Annual Report Audited Accounts Government of

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					     INDEPENDENT COMMISSION AGAINST CORRUPTION




                   ANNUAL REPORT & AUDITED ACCOUNTS
                                                  2003 - 2004




Marine Road, Port Louis, Mauritius - Tel : 206 6600 - Fax : 217 1643 - E-mail : Icacoffice@intnet.mu - Website : www.icac.mu
6th December 2004




The Chairperson
Parliamentary Committee
National Assembly
Government House
Port Louis


Dear Sir,

Pursuant to section 36(1) of the Prevention of Corruption Act 2002, I have the honour to submit the
Annual Report and Audited Accounts of the Independent Commission Against Corruption for the
period ended June 2004.




Yours faithfully,




Navin Beekarry
Commissioner
                Independent Commission Against Corruption


                           MISSION, VISION AND VALUES

                                   MISSION STATEMENT

With the community, the ICAC is committed to fighting corruption through effective law
enforcement, education and prevention to help keep Mauritius fair, just, stable and prosperous.

                                            VISION

Mauritius – our home, clean and fair.

                                           VALUES

The core values of the ICAC are:

           Integrity and fairplay
           Team spirit
           Accountability
           Professional excellence
           Respect of human rights

Officers of the ICAC will at all times strive to uphold these values by:

Inducing change in attitude towards corruption and money laundering through effective
participation of the community and education of the population.

Investigating without fear or favour, prejudice or ill will, any suspected act of corruption in
the public or private sector.

Assisting public and private sector institutions to improve their systems, procedures and
practices by eliminating opportunities for corruption.

Prosecuting in a fair and vigorous manner all offences of corruption and money laundering.



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                                                                               Annual Report 2003-2004
             Independent Commission Against Corruption

           Table of Contents




          REVIEW BY THE COMMISSIONER                      3 - 15




          CORRUPTION INVESTIGATION DIVISION              17 - 31




          CORRUPTION PREVENTION AND EDUCATION DIVISION   33 - 50




          LEGAL DIVISION                                 51 - 55




          ADMINISTRATION AND FINANCE DIVISION            57 - 65




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Annual Report 2003-2004
Independent Commission Against Corruption




    Review by the Commissioner




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                                       Annual Report 2003-2004
             Independent Commission Against Corruption




            More than $1 trillion dollars (US$1,000 billion) is paid in bribes each year,
            according to ongoing research at the World Bank Institute (WBI).

            Daniel Kaufmann, the Institute’s director of Governance, says this US$1 trillion
            figure is an estimate of actual bribes paid worldwide in both rich and
            developing countries.

            “It is important to emphasize that this is not simply a developing country
            problem,” Kaufmann says. “Fighting corruption is a global challenge.”

            The $1 trillion figure, calculated using 2001-02 economic data compares with
            an estimated size of the world economy at that time of just over US$30 trillion,
            now estimated at just over US$40 trillion, Kaufmann says and does not include
            embezzlement of public funds or theft of public assets.

            Kaufmann notes that a calculation of the total amounts of corrupt transactions
            is only part of the overall costs of corruption, which constitutes a major
            obstacle to reducing poverty, inequality and infant mortality in emerging
            economies.

            WBI research shows that countries that tackle corruption and improve their
            rule of law can increase their national incomes by as much as four times in the
            long term, and child mortality can fall as much as 75 percent. “We have
            found what we label as the “400 percent governance dividend”, Kaufmann
            says.

            A country with an income per capita of US$2000 that addressees corruption,
            improves its governance and the rule of law could expect to see its income
            rise to US$8000 in the long run.



            Daniel Kaufmann. The costs of corruption – April 2004 World Bank Institute




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Annual Report 2003-2004
                                                            Review by the Commissioner

INTRODUCTION

It is my pleasure to present the second Annual          eventually a platform in matters pertaining to good
Report of the Independent Commission Against            governance. The initiatives taken by the
Corruption (ICAC). The Report covers its second         Commission, during the early stages of its
year of existence and operations, i.e. 2003-2004.       operations, were crucial in order to avoid the
The Report comes at a time when there is                pitfalls which could cause the collapse of its anti-
increasing awareness of, and concern about, the         corruption strategies. In this regard, it is worth
problems of corruption and money laundering             noting that, in the first report, I underlined the
across the world. In Mauritius, the panorama has        serious difficulties encountered by the
been no less different as, during the period under      Commission in its initial stages. These difficulties
review, the population has shown unmistakable           relate to the fact that the Commission had to
                                                        tackle concurrently two major tasks, namely:
signs of its aversion to corrupt practices. In brief,
people speak more openly about corruption and
                                                        !    the setting up of the new organization in
the need to address the problem more seriously.
                                                             accordance with the provisions of the Act;
This in itself is a positive and an essential step in
                                                             and
fighting the problem. The ICAC National Survey
                                                        !    to conduct its operations, despite the
on Corruption, carried out at the beginning of the           unavailability, at that time, of necessary
year, confirms this trend.                                   logistics, including appropriate human
                                                             resources.
This phenomenon has been lately compounded by
the increasing concern relating to terrorism and        The Commission continued in the difficult
its links to corruption and money laundering,           circumstances prevailing, and notwithstanding the
especially in relation to movement of huge sums         loopholes existing in the legislation, to conduct
of tainted money around the world. The UN has           its activities without fear or favour. It continued
concluded that billions of dollars flowing from such    to pay due regard to the need to promote
activities are moved across the world yearly.           adequate transparency and confidentiality whilst,
                                                        at the same time, ensuring a proper balance
During the second year, the Commission became           between independence and accountability and the
more conscious that those involved in corrupt           need to respect the fundamental rights of persons.
activities would leave no stone unturned in their       Only such commitment could strengthen the
efforts to derail the anti-corruption and anti-         credibility of the ICAC and ensure public support
money laundering strategy. In fact, any serious         in its fight. In this endeavour, the Commission
effort to fight this scourge is met with equivalent,    has, with the constant and continuous support of
if not stronger, resistance from the corrupt. They      all the relevant stakeholders, fully upheld its core
have all the means and resources and will               values whilst at the same time being also constantly
constantly attempt to destabilize the institution       aware of evil forces working against the
with a view to destroy the anti-corruption and          Commission. In line with that philosophy, the
anti-money laundering crusade.                          Commission has, through its community relations
                                                        campaigns, embarked on a broad educational
                                                        campaign to sensitise the public on the evils of
                                                        corruption and to mobilize their support in the
REVIEW OF FIRST YEAR OF OPERATION
                                                        fight against corruption and money laundering.
                                                        This approach has to a large extent assisted the
In my Review on the first year of operations of
                                                        Commission in maintaining the credibility and
the ICAC, I emphasized on the determination of          confidence of the public on the need to fight
the Commission to implement the national                corruption and has given the ICAC the required
strategy to combat corruption and money                 impetus to achieve its vision. This is elaborated
laundering. The medium and longer term objective        upon later.
is to make Mauritius a cleaner society and


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                                                                                    Annual Report 2003-2004
      Review by the Commissioner

      The ICAC’s second year of existence and                 of lip service being paid from different quarters
      operations reconfirmed a few of the fundamentals        to the cause of fighting corruption. The
      I had referred to in the first Annual Report. It        challenges and threats encountered indicated that
      became more obvious, following various threats          will and commitment shift as the going gets tough.
      and challenges that the ICAC had to face, at times      It became apparent that those who initially
      even violent and aggressive, that the principles and    indicated support and commitment waivered
      objectives defined in the Act and the Strategy Plan,    when the strategy was put under pressure and
      had to be constantly and arduously defended in          under attack. Hence, the call for constant and
      order to protect the institution and the strategy.      unflinching commitment, political or otherwise.
      Those fundamentals include the crucial need for         Without constant and unflinching commitment
      strong will and commitment, political or other          from one and all, the cause cannot be won.
      wise; the strengthening of the legislative              However, the Commission maintained its
      framework as opposed to any initiative to               commitment irrespective of tremendous and
      undermine the provisions of the law; the need to        continuous pressure. There is always a constant
      defend at all costs the three-pronged strategy:         need for strong commitment, political or
      education, investigation and prevention; the need       otherwise, if the country is to be saved from this
      for partnership and coordinated action; adequate        scourge.
      resources and public support; and the critical need
      to defend the ICAC’s independence.                      (II)   LEGISLATION

      During the course of the second year, the ICAC          The year saw the difficulties that can crop up with
      realised that challenges could come from both           a new and complex legislation. In fact, the
      internal and external forces. In fact, those who        Commission had already, in the first year, indicated
      have an interest in fighting the ICAC would resort      the need to reinforce the legislation by seeking to
      to any form of challenges and methods to achieve        bring in a series of amendments. During the
      their evil aim. In such an attempt, they would          second year, implementation of the legislation
      seek to make use of different communication             revealed more inherent weaknesses and loopholes
      channels and even seek to infiltrate and undermine      of the law. Nevertheless, the Commission,
      the organization from inside. Any serious initiative    conscious of the fact that any new legislation is
      to enhance the anti-corruption and anti-money           bound to contain weaknesses which in themselves
      laundering strategy is bound to have such               confirm the need for amendments, sought to
      problems. By its very nature and because of its         obtain relevant amendments to the law. The
      very young age, such initiative is always prone to      Commission came to the conclusion that such
      challenges from the corrupt. As and when the            loopholes and weaknesses would give rise to a
      anti corruption strategy unfolds, those who have        series of legal challenges in Court. One should
      an interest to defend or protect their ill-gotten       not overlook that, the PoCA is “une loi
      gains will wage war against the noble initiative in     d’exception” and, as such, requires a strong
      order to defend their secretive and lucrative illegal   legislative structure to fight corruption and money
      activities. Resistance developed from interested        laundering.
      quarters. In short, such difficulties led us to the
      conclusion that the following fundamental               (III) STRATEGY/PRINCIPLE
      principles and objectives need to be further
      consolidated.                                           The three-pronged approach is a crucial model
                                                              to fight corruption. The legislator’s wisdom in
      (I)   WILL / COMMITMENT                                 adopting the three-pronged approach is indicated
                                                              in the constant need to fight the problem on all
      The need for constant will is reinforced by the         fronts.      The interconnection between
      very challenges that seek to undermine the              investigation, education and prevention is crucial
      process. It became obvious that there was a lot         in the fight. Without such a comprehensive


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Annual Report 2003-2004
                                                            Review by the Commissioner

approach, it would be futile and the whole initiative     prosecution of such specialised criminal activities.
would be defeated. The three-pronged approach             However, adequate resources and manpower
must survive if the strategy is to be successful.         remain the cornerstones for the success of any
                                                          anti corruption agency. Any criticism that has been
(IV) PARTNERSHIP/COORDINATED                              levelled on the budget and expenditure arises out
     APPROACH                                             of pure misunderstanding and mala-fide. The
                                                          Select Committee Report on Corruption itself
Another area which revealed itself to be crucial in       emphasized on the need for adequate resources
the fight against corruption is the partnership           and recognized that without adequate resources
approach. In fact, the ICAC had, right from the           the strategy will not succeed. What is, however,
start, defined partnership as its basic platform. It      important is that the Commission ensures that the
saw in the approach “You and the ICAC – The               resources are well utilised and accounted for. The
Perfect Partners”, the imperatives of a serious           Commission makes sure that its funds are well
fight against corruption. This was confirmed              accounted for and, in fact, provides, to the
during the year when one considers that                   Parliamentary Committee, detailed information on
corruption is not a problem that can be dealt with        all its expenditure on a quarterly basis.
only by providing legislative and institutional
framework. However strong the legislation is,             (VI) INDEPENDENCE
the problem cannot be dealt with if there is no
active participation of each and everyone and at          The independence of the organisation continued
all levels of society. This is the logic behind the       to be challenged from different quarters. This is
educational mandate in the legislation. The               the pillar of any successful anti-corruption strategy.
Commission saw the need to work with all                  Despite attempts to undermine its independence,
stakeholders as crucial in the fight. This in itself      the Commission maintained and defended its
reinforces the entire strategy. Nevertheless, it          independence which resulted from its impartial
was clear that not every one would be willing to          and nondiscriminatory approach to its operations.
participate and, very often, the Commission felt          This can be confirmed in the different criticisms
there was a deliberate attempt to boycott the             of the ICAC from the corrupt. Independence,
ICAC and its operations. As will be indicated later,      subject to proper accountability, remains a critical
this partnership approach enhanced the entire anti        aspect if any anti-corruption strategy is to succeed.
corruption strategy when the ICAC managed to              The ICAC managed to maintain its independence
start defining its relationship with different players.   without which no anti corruption strategy can
The participation of all in the fight becomes a           seriously succeed. The ICAC also complied strictly
must.                                                     with the law regarding its accountability
                                                          obligations and provided relevant information to
(V)   RESOURCES                                           the respective advisory committees in accordance
                                                          with the provisions of law. The Select Committee
The need for adequate resources also saw its              on Fraud and Corruption drew attention to the
increased importance in the second year. Despite          need for the ICAC to be independent and be
unjustified criticisms on the budget of the ICAC,         perceived as being truly independent.
the fact remains that Government, through the
Parliamentary Committee, recognized the need for          (VII) TIME
the budget as approved. The ICAC’s expenditure
is closely monitored by the Parliamentary                 Again the issue of time saw its importance. The
Committee and its accounts are audited by the             fight against corruption will take a long time. It is
Director of Audit. The need for resources is              an arduous battle against those who will resort to
explained in terms of the mandate of the ICAC;            any means to maintain their survival. Corruption
the structural requirements of the law; and the           cannot be defeated in one or two years. It is a
resources required in the investigation and               long and protracted process which requires


                                                                                   7
                                                                                       Annual Report 2003-2004
      Review by the Commissioner

      commitment and perseverance. What has existed         context of the difficulties present during the
      and grown into habits over ages cannot,               ongoing phase of establishment. As stated in the
      legitimately and honestly, be dealt with within one   first Annual Report, setting up such an institution
      or two years. The very nature of any anti             requires time inasmuch as there are different areas
      corruption strategy requires time to change. Only     of administration and management and operations
      time will show the results.                           at different levels which continuously remain to
                                                            be consolidated.
      Despite the various criticisms challenges, the
      Commission persevered in its effort to fight the      I must, however, here underline the fact that the
      corrupt and managed to adopt a very objective         environment in which the ICAC had to perform
      and detached strategy. It went on its business        was significantly different from that during the first
      without fear or favour. It faced serious threats      year of operations. While in the first year, ICAC
      and challenges knowing that these were the            had to perform under intense pressure of public
      inevitable consequences of the serious and            expectations, the year under review showed
      professional approach with which the ICAC was         resistance and hostility from those who felt
      conducting its business. Such challenges only         directly or indirectly targeted by the ICAC. The
      continued the need for the strategy to be             Commission soon realized that problems could
      reinforced. It is here apposite to draw attention     come from inside the institution also. In other
      to the fact that the national stakes and interest     words, the forces seeking to destabilize the
      will weigh heavier at the end of the day. Meeting     organization could be external or internal. What
      the challenges set by the corrupt is a must and is    was initially a perception was soon transformed
      in the interest of the country.                       into hard facts and those who felt threatened
                                                            joined forces with different sectors to counteract
                                                            the initiatives of the ICAC. However, it is more
      PERFORMANCE OF ICAC                                   and more apparent that ICAC’s opponents
                                                            constitute only a handful of persons motivated
      Inspite of these serious challenges, the ICAC         solely by self interest and corrupt purposes.
      carried on with its business. Its performance
      during the course of this year indicates how the      The second year of operations was challenging and
      organization modified its operations in order to      yet rewarding inasmuch as the public continued
      achieve results. It sought to become more result      to show support and trust in the ICAC despite
      oriented. As indicated below, the end of the year     unwarranted criticisms. It is here important to
      saw tremendous results both at the investigation      open a parenthesis and mark a note of caution
      and education level. It must be pointed out that,     regarding the evaluation of success in any anti
      as far as investigation is concerned, it is only as   corruption strategy. Results and achievements can
      from December 2003 that the Division was              be measured differently. There is tendency to
      reorganized and given a new impetus and drive         measure success by the number of convictions
      for better and more professional approach to          secured in court cases. This is not altogether true.
      investigation. The results of the investigation       In fact, convictions represent only one way of
      division are self indicative. The achievements of     measuring achievements and success. The nature
      the Education and Prevention Division during the      of investigation is such that there are bound to be
      second year also confirm the professionalism of       legal challenges and difficulties. There are,
      the ICAC. The determining factor remains the          however, other indicators of achievements. As
      unflinching commitment, in the interest of the        stated earlier, this period was also marked by the
      country, to tackle the problem of corruption from     consolidation of the experience gathered during
      different angles.                                     the first year of operations and the completion of
                                                            the first phase of recruitment of personnel, thus
      The performance of the ICAC for the year under        leading to the pursuit of the investigative mandate
      consideration still has to be measured in the         at a more accelerated pace and a more intensive


                               8
Annual Report 2003-2004
                                                       Review by the Commissioner

community relations campaign. As a matter of         policies, strategies for the smooth running of each
fact, the number of complaints received during       Division, including the provision of logistics,
the year under review increased from 499 to 738.     equipment as well as staff. With the reinforcement
This represents a 76% increase over the previous     of the ICAC’s operations, the Administration and
year. With the then existing level of personnel in   Finance Division was called upon to assume a
the Corruption Investigation Division, a total of    more important role in servicing the operational
824 investigations were completed. On the basis      divisions. Different aspects of the Administration
of investigations carried out, recommendation for    and Finance Division are considered below and
prosecution was made by the Commission in            show the extent of the task that exist in the
respect of 24 charges which have been referred       administration of the organisation.
to the DPP’s office. A clearer picture of the
performance of the Investigation Division together
with the relevant detailed statistics are provided   RECRUITMENT OF PERSONNEL
for in the next chapter. With regard to the
Community Relations and sensitization campaigns,     The ICAC moved from Stratton Court to its
784 seminars, workshops and talks were               present location in May 2003. This change in
conducted with different sectors of stakeholders     location allowed the Commission to programme
and around 33,436 participants were reached as       its staff intake and the required office space was
opposed to the targeted 13,000 for that year.        then provided. Accordingly, the recruitment
More detailed information are provided for in the    exercise, which started in January 2003, was
relevant chapter on Prevention Education. During     pursued in a phased manner. Though it was
the period under review, the partnership concept     imperative to make all the four Divisions
adopted in the first year of operation was           operational in a concurrent manner, the
strengthened and links with the key stakeholders     Commission had to proceed in a phased manner
in the society were intensified.                     in view of time and manpower resources
                                                     constraints.

ADMINISTRATION & FINANCE DIVISION                    For the recruitment process to be conducted
                                                     expeditiously, the Commission had to devote
In order to achieve the objectives set down in       sufficient time on a regular basis. The recruitment
the law, during the year under review, the           process took time and carried on in the third
Commission was called upon to ensure that            quarter of 2003/2004. This was compounded by
directives and policies formulated in accordance     the different recruitment procedures imposed on
with its mandate under the PoCA 2002 were            the Commission to ensure that the right personnel
effectively and efficiently implemented. In this     is recruited. It revealed the intricate difficulties
regard, the continuous support and dedication of     of recruiting personnel for such an agency. The
the Administration and Finance Division was vital.   process gradually proved to be appropriate in
In fact, the setting up of an Administration and     order to ensure the selection of appropriate staff.
Finance Division had been motivated by the need      This first major recruitment exercise attracted
to allow the Corruption Investigation Division,      considerable interest both from public and private
Corruption Prevention and Education Division and     sector candidates and those who had just
the Legal Division to focus on the implementation    completed secondary or tertiary education. No
of the three pronged strategy, thus allowing the     doubt such a situation warranted a stringent
officers recruited for the three Divisions to        selection process to identify the best qualified and
devote their entire time to their respective         mainly those who would be suitable to serve the
statutory functions. The Administration and          ICAC, without losing sight of the need for
Finance Division focussed on providing assistance    transparency. Apart from ensuring strict
to the operational machinery of the Commission       compliance with the law, the Commission also had
and assisted the latter in the formulation of        to ensure that the potential recruits satisfied the


                                                                             9
                                                                                 Annual Report 2003-2004
      Review by the Commissioner

      standards with regard to integrity and suitability.    All details requested by the Parliamentary
      Passing an interview and possessing the required       Committee were duly provided with their relevant
      qualifications do not always mean that the person      justifications. Such details are also provided,
      recruited is suitable for the post, especially given   before presentation to the Parliamentary
      the exigencies and requirements and the nature         Committee, to the Corruption Advisory
      of responsibilities attached to working with the       Committee. Subsequently before the estimates
      ICAC. In fact, the Commission will confront such       are presented before Parliament, every detail
      situations where it considers that some officers       regarding any item of expenditure is submitted to
      do not fit within the organization.                    the Prime Minister’s Office for their information.
                                                             It is also important to note that the budget is
      It should also be mentioned that finding candidates    agreed upon and approved by the relevant
      of the required profile for certain posts was not      authorities on the basis of the framework
      an easy task in particular for the Legal Division,     provided for in the law.
      Corruption Investigation Division and the Systems
      Enhancement Branch of the Corruption                   Notwithstanding the unhealthy environment that
      Prevention and Education Division. This                such criticisms created, the Commission wishes
      prompted the Commission to readvertise certain         to reiterate that the ICAC has always been
      posts with, however, no better outcome. The            accountable regarding the use of its funds.
      whole recruitment exercise has imposed inevitable      Furthermore, I deem it pertinent to underline that
      constraints and impeded to some extent the work        the distortion and misconception to which the
      in these Divisions. However, inspite of this           public has been exposed to on the subject of
      situation, the Commission was, with the resources      expenditure by the ICAC is created and done with
      available, able to pursue the implementation of its    view to frustrate the efforts made to combat
      mandate in an effective manner.                        corruption.


      THE ICAC’S BUDGET                                      INVESTIGATION

      With regard to the Budget of the ICAC, the PoCA        In its first year of operations, the ICAC
      2002 defines in clear terms the stages through         demonstrated its firm intention to adopt a zero
      which the Commission should proceed before             tolerance approach in the discharge of its
      the National Assembly allocates fund to the            investigative mandate into corruption and money
      institution. The process of approval of the ICAC’s     laundering. This trend was consistently maintained
      budget is not hidden by any secrecy and is,            throughout the period under review. It is no
      therefore, a matter which is within the ambit of       longer business as usual for the corrupt who now
      public scrutiny. In the context of the review of       needs to think twice. Others, who have, over
      the 2004-2005 Estimates, unfortunate and
                                                             the years, consolidated their position and weaved
      humiliating comments were made and the
                                                             a network of invisible connections and support to
      Commission was unjustly qualified as being opulent
                                                             pursue their corrupt activities, have been
      and lavish.
                                                             compelled to make use of more sophisticated
      However, the truth remains that funds are              means and complex schemes to withstand the
      allocated to the Commission in accordance with         pressure from the ICAC. I must, however, stress
      the structural exigencies and operational              that any initiative or scheme designed to distract
      responsibilities laid down in the law and are used     or destabilize the ICAC can only delay the fight
      judiciously and solely in the furtherance of these     against corruption but cannot defeat it. The
      objectives. Detailed information to the nearest        emphasis all along will be to uphold the rule of
      decimal was provided to the Parliamentary              law in the implementation of the national anti-
      Committee in respect of the use of such funds.         corruption strategy defined under the Act.


                               10
Annual Report 2003-2004
                                                            Review by the Commissioner

The approach adopted with regard to complaints            Amendments to protect the covert part of the
has gradually earned the trust of the community.          investigation process have been formulated since
The statistics tend to indicate the increasing            2002.
number of corruption complaints. Furthermore,
while in the initial stages of operation, most of         There is also a generated perception that the ICAC
the complaints were of an anonymous nature, the           is not performing because no conviction has yet
period under review started to show an                    been secured. This raises three issues that have
emergence of complaints where the complainants            to be set right and in their proper context. First,
began to identify themselves. This is further             any attempt to bring the corrupt to justice will
evidence of the magnitude of the trust and                take time. Any investigation into complex offences
confidence that the ICAC has been able to inspire.        takes time. Secondly, the ICAC’s process, being
The complexity surrounding the handling of                limited under the law, finds itself with some
anonymous complaints by the Commission is                 serious constraints. The law is such that,
considered later in the chapter dealing with              whenever any investigation is completed, it has
Investigation. I must emphasize that there has            to be sent to the Operations Review Committee
been a lot of confusion surrounding the issue and         for its opinion before it is submitted to the DPP’s
very often some have unsuccessfully sought to                                     ,
                                                          office. Whilst the DPP in law, has to provide his
make use of this confusion as to how the ICAC             consent, the matter takes further time at that level
was handling anonymous complaints to try to
                                                          before any such consent is given. Finally, after
undermine the ICAC.
                                                          the DPP has consented, the case is lodged in
                                                          Court. And we are all aware that any proceedings
This increase in the level of complaints augurs well
                                                          in Court takes, quite some time before the case
in so far that it shows public determination to curb
                                                          is even heard. It would not be unreasonable to
the corruption level in the country. On the other
                                                          assume that such investigation can take between
hand, this should not divert attention from the
                                                          one to two years, at minimum, to be dealt with
real causes for this state of affairs which is a matter
                                                          by the Court. The detractors of the anti
of concern for every citizen of this country.
                                                          corruption and anti money laundering strategy, in
Details regarding the statistical evolution of the
Investigation Division are provided in the chapter        full knowledge of the above, used all means of
on investigation. Those statistics will reveal the        communication to create, on the basis of the
performance and achievements of the ICAC at               abovementioned legal and procedural
investigation level and indicate the seriousness with     impediments, the impression that the ICAC is not
which the work is being carried out.                      performing at all. Why? Because, according to
                                                          them, it has not within two years secured a
As usual, investigation has remained the glamour          conviction. They deliberately make use of the
part of the ICAC’s mandate. The arrests effected          above context and any judicial constraints, to
have been given wide publicity, so much so that           create the negative impression that the ICAC is
this has on a number of occasions given rise to           not performing. Everyone knows that there is a
unwarranted and adverse criticisms against the            lot of delay in our judicial system. Nevertheless,
Commission. The Commission had been in the                the fact remains, and this is confirmed by the
past criticized for the wide media coverage given         statistics, that the ICAC has in the given
to its investigation work. This is indeed a matter        circumstances, been able to shoulder its
of regret as at all times the Commission has              responsibilities. This is elaborated upon later.
maintained its duty of confidentiality
notwithstanding the legitimate claims of those
who vindicate the right to be informed of on-going        COMMUNITY RELATIONS
investigations and any complainant’s decision to
publicise his complaint. Conscious of the risk that       Education of the public continued in a sustained
this may involve, the Commission managed to               and organized manner in close consultation with
bring this difficult issue under better control.          all the stakeholders. No doubt the disinformation


                                                                                  11
                                                                                       Annual Report 2003-2004
      Review by the Commissioner

      campaign mounted against the ICAC coupled with         the Commission had not yet recruited the relevant
      persistent, malicious and defamatory attacks to        officers for that Division. However, during the
      bring into disrepute the institution and its staff,    year 2003-2004, substantial grounds have been
      constituted obstacles in the education campaign        covered in this area. As a matter of fact, with
      but could not derail the process. In such              respect to prevention reviews, the Commission
      circumstances, community relations work had to         intends to adopt a collaborative approach with all
      be more vigorous and reinforced.                       stakeholders in order to bring effective reform
                                                             and system improvements with a view to
      Nevertheless, in spite of this artificially hostile    eliminating opportunities for corruption. In that
      climate, the community relations officers pursued      regard, the findings observations and comments
      their education campaign without any fear, at all      contained in the National Survey on Corruption
      levels of society. Their dedication and patience       would be used as a basis to adopt a focused
      overcame the scepticism and criticism through a        approach in the detailed analysis of systems and
      message of truth. The seminars, workshops and          procedures in sectors or institutions perceived
      talks generated continuous and massive support         as corrupt or prone to corruption.
      to the work of the ICAC, and this augurs well for
      the year ahead.
                                                             AMENDMENTS TO THE PREVENTION
      Having personally participated in such educational     OF CORRUPTION ACT 2002
      events, I am at ease to conclude that those who
      have been used to live by ill-gotten gains can feel    In my review for 2002/2003, I highlighted the
      and understand the potential threat that the ICAC      urgency for amendments to consolidate the
      represent to them. With such popular pledge,           provisions of the PoCA 2002 to make it become
      the community relations campaign will be pursued       a more effective instrument in the fight against
      to enhance public contribution in the fight against    corruption and money laundering. After two years
      corruption. During the seminars and workshops          of existence, it has become even more obvious
      which I have personally attended, I can confirm        and urgent for the amendments approved by the
      that the population has had enough of corrupt          Parliamentary Committee to be considered at the
      practices and wants the problem to be dealt with       level of the National Assembly. The last two years
      seriously. These workshops helped the ICAC to          have led the Commission to conclude how the
      clear a lot of misunderstandings and gradually built
                                                             legislation is full of loopholes and weaknesses.
      confidence among the population. No doubt
                                                             Nevertheless, the ICAC as the agency responsible
      those targeted will always seek to destabilize the
                                                             for implementation, had to adopt a purposive
      ICAC. But the strategy has to be enhanced. It is
                                                             interpretation in the law in order to ensure that
      crucial to understand how the role of these
                                                             the strategy moves forward. This is an area which
      education campaigns coordinated and conducted
      by the same agency fighting corruption on the          also led to severe criticisms from some quarters.
      investigation level, is vital for the success of the   At times even baseless and personal attacks were
      strategy. The three-pronged approach by the            made to the extent of seeking to qualify the
      nodal agency fighting corruption is crucial. The       Commission as incompetent. The truth remains,
      statistics provided in chapter three speak for         however, that the Commission has to ensure that
      themselves.                                            the interpretation it adopts translates the intention
                                                             of the legislator and gives purpose to the national
                                                             strategy contained in the law. Otherwise this
      SYSTEMS ENHANCEMENT                                    would have led to absurdity. The Commission
                                                             adopts an objective approach and has the will to
      With regard to Corruption Prevention, I must           carry on with its mission.
      concede that in the first year of operation, no
      review exercise could be undertaken inasmuch as        While the Supreme Court has brought clarity on


                               12
Annual Report 2003-2004
                                                          Review by the Commissioner

the powers of arrest of the Commission,                 Committees have been generally cordial and have
numerous grey areas and loopholes which impede          been characterized by convergence of views of
the investigation process are yet to be attended        both parties on matters which have a direct
to. Inasmuch as the ineffectiveness of certain vital    bearing on the interest of the institution.
sections of the law in particular to investigation in   Nevertheless the work of the Operations Review
suspected cases of money laundering, is a matter        Committee was seen as being more complex and
of prime concern to everybody, I can reiterate          certain ambiguities continued to prevail.
the need for the enactment of the amendments            Accordingly, with a view to assisting the
so as to ensure that the momentum gathered              Committee in its monitoring role as set forth in
during the last two years is maintained. Without        the law and avoiding any risk of conflicts, the
appropriate amendments, corruption and money            Commission invited Mr Bertrand de Speville,
laundering will continue to undermine the rule of       former Commissioner of ICAC Hong Kong to brief
law and to threaten the democratic fabric of our        the Members of the Committee. In his address
country and weaken its economic structure.              to the Committee, Mr de Speville drew the line
                                                        between the responsibilities of each of the three
                                                        major players, namely the Commission, the
ADVISORY COMMITTEES                                     Parliamentary Committee and the Advisory
                                                        Committees. He also provided to the Committee
During the first year of operation, it was not very
                                                        valuable guidance on the manner it should view
clear to a number of stakeholders whether the
                                                        its attributions and to monitor the way the
ICAC was in anyway accountable for its actions.
This gave rise to misconceptions and some               Commission is fulfilling its functions. Mr de Speville
legitimate concern for a short time. However,           also highlighted the need for politicians to resist
gradually such concerns were dissipated with the        the temptation of trying to adopt an attitude that
Advisory Committees, constituted in November            may be perceived by the public as an interference
2002, pursuant to section 39 of the Act, playing a      in the work of the ICAC.
preponderant role as accountability mechanisms
of the ICAC.        Interactions between the
Commission and the Advisory Committees were             PARLIAMENTARY COMMITTEE
frequent inasmuch as the full scale operations of
the Corruption Investigation Division and               The year under review witnessed a sharp focus in
Corruption Prevention and Education Division            the monitoring role conferred by the legislature
generated a series of substantial issues which were     upon the Parliamentary Committee under the
submitted to the Advisory Committees.                   Prevention of Corruption Act (PoCA) 2002. Both
                                                        Members of Parliament and the public showed
These Committees have, during the period under
                                                        sustained interest in the work of the Parliamentary
review, provided valuable contribution and
                                                        Committee and there was a common concern on
guidance to the Commission and with the
                                                        their part to ensure that the ICAC enjoyed the
experience gathered, it has become clear that
these Committees have continued to assume their         required independence and had the required
responsibilities in monitoring the activities of the    resources to pursue its statutory mission.
Commission. In fact, the relationship between           Consequently, the effectiveness of this
those Advisory Committees and the Commission            accountability mechanism was under scrutiny.
imposed to the extent that the roles of the             During the year under review, the Commission
respective organs became clearer. No doubt              extended all the support required in order to
being new creatures, they are bound to have             ensure that the Committee could discharge its
continued ambiguities and qualms regarding their        duties under the PoCA 2002.
respective responsibilities. But with time such
uncertainties and ambiguities are all bound to be       Within the ambit of the law, the Committee has
cleared.                                                as prime objective, the duty to monitor the manner
                                                        in which the Commission has been coordinating
In general, interactions between the ICAC and the       the implementation of the national strategy against

                                                                                13
                                                                                     Annual Report 2003-2004
      Review by the Commissioner

      corruption. This monitoring role has provided        detailed disbursements made by the Commission
      the Committee the opportunity to assess in a         in relation to its statutory activities. All along the
      comprehensive manner the performance of the          Commission provided to the Committee such
      Commission in relation to its prescribed statutory   information as it required to assess the level of
      functions.                                           transparency in the management of public funds.

      With regard to its investigative mandate, the
      Commission provided to the Committee statistical     THE YEAR AHEAD
      reports on the workload of the Corruption
      Investigation Division together with such            The concluding part of my Review purports to
      indicators to enable it to assess the Commission’s   project for the year ahead. The projection is
      performance in relation to the handling of           based on the need to constantly improve the
      complaints. It is to be noted that information       organization with a view to reinforce the anti
      could only be provided to the extent as prescribed   corruption and anti money laundering strategy.
      by law. I can confirm that the Committee was         The initial years of any such organization portray
      fully briefed and had assumed its role fully in      the establishment process of the organization.
      assisting the Commission on these matters as well.   This is a gradual process which can spread over a
      The Commission ensured that the Committee            few years. It is precisely the reinforcement of
      was, regularly, at every meeting and some issues     the system establishing the organization in the
      on a quarterly basis, briefed about the activities   terms of legislation that eventually lead to reinforce
      of the two operational divisions as well as the      its operations. Hence the need to constantly
      finances of the Commission in strict accordance      upgrade the establishment and its structure and
      with the provisions of the law.
                                                           to assess and project on a yearly basis the
                                                           achievements and the areas which require future
      Another important issue to which the Committee
                                                           developments.
      devoted substantial time, was the proposed
      amendments to the PoCA 2002. As I highlighted
                                                           The cornerstone of any projection for the future
      in my first review, the PoCA 2002 was subject to
                                                           remains the constant need to strengthen
      serious tests at the beginning of the mandate of
                                                           commitment and loyalty to the cause in order to
      the Commission and several major shortcomings
                                                           meet the challenges and responsibilities cast on
      were noted which required urgent attention. The
      flaws in the law further retained the attention of   the Commission by law. Whilst the Commission
      the Committee during the second year of              is satisfied that the objectives outlined in the first
      operation. Accordingly, further requests for         year’s Report have been achieved, this year the
      amendments to the law were proposed through          Commission will continue to reinforce the
      the Parliamentary Committee. At the end of           institution. I again reiterate the need for continued
      August 2003, the Committee had already               improvement of the institution at all levels with
      considered and approved the proposals made by        the ultimate objective of building a modern
      the Commission and had referred the matter to        institution to fight corruption and money
      the Prime Minister in accordance with the            laundering.
      provisions of PoCA 2002. However, by the end
      of June 2004, the amendments approved by the         In the year ahead, the capability to fight corruption
      Committee, were still under consideration.           and money laundering will be further reinforced
                                                           by a strict and concerted application of the
      The Committee also closely monitored                 national anti-corruption and anti money laundering
      expenditure. Within the ambit of the law, the        strategy. In the field of investigation, cruising
      Committee considered the budgetary estimates         speed has been attained and the trust the people
      of the Commission. The Committee was also            have placed in the ICAC by reporting corruption
      provided information on a regular basis on the       will be upheld. ICAC’s pledge remains unalterable

                              14
Annual Report 2003-2004
                                                        Review by the Commissioner

- whatever is capable of investigation under the      framework to combat corruption and money
law will be investigated.                             laundering. This convention which complements
                                                      the United Nations Convention Against
With the support of all stakeholders, corruption      Transnational Organised Crime, will, I hope,
in everyday life will be contained and will be        provide further momentum to eliminate the
brought under control from the landscape of           scourge of corruption. Enforcement of the
human society. To fulfill this ambitious objective,   Convention will certainly bring hope to the
the need to criminalize every act of corruption       voiceless and those who have been trampled by
and sensitize the population, requires faith and      the machinery of corruption. With respect to
trust. The pursuit of the ICAC’s mission rests on     money laundering, the Commission stresses on
such values. I will ensure that the framework for     the need to ensure that the international obligations
effective action remains at all times balanced,       undertaken under the FATF40 + 8
strong, pragmatic and nondiscriminatory.              Recommendations as adopted by the ESAAMLAG
                                                      framework be implemented with total
The Commission will seek to rationalise its           commitment and compliance.
operations and establishment with a view to
achieving such objective. At the level of             With these words, I wish to express my sincere
operations, the Commission will proceed with          thanks to the Chairman and Members of the
modernization of the investigation division and       Appointments Committee, the Parliamentary
with the development of new facilities that will      Committee, the Advisory Committees and the
seek to reinforce the division. There will be more    local partners of the ICAC for their valuable
focus on capacity building with reinforced training   support during the year under review. Here I must
from foreign agencies. The need for training at       also emphatically underline the generous
both operational levels remains a constant            assistance and contribution of the UNDP and the
requirement of improvement. The Report Centre         European Union to the activities of the ICAC.
will be computerized in order to meet modern
standards. The recruitment exercise at all levels     I also wish to extend my thanks and sincere
will be finalized so as to give maximum resources     appreciation to Messrs Gerard Bisasur and
to the two operational divisions.                     Moussa Taujoo who have demonstrated
                                                      unswerving loyalty and dedication to further
The Commission will conduct a review of its           advance the mission of the ICAC.
establishment in order to ensure continuity of its
operations and stability to its personnel. The        Last but not the least, a very special thanks to my
Commission is also examining the possibility of       staff, who in the bleakest of moments, extended
putting up its own premises with a view to            their wholehearted support to me and the
providing easier access to the public and more        institution. Their dedication has been exemplary
conducive working environment.                        in all respects.

The subsequent chapters provide more details on       November 2004                     Navin Beekarry
how the year ahead is being projected in respect                                         Commissioner
of the two operational divisions and the support
divisions.

To conclude, I wish to underline the importance
of international and regional cooperation in the
fight against corruption and money laundering.
The United Nations Convention Against
Corruption adopted by the General Assembly of
the United Nations provides a comprehensive


                                                                              15
                                                                                   Annual Report 2003-2004
                          16
Annual Report 2003-2004
                Independent Commission Against Corruption




                   Corruption Investigation Division


                                  Mission Statement

The Investigation Division fearlessly and impartially investigates into suspected acts of
corruption and money laundering in the public and private sectors and, by playing its part in
the strong and effective enforcement of the laws, helps defeat corruption and money laundering
in Mauritius.




                                                                     17
                                                                          Annual Report 2003-2004
                          18
Annual Report 2003-2004
                                                  Corruption Investigation Division

INTRODUCTION                                               VISION

The insidiousness and wide ranging corrosive               The Commission’s mandate in relation to
effects of corruption and money laundering on              investigation is defined in the Prevention of
                                                           Corruption Act 2002 (PoCA) whereby, the
society in general led to those crimes being
                                                           Commission’s functions include, amongst others,
identified as a key factor in economic
                                                           to:
underperformance. In fact, research carried out
in these fields have concluded that corruption and         !    receive and consider any allegation that a
money laundering have serious negative impact on                corruption offence has been committed;
economic development and constitute a major                !    detect or investigate any act of corruption;
obstacle to poverty alleviation. It is from this           !    investigate the conduct of any public official
perspective that national administration and                    which, in its opinion, is connected with or
international agencies seek to regulate corruption              conducive to corruption;
                                                           !    detect or investigate any matter that may
and money laundering as a priority issue. The
                                                                involve the laundering of money or suspicious
ultimate objective is to bring to justice those                 transaction that is referred to it by the
persons and individuals who obtain an advantage                 Financial Intelligence Unit (FIU);
through corrupt practices and who very often               !    take such measures as may be necessary to
resort to money laundering to complete their                    counteract money laundering in consultation
criminal activities. At the end of the day, they                with the FIU; and
defy the law thereby undermining the very                  !     co-operate and collaborate with the FIU in
foundation of the national economy. This is the                 fulfilling common objectives.
reason why the public starts losing faith in
                                                           The implementation of the above mandate is the
institutions inasmuch as such practices undermine          responsibility of the Corruption Investigation
the very fabric of the society. This leads to high         Division which, as one of the executive arms of
public expectation and demand for the corrupt              the Commission, also has the duty to enforce the
to be brought to justice. It is precisely the above        provisions of the Financial Intelligence and Anti-
context that has given the enforcement                     Money Laundering Act 2002 (FIAMLA) relating to
component of the anti-corruption and anti-money            investigation of money laundering and suspicious
laundering strategy, a seemingly more important            transactions. The Commission also has the
                                                           mandate to prosecute its own investigations,
role. The people want the problem to be tackled
                                                           subject to the consent of the DPP  .
on a more serious note. Hence, the high public
expectations on the investigation dimension of
such strategy. However, the investigation path is          REVIEW OF WORK
fraught with serious obstacles and difficulties.
                                                           In the initial phase of the investigation division’s
The Corruption Investigation Division of the ICAC          operations, a lot of confusion arose in respect of
has, over the last two years, been in the forefront        the interpretation of some of the provisions of
                                                           the law.
in upholding the rule of law by investigating all
complaints of corruption capable of being
investigated and money laundering. The year                PRELIMINARY INVESTIGATION – TIME
2003-2004, has, in many respects, been rich in             FRAME/FURTHER INVESTIGATION
events for the Division which has, without fear,
favour or ill-will, intensified its efforts to apply the   A parenthesis is here opened to clarify the
law in a consistent manner. The initiatives started        confusion that arose in some quarters regarding
in 2002-2003 were pursued in a comprehensive               the interpretation and application of section 46 of
manner in compliance with the provisions of the            the PoCA 2002. This provision has given rise to
law.                                                       wild speculation and even formed the basis of


                                                                                   19
                                                                                        Annual Report 2003-2004
      Corruption Investigation Division

      unwarranted criticisms against the Commission.         interpretation to be given to section 46 in order
      The Commission, however, feels it appropriate          to give sense and effect to the law. That is,
      to clear the ambiguity. There are two ‘types’ of       subsection (3) has to be read as referring to both
      ambiguities in relation to the provisions of           subsections (1) and (2) of section 46 in order for
      section 46.                                            the logical follow up of a further investigation or
                                                             discontinuation following a preliminary
      First, the confusion arose regarding the application   investigation in both complaints of corruption and
      of the time frame imposed under section 46. The        referrals of money laundering. The above will
      Commission, as legally advised, interprets section     hopefully clear the confusion.
      46(1) to mean that, in complaints made under
      sections 43, 44 and 45, where the Commission,
      on the basis of a complaint received, “becomes         CLASSIFICATION OF COMPLAINTS
      aware that a corruption offence may have been
      committed”, the complaint is referred by the           Another area which gave rise to additional
      Commission to the Director of Investigation for        criticisms was the manner in which complaints
      a preliminary investigation. This is the first step    were being investigated into. On the basis of the
      in the investigation procedure provided for under      interpretation given to section 46(1) above, it is
      section 46(1). In complaints involving a possible      obvious that prior to the application of the above
      corruption offence, the Director has seven days,       provision, the complaints have to be received,
      or such other period as the Commission may             recorded, classified and processed. The
      direct, to make a report to the Commission of          Commission has been under criticism regarding
      the preliminary investigation. In the case of money    certain aspects of the complaints and investigation
      laundering, the Director has to complete a             procedures. The clearest example of confusion
      preliminary investigation within seven days of a       is with respect to anonymous complaints. The
      referral by the Financial Intelligence Unit. It is     following paragraphs are presented with a view
      interesting to note that in cases of money             to provide a clearer picture of the implementation
      laundering, the preliminary investigation has to be    of the provisions of the law with respect to the
      completed within a fixed period of seven days.         investigation mandate.
      Hence section 46(`1) and (2) define the procedure
      for preliminary investigation in both corruption
      complaints and money laundering referrals and the      TRACEABLE AND ANONYMOUS
      respective timeframes for the conduct of such          COMPLAINTS
      preliminary investigation.
                                                             The Prevention of Corruption Act 2002 defines
      Subsection (3) defines the next step that follows      different types of complaints that can trigger off
      the preliminary investigation. Subsection 3 defines    an investigation. Part V of the Act, and more
      the logical consequential procedure to the             specifically, sections 43, 44 and 45 regulate the
      preliminary investigation. An unfortunate omission     types of complaints that can be made to the
      has crept in where, in the first sentence of           Commission. In fact, these provisions define the
      subsection (3), subsection (1) should have been        origins of the complaints. Any complaint made
      included to provide for corruption also. This          under those provisions can be categorised only
      would then give purpose to the section. On a           into two sources: traceable and non traceable
      strict and literal interpretation of subsection 3,     complaints. Traceable complaints are those
      there would have been no further investigation         whereby the source of the complaint is
      or discontinuation of an investigation in cases of     identifiable. Non traceable complaints are those
      corruption following a preliminary investigation.      where the source cannot be identified. These are
      Such an interpretation would have resulted in          known as anonymous complaints. These are
      absurdity. The Commission, on basis of legal           provided for under sections 43, 44 and 45. The
      advice, opted for the only logical and purposive       law also makes it a duty for an officer of a public


                               20
Annual Report 2003-2004
                                               Corruption Investigation Division

body, who suspects that an act of corruption has                          Total number of complaints received
been committed within or in relation to that public                               [with medium used]
                                                           90
body, to make a written report to the Commission.
                                                           80
The only source of non-traceable complaint is in
                                                           70
section 43(1)(a) where the law enables any person          60
to make a complaint without disclosing his                 50
identity. This is what is commonly known as                40
anonymous complaint and is elaborated upon later.          30
It is also important to note that the Commission           20

is, under the law, empowered to start an                   10
                                                            0
investigation “on its own initiative”. This has been




                                                                                                               Dec-03


                                                                                                                        J an-04

                                                                                                                                  Feb-04

                                                                                                                                           Mar-04
                                                                 Jul-03




                                                                                             Oct-03

                                                                                                      Nov-03




                                                                                                                                                             M ay-04


                                                                                                                                                                       Jun-04
                                                                                    Sep-03




                                                                                                                                                    Apr-04
                                                                          Aug-03
interpreted as meaning any circumstances where
the Commission becomes aware of an act of                  In person      Letters      Referral from Authorities         Phone and Hotline          Fax, E-mail and Website


corruption capable of being investigated.                                                                                                                              Chart 2
                                                       ANONYMOUS COMPLAINTS
Besides the foregoing, referrals of suspected acts
of corruption may be made by other authorities.        The PoCA 2002 provides that any person may,
Regarding money laundering, the Financial              without disclosing his identity, inform the
Intelligence Unit is empowered to make referrals       Commission of the possible existence of a
of money laundering or suspicious transactions to      corruption offence. In fact, this provision is
the Commission, by virtue of the FIAMLA 2002.          considered unique in the sense that the
                                                       Commission has an obligation to investigate
During the period under review, the Commission         anonymous complaints where the Commission
received a total of 738 complaints, most of which      considers that a corruption offence may have been
were through letters, by phone and the                 committed. The Commission cannot discard any
complainants calling in person. Chart 1 below          anonymous complaint on the mere fact that the
shows the number of complaints registered, and         identity of the complainant is not known. By virtue
distinct channels used to report complaints:           of the provisions of the PoCA 2002, the
                                                       Commission is accountable to the Operations
                                                       Review Committee in matters relating “to
                                                       complaints of corruption made to the Commission
    MEDIUM USED TO REPORT COMPLAINTS
                                                       and the manner in which the Commission is dealing
                                                       with them” and to the discontinuation or
                                                       conclusion of its investigations.

                                                       As such, the Commission has to satisfy the ORC
                                                       that any anonymous complaint where the
                                                       Commission considers that a corruption offence
                                                       may have been committed:

                                                       !        has been the subject of a preliminary
                                                                investigation; and
                                            Chart 1    !        a preliminary investigation has disclosed no
The breakdown of complaints received during that                possible offence under PoCA or FIAMLA and,
period broken down on a monthly basis through                   as such, has to be discontinued; or
the abovementioned channels was as indicated in        !        the preliminary investigation has led to the
chart 2:                                                        conclusion of a possible offence under any of
                                                                those legislations and, therefore, the need for
                                                                a further investigation.


                                                                                                                21
                                                                                                                             Annual Report 2003-2004
      Corruption Investigation Division

      It is also worth noting that not all anonymous         and reputation of any person being the subject of
      complaints have to go through a preliminary            the complaint.
      investigation inasmuch as some of those
      complaints are merely frivolous and vexatious and,     However, one should not allow such risks to cloud
      as such, do not even warrant any preliminary           the real reason as to why anonymous complaints
      investigation. These have, nevertheless, to be         are regulated by law. The rationale is simply that,
      brought before the ORC to be discontinued.             at the inception stage of any anti corruption or
                                                             anti money laundering strategy, the public at large
      However, there has in the past been some concern       is uncomfortable with having to disclose their
      expressed on the handling of anonymous                 identity when making a complaint. They fear the
      complaints by the Commission. This gave rise to        risks of reprisals from those whom they are
      a perception that the Commission was                   complaining about. That is precisely the reason
      investigating into all sorts of frivolous complaints   as to why the legislator has provided for such
      and thereby causing harm to the integrity and          types of complaints, conscious of the fact that, as
      reputation of some citizens. This is not correct.      the strategy unfolds, more people are likely to
      The Commission has always been and is always           come forward and disclose their identity when
      alive to such risks to the reputation and integrity    making a complaint. In fact, the statistics gathered
      of individuals whenever it has to consider             at the ICAC’s investigation division tend to
      anonymous complaints. On this matter, the              confirm such a development. It is interesting to
      Commission wishes to underline that an                 note that two years down the line have shown a
      anonymous complaint is investigated only if the        shift from more anonymous complaints at the
      facts reasonably disclosed in the complaint are        beginning to more identifiable complaints now. It
      adequately reliable and are not vexatious and, as      is also here apposite to warn of the risks attached
      such, the complaint justifies at least a preliminary   to making frivolous and vexatious allegations in
      investigation and possibly a further investigation.    traceable cases.
      In this regard, it is worth noting that during the
      period under review, a total of 371 anonymous          Nevertheless, the crucial point about anonymous
      complaints were received out of which only 194         complaints is that these should not be used as an
      have disclosed sufficient material evidence to be      excuse for mudslinging. The issue, is, however,
      classified as pursuable, meaning where the             not about anonymous complaints being in
      Commission considered there was a need to carry        themselves responsible for the harm to the
      out a preliminary investigation. Again it is crucial   integrity of any person, but rather, to the wide
      to understand that, even though an anonymous           publicity given to such complaints. Very often
      complaint has gone through a preliminary               such complaints unfortunately find their way in the
      investigation, this does not necessarily mean that     press and it is such publicity which distorts the
      the preliminary investigation will disclose the need   entire picture about the rationale behind
      for further investigation. In fact only a small        anonymous complaints. For example, any
      minority of anonymous complaints proceed to            complainant can decide, after making a complaint
      further investigation.                                 to the ICAC, decide to give publicity in the press
                                                             to his complaint. The case for anonymous
      As far as anonymous complaints are concerned, it       complaints is that it reassures the population that
      is important to understand the apparent rationale      such complaints are being investigated and builds
      behind the legislator’s intention on such a matter.    confidence in the population. However, the public
      One can safely argue that the provisions of section    should be careful and should retain from making
      43(1)(a) indirectly provide a right to the             frivolous and vexatious complaints. This is
      population to make any anonymous complaint.            precisely the reason why in April 2003, the
      The Commission is fully conscious of the fact that     Commission, conscious of this risk, clearly made
      anonymous complaints can be frivolous or               proposals for an amendment to protect the
      vexatious and, as such, harmful to the integrity       investigation process.

                               22
Annual Report 2003-2004
                                               Corruption Investigation Division

The Commission, however, wishes to point out           and money laundering only. This restricted
that, at the investigation Division level, all         mandate imposed by the PoCA 2002 and FIAMLA
anonymous complaints are sifted through a              2002 is yet to be adequately known to the general
thorough and rigorous examination procedure            public. Consequently, numerous complaints
which eventually leads the Commission to decide
                                                       completely outside the purview of the PoCA 2002
on which anonymous complaints should proceed
                                                       and FIAMLA 2002 were reported to the ICAC and
with preliminary investigation. It is, however,
important to note that, under the law, all             could not therefore be pursued and had to be
complaints, except those which do not disclose         referred to relevant public bodies for such actions
any possible corruption offence, be it anonymous       as may be required. Such referrals have been
or traceable, have to undergo the preliminary          made with the approval of the Operations Review
investigation stage because any complaint opened       Committee. At the beginning, there is a natural
in the books has to be eventually closed before        tendency for the public to make any type of
the ORC.                                               complaint. However, the Commission ensures
                                                       that it records the complaint on the basis of a
                                                       system known as First Information Report (FIR)
PURSUABLE/NON PURSUABLE
                                                       and when, the complaint is considered as having
Complaints registered traceable or non traceable       nothing to do with corruption or money
fall into two broad categories namely:                 laundering, the person is briefed accordingly and
                                                       his consent is sought before referring the matter
!     Pursuable                                        to any other authorities, if need be.
!     Non-Pursuable

The Commission has, under the law, an obligation       OFFENCES COMMITTED PRIOR TO
to investigate all complaints capable of               ENACTMENT OF THE POCA 2002 AND
investigation, i.e. which disclose a corruption        FIAMLA 2002
offence irrespective of whether the complainant
has disclosed his or her identity or not.
                                                       Following the judgment of the District Court in
Non-pursuable complaints are those which have          the Choonee case, where the Court ruled that
the following characteristics:                         the Commission does not have the jurisdiction to
                                                       investigate pre 2002 offences unless the offence
    (i)     The nature of complaint does not fall      is considered to be a “continuous offence”. The
            within the purview of the ICAC and has     ICAC could only investigate offences committed
            to be referred to other institutions       after the coming into force of the abovementioned
    (ii)    The alleged offence was committed          legislation subject to the above condition.
            before the enactment of the Prevention     Accordingly, complaints relating to offences
            of Corruption Act 2002 and the Financial   committed prior to the coming into operation of
            Intelligence and Anti-Money Laundering
                                                       the above laws have been referred to the
            Act 2002.
                                                       Commissioner of Police and other agencies with
    (iii)   Too vague.
                                                       the approval of the Operations Review
                                                       Committee.
OUTSIDE THE AMBIT OF THE POCA 2002
OR FIAMLA 2002                                         TOO VAGUE OR ARE OF A TOO GENERAL
                                                       NATURE
From a purely legal perspective, the ICAC is
                                                       Certain complaints presumably made in good faith
empowered to deal with reports of corruption
                                                       fail to qualify for a preliminary investigation in the

                                                                               23
                                                                                    Annual Report 2003-2004
      Corruption Investigation Division

      absence of a minimum clue and for being of a vague   of the total. The total for the year under review
      and general nature. Such complaints have been        was as shown in chart 5:
      either referred to relevant public bodies or          Complaints received (determined as Non-Pursuable)
      agencies or have been simply set aside with the
      approval of the Operations Review Committee.

      During the period under review, the breakdown
      of pursuable and non-pursuable complaints
      registered was as follows and as indicated
      in chart 3:

            "     Pursuable           –     412
            "     Non-Pursuable       –     326                                    Chart 5
                  Total               –    738             For the period July 2003 to June 2004, there were
                                                           738 FIRs recorded as follows:

                                                               FIRs classified as Traceable and
                                                               Pursuable (TCP)                        218
                                                               FIRs classified as Traceable and
                                                               Non Pursuable (TNCNP)                  149
                                                               FIRs classified as Anonymous and
                                                               Pursuable (ACP)                        194
                                                               FIRs classified as Anonymous and
                                                               Non Pursuable (ANCNP)                  177
                            Chart 3                            Total                                  738
      It is to be noted that pursuable and non
      pursuable complaints comprise complaints from            PURSUABLE CASES                        412
      both anonymous and traceable sources.                    NON PURSUABLE CASES                    326
                                                               ANONYMOUS                              371
      In the category of pursuable complaints, 194             TRACEABLE                              367
      complaints or 47% were anonymous and the
      balance of 218, i.e. 53% were traceable. The
      trend for the year under review was as follows as    ANALYSIS OF SOURCES OF COMPLAINTS
      shown in chart 4:                                    RECEIVED

         Complaints received (determined as Pursuable)     The 738 complaints received have been classified
                                                           in the following categories:

                                                           !       Public Sector
                                                           !       Private Individuals
                                                           !       Private Sector
                                                           !       Associations
                                                           !       Banks
                                                           !       Legal Profession
                            Chart 4
                                                           The forms of complaints, as explained earlier, are
      With regard to non-pursuable cases, 177              defined in the law. The provisions of sections 43,
      complaints or 54% were anonymous and the             44 and 45 provide the legal sources of
      remaining 149 were traceable, representing 46%       complaints. (Please refer to earlier explanation).


                               24
Annual Report 2003-2004
                                                                Corruption Investigation Division

Chart 6 below shows in order of magnitude the                       PRIVATE SECTOR
level of complaints recorded against the
abovementioned classification.                                      Complaints against employees of the private sector
                                                                    represent 11% of the total number of complaints.
                  Analysis of complaints received                   So far, 59% of the number of complaints received
                                                                    have been either set aside or referred to other
                                                                    agencies with the approval of the Operations
                                                                    Review Committee. The remaining 41% is under
                                                                    investigation.



                                                                    ASSOCIATIONS

                                                                    In the definition of “associations” have been
                                                                    included private bodies registered with the
                              Chart 6                               Registrar of Associations or having a totally private
                                                                    nature. 42% of the complaints are being
PUBLIC SECTOR                                                       investigated.

A breakdown of the complaints falling under the
definition of public sector is as shown in chart 7                  BANKS
below:
                                                                    Complaints in relation to commercial banks
                  2%2%1%1%                                          represent 3% of the total number of complaints.
                3%
           3%                               Ministries              Such complaints also include referrals made by
         4%                       28%       Local Authorities
                                            Police
                                                                    the Financial Intelligence Unit by virtue of the
     4%
                                            Parastatal Bodies       FIAMLA 2002.
    4%                                      State Owned Companies
                                            Statutory Bodies
                                            Customs
                                                                    45% of the complaints received were of a non-
                                            Rodrigues
    14%                                     Commissions             pursuable nature and have been disposed of with
                                  19%
                                            Judiciary
                                            Departments
                                                                    the approval of the Operations Review
                 15%
                                            Prisons                 Committee.
                                            State Colleges



                              Chart 7
38% of the complaints received in relation to the                   LEGAL PROFESSION
Public Sector have been referred to the
Operations Review Committee as non-pursuable                        In the above sub-category, is included complaints
cases to be set aside.                                              against legal practitioners in private practice.
                                                                    Investigation in respect of 45% of the complaints
                                                                    received is underway, while the rest has been
PRIVATE INDIVIDUALS
                                                                    disposed of as provided for under the law.

!         29% of the complaints received were against
                                                                    PERFORMANCE
          private individuals; and
!         47% were of a non pursuable nature and
                                                                    The area of investigation always remained in the
          have been disposed of with the approval of                limelight and not been spared from criticisms.
          the Operations Review Committee.                          The Commission was even taxed of undermining

                                                                                            25
                                                                                                 Annual Report 2003-2004
      Corruption Investigation Division

      the banking and financial sectors. On the contrary,     With regard to performance, comparison with the
      any serious attempt to fight corruption and money       achievements of 2002-2003 reveals that the
      laundering can only, in the long run, enhance the       investigation team has taken the challenge and
      image of, and strengthen, the banking and financial     assumed its responsibilities. The salient indicators
      sectors and the national economy in general. The        for 2003-2004 presented in the table below
      reason being so simple and obvious that the anti        compared to those of 2002-2003 show that
      corruption and anti money laundering strategy is        substantial grounds have been covered. *
      aimed at cleaning the sector and ensuring that
      there is proper banking regulation and supervision.     For the sake of clarity, the above figures should
      Subsequent developments in the form of different        be considered in the light of legal requirements
      initiatives taken at the banking and financial sector   which have already been elaborated upon. Briefly,
      level have confirmed this. Why do we undertake          the statistics have to be interpreted in the context
      international obligations to fight corruption and       of the following procedures:
      money laundering if not to better the image of
      the country in order to attract investment? The            (i)      all complaints received are considered by
      work of the ICAC is only but a reflection of the                    the Commission; preliminary enquiries
      implementation of, and compliance with, our                         in cases where the complaints reveal that
      international obligations. The anti corruption and                  a corruption offence may have been
      anti money laundering campaign bring in the long                    committed;
      run a cleaner and better regulated environment             (ii)     the timeframe for a preliminary
      with reinforced practices and accountability.                       investigation in cases of corruption and
      Shortsightedness will only lead to a distorted view                 money laundering. This has been
      of such implications of a serious strategy.                         explained earlier;
                                                                 (iii)    once the preliminary investigation phase
      The performance of the ICAC confirms the                            is completed, further investigation phase
      progress made at investigation level during the                     starts where the Commission decides
      second year of operation. The very nature of the                    that the preliminary investigation has
      investigation process requires confidentiality and                  revealed that a further investigation is
      during initial stages, very little information can be               warranted, both for corruption and
      published. Nevertheless, this report gives a                        money laundering cases;
      clearer picture as to what has been achieved               (iv)     any preliminary investigation that does
      during the year. The statistics reveal the                          not lead to a further investigation has to
      performance of the investigation division for the                   be discontinued under sections 46(3)(b)
      year. It is important to note that this is but one                  and 46(4) and (5);
      standard of measuring performance.                         (v)      in cases where further investigations
                                                                          have been completed, these have to be
      *
                                                                 2002-2003        2003-2004         Total
                                                                                                  2002-2004

          No. of investigations started                                  410          766            1176
          No. of investigations completed                                 8           824            832
          No. of cases in which investigations abandoned –
          no grounds for further enquiries                                8           796            804
          No. of cases sent to DPP (no. of charges where
          prosecution recommended)                                       0             24             24
          No. of provisional charges lodged                              24            32             56
          No. of cases lodged                                            0             3              3


                                26
Annual Report 2003-2004
                                               Corruption Investigation Division

         submitted by the Commission to the            Operations Review Committee, the Commission
         Operations Review Committee, by virtue        has to submit a report to the Director of Public
         of section 47(5) of the Act for its           Prosecutions which includes:-
         opinion.
                                                       !     all the material, information, statements and
DISCONTINUATION OF INVESTIGATION                             other documents obtained in the course of
                                                             the investigation;
Under section 46(4) of the Act, where the              !     a description of the articles of evidence
Commission has decided to discontinue the                    which have remained in the custody of the
investigation following a preliminary investigation,         Commission;
a report has to be submitted to the Operations         !     the recommendations of the Commission;
Review Committee together with the reasons             !     the opinion of the Operations Review
thereof. Based on the report of the Commission,              Committee
the Operations Review Committee has the
following options:
                                                       After consideration of the report of the
                                                       Commission, the DPP may decide on prosecution
!     approve the decision of the Commission to
                                                       or where he does not advise prosecution or any
      discontinue the investigation;
                                                       other action require the Commission to conduct
!     advise the Commission as to such further
                                                       such further inquiries as he considers fit to advise.
      investigation on the matter;
!     instruct the Commission on such further
      action as it considers necessary; or
!     instruct that the matter be referred to the      PROVISIONAL CHARGES
      Commissioner of Police for investigation.
                                                       During an investigation, whenever there is
CASES REFERRED TO DIRECTOR OF                          reasonable suspicion that a person may have
PUBLIC PROSECUTIONS                                    committed an offence under either PoCA 2002 or
                                                       FIAMLA 2002, the matter is referred by the
Those cases where the Commission has                   Commission to the Commissioner of Police for
authorised further investigation have, after           the person to be arrested and a provisional charge
conclusion of the investigation, to be referred to     to be lodged against the latter by the police
the Operations Review Committee for its opinion        officers posted at the ICAC. During the period
under section 47(5). The Commission’s                  under review, 32 provisional charges were lodged
recommendation to the ORC can either be for            for suspected breach of the PoCA 2002 and
the investigation to be closed or for its              FIAMLA 2002 as follows:
prosecution. After receipt of the opinion of the


    Offence                                                                         No. of Provisional
                                                                                        Charges
    Section 4 of the PoCA 2002 – Bribery by public official                                 23
    Section 3(1)(b) of FIAMLA 2002 - Money Laundering                                       3
    Section 3(1)(a) of FIAMLA 2002 - Money Laundering                                       1
    Section 5 of FIAMLA 2002 – Limitation of Payment in Cash                                1
    Section16 of the PoCA 2002 – Corruption of an agent and
    Section 3 of the FIAMLA 2002 – Money Laundering                                         1
    Section 50 of the PoCA 2002 – Powers of the Commission to examine person                1
    Section 10 of the PoCA 2002 - “Trafic d’influence”                                      2
                               Total                                                        32


                                                                               27
                                                                                    Annual Report 2003-2004
      Corruption Investigation Division

      REFERRALS FROM FINANCIAL                              for the vacant positions could not join the Division
      INTELLIGENCE UNIT (FIU)                               since most of them being on the establishment of
                                                            the Police Force, could not obtain leave without
      In accordance with section 13 of the FIAMLA 2002      pay. As a result of this situation, the Commission
      and section 90(4) of the PoCA 2002, the FIU made      has initiated action for further recruitment of staff
      to the Commission a total of 35 referrals on          for the Division.
      suspicious transactions and alleged money
      laundering offences for investigation under section   As at 30 June 2004, the Division had a workforce
      46 of PoCA 2002.                                      of 49 officers on contract. In addition, the
                                                            investigation team was supported by seven officers
      As at 30 June 2004, investigation was completed       from the Police Force whose services have been
      in one case while the 34 others were still under      made available by the Commissioner of Police.
      investigation. However, during investigation of the
      35 referrals, five persons were arrested for          It is also pertinent to underline that the nature of
      suspected breach of sections 3(1)(a), 3(1)(b) and     corruption and money laundering investigation
      5 of FIAMLA 2002.                                     requires investigators with different skills. For
                                                            this reason, the Commission constantly seeks to
      It is important to note that money laundering         recruit person with varied skills so as to build a
      investigations take longer time to investigate and    multi disciplinary investigation team.
      very often involved an international dimension in
      the form of mutual assistance.
                                                            TECHNICALITIES

      HUMAN RESOURCE                                        There is a general consensus that for the purpose
                                                            of eradicating corruption in everyday life the law
      Investigation is an area which attracts public        must be made to apply to everyone. This concept
      interest in a more sustained manner. This element     has popular support and there is a consistent
      of public interest imposes on the ICAC an             appeal from honest citizens for quick action on
      obligation to ensure a speedy and successful          the part of the ICAC. However, the experience
      conclusion of investigations. For such purpose        gathered over the last two years shows that
      the human resource element remains a constant         investigation into corruption and money laundering
      important aspect of the Investigation Division. It
                                                            may prove to be a time consuming process. The
      was with this philosophy in mind that personnel
                                                            high number of complaints and the complexity of
      for the Division were recruited in June 2003,
                                                            certain cases partly explain the delay to conclude
      although for the year 2002 and 2003, most of
                                                            an investigation. Together with the time element
      the officers were police officers seconded to the
                                                            and the human resource input required,
      ICAC.
                                                            investigations take longer than expected more
                                                            often, for reasons beyond the control of the ICAC.
      The recruitment exercise undertaken in June 2003
                                                            Some of these problems are highlighted in the
      was the first phase of the process of staffing the
                                                            subsequent paragraphs.
      Division. In quantitative terms, the number of
      officers recruited was in relation to the workload
      of the Division at that time. However, as
                                                            ACCESS TO DOCUMENTS AND BANK
      investigation is an area which is demand driven,
                                                            ACCOUNTS
      and as the number of complaints and referrals
      from FIU was increasing, the Commission felt the
      need to recruit additional staff during the year      Public documents and bank accounts are important
      under review. Accordingly, further recruitment        sources of information and evidence in the
      was undertaken during the year to reinforce the       investigation of corruption and money laundering
      Division. However, suitable candidates identified     offences. Though the PoCA 2002 makes provision


                               28
Annual Report 2003-2004
                                               Corruption Investigation Division

for documents, books, records or articles to be         cases of money laundering, mutual assistance from
produced to the Commission, the year under              overseas has to be resorted to in order to obtain
review has witnessed severe resistance to the           authenticated documents and evidence. Request
attempts made by the Commission to obtain such          for mutual assistance has to be made under the
materials. This resistance has culminated in a legal    Mutual Assistance in Criminal and Related Matters
challenge whereby a case has been entered before        Act 2003 through the Attorney-General’s Office.
the court to restrain and prohibit the ICAC from        As at 30 June 2004, the response to different
enforcing its powers to have access to bank             requests for mutual assistance is still awaited.
accounts. As at 30 June 2004, the case was still
pending before the court. It is, therefore, worth
noting that until the case is disposed of by the        ARRESTS
court, progress on a number of major cases under
investigation may be delayed. The Commission            Arrests effected by Police Officers on secondment
considers that it is vital to have swift and direct     to the ICAC in connection with investigations
access to information, financial or otherwise, in       conducted by the Corruption Investigation
corruption and money laundering investigations.         Division have been widely commented. For quite
Failure to have such access will severely delay         some time, doubts existed as to whether the
such investigations.                                    Police Officers seconded to the ICAC had the
                                                        authority to make arrests with regard to
                                                        suspected breaches of the provisions of the PoCA
INTERVIEW OF SUSPECTS AND                               2002 or FIAMLA 2002.
WITNESSES
                                                        The judgment delivered by the Supreme Court
Another factor which contributes to impede the          of Mauritius (Court of Appeal) on 5 November
investigation process is the delay in obtaining         2003 (SCR 700) confirmed that the Police Officers
information from institutions, complainants and         posted to the ICAC retained their powers of
suspects. The interview of suspects and witnesses       arrest. At present, arrests are effected under the
is often impeded by the refusal by these parties        instruction of the Commissioner of Police.
to collaborate. Requests for postponements to
enable them to seek legal advice have become
legend. In some cases, suspects and witnesses           OPERATIONS REVIEW COMMITTEE
have, at an amazing speed, produced medical
certificates to justify their inability to respond to   The PoCA 2002 makes comprehensive provision
a summons from the ICAC. With regard to                 for the Commission to be accountable in the
postponements granted to enable suspects and            discharge of its investigative mandate. Under
witnesses to seek legal advice, the personnel of        section 41 of the Act, which establishes the
the Division did so in accordance with their rights.    Operations Review Committee, provision has
However, such an approach failed to have any            been made for that Committee to receive or call
impact as in many cases the non-availability of         for reports from the Commissioner and to advise
barristers whose services have been retained by         the Commission on:
witnesses and suspects continued to delay the
investigations. In fact, this is one of the main           a)    complaints of corruption made to the
reasons which have caused substantial delay in the               Commission and the manner in which the
conclusion of investigation.                                     Commission is dealing with them;
                                                           b)    investigations being carried out by the
                                                                 Commission;
                                                           c)    investigations which the Commission has
MUTUAL ASSISTANCE
                                                                 decided to discontinue;
                                                           d)    investigations which have lasted more
For the purpose of investigation into suspected                  than 6 months;

                                                                               29
                                                                                    Annual Report 2003-2004
      Corruption Investigation Division

         e)    the number of, and the justification for,      information will amplify such risks, the
               search warrants authorised by the              Commission’s considered view is that information
               Commission;                                    should be protected by every means, in line with
         f)    any other matter relating to an                the spirit of section 81 of the Act which makes
               investigation which the Operations             provision for the protection of such information.
               Review Committee may require.

      It is, however, important to note that the other        THE YEAR AHEAD
      functions of the ORC are defined in sections 46(4)
      and (5) and section 47(5) – where preliminary           As already enunciated in the previous Annual
      investigation are discontinued and further              Report, the enforcement of the law remains one
      investigation concluded, respectively.                  of the main strategies of the ICAC. However, the
                                                              effective discharge of such a responsibility
      During the period under review, there has been          requires adequate resources in terms of logistics
      fruitful interaction between the Commission and         and human resource. In this respect, the
      the Committee. On most of the issues there have         Corruption Investigation Division is expected to
      been convergence of views and the Committee             have its full complement of staff by the end of the
      provided valuable advice and guidance to the            next financial year. In addition, the Division will
      Commission. With time, the working relationship         continue to maintain and establish contact with
      between the Commission and the Committees               similar law enforcement agencies with a view to:
      will no doubt be reinforced.
                                                                 (i)     adopting a common approach in the fight
                                                                         against corruption and money laundering;
      COVERT OPERATION                                           (ii)    facilitating and sharing of information and
                                                                         exchange of skills as well as maintaining a
      For the integrity of an investigation, the initial                 focus approach in the field of training;
      phase is critical and has to remain covert until such      (iii)   sharing expertise and experience in the
      time as the investigation or part thereof becomes                  field of investigation; and
      overt. Without covertness, the chances of                  (iv)    developing specialized required skills in
      concluding an investigation successfully may be                    the investigation of corruption and
      severely impaired, the moreso that complainants,                   money laundering.
      witnesses or whistleblowers may feel at risk, thus
      reducing the chances of their collaboration.            One of the main targets of the Division, during
                                                              the coming months, will be to complete
      The Commission is reinforced in its contention          investigations started in the previous years. In
      by section 48(1) of the Act which imposes on            fact, during the period under review, the Division
      the Commission a duty to maintain secrecy on the        has referred some 24 cases to the DPP for
      identity of informers as well as the information        prosecution.
      provided.
                                                              Capacity building is very high on the Division’s
                                                              priority list as is refresher training for more
      RISK OF LEAKAGE                                         experienced officers. Regular in house training
                                                              programmes on a number of law enforcement and
      The “need to know” principle applies to all ICAC        legal topics will continue in the coming year. The
      investigations. Information on complaints has           Commissioner of Police has already agreed to
      restricted circulation within the ICAC. This is         assist in this regard by providing training at the
      done with the purpose of limiting the risks of          Police Training School. The assistance of the
      leakage which may jeopardise the investigations.        Revenue Board is also being sought to allow
      Accordingly, as further circulation of sensitive        investigators to participate in certain courses


                                30
Annual Report 2003-2004
                                               Corruption Investigation Division

organized by the Tax Training School. The Division      performance appraisal. The existing performance
will also be looking to send investigators on anti      appraisal reporting system will be revamped to
corruption and management courses organized by          accommodate the change. The Division already
sister agencies in Africa, Australia and Asia. It is    has a Code of Conduct in operation. The Code
hoped that some of our less experienced                 will be reinforced with a series of Standing Orders
investigators will be given the opportunity to          that will be added to in the coming year. Finally
attend training courses organized by the US funded      the close collaboration with the Legal Division and
International Law Enforcement Academy (ILEA)            other Divisions will continue so that the
in Botswana. The Commission will also seek the          enforcement functions of the Division are
assistance of the Human Rights Commission to            successfully implemented.
develop training packages for its investigators.

Links with overseas anti corruption and law
enforcement agencies and the state law office
continue to grow and it is hoped to expand them
even further in the coming year by attending both
regional and international anti corruption
conferences. In this respect, particular emphasis
will remain focused on regional cooperation with
sister anti corruption agencies. The existing
relationship with the ICAC (Hong Kong) and ICAC
(New South Wales), Australia; the Serious Fraud
Office and Metropolitan Police Force and the
Department of Corruption and Economic Crime
(DCEC) of Botswana, will be solicited to provide
assistance and opportunities to enhance the
investigative abilities and techniques of the staff.

In the coming year the Division aims to upgrade
the existing IT facilities with the introduction of a
case management system and when implemented
will improve the management of investigation files
thus expediting the time constraints that the
legislation imposes on the investigation process.
The case management systems currently being
used by the Central Bureau of Investigation, India,
ICAC (Hong Kong) and ICAC (New South Wales)
have been studied and a version based on one of
them will be considered for adaptation, to suit
the requirements of the Division.

Further recruitment of staff will be pursued
especially in the fields of Information Technology
and Accounting with a view to constituting multi-
disciplinary team of investigators. Such a scheme
has become essential for the purpose of
investigating into complex cases of money
laundering. Concurrently, the new management
strategies will be introduced in tandem with staff


                                                                               31
                                                                                    Annual Report 2003-2004
                          32
Annual Report 2003-2004
              Independent Commission Against Corruption




        Corruption Prevention And Education Division

                                 Mission Statement


COMMUNITY RELATIONS BRANCH


The Community Relations Branch works with and among the people of the Republic of Mauritius
to educate them about the dangers of corruption and encourages the people to support the
struggle against corruption.




SYSTEMS ENHANCEMENT BRANCH


The Systems Enhancement Branch works with its client organizations, agencies and institutions
in the public and private sectors to improve their systems, procedures and practices by
eliminating opportunities for corruption.




                                                                    33
                                                                         Annual Report 2003-2004
                          34
Annual Report 2003-2004
                      Corruption Prevention And Education Division

INTRODUCTION

With the enactment of the PoCA 2002, a                  promotes values which assist the public in
comprehensive set of standards, measures, and           refraining from committing corrupt acts. Over
rules has been provided to strengthen the legal         time, the fight gains momentum and the public
and regulatory regimes to fight corruption. The         participates in the fight against corruption. The
education and prevention strategy provided for          end result is that gradually the scourge is brought
in the law coupled with the criminalization of the      under better control. Together with investigation,
most prevalent forms of corruption and money            education offers a more comprehensive approach
laundering, in both public and private sectors,         to fighting corruption.
make the law an effective instrument to check the
progress of this evil phenomenon.                       For the year 2003-2004, the targets set in the
                                                        Action Plan, which is the main mechanism for
Prevention, through systems enhancement, and            defining the activities of the Corruption Prevention
education, through community relations, have            and Education Division and its direction and
been instrumental in raising awareness about the        performance, have been met. The focus has been
problems associated with corruption and money           laid on capacity building, networking with all
laundering. In this regard, the trend at                stakeholders in society, production of materials,
international level has been followed with interest     development of international links. All these have
and the ICAC has, in the local context, taken           provided a strong base to spearhead a massive
appropriate initiatives to send a clear message to      awareness campaign. For the coming year, the
the community at large of its determination to          intensive networking already started will actually
prevent and control corruption. The actions             be reinforced and sustained with the different
initiated by the ICAC aim at reaffirming the            stakeholders through numerous activities
importance of core values, such as honesty,             designed to empower them.
respect for the rule of law, accountability and
transparency in promoting development and
making Mauritius a clean and fair place.                COMMUNITY RELATIONS BRANCH

The year under review has been rich in events in        The mandate of the Corruption Prevention and
the community relations field while substantial         Education Division (CPED) as described in the
ground has been covered in the systems                  PoCA 2002 imposes on the Division, in particular
enhancement area. In its endeavour to promote           its Community Relations Branch (CRB), a wide
the core values and the culture of transparency         spectrum of obligations with regard to the
and accountability, the Corruption Prevention and       dissemination of the anti-corruption message.
Education Division has made systematic efforts
at all levels of society to disseminate the anti-       As mentioned in the 2002-2003 Annual Report,
corruption message.                                     the guiding concept of the ICAC is the building of
                                                        partnership with all the relevant stakeholders.
The second year of operations has revealed the          With regard to partnership, the Community
crucial role that education is called upon to play      Relations Branch has to attend to the needs of
in the fight against corruption. In fact, whilst        the public in general and in particular to those of
investigation is vital, education and prevention also   the education sector, the public and private
have a major role. The whole rationale of fighting      sectors, NGOs and trade unions. Within the legal
corruption is to win public support in the fight.       framework, the Community Relations Branch has,
Educating the public about the evils of corruption      during the year under review, conducted
develop confidence in the public to support the         numerous activities to educate the population
fight. The public gradually comes forward and           about the dangers of corruption and to enlist their
divulge corrupt acts. The education campaign            support in the fight against corruption.


                                                                                35
                                                                                     Annual Report 2003-2004
      Corruption Prevention And Education Division

      The strategy for the dissemination of the anti-       Reunion Island. The impact created by the
      corruption message is two pronged, namely,            campaign has been positive in all respects
      through mass communication and the mass media.        inasmuch as it propelled the ICAC in the forefront
      The mass communication approach has been              in the fight against corruption. The poster
      extensively used through the period under review      developed by the Consultant for the ICAC had a
      in the discharge of the Commission’s mandate          tremendous impact from its very launching and in
      relating to education of the public. The salient      communication assessment was instantly
      activities undertaken by the Community Relations      successful.
      Branch are described in the subsequent
      paragraphs.
                                                            SENSITIZATION CAMPAIGN

      M A S S C O M M U N I C AT I O N    C A M PA I G N    As at 30 June 2004, 784 seminars, talks and
      AGAINST CORRUPTION                                    workshops have been conducted and attended by
                                                            33,436 participants. This approach provided
      In 2002-2003 the preparatory works for the            opportunities for a detailed examination of the
      launching of a National Sensitization Campaign        problem of corruption in Mauritius with direct
      Against Corruption were initiated with a target       communication with participants. It has also
      date for start of implementation in July 2003. In     provided valuable opportunity for specific groups
      fact, the campaign was successfully launched on       to share their views as to what should be done
      16 July 2003 by the then President of the Republic    and how best to do it. These contacts have also
      Mr Karl Offmann, G.C.S.K, in the presence of an       been appropriate for exploration of ethical issues
      impressive audience comprising heads of               for specific groups.
      ministries, chief executives of the private sector
      and parastatal bodies, representatives of NGOs        The number of participants who attended the
      and trade unions, religious leaders and               seminars, talks and workshops exceeded by three
      representatives of foreign diplomatic missions.       fold the planned target of 10, 520 for the year
                                                            2003-2004. The chart below depicts the different
      The chief guest for the event was Professor Barry     sectors sensitized:
      Rider, Director of the Institute of Advanced Legal
      Studies and Fellow Commoner of Jesus College,                   Sectors Targeted by Percentage
      Cambridge. The objective of the campaign was
      to launch the Commission’s education strategy.
      The ultimate objective is to alert the public on
      the dangers of corruption, create a general
      awareness in the population on the need to
      eliminate corruption and generally to inform the
      public of the mandate of the ICAC.

      The campaign was conducted by a private
      consultant under the aegis of the Commission
                                                            It is worth emphasing that the initial stage of its
      through a poster/billboard campaign, spots on
                                                            educational strategy, the Commission adopted
      radio and publicity on television and in the press.
                                                            rather general approach. This meant that all the
      The campaign lasted for four months and for the
                                                            seminars and workshops conducted focussed on
      first time in Mauritius such a media campaign
                                                            general issues of corruption. The campaign then
      generated unprecedented interest. It is worth
                                                            subsequently gradually moved on more specific
      noting that the ICAC television spot produced for
                                                            issues. The aim is to build a strong foundation
      the campaign won the “Grand Prix du Public” for
                                                            among the population on issues touching upon
      2003 at the “Creatives Ocean Indien” held in
                                                            corruption.

                               36
Annual Report 2003-2004
                      Corruption Prevention And Education Division

The seminars and talks focused on the essentials        NATIONAL YOUTH FORUM
of the PoCA 2002, the role of the ICAC, the
strategy to combat corruption, the accountability       According to the Report of the National Survey
mechanisms and issues inter alia relating to the        on Corruption (January 2004), the youth shows
following:                                              the strongest willingness to report acts of
                                                        corruption. Therefore, in its endeavour to involve
!     Role and Responsibilities of citizens             youth in the fight against corruption, the Division
!     Standards of behaviour expected from the
                                                        designed a Youth Empowerment Programme
      citizen, the employer, the employee, the
                                                        entitled ‘Fighting Corruption with Youth Leaders’, a
      head of family including the importance of
                                                        four phased programme which spreads over a
      ethical behaviour/code of ethics
                                                        period of five years.
!     Transparency, accountability and integrity as
      pillars of good governance
!     Lord Nolan Seven Principles of Public Life
!     Whistle blowing and protection of
      informers
!     How to report an act of corruption?

The specific objectives of talks and seminars were
     to:
!    Develop a consensual understanding of the
     role of the ICAC
!    Raise awareness about the evils of
     corruption
!    Help to build consensus for the national           At the National Youth Forum held in June 2004 children
     strategy and anti-corruption measures              of IQRA Educational Day Care Centre for the
!    Empower the participants through                   Disabled mounted and presented a sketch inspired by
     knowledge of corruption issues                     the ICAC poster and TV Spot.
!    Promote best practices through promotion
     of core values such as integrity
!    Enlist partnership of women and educators          The first National Youth Forum, which was mainly
     for                                                financed by the EU, was held on 19 June 2004 at
     (i) dissemination of information about             the Octave Wiéhé Auditorium, University of
           ICAC’s messages and sensitisation            Mauritius, Réduit. The Secretary to Cabinet and
           campaigns, and                               Head of Civil Service was the Chief Guest. The
     (ii) education on moral values to school           forum, which aimed at enlisting the support of
           children                                     the youth in the fight against corruption, was
!    Encourage people to report acts of                 attended by more than 700 youngsters from
     corruption
                                                        different spheres of activities.
!    Increase intolerance to corruption

                                                        Participants at the forum had the opportunity to
A series of preparatory activities with the
                                                        express their views, concerns and commitment
representatives of different institutions were held
prior to each activity to assess participants’ needs.   to fight corruption through educational and artistic
The planned activities were also submitted to and       activities. A youth taskforce will be constituted
discussed at the level of the Community Relations       in due course to assist the ICAC in its endeavour
and Corruption Prevention Advisory Committee            to implement youth targeted activities.


                                                                                 37
                                                                                      Annual Report 2003-2004
      Corruption Prevention And Education Division




      Contributions of youth from the CWA at the National    His Excellency, Juan Carlos Rey, Head of Delegation
      Youth Forum                                            of the EU, launching the ICAC Youngsters Web Corner


                                                             CIVIL SOCIETY
      A Youngsters Website Corner was launched on
      that occasion to publicise anti-corruption             The Civil society is a major stakeholder in
                                                             constraining corruption and its effectiveness as a
      messages through computer games and web page
                                                             key partner would rest upon its ability to identify,
      activities. This interactive youngster’s web corner,   monitor and control corruption agents within the
      being an innovation in Mauritius, will serve to        community. Networking among key partners of
      promote a culture of integrity and honesty among       the civil society remains a crucial component of
      the youth. Electronic educational games and            ICAC’s strategy to fight corruption. In this
      activities, cartoons, surveys, publications and news   connection, partnership with the main NGO’s,
      board will be used to enhance the response             religious bodies and other prominent stakeholders
                                                             have been established.
      capacity of the youth towards corruption.
                                                             175 seminars and talks were organised for some
                                                             7491 participants from the civil society. The
                                                             planned target for the financial year 2003-2004
                                                             was 2450.


                                                             WOMEN

                                                             According to the Policy Research Report on
                                                             Gender and Development of the World Bank,
                                                             “numerous behavioural studies have found women
                                                             to be more trustworthy and public-spirited than
                                                             men. These results suggest that women should be
                                                             particularly effective in promoting honest
                                                             government.” (October1999, World Bank).
      The National Youth Forum held on the 19th June 2004
      was financed by the European Union.                    As women are effective in raising public
                                                             consciousness, they have been sensitized during
                                                             the past year throughout the island. During those
                                                             seminars, women agreed on the importance of
                                                             their roles as disseminators of anti-corruption


                               38
Annual Report 2003-2004
                      Corruption Prevention And Education Division

messages, role models, and agents of change and         Unions for Promoting a Culture of Integrity ”.
principal educators of moral values in our society.     Participants made a series of recommendations for
They expressed willingness to participate in and        the effective dissemination of anti-corruption
support the fight against corruption through their      messages at the workplace and undertook to help
activities.                                             the ICAC in implementing anti-corruption
                                                        practices at the workplace. In this context, a core
With the valuable assistance of Family Support
                                                        team has been set up. This team is presently
Officers of the National Women’s Council and the
                                                        working on a Memorandum of Understanding to
Women’s Wing of the Government Servants’
                                                        strengthen the collaboration between the ICAC
Association, the Community Relations Branch
sensitized 1588 women through talks, workshops          and the trade unions.
and presentations in Social Welfare Centres.

                                                        EDUCATION SECTOR
SOCIO-CULTURAL AND RELIGIOUS
ORGANISATIONS                                           The Education Sector has been targeted at all levels
                                                        ranging from the pre-primary to tertiary.
One of the most interesting points in the               Appropriate methods and materials have been
presentations by religious leaders at the first         devised, designed and implemented after
Global Forum in Washington and at the second            consultative meetings with all stakeholders. The
Global Forum on fighting corruption at the Hague        Division adopted three main approaches to
in May 2001, was that bribery is fundamentally          education, which are based on the Hong Kong
incompatible with the ethical values of the world’s
                                                        model, namely:
great religions.
                                                        !     The Whole Person Developmental
Socio-Cultural and Religious Organisations
                                                              Approach which consists of laying the
represent major partners in the fight against
corruption given the cultural diversity of Mauritius.         foundations for development of the youth
The Religious Core Team, set up following the first           through civic education and moral values.
seminar organised in August 2003, has been                    This helps students develop proper
meeting on a monthly basis to devise common                   attitudes towards money and fair play and
strategies for fighting corruption. Talks were                to acquire appropriate knowledge and
organised in different branches in socio-religious            values that contribute to the development
organizations in different languages.                         of good citizenship.
                                                        !     The Whole School Approach through
                                                              which information is disseminated on
TRADE UNIONS                                                  corruption and its effects through every
                                                              appropriate means.
The Division had a series of meetings with              !     The Partnering Approach to develop close
representatives of all Trade Union Federations to
                                                              working relationships with various
discuss strategies for partnership and to have a
                                                              institutions, where academics, trainers,
shared understanding of corruption and issues
                                                              teachers and youth workers act as effective
related to governance and ethics.
                                                              disseminators of ICAC’s messages.
On 25 February 2004 a national workshop was
organised whereby 61 members from the 13                      Between July 2003 to June 2004, the
different Trade Union Federations, including female           Officers from this Division had face-to-face
trade unionists, took part. The theme of the                  interactions in the education sector with a
workshop was “Building Partnership with Trade                 total of 15,933 participants through


                                                                                39
                                                                                     Annual Report 2003-2004
      Corruption Prevention And Education Division

            372 seminars/workshops/talks. The               OTHER ACTIVITIES FOR PRE-PRIMARY
            objectives of these seminars/talks were to:
                                                            !     A fruitful collaboration between the ICAC
      !     Help students, academics, staff and trainers          and the Institute of Children’s Rights has led
            understand the concept of citizenship and             to the launching of a Code of Ethics for
            their role in fighting social ills including
                                                                  Educators in the Pre-Primary sector on 19th
            corruption.
                                                                  October 2003. The aim of the document
      !     Help them understand the importance of
            responsible behaviour in society.                     is to motivate and guide early year ’s
      !     Help participants understand the                      educators and caregivers to adopt a child-
            importance of cooperation and rule abiding.           centered,        family-centered          and
      !     Give them an insight of corruption and its            developmentally appropriate programme in
            harmful effects.                                      line with the U.N Convention on the Rights
                                                                  of the Child.
      The number of participants reached compares
      favourably with the targeted 4,450 for the            !    To assist educators in their task in the
      education sector for the financial year 2003-2004.
                                                                 transmission of values to the pupils in the
                                                                 pre-school settings. A back-up document
      THE PRE-PRIMARY LEVEL                                      is under preparation in which the following
                                                                 issues will be included:
      Moral education for the young should start as early
      as possible and ICAC is taking its message to pre-         "     Moral education during the pre-school
      primary schools and kindergartens as well. On                    period with reference to psychologists
      the basis of researches and according to                         like Piaget, Kohlberg and Damon
      pedagogues, sociologists and psychologists, focus          "     Moral development and its relation to
      should be more on good practices at this stage of                corruption
      development. As such, 1,150 people involved in
                                                                 "     Emotional and social development
      the pre-primary school sector comprising of
                                                                 "     Promoting attitudes and values in the
      trainers, managers, educators and parents have
      been sensitized. A special working session has                   pre-school settings
      also been conducted for 250 parents and
      educators in the transmission and promotion of        ICAC has also set up a team comprising educators,
      values among pre-school children.                     teacher-educators/supervisors, educational
                                                            psychologist, managers of schools and parents.
      Following a seminar in July 2003 with 30 trainers     The team has already met on four occasions to
      of the pre-primary sector, a Committee                identify appropriate activities for pre-schoolers
      comprising tutors from Mauritius Institute of
                                                            and drafting of activities linked to moral values.
      Education, Mauritius College of the Air and ICAC
      Officers was set up to:
                                                            !     With the collaboration of the British
      !     examine existing pre-school programmes                Council, the Centre d’Information de
      !     advise on themes that can be integrated to            Formation,       d’Orientation     et   de
            develop values such as honesty, trust,                Documentation (CIFOD) of the French
            justice, fairness and care for the welfare of         Embassy, and the N. Mandela for African
            others along with children’s rights and               Culture, Managers of schools and Educators,
            responsibilities                                      the ICAC has started working on the
      !     advise on design and development of                   production of an audio/video cassette on
            resource materials for educators and for
                                                                  pro-social activities.
            pre-school children.

                               40
Annual Report 2003-2004
                      Corruption Prevention And Education Division

THE PRIMARY LEVEL                                       reacted to the situation portrayed and participated
                                                        actively by commenting and giving their views on
187 talks/seminars have been conducted at Primary       the story.
Level for 5,966 participants ranging from
Inspectors to Trainee Teachers as well as pupils of     SHORT STORY WRITING COMPETITION
Standards V and VI.                                     ON LIVING VALUES FOR PRIMARY SCHOOL
                                                        CHILDREN

CURRICULUM ENHANCEMENT                                  This competition was launched in May 2004 with
                                                        the particular objective of raising awareness on
Preliminary works on primary school curriculum          living values among primary school children to
enhancement were initiated through a meeting            trigger a culture of integrity. 419 entries from
with the Director of the National Curriculum            different primary schools throughout Mauritius
Centre for Research and Development (NCCRD).            and Rodrigues have been received.
CPED officers have reviewed the existing
textbooks with regard to living values. Following
such review, an activity cum guidebook meant for        THE SECONDARY LEVEL
teachers of Upper primary level has been
prepared by CPED which comprises activities on          A Students’ Awareness Campaign on the evils of
living values to be worked out at classroom level.      Corruption was conducted through 47 talks for
The approach is to use games, story telling, comic      HSC students, which focused on the erosion of
strips, drawings and paintings to impart values. It     values. Feedback on these talks has shown that
is proposed in the first instance to run this project   these students are very much concerned about
on a pilot basis with the collaboration of the          the problem of corruption. The interactive
Ministry of Education and Scientific Research. A        sessions at the end of the talks helped the Division
copy of the Activity cum guide book has been            to get a broader view of the youth’s perception
submitted in January 2004 to the Curriculum Unit        of the problem of corruption.
of the Ministry.
                                                        The Division also conducted two seminars with
                                                        some 100 Private Secondary Schools managers
EDUCATION SESSIONS WITH CHILDREN                        to emphasise the aims of anti-corruption
                                                        campaigns in secondary schools. Besides face-
In view of conducting working sessions with             to-face sessions, the ICAC has further diversified
primary school children on living values, tailor-       its approach at secondary level through essay and
made presentations and stimulating and colourful        poster competitions.
visual aids including child friendly stickers and a
bookmark have been designed for this specific age
group. These presentations focus on ethical             THE TERTIARY LEVEL
dilemmas. In addition, such sessions were held
during the December school holidays with                A relentless campaign against corruption has been
members of ‘Klib Zenfan’ in collaboration with the      waged on various fronts targeting both the tertiary
Municipal Council of Port Louis.                        and vocational institutions in Mauritius. Academic
                                                        and non-academic staffs of those institutions were
In that connection, the Division used a different       empowered to transmit the right moral and
medium to maximise the attention of the children        ethical values to their students – the would be
and also to create an interactive and stimulating       professionals.
session. Its main storyline was based on a
classroom situation, where the pupils were              Several meetings and working sessions were also
tempted to cheat for a test. These children             held with the University of Mauritius to design a


                                                                                41
                                                                                     Annual Report 2003-2004
      Corruption Prevention And Education Division

      module entitled “moral values and good                 public sector. One of the building blocks of an
      governance” which will eventually cut across the       anti-corruption strategy of the World Bank
      whole curriculum and all faculties. The syllabus has   consists of reforms in the internal management of
      already been finalized and the module will be          public resources and administration to reduce
      included in the academic year 2004-2005. A             opportunities and incentives for corruption.
      similar proposal has been made to the University
      of Technology.                                         For the fight against corruption to be sustainable
                                                             in the public sector, there is a need for devising
      At the level of the Student’s Unions, the members      appropriate and ongoing innovative anti-corruption
      have been empowered to decode and report acts          control strategies. Public sector measures
      of corruption and enlist their support. In this        advocated in ICAC anti-corruption programmes
      connection, the Student’s Union of the University      include the following:
      of Mauritius has set up its own Integrity Club and
      has participated actively in the National Youth        !     Greater transparency, accountability and
      Forum organized by the ICAC in June 2004.                    integrity in critical government functions;
                                                             !     The need to structure discretionary powers;
      Moreover, working sessions with students and           !     The mandatory requirement to disclose in
      staff of private tertiary institutions were held.            writing any conflict of interest;
      Other sessions are scheduled for next year in all      !     The development of specific code of
      private tertiary institutions                                conduct and to monitor any breach;
                                                             !     The duty to report acts of corruption;
                                                             !     Detective and Preventive Controls in the
      CONSTRAINTS                                                  Public Sector;
                                                             !     Fraud Control Arrangements including
      There are some constraints in the educational                prevention strategies and plans;
      system and full implementation of the ICAC             !     14 Sections under the PoCA 2002 dealing
      education programme has been restrained, from                with the corruption offences.
      primary to tertiary level.
                                                             A total of 139 seminars were organized for 5 097
      Some of these constraints are as follows:              officers from the Civil Service, Parastatal Bodies
                                                             and State Owned Companies. The number of
      !     The school curriculum is extremely heavy.        participants reached can be favourably compared
            There is a competing demand for school           with the targeted number of participants for the
            contact time by different ministries.            whole year 2003-2004 which was 2650.
      !     Teachers and students are under the
            tremendous work pressure to cover
            designated syllabuses and have little time for   HANDBOOK FOR PUBLIC OFFICERS
            extra curricular activities.
      !     There is examination pressure.                   In line with the national anti-corruption strategy,
      !     It was not possible to hold those seminars       a handbook for public officers is being finalised.
            for teaching staff during normal working         It has already been developed and it is at the
            days. Moreover, it is difficult to get their     testing/evaluation stage. This handbook, which
            participation outside working hours.             would be launched during the financial year 2004-
                                                             2005 aims at:

      PUBLIC SECTOR
                                                             !     increasing awareness about corruption and
                                                                   its effects
      International institutions such as the World Bank
                                                             !     empowering public officers to assess
      have recognized the necessity to combat the
      scourge of corruption with special focus on the              corruption risk


                               42
Annual Report 2003-2004
                     Corruption Prevention And Education Division

!     guiding them on possible actions to fight       year. More than 2256 Rodriguans from different
      corruption                                      public sector departments, representatives of
!     promoting a culture of integrity and            village councils, women’s associations, NGOs,
      excellence in the public sector.
                                                      religious organizations, Trade Unions and private
                                                      sector bodies were sensitized.
LOCAL AUTHORITIES
                                                      Furthermore, a delegation comprising of two
Education of local councilors has already started.    Officers visited Agalega Island in May 2004. The
In this context, 50 councilors from the Moka-         mission had working sessions with different groups
Flacq District Council and the Municipal Council      of persons namely: youth leaders, religious bodies,
of Curepipe were addressed during two seminars.       public officers posted on the island and staff of
Other sessions are envisaged in the near future.      the Outer Island Development Corporation.

                                                      The objectives of the missions were:
PRIVATE SECTOR
                                                      !          To sensitise public officers and the general
The CPED is mandated to liaise with private sector               public on corruption and corruption related
organizations for the setting up of anti-corruption              issues in a targeted manner
practices. In this context, interaction with the      !          To gauge the level of integrity and to evaluate
Private Sector, focused not only on transactions                 any threat to it
or dealings between the Private and the Public        !          To identify pre-emptive measures for a
Sectors, but also addressed other relevant aspects               cleaner society
such as corruption of agent.                          !          Enlist participation in the fight against
                                                                 corruption.
In this line, some 648 private sector individuals
have participated in seminars organised by the
Community Relations Branch. The targeted              NATIONAL SURVEY ON CORRUPTION
groups included EPZ Human Resource Managers,
Driving Instructors, Micro-entrepreneurs, Shop        There is no extensive data and research regarding
Owners Association (Office Bearers), Directors        corruption, except speculative reports, mostly
of Hotels (AHRIM), SME’s and the Insurers’            based on hearsay. It was therefore vital to conduct
Associations and Listed Companies. Materials and      a nationwide opinion survey to collect reliable data
information were designed to empower them to          to facilitate the implementation of the strategy
decode acts of corruption and to encourage them       against corruption. Accordingly, a National Survey
to set up anti-corruption practices.                  on Corruption (National Baseline Survey) financed
                                                                     ,
                                                      by the UNDP was conducted by StraConsult on
                                                      behalf of the ICAC.          This is the first
RODRIGUES AND AGALEGA                                 comprehensive report on the perception of
                                                      corruption in the Republic of Mauritius. The
In the wake of its autonomy, the island of            objectives of the survey were to:
Rodrigues is undergoing major socio-economic
transformation and like most emerging economies,          (i)       measure the changes in the perception
the Island is faced with high risks of corrupt                      and attitude of the public towards
practices.                                                          corruption and corrupt practices;
                                                          (ii)      measure how extensive corruption is
Eight missions visited Rodrigues during the last                    perceived to be in the country;


                                                                                   43
                                                                                        Annual Report 2003-2004
      Corruption Prevention And Education Division

                                                             of public expectation. It provides the institution
                                                             with the necessary facts and direction to bridge
                                                             these gaps and reduce the shortfalls.

                                                             Key findings of the survey include the following:

                                                             !     About 30% of the respondents are aware
                                                                   of the process to report a case of
                                                                   corruption.
                                                             !     The ICAC was highly rated in terms of
      Presentation of a copy of the Report of the National
                                                                   commitment to fight corruption.
      Survey on Corruption to Mrs. Rose Gakuba, Resident     !     83% of the respondents consider the ICAC
      Representative of the UNDP the funding agency for
                                   ,                               to be quite if not highly efficient to fight
      this project.                                                corruption.
                                                             !     More than one out of two Mauritians state
                                                                   that they would report a case of corruption
         (iii)   assess the individual’s personal attitude         if they come to know about it.
                 to corruption and how willing individual
                 citizens are to support the ICAC’s effort
                 to combat corruption; and                   OUR WEBSITE
         (iv)    identify problems that the ICAC should
                 prioritise in its annual programme and      Several activities have been undertaken in
                 other longer term strategies.               2003-2004 to enhance the website’s potential as
                                                             a corporate communication tool.
      This report is expected to serve as an important
      tool for the development of future strategies. It      The website is now endowed with a Youngsters
      has provided the ICAC with the possibility to gain     Web Corner which aims at imparting pro-social
      a comprehensive insight into the people’s              values through the edutainment concept.
      awareness, perception, attitude and views on
      corruption problem both in Mauritius and               With a view to make the www.icac.mu a referral
      Rodrigues. It has helped to a major extent in          point on the internet, the website was submitted
      identifying the gaps and shortfalls between the        to search engines. The website can now
      current level of anti-corruption work and the level    be     accessed     from     search      engines




                                               Homepage of www.icac.mu


                                44
Annual Report 2003-2004
                     Corruption Prevention And Education Division

such as www.google.com. The number of visitors        !     Publishing of newsletters
on the website for the period starting January        !     Possible areas of collaboration between
2004 to June 2004 is 6512.                                  ICAC and the Media Trust
                                                      !     To develop a power base to promote ICAC’s
It is also worth noting that the press releases and         image
the calendar of events on the website have been       !     Appointment of consultants to perform
prime sources of information for the press and              motive audits and setting up of
media.                                                      communication charter
                                                      !     Setting-up of fully operational Press Unit.
The challenges ahead for next year are three-fold:

!     keeping pace with the dynamic nature of         STAFFING
      internet by being innovative in message
      design and presentation                         As at 30 June 2004, the Division had a staff
!     ensuring effective management and               strength of 36 (including the Director),
      monitoring of the website to boost the          constituted of 24 officers of the Community
      corporate image of the ICAC                     Relations Branch (CRB) and 11 in the Systems
!     designing further enhancement activities to     Enhancement Branch (SEB).
      increase the user-friendliness of the website
                                                      THE COMMUNITY RELATIONS
                                                      BRANCH – UNIT DETAILS
COMMUNICATION STRATEGY
                                                      The CPED through the CRB educates, leads and
The CPED has worked out a base document               manages the ICAC awareness campaigns. In
spelling out pertinent communication strategic        addition to the general function of conducting
insights for the ICAC to develop a comprehensive      public campaign to alert the general public about
communication strategy. The objective is to come      the dangers of corruption and to inform the public
up with a set up where communication is               about the means and channels of reporting corrupt
coherently planned and conducted in order to          practices, the other broad responsibilities of the
                                                      different Units in the CRB are as follows:
contribute to continual organizational success. It
has therefore set the base for further discussion
                                                      RESEARCH, DEVELOPMENT,
among the Chairpersons and their Deputies of
                                                      COMMUNICATION AND LINKS UNIT
Advisory Committees for subsequent advice and
inputs.
                                                      This unit has the responsibility of initiating,
                                                      undertaking, coordinating, monitoring research
This document can also be used in the future as       projects. It will also establish, maintain and
reference by any consultant to devise a               promote links between the Commission and
communication strategy.                               similar national and international organizations so
                                                      as to foster co-operation in the fight against
Among others, this document includes the              corruption.
following important elements:
                                                      CIVIL SOCIETY UNIT
!     Public relation needs of the ICAC with two
      limbs: the communication Strategic Plan and     This unit conducts campaigns to encourage the
      the Press Communication Strategic Plan          formation and strengthening of non-governmental
!     Commission’s policy on transparency and         organisations to fight corruption. It focuses on
      confidentiality                                 activities geared towards mobilising the support
!     Improving relationship between the ICAC         of the civil society, including youth organisations
      and the Press                                   and networking with the different components of

                                                                             45
                                                                                  Annual Report 2003-2004
      Corruption Prevention And Education Division

      civil society to combat corruption. It also works     !     to examine the practices and procedures of
      in collaboration with trade unions for the setting          any public body;
      up of anti-corruption practices at the workplace.     !     to advise and assist public bodies on how
      Emphasis is also on capacity building and                   acts of corruption may be eliminated;
      networking with women organizations to fight          !     to draft model codes of conduct and advise
      corruption.                                                 public bodies on their adoption.

      PUBLIC AND PRIVATE SECTORS UNIT                       In conformity with its mandate, the Systems
                                                            Enhancement Branch has undertaken Corruption
      The focus of this unit is to increase awareness of    Prevention Reviews, elaborating best practice
      the public sector against corruption and its          guides, guidelines and codes of conduct.
      dangers. It also promotes capacity building by
      advising and assisting the public bodies on ways      CORRUPTION PREVENTION REVIEWS
      and means in which acts of corruption may be
                                                            The aim of such reviews is to effect a detailed
      eliminated – through workshops and training
                                                            analysis of systems and procedures of the
      activities. It emphasises on the importance of
                                                            organization with a view to making them more
      promoting integrity and developing self-regulating
                                                            corruption resistant. Depending on the size and
      mechanism to fight corruption in the public sector.   complexity of the organisation and its activities,
      At the same time, it cooperates with all other        such exercises may be time consuming. Reviews
      statutory corporations that strive towards the        usually involve all stakeholders, including the client
      betterment of the social and economic life of         organization and the Community Relations and
      Mauritius.                                            Corruption Prevention Advisory Committee.
                                                            A follow-up exercise is normally carried out after
      EDUCATION SECTOR UNIT                                 six months to assess implementation of
                                                            recommendations made or constraints being
      The Education Sector Unit focuses on all              faced. The successful completion of a corruption
      stakeholders in the education sector especially       prevention review lies heavily on the collaborative
      with the youth. The youth is an important sector      approach of the organisations’ management.
      for us especially when we endeavour to bring
      about a change in mindset and culture of the future   During the period under review two Corruption
      generation. The Unit targets youth through the        Prevention Reviews were undertaken and these
      education sector. It focuses its activities on:       were in progress. For the purpose of selecting
                                                            the areas in which reviews should be undertaken,
                                                            the Commission decided to focus on institutions
          (i)     the teachers/educators
                                                            dealing mainly with the public and where there
          (ii)    school children/youth
                                                            has been for quite some time a high perception
          (iii)   enhancing the school curriculum through   of the existence of opportunities for corruption.
                  the National Centre for Curriculum
                  Research and Development (NCCRD),         NATIONAL TRANSPORT AUTHORITY
                  the two public universities and other     (NTA)
                  relevant education institutions.
                                                            The objectives of the review were:-
      SYSTEMS ENHANCEMENT BRANCH
                                                            !     to streamline procedures and reduce
      As provided for in the Act, Systems Enhancement             exposure of NTA to corruption
      Branch is called upon to perform the following        !     to come up with recommendations to help
      functions:                                                  build a corruption resistant organisation
                                                            !     to promote awareness of corruption risks
                                                                  among NTA staff and to sensitise them on
      !       to monitor any contract awarded by a
                                                                  the need to come up with a long-term
              public body;
                                                                  strategy for corruption prevention.

                                46
Annual Report 2003-2004
                     Corruption Prevention And Education Division

The final report, submitted to the NTA in June         REVIEWS IN PROGRESS
2004, is a comprehensive document covering
various areas including: Licensing, Registration,      A L LO C AT I O N O F S TAT E L A N D AT T H E
Vehicles Examination, Enforcement, Cash                MINISTRY OF HOUSING AND LANDS
collection, Computerisation, Ethics and Integrity.
The report was discussed with not only NTA             The aim of the review is to identify loopholes in
                                                       the systems of allocation of State Lands, which
management but also the Ministry of Public
                                                       allow opportunities for corruption and make
Infrastructure, Land Transport and Shipping in its
                                                       necessary recommendations.
capacity of oversight body of the NTA. A follow-
up will be carried out after six months and further    This area has been selected because of the high
discussion will be undertaken with NTA                 corruption perception and repeated adverse
management regarding implementation and any            report from the National Audit Office.
related constraints.
                                                       POLICE DEPARTMENT – MANAGEMENT
                                                       OF DRIVING LICENCES SYSTEM
CUSTOMS DEPARTMENT
                                                       The aim of the review is to
The Corruption Prevention Review focuses on
                                                       !     identify opportunities for corruption
‘Exemption of Customs Duties’ under the
                                                             inherent in the systems of application and
Customs and Tariffs Act. The objectives of the
                                                             issue of domestic and international driving
assignment were:-                                            licences at the Police Department
                                                       !     make necessary recommendations to
!     To proactively and in a collaborative manner           improve these systems so as to reduce such
      address Customs Department’s exposure to               opportunities.
      substantial loss of revenue due to unjustified
      exemptions.                                      LOCAL AUTHORITIES – ISSUE OF PERMITS
!     To instill the concept of integrity and          AND LICENCES
      accountability within the Customs
      Department’s systems particularly for            The issue of permits and licences has always been
      exemption of duties.                             perceived as a corruption prone area. This
                                                       perception has been reinforced by the findings of
!     To reinforce the systems so that potential
                                                       the National Baseline Survey on Corruption in
      acts of corruption are discouraged through
                                                       Mauritius. According to the survey, 36.1% of
      preventive and detective controls.               respondents perceived Municipal and District
!     To streamline procedures.                        Councils as areas most associated with corruption.
                                                       Among the category of professionals service
The Review has been completed and a report has         providers, Building Inspectors are perceived by
been submitted to the Community Relations and          29.3% of respondents as “very much” in the
Corruption Prevention Advisory Committee for           practice of corruption.
its advice. The report will be discussed in due
course with the relevant authorities.
                                                       BEST PRACTICE GUIDES
The report provides an analysis of the systems
                                                       For the purpose of providing guidance on control
and procedures together with the role, which
                                                       procedures which can be introduced to prevent
Authorising Bodies play in the grant of exemptions.
                                                       corruption, two Best Practice Guides have been
It also elaborates on the corruption risks and
                                                       prepared in consultation with relevant stakeholders
prevention strategies that the Customs
                                                       in the following areas:
Department and authorising bodies need to
implement.


                                                                              47
                                                                                   Annual Report 2003-2004
      Corruption Prevention And Education Division

      !     Procurements of goods and services                the suggestions and feedback are obtained, the
      !     Contract works                                    Code of Conduct will be finalised and launched.

      These guides allow for self-assessment of systems       Code of Conduct for Large Taxpayers Department
      and act as eye openers for areas or activities that     At the request of the Large Taxpayers
      need attention.                                         Department, a Code of Conduct is under
                                                              preparation in close collaboration with
      ETHICS                                                  management and staff of this department.

      Corruption prevention strategies cannot just be         S E N S I T I S AT I O N   PROGRAMME            FOR
      control-based. The introduction of additional           STAKEHOLDERS
      rules, improvement of administrative systems and
                                                              H E A D O F D E PA R T M E N T S A N D S E N I O R
      the tightening of security arrangements have to
                                                              STAFF – RODRIGUES
      be complemented with a change in the culture of
      the organisation as well as the behaviour and
                                                              Heads of Departments and senior staff of the
      attitudes of people working in the organisation.
                                                              Rodrigues Administration have been explained the
      In the above area, the following works have been
                                                              mandate of the Corruption Prevention and
      carried out:
                                                              Education Division with respect to corruption
                                                              prevention. The intervention focused on the
      GUIDELINES ON GIFT FOR PUBLIC
                                                              following:
      OFFICIALS

      The enactment of the PoCA 2002 makes it an              !     How the Systems Enhancement Branch can
      offence for any public officials to solicit, accept           help to improve and to make public bodies
      or obtain a gratification. In view of this provision,         more corruption resistant.
      the need for a guideline for public officials with      !     The promotion of a collaborative approach
      regard to the acceptance of gift has been                     for improvement of systems.
      considered to be urgent. The Secretary to the           !     The short listing of risk areas for future
      Cabinet and Head of Civil Service solicited the               corruption prevention assignment.
      Commission to work out appropriate guidelines.
                                                              Several areas for future Corruption Prevention
      Following this request, a working document has          Reviews have been identified for 2004-2005.
      been elaborated and a committee of officials
      comprising representatives of the Ministry of Civil
      Service Affairs, Prime Minister ’s Office,              ASSOCIATION OF PROCUREMENT
      Federations of Trade Unions, Members of the             PROFESSIONALS
      Community Relations and Corruption Prevention
      Advisory Committee and ICAC officers has been           A presentation on procurement principles and
      set up to review the draft document. The review         ethics was made at the invitation of the Association
      is underway and it is expected that the document        of Procurement Professionals. Some 35
      would be finalized shortly.                             participants were sensitised during this workshop.

      CODE OF CONDUCT FOR STAFF OF THE
      PRISONS SERVICE                                         THE YEAR AHEAD

      A draft Code of Conduct for the Mauritius Prisons       For the financial year 2004/2005, the
      Service has been prepared in consultation with          Commission, in order to consolidate further its
      the Prisons Department. It has been submitted           actions, will give due consideration to the following:
      to the Department for circulation among staff so
      as to obtain/ensure wider acceptance. As soon as        !     Human resource, being the most valuable
                                                                    asset of an organisation, emphasis will be laid

                                48
Annual Report 2003-2004
                    Corruption Prevention And Education Division

    upon capacity building in terms of training           with important players in the field of anti-
    for personnel. Officers of the Division,              corruption. ICAC will prompt participation
    recruited from diverse professional                   in joint projects with stakeholders.
    backgrounds, have joined with specific skills
    which will now be further enhanced.               !   Besides raising awareness in the public
    Continuous improvement of our services to             sector about the need to participate in the
    better meet public expectations will be high          fight against corruption, activities aimed at
    on the agenda.                                        empowering the sector to effectively
                                                          combat this scourge will be conducted. One
!   In this age of globalization and high speed           of these activities will be the elaboration of
    communication, computerization for an                 an award for the best model for prevention,
    efficient delivery of services is a must. ICAC        control and management of corruption.
    can but invest in the state-of-art technology.
    Our website will be constantly monitored          !   Private sector organisations, though difficult
    to be increasingly user friendly in offering          to penetrate due to exigencies particular to
    information up-dates.                                 the sector, will be addressed with tailor
                                                          made materials and using convenient time
!   Signing of MoUs with our key partners is in           slots to reach maximum audience.
    the pipeline. The aim is to enhance
    partnership and to formalize modes and            !   The strengthening of the integrity pillars will
    scope of collaboration. The MoUs will                 be given due attention. Workshops targeting
    enable the ICAC to tap necessary expertise            in the first instance politicians and the
    and abilities to better implement its strategy.       Judiciary will be organized to coordinate and
    ICAC strongly believes in the partnership             build consensus on anti-corruption efforts.
    concept to develop and strengthen
    commitment and adherence to the anti-             !   National Forum with different stakeholders
    corruption cause.                                     will be developed and organized in order to
                                                          enhance the national dimension of the anti
!   It is a common understanding that young               corruption and anti money laundering
    minds are easier to shape. Therefore, to              strategy.
    achieve attitudinal changes in society,
    students will be targeted. The integration        !   The corruption prevention reviews actually
    of anti-corruption modules in the school              in progress at the Ministry of Housing and
    curriculae will be stressed upon.                     Lands, the Mauritius Police Force and Local
                                                          Authorities will be completed in 2004-2005.
!   International links with regional and                 A follow-up will be carried out on completed
    international organisations will be                   reviews at the National Transport Authority
    established to open up avenues of                     and the Customs Department to ensure
    collaboration and widen the scope of our              implementation of the recommendations.
    activities. Sharing of information, expertise,
    experiences and know-how will no doubt            !   Given the importance of oversight
    enhance the fight against corruption.                 mechanism in corruption prevention, a
                                                          review of the existing oversight mechanism
!   Fighting corruption requires the co-                  will be conducted in public bodies. In
    operation and commitment at all levels, from          addition, CPED will also review contract
    local to international. Strong consideration          works and management in public bodies with
    will be given to joint ownership projects             a view to upholding integrity in this area.


                                                                            49
                                                                                 Annual Report 2003-2004
      !     The two Best Practice Guides will be widely
            distributed among public bodies.

      !     Assistance will continue to be given to public
            bodies for the preparation of code of
            conduct on request.

      The Commission trusts that the above objectives
      will be fully met during the next financial year with
      the full dedication and support of the staff.
      Necessary means will be provided to ensure
      smooth implementation of ICAC’s commitments.




                                50
Annual Report 2003-2004
               Independent Commission Against Corruption




                                    Legal Division


                                  Mission Statement

The lawyers of the Legal Division service the Commission by providing impartial and timely
legal advice to all the Divisions of the ICAC. The Legal Division also has the responsibility of
prosecuting all investigations completed by the Investigation Division fairly and vigorously.




                                                                       51
                                                                            Annual Report 2003-2004
                          52
Annual Report 2003-2004
                                                                                   legal Division

INTRODUCTION

2003-2004 was marked by significant progress in       unsurmountable difficulty to obtain leave without
the setting up of the Legal Division. For the         pay while those few candidates from private
record, it will be recalled that, among the           practice who responded to the notice of
Commission’s priorities, the staffing of the          vacancies, were not keen to join in view of the
Division was always high on the agenda. It was in     remuneration package which they considered as
this context that in 2002/2003, as a temporary        relatively unattractive. Notwithstanding this
measure, the Commission availed itself of the         situation, the Commission had to find an urgent
services of a lawyer from the State Law Office to     solution. In this context, the Commission alerted
head the Legal Division pending the recruitment       the Corruption Advisory Committee and the
of a Chief Legal Adviser. Since then, the situation   Parliamentary Committee, both of which are
has evolved positively and there is no doubt that     mandated to look into the staffing problems of
the Division, will in the short term, consolidate     the Commission.
its position and contribute further to the work of
the Commission.                                       At the level of the Parliamentary Committee, the
                                                      members showed keen interest to find an
                                                      acceptable and long term solution. Unfortunately,
HUMAN RESOURCE                                        as at 30 June 2004, there was no concrete
                                                      development on the Committee’s proposal to
Recruitment of staff for the Division continued to    obtain the services of an officer from the State
be an area of immense concern for the                 Law Office on secondment to head the Division.
Commission. During the period under review,           However, this matter is still live on the agenda of
the Commission focused further attention to that      the Parliamentary Committee which continues to
area and, by the end of June 2004, it successfully    mobilize efforts to assist the Commission in finding
concluded the appointment of seven legal              a suitable incumbent for the post of Chief Legal
practitioners.                                        Adviser.

Recruitment of suitable staff for the Division
proved to be difficult and was characterized by a     WORK OF THE DIVISION
general lack of interest from lawyers. Those from
the Public Service who showed sustained interest      The charter of the Division provides for the latter
to serve the ICAC were unfortunately confronted       to tender legal advice to the Commission and its
with the predicament of foregoing secure positions    Divisions. For the first half of the year, the
as a result of problems to obtain leave without       Division operated with only two Legal Advisers
pay. Indeed, the difficulties to obtain such leave    and a Consultant. It was only in the third quarter
deterred potential candidates from the public         of the year that other staff were recruited. Albeit
service to join the ICAC. Such a situation, though    with the limited resources available, the Division
explicitly covered by section 24 of the PoCA 2002     serviced the institution in a dedicated manner. The
could not be resolved and this had a direct adverse   services of the lawyers were solicited by all the
impact on the whole recruitment process and           Divisions.
especially regarding the post of Chief Legal
Adviser.                                              However, the demand was more pronounced from
                                                      the Corruption Investigation Division which had
With regard to the post of Chief Legal Adviser        to be advised on a day-to-day and case-to-case
provided for under section 31 of the Act, there       basis, in view of the inherent legal implications of
has been no change in the situation explained in      their statutory activities. In fact, all the actions
the Annual Report 2002-2003. In fact, selected        undertaken by the Corruption Investigation
candidates from the Public Service again faced the    Division ranging from summons of a witness or


                                                                              53
                                                                                   Annual Report 2003-2004
      legal Division

      suspect, interrogation or arrest, are closely        Besides their core duties as legal practitioners,
      followed by the staff of the Legal Division which    the staff of the Division were also called upon to
      have to ensure not only compliance with the PoCA     assist in the training of staff of Corruption
      2002 but with human rights and other legal issues.   Investigation Division on a regular basis. Such
      The increase in the workload of the Corruption       training was focused on the interpretation and
      Investigation Division resulted in a significant     application of the PoCA 2002 and FIAMLA 2002.
      impact on the resources of the Legal Division. It
      is to be noted that once the further investigation   In addition, the investigation staff was also
      phase is completed, there is an increased input      introduced to the salient features of the Criminal
      from the staff of the Legal Division who have to     Code, administrative law and the fundamental
      steer such cases to the DPP through the              rights of citizens. This assistance helped the
      Operations Review Committee.                         Corruption Investigation Division to conduct its
                                                           operations in a professional manner and with a
                                                           greater insight in its evidential requirements.
      During the year under review, the staff of the
      Division assisted the Corruption Investigation
                                                           Capacity building is an essential part of building
      Division in lodging 32 provisional charges and
                                                           up a professional Legal Division. During the year,
      referring 24 cases to the DPP for prosecution.
                                                           training was organized where the Legal Advisers
      Both instances placed a heavy demand on the
                                                           recruited had the opportunity of getting some
      Division as a number of the cases referred to the    further training.
      DPP or in which provisional charges were lodged,
      were of varying degrees of complexity, requiring
      extensive input.                                     THE YEAR AHEAD

      With regard to the corruption prevention and         With the increase in the inflow of complaints, it is
      education mandate of the Commission, the input       obvious that the services of the Legal Division
      of the Legal Division was also quite substantial.    would be solicited more frequently. The
      Besides providing advice to the Corruption           Commission is fully alive to the forthcoming
      Prevention and Education Division on a fairly        demands for legal services and will in this
      regular basis, the staff of the Legal Division had   perspective, pursue its efforts to reinforce the
      to devote time to certain core functions of the      Division. The appointment of a Chief Legal
      Corruption Prevention and Education Division         Adviser remains one of the foremost priorities.
      especially in relation to efforts being made to      The Commission is confident that with the
      establish formal working relationships with          assistance of the Parliamentary Committee and
      stakeholders. Such collaboration was also            other authorities, a convenient and workable
      extended to cover legal issues raised during         solution would be found.
      seminars and workshops at sectoral and national
      level. In connection with the corruption             The year ahead remains full of challenges. This is
      prevention reviews conducted by the Systems          the year when more investigations will be
      Enhancement Branch, the Division had to provide      completed and when the first investigations are
      inputs.                                              likely to be heard in Court. The Commission is
                                                           getting ready to have those first cases heard. No
                                                           doubt, as with any other legal systems, every new
      Furthermore, the need for frequent advice also
                                                           legislation is put to the test and there are bound
      came from the Administration and Finance Division
                                                           to be weaknesses and successes. This is true of
      in connection with issues pertaining to general
                                                           any investigation in any crime.
      administration, financial management, human
      resource management and industrial relations.        The Commission will ensure regular training for
      These issues, which cut across the entire            its legal officers. It will enlist the support of the
      institution, were attended to with due diligence.    State Law Office to provide in-house training and

                              54
Annual Report 2003-2004
                                                            legal Division

other assistance to build the Legal Division. The
Commission will also seek to reorganize the Legal
Division in order to ensure that part of the Legal
Division offers on a more structured manner,
regular legal advice during the course of an
investigation.

The Commission will also seek to organize regular
training on issues pertaining to human rights. The
office of the Commissioner for Human Rights will
be solicited in order to organize such training.

The Commission will seek to develop a more
structured working relationship with the DPP’s
office in order to avoid unnecessary difficulties.
On an interesting note, the work of the Legal
Division has been marked by a different form of
challenge. This relates to the specialized nature
of the two criminal activities the law mandates
the Commission to investigate. Corruption and
money laundering are two types of specialized
crimes and, as such, require different expertise
and skills. The application of the law, in the
provisions of the PoCA and FIAMLA have disclosed
intricate issues of law which are new to our legal
and judicial system. These require a different
approach and understanding of the legal
implications behind these provisions and their
application in an altogether somehow different
context, ie, the domestic application of
international obligations to fight corruption and
money laundering.

To that extent the Commission invested in the
setting up of a library to cater not only for the
legal but for the other operational divisions also.
However, the focus of such documentation
facilities remains law in as much as this is where
the skills have to be sharpened in order to better
service the other operational divisions.

In conclusion, the Legal Division is gradually being
reinforced in the sense that the relevance of
specialized skills are being developed to meet the
legal challenges of the organization in its
operations. The various Court cases before the
Supreme Court on the interpretation of the
provisions of the legislation and the powers of the
Commission is testimony of this increasingly rich
experience in jurisprudence.

                                                       55
                                                            Annual Report 2003-2004
                          56
Annual Report 2003-2004
                 Independent Commission Against Corruption




                 Administration and Finance Division

                               Mission Statement


The Administration Directorate strives to service the operational directorates of the
Commission in order to ensure that they operate up to strength, are properly equipped and
fully trained.




                                                                 57
                                                                      Annual Report 2003-2004
                          58
Annual Report 2003-2004
                                           Administration and Finance Division

INTRODUCTION

The first year ’s Report indicated that the                    Principal Assistant Secretary
Commission had, right from the start, two major                Assistant Secretary
responsibilities, namely: to ensure the gradual                Higher Executive Officer
establishment of the whole organization; and                   Finance Officer
secondly, the conduct of operations at the two                 Higher Purchasing & Supply Officer
levels. The preceding chapters have given a clear
                                                         It was only in January 2004 that the two
insight into the manner in which operations have
                                                         seniormost officers of the Division, the
performed at the level of investigation and
                                                         Administration and Finance Manager and the
education. The chapters have also briefly                Assistant Administration and Finance Manager
explained the role of Administration Division. The       were appointed. Other supporting staff were
second responsibility remains a gradual process.         appointed in March 2004. Accordingly, by the
It is inevitable that the establishment of such an       year ended 30 June 2004, the Division had a
organization will take time and is a continuous          strength of 29 staff.
process. During the course of the second year,
the Administration and Finance Division assumed
                                                         REVIEW OF WORK
an even greater role and responsibility.
While the activities of the Corruption Investigation     In line with its mission statement, aimed at
Division, Corruption Prevention and Education            providing support to the Commission and its
Division and the Legal Division gathered                 Divisions, in the discharge of their statutory
momentum, it was imperative for the                      functions, inputs from the Division originated from
Administration and Finance Division to keep pace         its operational branches, namely the following:
therewith and take necessary steps to keep these
Divisions up to strength, properly equipped and          !     Finance Section
fully trained. With these objectives in mind, the        !     Human Resource Section
                                                         !     Procurement Section
Administration and Finance Division embarked on
                                                         !     Support Services Section
its second year of operation with the same
enthusiasm and dynamism as in the first year.            The abovementioned operational branches have
2003-2004 was accordingly marked by a high level         within their respective mandates, contributed
of activity in terms of input in the various functions   towards upholding the mission, vision and
of the other Divisions and substantial contribution      corporate values of the ICAC, through the
to the work of the Commission and the Advisory           management of human resources, financial
Committees.                                              management and procurement management. All
                                                         these strategic functions have been undertaken
                                                         with due diligence and having as guiding criteria,
                                                         efficiency, sustainability and accountability.
ESTABLISHMENT AND STAFF

During the first half of the year, there was no          FINANCE SECTION
change in the establishment and staffing position
of the Division. Staff from the Public Service           Within the framework of accountability, the
whose services were made available by the Head           finances of the ICAC derived from the
of the Civil Service continued to constitute the         Consolidated Fund, have been applied in a
                                                         consistent manner, under the supervision of the
Administration and Finance Division. As at the end
                                                         Commission, in the furtherance of the objectives
of December 2003, the establishment of the
                                                         of the PoCA 2002. At all times, due attention
Division comprised five key staff, namely the            was given to ensure that the actions taken are fair,
following:                                               visible and in the interest of the organisation.

                                                                                 59
                                                                                      Annual Report 2003-2004
      Administration and Finance Division

      Besides the conventional tasks falling under the        it needs to be highlighted that recruitment of
      purview of the Finance Section, with regard to          suitable staff for the Division has also been
      application of funds solely connected to the            characterised by difficulties not only for the lead
      activities of the institution, the Section adopted a    post in the Human Resource Section but also at
      proactive approach in budgeting, expenditure and        lower levels. In fact, the ratio of applications to
      accountability. Such an approach has, during the        the number of established posts were impressive,
      year under review, provided the Commission              and no doubt, this was at first sight a promising
      strategic information to monitor performance and        sign. Unfortunately, qualitatively, such numbers
      to ensure that value for money is obtained.             were devoid of interest.

      Furthermore, in the context of accountability
                                                              Conscious of the fact that human resources
      frameworks of the Corruption Advisory
                                                              remain its most precious asset, the Commission
      Committee and the Parliamentary Committee, the
                                                              will continue to pursue its policy of making the
      staff of the Section have assisted the Commission
                                                              ICAC an elite organization. In this perspective,
      in the preparation of management accounts and
      the assessment of the budgetary requirements of         the Human Resource Section of the Administration
      all the Divisions.                                      and Finance Division will continue to lead the way.

                                                              As at 30 June 2004, the staffing position in the
      HUMAN RESOURCE SECTION                                  four Divisions as compared to the number of
                                                              established posts was as depicted hereunder:-
      The Commission recognizes human resource
      management as a central strategic component for
      ensuring survival, effectiveness and efficiency.                   Staffing position as at 30.06.04
      Accordingly, since the start of its operation in June
      2002, and throughout the year under review,
      human resource management has been a key
      factor in establishing the institution and ensuring
      the continuity of operations.

      During the year under review, the Human
      Resource Section had to face the challenge of
      implementing the Commission’s recruitment
      objectives and to make all the Divisions become
      operational. With the scarce staffing situation in
      the Administration and Finance Division,
      undertaking and completing the recruitment
      process was by itself an administrative feat. The
      Administration and Finance Division takes pride
      in this achievement the moreso that in parallel, it
      had to attend to the preparation of the General         PROCUREMENT SECTION
      Conditions of Service and Code of Conduct and
      Ethics, which form an integral part of the contract     Procurement is an area which has, during the
      of employees of the Commission.                         period under review, been subject to adverse
                                                              comments from some quarters. According to law,
      The scope of work of the Administration and             the Parliamentary Committee is entitled to receive
      Finance Division within the human resources             information on such matters and within the ambit
      management slot was carried out with a high             of the law, the Committee has at all times been
      degree of dedication and enthusiasm. However,           briefed in a comprehensive manner.


                                60
Annual Report 2003-2004
                                           Administration and Finance Division

The Commission has, within its policy of                During the period under review, the Advisory
promoting good governance and best practices,           Committees met on a total of 38 occasions and
ensured that its procurement policies are not only      have been serviced by the Assistant Administration
well understood, but are also applied in a              and Finance Manager over and above the duties
consistent and strict manner. This has been the         defined in the scheme of service for that post.
approach developed for the procurement of               Being given that the Advisory Committees have
goods and services required in connection with          within their respective mandates the responsibility
the activities of each Division.                        for the general monitoring of the activities of the
                                                        four Divisions, the need for coordination with
During the period under review, the Procurement         these Divisions was therefore frequent. This
Section carried out bidding exercises on 68             situation inevitably placed the Assistant
                                                        Administration and Finance Manager and the other
occasions. Demand for goods, materials and
                                                        staff of the Division under considerable pressure.
services were attended to with due diligence in a
timely manner without losing sight of the need
for transparency.
                                                        MEETINGS OF THE COMMISSION
The need for accountability and transparency
                                                        The Commission is the central policy making body
remains the guiding principle for procurement in
                                                        of the ICAC. It has in law, an obligation to meet
the ICAC. The system in place and the
                                                        at least once a month. However, the frequency
transactions undertaken remain open to scrutiny,
                                                        of the meetings of the Commission is to a large
to interested parties.
                                                        extent dependent on factors which may be
                                                        completely out of its control or in relation to the
                                                        activities of the Divisions. During the period under
SUPPORT SERVICES SECTION
                                                        review, the Commission met on 56 occasions.
The Human Resource, Finance and Procurement
                                                        This high frequency of meetings and the nature
Sections have clearly defined roles within the
                                                        of the work associated thereto had considerable
Administration and Finance Division. However,
                                                        impact on the resources of the Administration and
the specificity of the ICAC is such that there are
                                                        Finance Division. However, the staff of the
a number of critical functions which cannot be
                                                        Division spared no effort to keep the pace, thus
attributed to the abovementioned sections. Such
                                                        allowing the work of the Commission to proceed
functions, inter alia, include responsibility for the
                                                        unimpeded.
registry, assets management, fleet management
and documentation unit. These functions have
been placed under the jurisdiction of a new section
                                                        FINANCE – 2003/2004
called the Support Services Section. This section
is being set up and its staffing being looked into.
                                                        The financial resources allocated to the
                                                        Commission have also been the subject of adverse
ADVISORY COMMITTEES
                                                        criticisms, with however, no substantiation. For
                                                        the above period, the National Assembly allocated
The Act provides for the setting up of the three
                                                        to the ICAC a total of Rs 100 million out of which
Advisory Committees namely:
                                                        Rs 88 million was for Recurrent Expenditure and
                                                        Rs 12 million for Capital Expenditure. As at 30
   (i)     the Operations Review Committee
                                                        June 2004, total expenditure amounted to Rs 82.7
   (ii)    the Corruption Advisory Committee
                                                        million, out of which Rs 72.86 million was in
   (iii)   the Community Relations and Corruption
                                                        respect of recurrent expenditure.
           Prevention Advisory Committee.

                                                                                61
                                                                                     Annual Report 2003-2004
      Administration and Finance Division

      Out of the Rs 72.86 million disbursed by              organization and ensure efficiency, sustainability
      Government, 66.11% thereof was for the                and accountability in its operation through its
      payment of salaries, allowances and contractual       functional units. During the coming months, the
      benefits of Members and officers of the               Administration and Finance Division will reinforce
      Commission, while the remaining of 33.89% was         its Human Resource Unit in order to provide
      allocated to other administrative and operational     continued support in the recruitment, training and
      expenses. With regard to salaries, allowances etc,    retention of outstanding staff and ensure that “high
      it is to be noted that these were inescapable         quality” staff are in place and are fully equipped to
      commitments arising out of terms and conditions       achieve the ICAC’s goal.
      of service approved by the Appointments
      Committee for Members of the Commission and           The Administration and Finance Division will also
      by the Parliamentary Committee in respect of 134      continue to ensure the integrity of the ICAC’s
      employees.                                            accounting and financial reporting system. In this
                                                            respect, the Division will, with the assistance of
      Capital expenditure during the year included          the Systems Enhancement Branch of the
      improvement works in the rented premises and          Corruption Prevention and Education Division,
      the procurement of computers and office               pursue the review of the existing procurement
      equipment. Only 82.03% of the allocated amount        and financial management systems in place in order
      was utilised. The chart hereunder depicts the         to ensure that these remain in line with
      percentage recurrent expenditure by item.             international best practices.


                                                            ACCOMMODATION

                                                            Providing the staff a conducive work place remains
                                                            a high ranking item on the agenda of the
                                                            Commission. It is recognized that the rented
                                                            accommodation can only be a temporary
                                                            measure, the moreso that with the growth in the
                                                            activity level of the ICAC, such an arrangement
                                                            would soon reveal its limitations. Accordingly, the
                                                            Commission’s move for relocation of its
                                                            headquarters in premises better adapted to its
                                                            requirements will be given sustained attention.
                                                            Concurrently, the Commission’s proposal to
                                                            construct its own building which is a sine qua non
      It is worth pinpointing that the estimates of the     for long term sustainable operations has not been
      Commission are debated and approved by the            lost sight of. The principle of such project which
      Corruption Advisory Committee and the                 has received the blessings of the Parliamentary
      Parliamentary Committee in full details before same   Committee will be further studied with the
      are considered and approved by the Minister of        objective of reducing in a significant measure the
      Finance before consideration by Parliament.           impact on public funds in the long term.


      THE YEAR AHEAD                                        RECRUITMENT

      In line with the mission statement of the ICAC,       Employment on contract, unavoidably gives rise
      the Administration and Finance Division will          to staff turnover and thus the need for recruitment
      continue to promote the corporate values of the       to fill vacant posts. The Division’s objective is to


                               62
Annual Report 2003-2004
                                           Administration and Finance Division

ensure that all the Divisions are adequately staffed    the Division will assist the Commission in the
for effective performance and ensure continuity         review of its procurement and finance procedures
of operations. During the next financial year, the      with a view to ensuring a higher level of
Division will ensure that the qualitative and           transparency and accountability.
quantitative requirements of each Division are fully
met so as to enable them to implement the
Commission’s mandate in a more effective manner.        REVIEW  OF           P AY     AND       GRADING
It is expected that by the end of 2004, all the         STRUCTURE
Divisions would be up to the required strength.
                                                        By virtue of section 24(3) of the PoCA 2002, the
                                                        salaries, allowances and terms and conditions of
CAPACITY BUILDING                                       service of officers of the Commission have been
                                                        defined by the Commission with the approval of
It is the Commission’s considered view that             the Parliamentary Committee. Within the purview
continuous training is the linchpin for the             of this section of the law, the Parliamentary
successful conduct of its present and future            Committee, has, in December 2002, approved
operations. It also recognizes that anti corruption     the Commission’s proposals for salaries and terms
and anti money laundering are fields where there        and conditions of employment of ICAC staff along
is a dearth of local talents. It is equally true that   with the organizational structure of each Division
in these fields there is no place for amateurism.       of the Commission.
Accordingly, during the coming months, capacity
building will be attended to in close collaboration     Contract term of employment, with an end of
with the directorates.                                  contract gratuity in lieu of pension, as opposed to
                                                        permanent and pensionable employment as in the
                                                        Civil Service, was considered to be a satisfactory
CODE OF CONDUCT AND ETHICS                              method of employment and retaining staff in an
                                                        anti-corruption body like the ICAC.
The Code of Conduct and Ethics forms an integral
part of the contract of employment of the staff of      At the time proposals were made to the
the ICAC. The Commission is alive to the fact           Parliamentary Committee for the establishment
that in a fast changing environment, the standard       of salaries, wages, allowances and conditions of
of conduct and the ethical requirements expected        employment of its officers, the Commission was
from officers have to evolve. In this perspective,      guided by several considerations based on the
the Division will assist the Commission in the          distinct nature of the responsibilities involved in
review of the existing Code and formulate               joining the ICAC, legal obligations, restrictions and
proposals for the enhancement thereof.                  absence of certain benefits.

                                                        Also considered within the philosophy of contract
PROCUREMENT AND FINANCE                                 employment was that non-renewal of contract
                                                        provides an effective means of maintaining staff
Since its inception, the Commission’s foremost          quality and internal discipline.
priority has been to ensure full transparency in all
its operations. Matters pertaining to procurement       Moreover, in order to attract employees from the
and finance are certainly not exempted from such        public and private sectors having the relevant
requirements. In fact, in such matters, the             qualifications and experience, the Commission
Commission’s unalterable stand remains that these       considered that it should be able to propose a
be handled with the highest standard of probity         package offering sufficient incentives. The salary
and in line with internationally recognized best        levels and other contractual benefits as approved
practices. Within the ambit of this philosophy,         by the Parliamentary Committee were initially


                                                                                63
                                                                                     Annual Report 2003-2004
      Administration and Finance Division

      considered as a motivating factor which would            also the onerous financial aspect of the present
      enable the ICAC to attract employees from the            contract employment scheme. In fact, during the
      public and private sectors. This blend of public         review of the 2004-2005 Estimates, this matter
      and private sector expertise was considered as           has been the subject of discussion at the level of
      an essential vector in the implementation of the         the Corruption Advisory Committee. The
      mandate of the ICAC with regard to law                   Committee advised the Commission to retain the
      enforcement, public education and corruption             services of a Consultant to study the feasibility of
      prevention through systems enhancement.                  introducing a permanent and pensionable scheme
                                                               for its employees.
      However, the recruitment exercises undertaken
      during the year have revealed:
                                                               REVIEW OF ESTABLISHMENT
      !     a poor level of response from private sector
            employees;                                         In the fight against organized white collar crimes,
      !     public sector employees constitute the core        success is, inter alia, tributary not only to the
            of the ICAC workforce;                             quality of personnel but also to the organizational
      !     most of the candidates responding to the           set up, the internal modus operandi and the
            ICAC’s notice of vacancies are school-             conditions governing the employment of
            leavers with no relevant experience;               personnel. These also apply to the ICAC
      !     private sector employees continued to
                                                               notwithstanding its nascent origin.             The
            show little interest to work for the ICAC;
                                                               Commission views the implementation of its
            and
                                                               statutory mandate with a high sense of
      !     the salary levels in certain grades are still
                                                               accountability. Accordingly, this imposes on the
            not conducive to attracting mature
                                                               Commission the duty to conduct a thorough
            candidates.
                                                               review of its establishment so as to preserve and
                                                               consolidate its achievements and to ensure a more
      It would also be pertinent to place on record that
                                                               optimistic future. In this connection, in the event
      with the coming into force of the PRB Report
                                                               that the feasibility report on the introduction of
      2003, a number of public officers selected for
                                                               Pay Review and Grading Structure is endorsed by
      employment declined the offer made to them.
                                                               the relevant authorities, the Division will be called
      Coupled with the impact of the PRB Report, leave         upon to play a pivotal role in the implementation
      without pay continued to be a recurrent problem          of the recommendations of the Consultant. The
      though section 24(5) of the Act makes it an              Division will in that regard, spearhead this process
      obligation for public officers to be granted leave       of review and will assist the Commission in
      without pay from their service for the duration          developing policies which would improve
      of their contract of employment with the                 organizational stability and more importantly
      Commission.                                              provide incentives for motivation and staff
                                                               retention.
      The above factors have therefore been major
      deterrents in attracting public officers to join the
      ICAC. Consequently, the recruitment process in           HEALTH AND SAFETY
      all the Divisions has suffered in a significant manner
      and after two years, the possibility of the non-         Besides its numerous legal obligations, the
      renewal of leave without pay of employees from           Commission has not overlooked the requirements
      the public service appears real and has therefore        in terms of health and safety of its personnel. This
      to be addressed without delay.                           has been an overriding concern which is being
                                                               attended to, in strict compliance with the
      Along with the abovementioned issues, there is           Occupational Health and Safety Act.


                                64
Annual Report 2003-2004
                                          Administration and Finance Division

A part time Health and Safety Officer has been
appointed to ensure that all the obligations
imposed by law are duly enforced and to take all
pre-emptive measures to maintain a safe working
place. The Commission is satisfied that, with the
collaboration of its personnel, there has been so
far no unfortunate occurrence having an impact
on the latter’s health and safety. During the next
financial year, the health and safety standards will
be further strengthened in close consultation with
the employees.




                                                             65
                                                                  Annual Report 2003-2004
                          66
Annual Report 2003-2004
 Independent Commission Against Corruption




Financial Statements for the Year Ended
              30 June 2004




                                    67
                                         Annual Report 2003-2004
                Independent Commission Against Corruption


      REPORT OF THE DIRECTOR OF AUDIT
      TO THE COMMISSIONER OF THE
      INDEPENDENT COMMISSION AGAINST CORRUPTION

      I have audited the accompanying balance sheet of the Independent Commission Against Corruption as
      of 30 June 2004, and the related statements of income, and cash flows for the year then ended. These
      financial statements are the responsibility of the Commission. My responsibility is to express an opinion
      on these financial statements based on my audit.

      I conducted my audit in accordance with International Standards on Auditing. Those standards require
      that I plan and perform the audit to obtain reasonable assurance about whether the financial statements
      are free from material misstatement. An audit includes examining, on a test basis, evidence supporting
      the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
      principles used and significant estimates made by management, as well as evaluating the overall financial
      statement presentation. I believe that my audit provides a reasonable basis for my opinion.


      AUDIT OPINION

      In my opinion, the Financial Statements give a true and fair view of the financial position of the Independent
      Commission Against Corruption as of 30 June 2004, and of the results of its operations and its cash
      flows for the year then ended.




      (R. JUGURNATH)
      Director of Audit


      National Audit Office
      Level 14, Air Mauritius Centre
      Port Louis
      19 November 2004




                                68
Annual Report 2003-2004
            Financial Statements for the Year Ended 30 June 2004
                                   Balance Sheet
                            as at 30 June 2004
                                             2003-2004                     2002-2003

                           Notes        Rs           Rs               Rs            Rs


 Fixed Assets

 Tangible Assets               4                  24,434,622                    22,821,832


 Current Assets

 Stocks                                188,082                    340,924
 Prepayments                           997,214                    942,174
 Bank and Cash balance         6     2,589,269     3,774,565    1,022,072        2,305,170


 Current Liabilities


 Creditors and Accruals        7                    (288,169)                   (4,039,558)


                                                  27,921,018                    21,087,444


 Capital and Reserves


 General Fund                  8                  27,921,018                    21,087,444




             N. BEEKARRY                                  S. NEMCHAND

            COMMISSIONER                         SECRETARY TO THE COMMISSION




19-Nov-04

                                                                 69
                                                                       Annual Report 2003-2004
      Financial Statements for the Year Ended 30 June 2004
                                  Income and Expenditure Account
                      for the period 1 July 2003 to 30 June 2004
                                                      2003-2004                  2002-2003


                                      Notes      Rs           Rs            Rs           Rs


      Income


      Government Revenue Grant            9   72,050,000                 27,312,495
      Funds from UNDP                          1,221,046
      Funds from European Union                 122,304
      Interest received                         678,976                    234,340
      Miscellaneous Incomes                        1,000                    28,552
      Amortisation of Capital Grant       5    7,738,668    81,811,994    5,987,479    33,562,866




      Expenditure


      Staff Costs                        10   48,170,993                 16,506,140
      Other operating costs              11    7,811,087                  6,256,392
      Administrative expenses            12   13,700,188                  6,547,243
      Depreciation                        4    7,126,025                  5,987,479
      European Union Projects                   122,304
      UNDP Projects                            1,221,046
      Financial Charges                            3,400
      Assets destroyed in fire            2     612,676 (78,767,719)                  (35,297,254)


      Excess Income over Expenditure                         3,044,275                 (1,734,388)




                                 70
Annual Report 2003-2004
             Financial Statements for the Year Ended 30 June 2004
                                  Cashflow Statement
                for the period 1 July 2003 to 30 June 2004
                                                         2003-2004      2002-2003


                                                  Note      Rs               Rs



Net Cash Outflow from operating activities          13   (1,276,960)       787,732



Returns on Investments and Servicing of Finance

Interest received                                           678,976        234,340



Investing activities

Acquisition of Fixed assets                              (9,362,786)   (25,401,075)



Financing

Government Capital Grant                                  9,441,166     25,401,075

Capital grant unutilised                                  1,558,834

Unexpended balance from UNDP                                190,454

Unexpended balance from European Union                      337,514



Increase in Cash and Cash equivalent                      1,567,198      1,022,072




                                                             71
                                                                  Annual Report 2003-2004
      Financial Statements for the Year Ended 30 June 2004
                                      Notes to the Accounts
      1 ACCOUNTING POLICIES

          The principal Accounting Policies adopted by the Commission are as follows:

          A.    BASIS OF ACCOUNTING

          The accounts are prepared under the historical cost convention.

          B.    DEPRECIATION

          Depreciation is calculated to write off the cost of fixed assets on a straight-line basis over the
          expected useful lives of the assets concerned. Full year depreciation have been charged for
          assets in the year of purchase/acquisitions. No depreciation is provided in the year of disposal
          or destruction. The annual rate of depreciation used are:

          NEW ASSETS

          Furniture                                                                  10%

          Equipment – Computers and Electronic equipments                            20%

                       Others                                                        10%

          Vehicles                                                                   20%

          Library materials                                                      33.33%

          SECOND HAND ASSETS RECEIVED FROM GOVERNMENT

          In most cases, second hand assets taken over from Government have been valued at a nominal
          value of Rs 1.00 per item for control purposes only, in which case no depreciation is being
          charged. Otherwise their estimated value is being written off at the rate of 33.33 %.

          C.    STOCKS

          Stocks are valued at the lower of cost and net realisable value. Cost is based on the invoiced
          value of materials on a first in first out basis(FIFO).

      2 ASSETS DESTROYED IN FIRE OUTBREAK ON 22 MAY 2004

          These assets include Rs 612,576 representing expenditure on improvement works incurred
          during this Financial Year and equipment of nominal value Rs 100 received from government in
          FY 2002-2003. These assets have been credited from Fixed Asset and written off in the Income
          and Expenditure Account. Depreciation and Amortisation have been adjusted accordingly. The
          relevant claims have been sent to SICOM, the insuring company.

      3 FUNDS RECEIVED FROM EUROPEAN UNION AND UNDP

          FUNDS RECEIVED
          European Union - Rs 459,817               for ‘ Anou Diboute Ensam’ Project

          UNDP                - Rs 1,411,500        for ‘ National Survey on Corruption’ Project

          These funds have been credited to the General Fund in accordance with the Prevention of
          Corruption Act 2002 Section 32(2).



                              72
Annual Report 2003-2004
             Financial Statements for the Year Ended 30 June 2004
                                   Notes to the Accounts
 4 Tangible Fixed Assets
                                    Furniture   Equipment     Vehicles   Library        Total
                                                                         Materials
                                     Rs           Rs           Rs             Rs          Rs
Cost
At 1 July 2003                      2,587,567   6,743,427 17,687,059 1,791,258 28,809,311
Additions                           4,173,505   5,191,879               75,782 9,441,166
Less Assets destroyed in fire       (612,576)       (100)                       (612,676)
Disposal                                        (112,094)                       (112,094)

 Balance as at 30 June 2004         6,148,496 11,823,112 17,687,059 1,867,040 37,525,707

Depreciation
At 1 July 2003                       259,796    1,166,685    3,963,972    597,026       5,987,479
Depreciation on balance B/F          259,796    1,166,651    3,963,972    597,026       5,987,445
Depreciation for acquired assets     356,093      757,162                  25,258       1,138,513
Depreciation assets destroyed                           67                                      67
Disposal                                          (22,419)                                (22,419)
 Balance as at 30 June 2004          875,685    3,068,146    7,927,944 1,219,310 13,091,085
 Net Book Value as at
 30 June 2004                       5,272,811   8,754,966    9,759,115    647,730 24,434,622
Net Book Value as at
30 June 2003                        2,327,771   5,576,742 13,723,087 1,194,232 22,821,832

                                                                         2003-2004 2002-2003
5 Amortisation of Capital Grant
                                                                                Rs             Rs
Depreciation charge for the year                                         7,126,025      5,987,479
Assets destroyed in fire                                                   612,676
Less Amortisation charged on asset acquired in FY 2002-2003                   (33)
and destroyed in fire
                                                                         7,738,668      5,987,479

6 Cash and Bank balance
                                                                                Rs             Rs
Bank Balance                                                             2,046,039      1,020,912
Special Advance                                                             15,000
Funds from UNDP                                                            190,454
Funds from European Union                                                  337,514
Cash balance                                                                   262          1,160
                                                                         2,589,269      1,022,072
7 Creditors and Accruals
                                                                                   Rs          Rs
Creditors                                                                     107,365   2,681,729
Accruals                                                                      165,804   1,357,829
Special Advance                                                                15,000
                                                                              288,169   4,039,558


                                                                         73
                                                                               Annual Report 2003-2004
      Financial Statements for the Year Ended 30 June 2004
                                       Notes to the Accounts
                                                          2003-2004             2002-2003
      8 General Fund
                                                     Rs               Rs           Rs
      Balance B/F                                                21,087,444
      Funds received from UNDP                      1,411,500
      Funds Utilised                              (1,221,046)
      Unexpended balance                                            190,454
      Funds received from European Union             459,817
      Funds Utilised                                (122,304)
      Unexpended balance                                            337,513
      Capital grant received from Government:
      Grant utilised                               9,441,166
      Unexpended balance                           1,558,834     11,000,000
      Capital Fund from government                                              28,809,311
      Amortisation                                               (7,738,668)    (5,987,479)
      Excess of Income over Expenditure                            3,044,275    (1,734,388)
                                                                 27,921,018     21,087,444

      9 Government Revenue Grant
                                                                          Rs             Rs
      Government Grant received                                   83,050,000     52,000,000
      Less:Capital Grant                                        (11,000,000)   (25,401,075)
      Expenditure incurred by PMO                                                   713,570
                                                                 72,050,000     27,312,495
      10 Staff cost
                                                                         Rs             Rs
      Salaries                                                   34,392,584     13,026,923
      Allowances to staff                                         3,951,346      2,008,315
      End of Year Bonus                                           1,665,755        351,944
      Gratuity                                                    5,137,584
      Travelling and Transport                                    2,503,414        999,598
      Staff welfare                                                  40,926         14,100
      Overtime                                                      479,384        105,260
                                                                 48,170,993     16,506,140
      11 Other operating costs
                                                                         Rs             Rs
      Special Services Fund                                         186,755         91,097
      Maintenance contract for ICAC website                          27,287
      Conception and Design of logo                                  46,000
      Sensitisation campaign                                         11,247      2,486,708
      Capacity Building/Training                                  1,040,551         47,380
      Fees to members Advisory Committees                         1,208,200
      Subscription to Supreme Court library                           8,200
      Conception of website                                         255,300        311,400
      Supervision works- improvement works                           83,852
      Loss on disposal - PABX                                        11,295
      Professional services/Consultancy fees                      4,932,400      3,319,807
                                                                  7,811,087      6,256,392



                                 74
Annual Report 2003-2004
             Financial Statements for the Year Ended 30 June 2004
                                   Notes to the Accounts
                                                    2003-2004                      2002-2003
12 Administrative Expenses
                                                 Rs           Rs           Rs            Rs
Printing and Stationery                        822,416                   421,275
Less C. Stock                                (172,444)      649,972    (328,098)        93,177
Postage/mailing charges                                      42,680                     68,223
Telephone bills                                             739,069                    512,744
Rent                                                      6,720,000                  2,195,395
Electricity charges                                       1,008,638                    222,116
Water charges                                                19,653
Maintenance of equipment                                     92,276                     37,378
Office expenses                               262,887                    578,294
Less C.Stock                                  (15,638)      247,249     (12,826)       565,468
Hospitality                                                  30,372                     47,865
International Coop./Mission Overseas                        943,554                  1,126,184
Legal expenses                                                    -                     13,225
Recruitment expenses                                         99,497                    775,000
Miscellaneous expenses-community relations                  587,695                     11,552
Cleaning                                                    367,250                     58,552
Publications (magazines and newspapers)                     436,858                    105,184
Running and maintenance of vehicles/                      1,517,952                    541,064
fleet management
Insurance cover staff and equipment                         118,378
Maintenance of ground and building                           79,095
Internet access to Judicial resources                                                    4,100
Audit fees                                                                              30,000
Upgrading of Telephone Systems                                                         140,016

                                                         13,700,188                  6,547,243

13 Reconciliation of Operating surplus to net Cash (outflow)/inflow from operating activities
                                                          Rs                        Rs
Excess Income over Expenditure                        3,044,275               (1,734,388)
Interest received                                     (678,976)                 (234,340)
Amortisation of Capital Grant                       (7,738,668)               (4,908,120)
Operating Deficit                                   (5,373,369)               (6,876,848)
Depreciation Charge                                   7,126,025                 4,908,120
Loss on disposal                                          11,295
Assets destroyed in fire                                612,676
Increase in prepayments                                 (55,040)                (942,174)
Decrease in Stock                                       152,842                 (340,924)
Decrease in Creditors and Accruals                  (3,751,389)                 4,039,558

Net Cash Outflow from Operating                          (1,276,960)                   787,732
activities



                                                                          75
                                                                               Annual Report 2003-2004
                          76
Annual Report 2003-2004

				
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