1. Millennium Challenge Corporation (MCC) Component Three US Department of Justice/OPDAT (Office of Overseas Prosecutorial Development, Assistance and Training) Independent Control over the Executive Branches of Power

2. The Millennium Challenge Corporation (MCC)   The MCC is a United States Government corporation, established in January 2004, that is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people.   Different from many other foreign assistance programs in that it involves a direct request from the host government and a contractual agreement on what will be done.

3. The Millennium Challenge Corporation (MCC)   Threshold Country Program: The two-year, nearly $45 million Threshold Country Program (TCP) with Ukraine aims to reduce corruption in the public sector by: Strengthening civil society’s monitoring and exposure of corruption, Judicial reform, Increased government monitoring and enforcement of ethical standards for public servants, Regulatory reform, and Combating corruption in higher education.

4. DOJ/OPDAT  OPDAT draws on Department of Justice (DOJ) resources and expertise to strengthen foreign criminal justice sector institutions and enhance the administration of justice abroad.  In FY 2007, OPDAT had 43 RLAs in 30 countries. RLAs are experienced federal or state prosecutors stationed in a host country for at least one year where they provide full-time advice and technical assistance in establishing fair and professional justice sector institutions and practices.

5. Basic Structure of Government in the USA   Federal and State Systems   Within Federal Government = 3 Branches Executive Legislative Judicial

6. Controls on the Executive Branch   External controls from other branches of government, for example: Legislative Branch (1) passes laws that Executive Branch is obligated to carry out and enforce, (2) has to approve heads of departments, and (3) can impeach President Judicial Branch can declare actions of Executive Branch unconstitutional and/or require its officers to take or refrain from taking action in accordance with the law   Internal controls function within Executive Branch

7. Internal Control within the Executive Branch Conduct of employees of the Executive Branch is supervised by the Office of Government Ethics (OGE) Conduct of employees of the Executive Branch is supervised by the Office of Government Ethics (OGE) A small agency within the executive branch, established by the Ethics in Government Act of 1978, following a period of low public trust in government.A small agency within the executive branch, established by the Ethics in Government Act of 1978, following a period of low public trust in government. OGE became a separate agency on October 1, 1989.OGE became a separate agency on October 1, 1989. OGE works with Designated Agency Ethics Officers (DAEOs), who are employed in Executive Branch agencies OGE works with Designated Agency Ethics Officers (DAEOs), who are employed in Executive Branch agencies

8. OGE OGE exercise leadership to: OGE exercise leadership to: Prevent conflicts of interest on the part of Government employees, andPrevent conflicts of interest on the part of Government employees, and Resolve conflicts of interest that do occurResolve conflicts of interest that do occur OGE works in partnership with executive branch agencies and departments, to: OGE works in partnership with executive branch agencies and departments, to: Foster high ethical standards for employees, andFoster high ethical standards for employees, and Strengthen public confidence that the Government acts with impartiality and integrity.Strengthen public confidence that the Government acts with impartiality and integrity.

9. OGE   Functions include: Providing advice and guidance on ethical issues Providing assistance to agency ethics officers Responsible for system of financial disclosures by Executive Branch employees Review disclosures of highest level appointees Establish procedures and provide guidance to agencies and employees Ensure public availability of information Ensuring compliance with ethics agreements Conducting annual ethics conferences and training Conducting on-site ethics reviews at HQ and regional agency offices

10. Ethics Ethics  Standards of Ethical Conduct for Employees of the Executive Branch General obligations and role of ethics advice, and General obligations and role of ethics advice, and Rules on receiving gifts from outside sources Rules on receiving gifts from outside sources Rules on gifts between employees Rules on gifts between employees Rules on conflicts of interest Rules on conflicts of interest Rules on impartiality in government service Rules on impartiality in government service Rules on seeking outside employment Rules on seeking outside employment Rules on misuse of government position or property Rules on misuse of government position or property Rules on outside activities Rules on outside activities

11. Ethics What is a Conflict of Interest? What is a Conflict of Interest? “A conflict between the private interests of a public servant and his/her professional duties the presence of which could influence the objectivity and impartiality of decision- making and the taking or not taking of action in the course of their service activities.” “A conflict between the private interests of a public servant and his/her professional duties the presence of which could influence the objectivity and impartiality of decision- making and the taking or not taking of action in the course of their service activities.”

12. Ethics   Key elements of a conflict of interest: Overlap between private interest and professional duties of public servant Could influence objectivity or impartiality of official actions   Includes actual and potential conflicts of interest

13. Ethics  Why are conflicts of interest bad? Have potential to distort government decision-making Have potential to distort government decision-making Often reflect other criminal conduct Often reflect other criminal conduct Undermine public trust in government Undermine public trust in government  Need not actually result in separate tangible harm Existence of conflict itself is enough, whether acted upon or not, and whether or not separate harm to the state can be demonstrated Existence of conflict itself is enough, whether acted upon or not, and whether or not separate harm to the state can be demonstrated Harm is the corruption of the state process itself Harm is the corruption of the state process itself

14. Financial Declarations Purpose of Financial Declarations Legislation: “Sets forth legal and organizational framework for reporting incomes, property status, and expenses of public servants, using information included in the declarations for: “Sets forth legal and organizational framework for reporting incomes, property status, and expenses of public servants, using information included in the declarations for: (i) detecting and preventing financial conflicts of interest in the activities of public servants,(i) detecting and preventing financial conflicts of interest in the activities of public servants, (ii) detecting illicit receipt by public servants of goods [not in US], [and] establishing the framework for(ii) detecting illicit receipt by public servants of goods [not in US], [and] establishing the framework for (iii) legal responsibility for non-compliance(iii) legal responsibility for non-compliance Also establishes transparency of reporting system Also establishes transparency of reporting system

15. Operation of the Financial Reporting System   Prevent and detect conflicts of interest by comparing reported financial interests and activities with official responsibilities and duties   Role of responsible agency personnel Collection of forms, advice to employees, review within agency for conflicts of interest   Public information v. privacy interests

16. IIUs

17. IIUs Advantages of IIUs include: Know system, procedures, people Know system, procedures, people Enable ministry to clean up its own problems Enable ministry to clean up its own problems Increases public confidence in ministryIncreases public confidence in ministry May work with other general investigative agenciesMay work with other general investigative agencies Often include both internal auditing for waste, fraud and abuse (agency watchdog) and investigation into misconduct and corruption Often include both internal auditing for waste, fraud and abuse (agency watchdog) and investigation into misconduct and corruption

18. IIUs  Importance of Independence Often secured through restrictions on appointment, termination, protection of salary/budget, etc. Often secured through restrictions on appointment, termination, protection of salary/budget, etc. IIUs still have to be accountable IIUs still have to be accountable Reporting requirementsReporting requirements

19. Public Assessment of Different Anti-Corruption Measures

20. Questions and Discussion http://www.mcc-comp3.com.ua http://www.mcc-comp3.com.ua