2014 China-EU High Level Forum “China and EU Dialogue: Rule of Law” Subtopic reforming the System of law enforcement: development of administrative oversight bodies as anticorruption tool Ms. Johanna Beate Wysluch Bejing, China 12th of June 2014 China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

Control of the administration and anticorruption (example:Germany) Rule of law in general Administrative self control (supervision, legality and internal revision and control) Citizen initiatives ( right to objection and administrative appeal) Legal control by courts Sanctions and Integrity In accordance with the rule of law bases on Parliament Civil society Media Participation Economical and political control is done by Federal supreme audit State courts of auditors ( 16 in Germany) Accountability External Fiscal control done by China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

Administrative and anticorruption control in the EU by institutions (excerpt) examine the accounts of all receipts and expenditures of the European Communities informs the Commission provides advice to the Council before new financial management regulations are adopted submits opinions on the financial regulation of the EC and on steps taken to combat fraud in the EC European Court of Auditors Strict approach through accountability investigates complaints about maladministration in EU institutions, bodies, offices, and agencies Maladministration: if an institution fails to respect fundamental rights, legal rules or principles, or the principles of good administration Identified fraud and corruption cases are submitted to Olaf for further investigation European Ombudsperson Soft approach through participation and keeping up integrity investigates fraud against the EU budget, corruption and serious misconduct within the European institutions develops anti-fraud policy for the European Commission Since establishment 1999 over €1.1 billion of EU money has been recovered European Anti Fraud Office, Olaf Strict approach through sanctioning, however, limited China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

Olafs role and some considerations Till 1998 Unit for coordination for Corruption and Fraud in the EU – UCLAF depended on the European Commission (integrity scandal triggered change) Since 1999 part of European Commission, but totally (reconfirmed in 2005) independent in its work (independence improved quality and trust) Improved its information and transparency policy after criticism from European Court of Auditors in 2005 Conducted since 1999, 3500 investigations on which as a result Euro 1.1. billion has been recovered, 335 people received sentences in member states with a total up to 900 years Mandate only cover administrative investigation and as follow up recommendations and monitoring of it,but no disciplinary neither criminal procedures (effective work stops at border of member states and limited by EU body responsible for disciplinary sanctions)  Establishment of European Attorney General shall close that gap China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

BRH is a supreme federal audit authority as independent body of auditing only subject to the law (independent) Does not evaluate policy decisions made in compliance with applicable legislation (no political interference) Examines federal financial management (external control mechanism) Reports to the Houses of Parliament and federal government, but also addresses audited bodies in management letters Provides advice to government bodies ( prevention function) No supervision function over state courts of audit in Laendern China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目 External financial control at centralized level: German Bundesrechnungshof ( BRH)

From the certification of a voucher and economy audit towards a voucher unindependent and operational audit of adminstrative processes, organisations and structures; from the implementation audit towards the programme audit: from the critisicm of the implementation towards criticism of the state tasks; from the audit based criticism towards target oriented policy advise – through audit and at request; from the audit of the past towards a future oriented auditing task; China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目 How did the state audit function change in Germany?

Internal control management tool and process along the lines of reporting, compliance, effectiveness and risk management systematic approach of management Internal audit usually an organizational unit or function with specific tasks specific Function that (ideally) reports to management China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

Internal revision at all levels of administration and lessons learned not used my the whole administration neither at central nor at decentralized level –as Implementation not mandatory by law, but recommend by BGH and 16 state courts of audit Establismneht of IR often done without prior risk analysis –but only a risk analysis can decide whether “small solution” like a whistleblower system is enough or whether an IR needs to be established IR often not directly linked to the Management –but IR is an instrument for steering and management and not only an approach to control China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

Hypothesis An effective administrative oversight body – whether externally or internally – needs to be totally independent by its institution and staff, but being constantly monitored by a watchdog like an ombudsperson to be able not only to audit but also to give political advice without any conflict of interest. China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目