                          request expert analyses and
                                                                                                                                                          verifications.

 Inter-agency co-operation                                                                                                                               The IAAC has signed the memorandum
                                                                                                                                                          of understanding with the Ministry of
                                                                                                                                                          Education, Culture, and Science with
                                                                                                                                                          purpose to support corruption
                                                                                                                                                          prevention activities in the education
                                                                                                                                                          sector and to collaborate in this area.

 Protection of persons who                                                                                                                               Law on Anti-Corruption states that, if
  assist the authorities                                                                                                                                  necessary, witnesses and other
                                                                                                                                                          persons who assisted in the process
                                                                                                                                                          shall be placed under the protection of
                                                                                                                                                          the police.

 Training and resources

 International cooperation
  including exchange of
  information and evidence,
  extradition, and search,
  seizure, forfeiture and
  repatriation of assets
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Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                    – 11 –


                                         Measures reported at the 8th        Measures reported at the 9th         Measures reported at the 10th        Measures reported at the 11th
      Action Plan Standard
                                      Steering Group meeting (May 2006)   Steering Group meeting (Nov. 2006)   Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
B. Corporate Responsibility
   and Accountability
    Promotion of corporate
    responsibility and
    accountability based on
    international standards:

 Corporate governance, internal                                                                                                                     As stated in the Law on Anti-
  company controls such as                                                                                                                           Corruption, a legal body should have
  codes of conduct, establishing                                                                                                                     codes of conduct for business. The
  channels of communication,                                                                                                                         participants shared their opinions
  whistleblower protection and                                                                                                                       regarding this issue during the
  staff training                                                                                                                                     consultative workshop held in
                                                                                                                                                     collaboration with National Employer‟s
                                                                                                                                                     Association.

 Non tax-deductibility of bribes

 Transparent company
  accounting and auditing, and
  penalties for false accounting

 Administrative sanctions for
  bribery of public officials, e.g.
  denial of licenses or
  procurement contracts
PILLAR 3 – SUPPORTING
ACTIVE PUBLIC
INVOLVEMENT
A. Public Discussion of
   Corruption
    Encouraging public
    discussion of corruption
    through:

 Channels and forums to                                                                                                                             The IAAC in collaboration with Asia
  discuss corruption                                                                                                                                 Foundation organized a forum
                                                                                                                                                     “Development of corruption prevention
                                                                                                                                                     plan” for managerial staff of state
                                                                                                                                                     organizations.
                                                                                                                                                     -Public discussion on “National
                                                                                                                                                     Programme for Anti–Corruption” was
                                                                                                                                                     organized in collaboration with
                                                                                                                                                     Mongolian National TV and NTV.
                                                                                                                                                     -A number of activities such as
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                        – 12 –


                                     Measures reported at the 8th           Measures reported at the 9th              Measures reported at the 10th        Measures reported at the 11th
     Action Plan Standard
                                  Steering Group meeting (May 2006)      Steering Group meeting (Nov. 2006)        Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                                                                                                         “Cultural Festival” were held and best
                                                                                                                                                         advertisement and essay on corruption
                                                                                                                                                         among the media staff were
                                                                                                                                                         announced. These competitions are
                                                                                                                                                         part of the campaign “Lets us unify our
                                                                                                                                                         voices against corruption”, initiated by
                                                                                                                                                         the Eagle TV and other NGOs.
                                                                                                                                                         -Methodological support was provided
                                                                                                                                                         for preparation of TV programmes such
                                                                                                                                                         as “Time for combating against
                                                                                                                                                         corruption‟‟ in collaboration with TM TV
                                                                                                                                                         and a discussion “Lets us unify our
                                                                                                                                                         voices against corruption” in
                                                                                                                                                         collaboration with Eagle TV.

 Public awareness campaigns                                                                                                                             A competition for TV interview was
                                                                                                                                                         organized for journalists and reporters
                                                                                                                                                         and essay and painting competitions
                                                                                                                                                         were held for students. The IAAC
                                                                                                                                                         produced a drama whose objectives
                                                                                                                                                         were raising public awareness of the
                                                                                                                                                         negative aspects and consequences of
                                                                                                                                                         corruption. The drama was produced in
                                                                                                                                                         a comedy style for easy understanding.
                                                                                                                                                         A number of training sessions were
                                                                                                                                                         organized on “The ways of preventing
                                                                                                                                                         corruption”, “Criminal code of
                                                                                                                                                         corruption”, “Codes of conduct/ethics
                                                                                                                                                         for lawyers”, and “Cause of corruption”
                                                                                                                                                         for staff of legal institutions; police
                                                                                                                                                         officers, judicial officials and
                                                                                                                                                         prosecutors as well as civil servants
                                                                                                                                                         from state organizations.

 Supporting of non-                                                    Law on Anti-Corruption provides for the                                          The IAAC is considering increasing
  governmental organizations                                            establishment of a public council within                                         public participation in combating
                                                                        the framework of the Anti-Corruption                                             against corruption, in particular by
                                                                        Agency that will ensure monitoring and                                           collaborating with NGOs and mass
                                                                        accountability of the agency.                                                    media. Law on Anti-Corruption states
                                                                                                                                                         that an ad hoc Public Council shall be
                                                                                                                                                         established by the IAAC with the
                                                                                                                                                         purpose to ensure active public
                                                                                                                                                         involvement in combating corruption, to
                                                                                                                                                         voice its opinion, and to provide
                                                                                                                                                         guidance on corruption issues and
                                                                                                                                                         implementation of the anti-corruption
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                          – 13 –


                                        Measures reported at the 8th        Measures reported at the 9th                Measures reported at the 10th        Measures reported at the 11th
     Action Plan Standard
                                     Steering Group meeting (May 2006)   Steering Group meeting (Nov. 2006)          Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                                                                                                           law.
                                                                                                                                                           Working procedure of the Public
                                                                                                                                                           Council was approved by the IAAC and
                                                                                                                                                           is now in action.
                                                                                                                                                           Public discussions were organized on
                                                                                                                                                           updating National Programme in
                                                                                                                                                           combating corruption and input was
                                                                                                                                                           incorporated.

 Education programs                                                                                                                                       Training curriculum for pupils of the
                                                                                                                                                           secondary school was updated by
                                                                                                                                                           adding the content on the prevention of
                                                                                                                                                           corruption and negative aspects and
                                                                                                                                                           consequences of corruption in
                                                                                                                                                           cooperation with Ministry of Education,
                                                                                                                                                           Culture and Science. This was intended
                                                                                                                                                           as an activity for advocacy to introduce
                                                                                                                                                           the consequences of corruption to the
                                                                                                                                                           youth and children.
B. Access to Information
    Ensuring the general public
    and the media can receive
    and impart public
    information, particularly
    information on corruption
    matters:

 Requirements for justice and                                           Law on Anti-Corruption requires justice
  other governmental agencies to                                         and other governmental agencies to
  disclose efforts to promote                                            disclose efforts to promote integrity and
  integrity and accountability and                                       accountability and to combat
  to combat corruption                                                   corruption.

 Measures to provide the public                                                                                                                           The IAAC is operating its Web site and
  with meaningful access to                                                                                                                                updating required links.
  information                                                                                                                                              Recommendations on providing the
                                                                                                                                                           public with meaningful access to
                                                                                                                                                           information and enhancing
                                                                                                                                                           transparency were sent by the IAAC to
                                                                                                                                                           state organizations in order to decrease
                                                                                                                                                           the bottlenecks and increase public
                                                                                                                                                           access to information.
                                                                                                                                                           The IAAC monitored the operation of
                                                                                                                                                           197 state organizations in collaboration
                                                                                                                                                           of NGOs to identify the status of
ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia                                                                                                       – 14 –


                                       Measures reported at the 8th         Measures reported at the 9th              Measures reported at the 10th        Measures reported at the 11th
     Action Plan Standard
                                    Steering Group meeting (May 2006)    Steering Group meeting (Nov. 2006)        Steering Group meeting (Sept. 2007)   Steering Group meeting (May 2008)
                                                                                                                                                         bottlenecks, degree of transparency
                                                                                                                                                         and ethical issues among civil servants
                                                                                                                                                         for the duration of 6 months. The
                                                                                                                                                         managerial staff of the state
                                                                                                                                                         organizations were notified of the
                                                                                                                                                         results, and methodological support
                                                                                                                                                         was given so that they can consider the
                                                                                                                                                         issues that were raised and correct
                                                                                                                                                         identified weaknesses.
                                                                                                                                                         Information and complaints regarding
                                                                                                                                                         bottlenecks and bureaucracy of the
                                                                                                                                                         certain state organizations were
                                                                                                                                                         received through special telephone line
                                                                                                                                                         1977 with the duration of 6 months, and
                                                                                                                                                         measures were taken to address the
                                                                                                                                                         problems. The IAAC targeted and
                                                                                                                                                         worked with the top organization, which
                                                                                                                                                         scored higher in terms of its
                                                                                                                                                         bureaucracy and bottlenecks, and took
                                                                                                                                                         adequate remedial measures.
C. Public Participation
    Encouraging public
    participation in anti-
    corruption activities:

 Co-operative relationships with
  civil society groups

 Protection of whistleblowers

 Involvement of NGOs in                                                Law on Anti-Corruption provides for the                                          In collaboration with Open Society
  monitoring of public sector                                           establishment of a public council within                                         Forum, a study on state organizations
  programs and activities                                               the framework of the Anti-Corruption                                             bureaucracy and bottlenecks was
                                                                        Agency that will ensure monitoring and                                           conducted with the purpose to increase
                                                                        accountability of the agency.                                                    monitoring role of NGOs to ensure civil
                                                                                                                                                         service transparency. Results were
                                                                                                                                                         communicated to the managerial staff
                                                                                                                                                         of state organizations and disseminated
                                                                                                                                                         through public mass media.
OTHER

				
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