I II s - International Anti-Corruption Academy...Muenchendorfer Strasse 2 2361 Laxenburg, Vienna AUSTRIA +43 (0)2236 710 718 100 [email protected] Print Federal Ministry of Defence and

1Issue XII, september 2016

IACAlumnust h e m a g a z i n e

Issue XII, September 2016

operationcar wash

Empowering Professionals

Is CorruptIon In the JudICIAl system the BusIness of lAwyers? By Rocio Paniagua Oliver

IACA AlumnI reunItedBy the Alumni Team

Interview withPaulo Roberto Galvão de Carvalho

2

IACAlumnus - the magazine is the alumni magazine of the

International Anti-Corruption Academy (IACA), addressing

alumni around the world who have participated in and, in

general, completed at least one of IACA’s programmes or

activities.

IACAlumnus - the magazine welcomes contributions by

alumni. As a forum to exchange ideas and latest

developments, and feature the career paths of our alumni, we

seek to provide you with a medium to stay connected. For

contributions please contact [email protected].

IACA reserves the right to select and edit any contribution to

suit the publication. We will not consider contributions that

have already been published, in any form, in print or online.

Editorial

Abhishek Bharti, Elisabeth Neckel, Mariana A. Rissetto

dEsign

Adrian Ciupagea

PhotograPhs

IACA, iStock.com

front covEr; back covEr

“Operation Car Wash“; Laxenburg - aerial view

PublishEr

International Anti-Corruption Academy (IACA)

Muenchendorfer Strasse 2

2361 Laxenburg, Vienna

AUSTRIA

+43 (0)2236 710 718 100

www.iaca.int

[email protected]

Print

Federal Ministry of Defence and Sports/Armed Forces

Printing Centre, Vienna, Austria.

WaivEr

IACA promotes academic freedom. The contents of this

magazine reflect the opinions of the contributors and do not

necessarily represent the views or official position of IACA.

Neither IACA nor its staff members or partners shall be liable

for any inaccuracy, incompleteness, unavailability or error of

the information provided.

CREDITSWelcome Word

Dear Alumni,

The second quarter of the year at IACA has been busy

but at the same time very enriching. The sixth IACA

Summer Academy and the third Alumni Reunion were

two main events that brought great energy and insight

to the Academy. On 7 and 8 July 2016, alumni from

around the world graced the latter event. The reunion

was special for all of us at IACA and we would like to

thank you for your dedication and enthusiasm in

maintaining the flame. As torchbearers, you have a

special role in furthering the global cause against

corruption.

From a diverse range of alumni at every reunion, we

have witnessed eagerness to learn and zeal to advance

efforts against corruption, and we have also seen

dedication to achieve this goal as part of lifelong

learning. IACA has learned from you, and we do our

best to incorporate the ideas from your feedback into

our programmes and activities.

This issue of IACAlumnus brings you an article by Rocio

Paniagua Oliver, who shares her thoughts regarding

the functioning and endeavours of the International

Bar Association in its various efforts to curb judicial

corruption. Paulo Roberto Galvão de Carvalho gives his

insight on ongoing investigations in the “Car Wash”

case, in which he has been involved as a prosecutor

since the early stages. You will also learn about the

origin and meaning of our new alumni pin: the apple

tree. Those of you who were unable to attend this

year‘s reunion can read about the event on page 22.

As always, it is a pleasure to welcome you to our

campus in Laxenburg as well as to receive your writing

contributions for IACAlumnus. Please also feel free to

provide suggestions for IACA’s alumni network.

Spreading the word about the Academy’s initatives is

key to the success and continuity of our programmes

and activities. Lastly and most importantly, we will be

pleased to hear how we can serve you better.

Sincerely,

The Alumni Team


september 2016CONTENTS

is corruPtion in thE Judicial systEm thE businEss of laWyErs?

By Rocio Paniagua Oliver

maPs

uPcoming confErEncEs

latin amErica

iaca alumni maPPing

P4 P18

P27

crossWord P26

thE alumni Pin

By the Alumni Team

thE alumni Pin P16

intErviEW P10

“oPEration car Wash“

Interview withPaulo Roberto Galvão de Carvalho

iaca alumni rEunitEd:third alumni rEunion in laxEnburg

By the Alumni Team

iaca alumni rEunion P22

{ BEST OF SEMINAR { SUMMER ACADEMY 2016 { ANTI-CORRUPTION IN LOCAL

GOVERNANCE TRAINING

2016 July EvEnts P6

IAC

AL

UM

N I

4

GUINEA

GERMANY

FRANCE

ETHIOPIA

EL SALVADOR

DOMINICANREPUBLIC

DOMINICA

DEM. PEOPLE'S REP. OF KOREA

CZECH REPUBLIC

CYPRUS

CUBA

CROATIA

CONGO

COMOROS

CHILE

CAMEROON

CAMBODIABURKINA

FASO

BENIN

BELGIUM

BARBADOS

ARMENIA

ARGENTINA

AFGHANISTAN

ALBANIA

ALGERIA

ANDORRA

ANGOLA

ANTIGUA ANDBARBUDA

BRITISH VIRGINISLANDS

AUSTRALIA

AUSTRIA

AZERBAIJAN

BAHAMAS

BERMUDA

BAHRAIN

BANGLADESH

BELARUS

BELIZE

BHUTAN

BOLIVIA

BOSNIA AND

HERZEGOVINA

BOTSWANA

BRAZIL

BRUNEIDARUSSALAM

BULGARIA

BURUNDI

CANADA

CABO VERDE

CENTRAL AFRICAN REPUBLIC

CHAD

CHINA

Taiwan

COLOMBIA

COSTARICA CÔTE

D'IVOIRE

DEMOCRATICREPUBLIC

OF THE CONGO

DENMARK

DJIBOUTI

ECUADOR

EGYPT

EQUATORIAL GUINEA

ERITREA

ESTONIA

FIJI

FINLAND

GABON

GAMBIA

GEORGIA

GHANA

GREECE

GRENADA

TURKS AND CAICOS ISLANDS

MONTSERRAT

CURAÇAO

GUATEMALA

GUINEA-BISSAU

GUYANA

HAITI

HOLY SEE

HONDURAS

HUNGARY

ICELAND

INDIA

INDONESIA

ISLAMIC REPUBLIC OF IRAN

IRAQ

IRELAND

ISRAEL

ITALY

JAMAICA

JAPAN

JORDAN

KAZAKHSTAN

KENYA

KIRIBATINAURU

KUWAIT

KYRGYZSTAN

LAO PEOPLE'S DEM. REP.

LATVIA

LEBANON

LESOTHO

LIBERIA

LIBYA

LIECHTENSTEIN

LITHUANIA

LUXEMBOURG

MADAGASCAR

MALAWI

MALAYSIA

MALDIVES

MALI

MALTA

MARSHALLISLANDS

MAURITANIA

MEXICO

FEDERATED STATES OF MICRONESIA

MONACO

MONGOLIA

MONTENEGRO

MOROCCO

WesternSahara

FrenchGuiana (FRA)

MOZAMBIQUE

MYANMAR

NAMIBIA

NEPAL

NETHERLANDS

NEWZEALAND

NICARAGUA

NIGER

NIGERIA

NORWAY

OMAN

PAKISTAN

PANAMA

PAPUANEW GUINEA

PARAGUAY

PERU

PHILIPPINES

POLAND

PORTUGAL

QATAR

REP. OFKOREA

REP. OFMOLDOVA

ROMANIA

RUSSIAN FEDERATION

RUS. FED.

RWANDA

SAINT VINCENT ANDTHE GRENADINES

SAINT KITTSAND NEVIS

SAINT LUCIA

SAMOA

SANMARINO

Greenland(Denmark)

SAUDI ARABIA

SENEGAL

SERBIA

SEYCHELLES

SIERRALEONE

SINGAPORE

SLOVENIA

SLOVAKIA

SOLOMONISLANDS

SOMALIA

SOUTH AFRICA

SPAIN

SRILANKA

SUDAN

SOUTH SUDAN

SURINAME

SWAZILAND

SWEDEN

SWITZERLAND

SYRIANARAB

REPUBLIC

TAJIKISTAN

THAILAND

F. Y. R. OFMACEDONIA

TIMOR-LESTE

TOGO

TONGA

TRINIDAD ANDTOBAGO

TUNISIA

TURKEYTURKMENISTAN

TUVALU

UGANDA

UKRAINE

UNITED ARABEMIRATES

UNITEDKINGDOM

UNITED REP.OF TANZANIA

UNITED STATES OF AMERICA


URUGUAY

UZBEKISTAN

VANUATU

VENEZUELA

VIET NAM

YEMEN

ZAMBIA

ZIMBABWE

Kosovo

PALAU

KIRIBATISAO TOME

AND PRINCIPE

MAURITIUS

MALAYSIA

INDONESIA

INDONESIA

INDONESIA

INDONESIA

RUSSIANFEDERATION

ALBANIA

HOLY SEE

MONACOSAN

MARINO

LIECHTENSTEIN

CANADA



AUSTRALIA

NEWZEALAND

GERMANY

AUSTRIA

SERBIA

Kosovo

LUXEMBOURG

RUSSIAN FEDERATION

RUS. FED.

RUSSIANFEDERATION

BULGARIA

REP. OFMOLDOVA

ROMANIA

UKRAINE

BELARUS

ESTONIA

LATVIA

LITHUANIA

POLAND

HUNGARY

SLOVAKIA

DENMARK

FINLAND

NORWAY

SWEDEN

FRANCE

ITALY

PORTUGALSPAIN

BELGIUM

IRELAND

NETHERLANDS

UNITEDKINGDOM

SWITZERLAND

ALBANIA

BOSNIA AND

HERZEGOVINA

MALTA

SINT MAARTEN

COLOMBIA

HAITI

CAYMANISLANDS

HONDURAS

MEXICO

PERU

DOMINICANREPUBLIC

CHILE

ARGENTINA

BRAZIL

AFGHANISTAN

BANGLADESH

BHUTAN

CHINA

INDIA

NEPALPAKISTAN

MONGOLIA

VIET NAM

INDONESIA

MALAYSIA

PHILIPPINES

MALAYSIA

INDONESIA

INDONESIA

INDONESIA

INDONESIA

SINGAPORE

AZERBAIJAN

KYRGYZSTAN

TAJIKISTAN

JAPAN

THAILAND

REP. OFKOREA

FIJI

SOLOMONISLANDS

BAHRAIN


IRAQ ISRAEL

JORDAN

LEBANON

SYRIANARAB

REPUBLICCYPRUS

ANDORRA

SAUDI ARABIA

OMAN

YEMEN

EGYPTALGERIA

MOROCCO

TUNISIA

CAMEROON

NIGERIA

GAMBIA

LIBERIA

SIERRALEONE

GUINEA

ANGOLA

KENYA

MADAGASCAR

LESOTHO

NAMIBIA

SOUTH AFRICA

SWAZILAND


MOZAMBIQUEZAMBIA

BURUNDI

RWANDA

UGANDA

CONGODEMOCRATIC

REPUBLICOF THE CONGO

ZIMBABWE

ETHIOPIA

BURKINA FASO

MALAWI

TOGO

IACA Alumni Mapping by CountryStatus as of 12 August 2016

The boundaries and names shown and the designations used on this map do not imply any official endorsement or acceptance by the International Anti-Corruption Academy (IACA). No official endorsement or acceptance is implied with regard to the legal status of any country, territory, city, or any area or its authorities, or with regard to the delimitation of frontiers or boundaries. This map was produced to the best of common knowledge.

© IACA

Greenland(Denmark)

VENEZUELA

GREECE

TURKEY


UZBEKISTAN

TIMOR-LESTE

EL SALVADOR

SUDAN

SOUTH SUDAN

20. Brazil21. British Virgin Islands22. Bulgaria 23. Burkina Faso24. Burundi25. Cambodia26. Cameroon 27. Canada28. Cayman Islands29. Chile30. China 31. Colombia32. Congo33. Costa Rica 34. Côte d’Ivoire35. Cyprus36. Czech Republic37. Democratic Republic of the

Congo

38. Denmark39. Dominican Republic40. Egypt41. El Salvador 42. Estonia 43. Ethiopia 44. Fiji45. Finland46. France 47. Gambia48. Georgia49. Germany50. Ghana51. Greece52. Grenada53. Guatemala 54. Guinea55. Haiti56. Honduras

57. Hungary 58. India 59. Indonesia 60. Iraq61. Ireland62. Islamic Republic of Iran 63. Israel 64. Italy65. Japan66. Jordan 67. Kazakhstan68. Kenya 69. Kosovo70. Kyrgyzstan 71. Latvia72. Lebanon 73. Lesotho74. Liberia75. Libya


01. Afghanistan 02. Albania03. Algeria 04. Angola05. Antigua and Barbuda 06. Argentina07. Armenia08. Australia 09. Austria 10. Azerbaijan 11. Bahrain12. Bangladesh 13. Belarus 14. Belgium15. Benin16. Bermuda17. Bhutan18. Bosnia and Herzegovina19. Botswana

STATUS AS OF 12 AUGUST 2016

IACA AlumnImAppIng


GUINEA

GERMANY

FRANCE

ETHIOPIA

EL SALVADOR

DOMINICANREPUBLIC

DOMINICA

DEM. PEOPLE'S REP. OF KOREA

CZECH REPUBLIC

CYPRUS

CUBA

CROATIA

CONGO

COMOROS

CHILE

CAMEROON

CAMBODIABURKINA

FASO

BENIN

BELGIUM

BARBADOS

ARMENIA

ARGENTINA

AFGHANISTAN

ALBANIA

ALGERIA

ANDORRA

ANGOLA

ANTIGUA ANDBARBUDA

BRITISH VIRGINISLANDS

AUSTRALIA

AUSTRIA

AZERBAIJAN

BAHAMAS

BERMUDA

BAHRAIN

BANGLADESH

BELARUS

BELIZE

BHUTAN

BOLIVIA

BOSNIA AND

HERZEGOVINA

BOTSWANA

BRAZIL

BRUNEIDARUSSALAM

BULGARIA

BURUNDI

CANADA

CABO VERDE

CENTRAL AFRICAN REPUBLIC

CHAD

CHINA

Taiwan

COLOMBIA

COSTARICA CÔTE

D'IVOIRE

DEMOCRATICREPUBLIC

OF THE CONGO

DENMARK

DJIBOUTI

ECUADOR

EGYPT

EQUATORIAL GUINEA

ERITREA

ESTONIA

FIJI

FINLAND

GABON

GAMBIA

GEORGIA

GHANA

GREECE

GRENADA

TURKS AND CAICOS ISLANDS

MONTSERRAT

CURAÇAO

GUATEMALA

GUINEA-BISSAU

GUYANA

HAITI

HOLY SEE

HONDURAS

HUNGARY

ICELAND

INDIA

INDONESIA


IRAQ

IRELAND

ISRAEL

ITALY

JAMAICA

JAPAN

JORDAN

KAZAKHSTAN

KENYA

KIRIBATINAURU

KUWAIT

KYRGYZSTAN

LAO PEOPLE'S DEM. REP.

LATVIA

LEBANON

LESOTHO

LIBERIA

LIBYA

LIECHTENSTEIN

LITHUANIA

LUXEMBOURG

MADAGASCAR

MALAWI

MALAYSIA

MALDIVES

MALI

MALTA

MARSHALLISLANDS

MAURITANIA

MEXICO

FEDERATED STATES OF MICRONESIA

MONACO

MONGOLIA

MONTENEGRO

MOROCCO

WesternSahara

FrenchGuiana (FRA)

MOZAMBIQUE

MYANMAR

NAMIBIA

NEPAL

NETHERLANDS

NEWZEALAND

NICARAGUA

NIGER

NIGERIA

NORWAY

OMAN

PAKISTAN

PANAMA

PAPUANEW GUINEA

PARAGUAY

PERU

PHILIPPINES

POLAND

PORTUGAL

QATAR

REP. OFKOREA

REP. OFMOLDOVA

ROMANIA

RUSSIAN FEDERATION

RUS. FED.

RWANDA

SAINT VINCENT ANDTHE GRENADINES

SAINT KITTSAND NEVIS

SAINT LUCIA

SAMOA

SANMARINO

Greenland(Denmark)

SAUDI ARABIA

SENEGAL

SERBIA

SEYCHELLES

SIERRALEONE

SINGAPORE

SLOVENIA

SLOVAKIA

SOLOMONISLANDS

SOMALIA

SOUTH AFRICA

SPAIN

SRILANKA

SUDAN

SOUTH SUDAN

SURINAME

SWAZILAND

SWEDEN

SWITZERLAND

SYRIANARAB

REPUBLIC

TAJIKISTAN

THAILAND


TIMOR-LESTE

TOGO

TONGA

TRINIDAD ANDTOBAGO

TUNISIA

TURKEYTURKMENISTAN

TUVALU

UGANDA

UKRAINE

UNITED ARABEMIRATES

UNITEDKINGDOM




URUGUAY

UZBEKISTAN

VANUATU

VENEZUELA

VIET NAM

YEMEN

ZAMBIA

ZIMBABWE

Kosovo

PALAU

KIRIBATISAO TOME

AND PRINCIPE

MAURITIUS

MALAYSIA

INDONESIA

INDONESIA

INDONESIA

INDONESIA

RUSSIANFEDERATION

ALBANIA

HOLY SEE

MONACOSAN

MARINO

LIECHTENSTEIN

CANADA



AUSTRALIA

NEWZEALAND

GERMANY

AUSTRIA

SERBIA

Kosovo

LUXEMBOURG

RUSSIAN FEDERATION

RUS. FED.

RUSSIANFEDERATION

BULGARIA

REP. OFMOLDOVA

ROMANIA

UKRAINE

BELARUS

ESTONIA

LATVIA

LITHUANIA

POLAND

HUNGARY

SLOVAKIA

DENMARK

FINLAND

NORWAY

SWEDEN

FRANCE

ITALY

PORTUGALSPAIN

BELGIUM

IRELAND

NETHERLANDS

UNITEDKINGDOM

SWITZERLAND

ALBANIA

BOSNIA AND

HERZEGOVINA

MALTA

SINT MAARTEN

COLOMBIA

HAITI

CAYMANISLANDS

HONDURAS

MEXICO

PERU

DOMINICANREPUBLIC

CHILE

ARGENTINA

BRAZIL

AFGHANISTAN

BANGLADESH

BHUTAN

CHINA

INDIA

NEPALPAKISTAN

MONGOLIA

VIET NAM

INDONESIA

MALAYSIA

PHILIPPINES

MALAYSIA

INDONESIA

INDONESIA

INDONESIA

INDONESIA

SINGAPORE

AZERBAIJAN

KYRGYZSTAN

TAJIKISTAN

JAPAN

THAILAND

REP. OFKOREA

FIJI

SOLOMONISLANDS

BAHRAIN


IRAQ ISRAEL

JORDAN

LEBANON

SYRIANARAB

REPUBLICCYPRUS

ANDORRA

SAUDI ARABIA

OMAN

YEMEN

EGYPTALGERIA

MOROCCO

TUNISIA

CAMEROON

NIGERIA

GAMBIA

LIBERIA

SIERRALEONE

GUINEA

ANGOLA

KENYA

MADAGASCAR

LESOTHO

NAMIBIA

SOUTH AFRICA

SWAZILAND


MOZAMBIQUEZAMBIA

BURUNDI

RWANDA

UGANDA

CONGODEMOCRATIC

REPUBLICOF THE CONGO

ZIMBABWE

ETHIOPIA

BURKINA FASO

MALAWI

TOGO

IACA Alumni Mapping by CountryStatus as of 12 August 2016


© IACA

Greenland(Denmark)

VENEZUELA

GREECE

TURKEY


UZBEKISTAN

TIMOR-LESTE

EL SALVADOR

SUDAN

SOUTH SUDAN

76. Lithuania77. Luxembourg78. Madagascar 79. Malawi80. Malaysia 81. Malta82. Mexico83. Mongolia 84. Monserrat85. Morocco 86. Mozambique87. Myanmar 88. Namibia89. Nepal 90. Netherlands 91. New Zealand92. Niger93. Nigeria 94. Norway

95. Oman96. Pakistan 97. Panama98. Papua New Guinea99. Paraguay100. Peru101. Philippines 102. Poland103. Portugal104. Republic of Korea105. Republic of Moldova 106. Romania107. Russian Federation 108. Rwanda109. Saint Kitts and Nevis110. Saudi Arabia111. Senegal112. Serbia113. Sierra Leone

114. Singapore 115. Slovakia116. Solomon Islands117. South Africa118. South Sudan 119. Spain120. Sudan121. Swaziland122. Sweden123. Switzerland 124. Syrian Arab Republic 125. Tajikistan 126. Thailand127. The former Yugoslav

Republic of Macedonia 128. Timor-Leste129. Togo130. Trinidad and Tobago 131. Tunisia

132. Turkey133. Turks and Caicos Islands134. Uganda 135. Ukraine136. United Arab Emirates137. United Kingdom138. United Republic of

Tanzania 139. United States of America140. Uruguay141. Uzbekistan142. Venezuela143. Viet Nam 144. Yemen 145. Zambia 146. Zimbabwe

6

2016

july

eve

nts


8

2016

july

eve

nts


10

Brazilian federal prosecutor Paulo roberto galvão de carvalho, who lectured in the IACA in July 2016,

joined us to answer a few questions about “Operation Car Wash”, which is a large and ongoing corruption

investigation in Brazil. Mr. Galvão de Carvalho is one of nine prosecutors in the case, which implicates some

of the biggest names in Brazilian business and governance.


carWash

W hy is this referred to as the “car Wash” case?

The “Car Wash”, or Petrobras case, is certainly the biggest corruption investigation in the history of Brazil. Today we are dealing with bribes of more than two billion USD, and over 30 national and international companies are being investigated. However, the investigation started as a mid-size money-laundering and financial crimes case.

In Brazil, foreign exchange black market dealers are still quite common; they are referred to as “doleiros”. Basically, these black market traders receive money in the national currency and convert it into a foreign currency or vice versa. These black market financial transactions are neither supervised nor regulated. Without leaving a trace, these transactions are frequently used for money-laundering operations.

These same doleiros also started to use front companies in Brazil to hide transfers and provide money in cash to interested parties.

The investigations evolved into four different groups of doleiros, each handling millions of dollars a day in illegal transactions. One of these doleiros owned a gas station, where a car wash operated. And thus, since the investigation had not yet reached

Petrobras at that time, the case became known to the public as the “Car Wash” case.

What is your personal preference in terms of naming the case?

I personally do not like to call it the “Petrobras case”. In each big corruption case, the name of the case refers to the company paying the bribes. In this investigation, we have over 30 companies paying bribes, and Petrobras is actually being harmed - as a company - by the overpricing of these contracts to support these bribes. The name “Car Wash” as it is used in Brazil - something closer to “jet wash” - better applies to the case, as it ends up reflecting the popular imagined sense of a fast and thorough cleansing of corruption.

What would you say are policy developments resulting from allowing competition in the bidding for Petrobras contracts?

The impact of the Car Wash case has brought up some recent changes in policy and even in judicial precedents regarding anti-corruption practices and electoral procedure. However, these are so far isolated developments that do not fully cover all that is necessary to effectively bring real change to the state of corruption. Regarding procurement, Petrobras and Brazil in

operation

Interview withpaulo roberto Galvão de Carvalho

12

general have been heavily hit by the economic crisis, and have not put forward new procurement bids for large infrastructure projects. Therefore, there has not been any relevant change and it has not been tested whether future bids will be any different. It is very clear, however, that for now there has been a decline of illegal money flowing into electoral campaigns. This is for two main reasons: firstly, for some fear of being caught as many were in the Car Wash case; secondly, the Supreme Court has ruled it unconstitutional for companies to make electoral campaign contributions. Although this decision had a different motivation, it was clear that the scheme presented in the Car Wash case influenced the judges.

Petrobras forms a large part of the brazilian economy. What would you say are the economic consequences of the car Wash case?

A lot has been said about the economic impact of these investigations, but many analysts fail to see that the economic crisis the country is going through would probably be just as far-reaching without the investigation. First of all, Petrobras suffers from poor management decisions that became visible when oil prices went below the break even point for extraction in the pre-salt layer.Having said that, we also have to acknowledge that some of the biggest companies - and also biggest employers of the country - are being heavily damaged by their involvement in corrupt practices.

is there a consensus that continuing to investigate these corruption cases is a priority, despite possible negative economic consequences?

Some suggest that it would be more important for the country to “save” these companies and these jobs by arranging some sort of amnesty and let them start over with a new and stricter compliance regime.

Our view is that any sort of amnesty or unusual arrangement would be even more harmful to the economy in the future. This is a once-in-a-lifetime opportunity to change things in the country, and if we were to accept that it is more important to save the companies, we would send out a message that nothing has changed.

We also see a very positive economic impact coming out of this case. For the first time, it is being shown to investors inside and outside of the country that Brazil is a place where institutions work and are strong enough to tackle corruption even at the highest levels. This sense of adherence to the rule of law will certainly, in the mid-term, help to boost investment in the country.

how would you judge the impact these investigations have had on public trust in brazil?

There are two sides to this answer. On one hand, it is clear that some public institutions in Brazil are trusted less than ever, due to their involvement in several cases of massive corruption. This is harmful because when representative institutions such as the Congress lose public trust, there is a risk of destabilization that might harm democracy. On the other hand, the strengthened public trust in the public prosecution services and the judiciary reveals that corruption is indeed a topic that interests people, and therefore they want to put an end to current practices. For


Paulo roberto galvão de carvalho is a federal prosecutor in

Brazil and current member of the task force responsible for the

investigation of the “Car Wash”, or Petrobras, case, the biggest

corruption investigation ever in Brazil, for which he has been

awarded national and international prizes. He has worked in

the Public Defender‘s Office, the National Chamber of Deputies,

and the Federal Prosecution Service since 2004. Mr. Carvalho

lectured both in the IACA Summer Academy as well as the

Alumni Reunion in July 2016 and the IACA Regional Summer

Academy - Latin America in November 2015. He holds a law

degree from Bahia Federal University and an LL.M. in Public Law

from The London School of Economics and Political Science.

14

Corruption prevention, transparency, and whistleblower protection.

Criminalization of illicit enrichment of public officials.

Increased sanctions for corruption cases.

Increased efficiency and justice of appeals in criminal cases.

Clarity in Improbity cases.

Reform of statute of limitations rules.

1

2

456

“ten measures against corruption” in a nutshell1

the first time, public perception polls have suggested that for the majority of the population, corruption is regarded as a major problem in the country.

in an article in the Wall street Journal (“how brazil’s ‘nine horsemen’ cracked a bribery scandal”, 6 april 2015) you are quoted saying “fear of the law was something that did not exist in brazil for white-collar criminals and politicians.” Would you say these investigations mark the beginning of a new era in dealing with corruption? if so, how would you say that this new era is characterized as opposed to the past? secondly, what is still needed for this new era to be successful?

In recent decades, Brazil has had a number of major corruption scandals that went unpunished. If we look into the conditions that allow for this level of corruption in the country, we can clearly see two major issues. One of them is the electoral system, with extremely expensive campaign costs and a huge number of political parties and candidates, which incentivizes obtaining money from illegal sources.

But maybe more relevant than that is the fact that Brazil has a criminal system that is very uneven and very lenient for white-collar criminals. Problems arise with the length of the judicial proceedings, the infinite number of appeals, the awkward statute of limitations, low penalties, and so on. Just to give a concrete example, a former Senator was involved in a very famous corruption case in the early 1990s and was convicted in 2006. He was only sent to prison this year, after having the right to 34 appeals. And this is just for one case, while there have been several others without any punishment!

Looking ahead, we understand that the Car Wash case will not change this scenario by itself. However, we see it as a window of opportunity to bring significant change to our system with

regard to it favouring white-collar criminals and corrupt politicians. With this in mind, we envisaged a set of ten legislative proposals that we believe could improve anti-corruption efforts in Brazil. These proposals cover both preventive and enforcement measures, as well as asset forfeiture mechanisms. They were based on several international studies, including the works of Professor Robert Klitgaard, a frequent lecturer at IACA. The so-called „Ten Measures against Corruption“ were taken up by the public, who joined the effort and collected over 2 million signatures and presented them to Congress as popular initiative for a bill of laws.

So we hope the Car Wash case will mark the beginning of a new era, but not because of the case itself, but due to the opportunity for change that it has brought.

What role can social media play in facilitating investigations?

For the Car Wash case, we used social media to promote public awareness about the facts of the case. Since this was an investigation involving very high-profile individuals and companies, we had to make sure the public was getting the correct information. One of the companies involved at some point had 40 press assistants working on its behalf solely to produce media releases against the investigations. There is no way we could have survived if we had solely relied on the case files and had not considered public awareness at all. So we put up a website of the case and our three press assistants did use social media to share information. Of course, the press was quite present all the time, and they published the information we gave them. Some prosecutors also use their own personal social media accounts to help broaden awareness of the “Ten Measures against Corruption”.

With regards to the Petrobras case, what lessons can be applied to future investigations?

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Adjustments in criminal nullity rules.

Liability of political parties and criminalization of campaign slush funds.

Preventive imprisonment to assure return of diverted money.

Recovery of profits from crimes.

7 98 10

From the Car Wash Case, we were able to learn a lot about how corruption works, meaning the most common ways of paying bribes, and how money-laundering schemes operate. A few methods have been used that can be seen as the pillars of the investigation.

Firstly, cooperation or leniency agreements between prosecutors and criminals who are willing to disclose criminal activities and evidence are essential for the success of corruption investigations. Corruption is a crime that remains unknown unless one of the involved parties decides to break the pact of silence. So there must be an incentive for someone to come out and reveal the schemes.

Secondly, by learning how money-laundering methods are used.For instance, use of front companies, we are now able to use our databases to pinpoint which payments were based on fake invoices.

Thirdly, we heavily relied on international cooperation and direct contacts between prosecutors. We now have over 100 assistance request procedures with over 30 countries and almost daily contact with foreign authorities.

Lastly, we have learned to use technology to assist the investigations. We now demand and receive banking and fiscal documentation online. This way we can put all of the databases together to come up with a comprehensive search mechanism.These are some of the features of the investigation that we would suggest be applied in other cases to achieve similar efficiency.

thank you for the interview and all the best for your work.

facts & figurEs“operation car Wash“2,3

1 http://fcpamericas.com/english/brazil/ten-measures-proposed-brazilian-federal-prosecution-service-fight-corruption-part-ii/#. last accessed: 18 August 2016.

2 https://en.wikipedia.org/wiki/Operation_Car_Wash#cite_note-opera.C3.A7.C3.A3o-1 and http://www.ibanet.org/Article/Detail.aspx?Articleuid=7960b146-65c4-4fc2-bb6a-c6fbb434cd16. last accessed: 18 August 2016.

3 this factsheet was taken from: https://en.wikipedia.org/wiki/Operation_Car_Wash#cite_note-opera.C3.A7.C3.A3o-1 last accessed: 18 August 2016.

Operation Car Wash (Operação Lava Jato) is an investigation under the Federal Police of Brazil, Curitiba Branch, initiated on 17 March 2014. It began as a money-laundering investigation but broadened its scope to address alleged corruption practices at the state-controlled oil company Petrobras.

Country:

Start Date of the Ostensible Investigations:

Judicial proceedings:

Number of search warrants:

Number of Convicted Persons:

Amounts of assets frozen:

Crimes already charged involve the bribery of around:

Brazil

17 March 2014

1397

654

106

$689 million

$2.1 billion

EndnotEs

t.m.a.C. were proposed by the brazilian Federal prosecution service

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IACA AlumnI Apple tree


With the recently concluded trainings at IACA, the Academy’s Alumni Association now counts more than 1,000 individuals from over 140 countries. We are very proud to have breached this four-digit threshold, clearly indicating an ever growing anti-corruption alumni community. Our alumni - you - are ambassadors of the organization and fulfil an important role in promoting its work and mandate all over the world through your personal networks, the conferences you attend, and the people you address.

In the time of smartphones, staying connected across continents seems as easy as a simple “Like” to express your appreciation of professional developments. Nevertheless, personal connections and face-to-face encounters have an indispensable added value.

To facilitate identification among IACA’s alumni around the world, we designed a pin for our alumni that can be proudly worn by IACA’s ambassadors. Those of you who attended the programmes and activities that took place this summer have already received such pins upon finalizing your training.

An apple tree represents the IACA Alumni Association and this icon materializes in the IACA Alumni Pin. You will probably wonder why this icon was chosen. The meaning of the apple tree is a unique one for IACA. In 2011, the first Summer Academy programme took place at the current IACA campus, Palais Kaunitz-Wittgenstein in Laxenburg. 70 participants from over 60 countries spent ten intense days at IACA and approached corruption from various angles, ultimately learning about anti-corruption‘s interdisciplinary nature.

We look forward at the end of that Summer Academy, the participants decided to give a present to IACA to show their appreciation and lifelong affiliation with the Academy. They did not opt for a classical gift, but instead decided to give a living present: an apple tree. The tree was planted on IACA’s premises and has been growing ever since. Similar to the Academy, it has branched out, it has grown taller, and each summer it bears more and more fruit. For us at the Academy, this apple tree is the perfect symbol for our alumni network.

We look forward to seeing more branches grow, promising blossoms in spring and fruits in summer. The same way the tree is growing, the organization will continue to provide assistance, reaching out and empowering many more alumni in the future.

To all alumni, we would like to use this opportunity to thank you again for your dedication, your active engagement, and excellent work as IACA’s ambassadors. We look forward to seeing more join the network and watching our tree grow.

the

pinalumni

We will be happy to provide you with your Alumni pin at any future Alumni event or IACA training. If you would like to receive your pin even sooner, please send your request to [email protected], indicating your postal address and the IACA training that you took part in.

How CAn I gEt my AlumnI pIn?

18

iscorruPtionin thE Judicial systEm thE businEss of laWyErs?


t he separation of powers theory was developed by Montesquieu in the 18th century. In the book “The Spirit of the Laws“ of 1748, he argues that the power of major institutions of the state (legislature, executive, and judiciary) should be separated,

but with a great deal of cooperation across the institutions. There should also be a system of checks and balances to prevent one branch from attaining too much power. The role of the legislature is to enact the law, the executive to implement it and administer public policy, and the judiciary to interpret the law. This separation of powers is considered necessary for good governance to this day.

The International Covenant on Civil and Political Rights states in Article 14(1) that everyone shall be entitled to a fair and public hearing by a competent, independent, and impartial tribunal established by law. For the courts to play their respective part in safeguarding human rights, this specific right must be guaranteed2. Corruption in the judicial system not only jeopardises this essential right, but also endangers the rule of law and erodes public trust in the country where it occurs.

Corruption in the judicial system can be especially damaging to society. If a country’s judicial system is affected by corruption, anti-corruption initiatives in the executive and legislature are bound to fail. The judiciary is, by nature of its function, the legal and institutional mechanism through which corruption can be curbed3. A fair, efficient, and transparent

by rocio paniagua Ol iver

“Judicial corruption can trigger social and political conflict and can fracture and divide communities by keeping alive a sense of injury created by unjust treatment”1.

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judiciary is critical for the successful implementation of any anti-corruption plan and its respective policies. It is clear that fighting corruption in the judicial system is of utmost importance - but why should this be the business of lawyers?

Lawyers are agents of the administration of justice and constitute the judiciary together with judges, litigants, and court personnel4. In considerations of corruption in a judicial system, however, special attention is typically placed on judges because the interpretation of the law relies on them. New research highlights how corruption in the judicial system is found in the malpractice of other actors within the system, showing the extent that lawyers can enable, contribute to, or even cause corruption in the judiciary5. In response, lawyers associations such as the International Bar Association (IBA) have been working to counter corruption within the legal profession and the broader community.

In 2015, David W. Rivkin, the President of the IBA, launched the Judicial Integrity Initiative (JII), with the IBA’s Legal Policy & Research Unit (LPRU) responsible for its implementation. The JII has conducted its business in two stages. First among them was a project conducted with the Basel Institute of Governance consisting of the following research activities:

z A global survey totalling 1,577 responses from 120 countries. z Case studies of Mexico and the Philippines. z A detailed literature review of corruption in judiciaries.

The purpose of these research activities was to better understand the types of corruption affecting judicial systems and the respective roles of judicial professionals.

The outcome of this work was published in May 2016, titled “The International Bar Association Judicial Integrity Initiative: Judicial Systems and Corruption”.

Among the most relevant findings are the following6:

z Bribery and undue political influence were reported as the two most frequent forms of corrupt behaviour observed in judicial systems. While bribery is considered to be most prevalent in countries where the rule of law is weak, undue political influence is believed to occur more broadly in countries across the globe. Neither bribery nor undue political influence appear in a uniform way within judicial and governmental structures.

z The impact of public perceptions of corruption in the judiciary is an important and highly-contested topic. The research shows that in countries where political corruption is widespread, the judicial system is likewise perceived to be very corrupt. However, various survey results indicate that overall perceptions of the levels of corruption in the judiciary are low, compared with other branches of public administration.

z Those judicial professionals who are reportedly most involved in corrupt practices tend to be part of the system itself, that is, judges, lawyers, and court personnel. These survey results suggest that those judges who purportedly engage in corrupt conduct do so most frequently in their interactions with lawyers

rocio Paniagua oliver (Spain) is a Senior Legal Advisor with the Legal Policy & Research Unit of the International

Bar Association (IBA). She completed her law degree at the Universidad Autónoma de Madrid as well as additional

law studies at the Roma Tre University (Italy) and the Complutense University of Madrid (Spain), where she obtained a Master’s in International Cooperation for Development. She has previously worked as a Legal

Officer in the International Department of the Spanish National Bar Association and in two major reinsurers in

London and Dublin. At IBA, Rocio is responsible for planning, promotion, development, management, and

execution of IBA’s legal projects in the area of corporate and professional integrity, including anti-corruption, professional ethics and business, and human rights.

She attended the IACA Summer Academy 2015.


and other judges. This suggests that such behaviour is predominantly focused on internal interactions within a judicial system as opposed to interactions with the third parties.

z Lawyers interact more frequently with third parties, and thus were reported to frequently serve as intermediaries to influence cases. While the survey data suggests that most corrupt behaviour allegedly involving prosecutors is linked to interactions with other judicial professionals, the risk of third-party influence on prosecutors is comparatively high.

z Lastly, court personnel were more frequently reported to have been approached by external actors rather than actively seeking bribes themselves.

The IBA is currently developing the second part of the JII, which will consist of a range of measures to address the kind of practices identified in the report as undermining the effectiveness and legitimacy of the judicial process. Countering corruption in judicial systems needs to be at the top of any national anti-corruption agenda. Lawyers are key parties in judicial systems, and must, therefore, take responsibility and join forces with other stakeholders in the fight against corruption. In the IBA we are well aware that this battle cannot be won in isolation. Consequently, we have partnered with the International Association of Judges (IAJ) and will partner with the International Association of Prosecutors (IAP) to overcome this challenge.

EndnotEs

rOCIO pAnIAGuA OlIver

1 Transparency International (2007). Global Corruption Report 2007:

Corruption in Judicial Systems. Accessed 25 July 2016 from http://

www.transparency.org/whatwedo/publication/global_corruption_

report_2007_corruption_and_judicial_systems

2 Office of the High Commissioner for Human Rights (2003).

Independence and Impartiality of Judges, Prosecutors and Lawyers

(Ch. 4 of Human Rights in the Administration of Justice: A Manual on

Human Rights for Judges, Prosecutors and Lawyers). Accessed 25 July

2016 from http://www.ohchr.org/Documents/Publications/

training9chapter4en.pdf

3 Langseth, P., & Stolpe, O. (2000). Strengthening Judicial Integrity

against Corruption. United Nations Global Programme Against

Corruption, CICP-10. Accessed 25 July 2016 from https://www.unodc.

org/documents/nigeria//publications/Otherpublications/

Strengthening_Judicial_Integrity_Against_Corruption_2001.pdf

4 Eighth United Nations Congress on the Prevention of Crime and the

Treatment of Offenders, Havana, Cuba (1990). Basic Principles on the

Role of Lawyers.

5 Langseth, P., & Buscaglia, E. (2002). Judicial Integrity and its

Capacity to Enhance the Public Interest. United Nations Office for

Drug Control and Crime Prevention, Centre for International Crime

Prevention.

6 International Bar Association (2016). IBA Releases New Study

Identifying Types of Corruption Affecting Judicial Systems Globally.

Accessed 25 July 2016 from http://www.ibanet.org/Article/NewDetail.

aspx?ArticleUid=34ec225a-ee67-4d6a-a2e8-b3718c12d347

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For the third year in a row, IACA’s Alumni came together for the reunion in Laxenburg. Alumni from Austria, Germany, Mexico, Nepal, the Netherlands, Nigeria, the United Kingdom, and the United States of America gathered at the Palais Kaunitz-Wittgenstein on 7 and 8 July 2016.

After arrival in Laxenburg, coffee and tea offered the first opportunity for alumni to become reacquainted with one another. Many of them had attended trainings together and used this occasion to catch up and exchange news.

The reunion started off with a thought-provoking lecture by Professor Nebojsa Nakicenovic, Deputy Director General/Deputy

Chief Executive Officer of the International Institute for Applied Systems Analysis (IIASA), the other international organization based in Laxenburg. Professor Nakicenovic was deeply involved with the negotiations leading up to the adoption of the Sustainable Development Goals last September and continues to serve on a number of advisory panels on climate change for the UN Secretary-General. Climate change was the topic of his lecture during the reunion. Using a variety of models, he highlighted the consequences of climate change for different regions of the globe. He discussed different proposed techniques for carbon capture and storage as well as their potential downsides, and shed light on the research that IIASA has conducted on the topic.

alumnireunited

iaca


On the second day of the reunion, Paulo Roberto Galvão de Carvalho, a federal prosecutor in Brazil, discussed various facets of the Petrobras “Car Wash” case and provided the group with a detailed overview of the case. An interview with him in this issue of IACAlumnus examines the Car Wash case in depth. Professor Peter Eigen, founder of Transparency International, shared his knowledge on good governance, democracy, and development with the attendees. In an intensive Q&A session, participants learned from his vast experience and insight about the changes in the field of anti-corruption, how perceptions have evolved, established actors have shifted their policies, and new actors have entered the arena. To conclude this year’s Alumni Reunion, Ronald MacLean-Abaroa, a former mayor of La Paz, Bolivia, and

Ana Vasilache, Founding President of Partners Foundation for Local Development in Romania, engaged the group in an interactive session on anti-corruption in local governance.

As in previous years, the reunion took place during the week of the annual Summer Academy in Laxenburg. Together with close to 80 participants from over 40 countries, alumni not only enjoyed the thematic and networking sessions exclusively tailored for them, but also used the unique opportunity to grow and expand their network with the participants of the Summer Academy.

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alumnireunited20

16 iaca


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1. IACAlumnus Crosswords are open to members of the IACA Alumni Association.

2. The minimum word length is three letters.

3. No individual IACAlumnus Crosswords will contain the same answer twice.

4. IACAlumnus Crosswords are thematic. Emphasis is given to anti-corruption/ corruption, and compliance-related vocabulary.

5. Together with the last issue of the IACAlumnus magazine in a calendar year, a final word will be formed from all the letters positioned in the grey cells of previous IACAlumnus Crosswords in that year.

6. To be considered for the IACAlumnus Crossword Award, alumni should send a picture of the last IACAlumnus Crossword containing the final word to [email protected] no later than 18:00 CET on 31 December 2016.

7. The participant who sent the first email received by IACA with the correct final word shall be the winner. The decision in this regard shall be final.

8. The winner will be announced in the following issue of IACAlumnus where his/her name, picture, and short biography will be published upon his/her consent and will receive the award.

Guidelines

Obedient (verb)not unlawful moral principlesAgreementAnti-corruption legislation (uK)

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11

1 467

910

Comply (noun) Anti-corruption legislation (us) Form of void International Organization promoting Anti-corruption education and research Firm belief in the reliability of someoneGridlock

across

doWn

1.

2.

3. 6.

8.

5.

9.

7. 10.

11.

good luck and Enjoy!

1.

2.

4.

3. 6.

8.

5.

9.

7. 10.

11.

crossWord


upCOmInG COnFerenCes

Location: Sydney, Australia

6 sEP 2016

2016 Corruption Prevention Forum

Location: London, UK

13-14 oct 2016

5th Annual Anti Bribery & Corruption Forum

Location: Amsterdam, Netherlands

13-14 oct 2016

Netherlands Fraude Film Festival

Location: Belgrade, Serbia

17-18 oct 2016

16th Serbian Economic Summit

Location: Basel, Switzerland

20-21 oct 2016

Collective Action Conference

Location: Kigali, Rwanda

26-27 oct 2016

FORUM ANNUEL D‘AFREXIMBANK SUR LA GOUVERNANCE D‘ENTREPRISE

Location: Brussels, Belgium

7-8 nov 2016

Compliance Week Europe

Location: Muenster, Germany

21-24 sEP 2016

16th Annual Conference of the European Society of Criminology

Location: Panama City, Panama

1-4 dEc 2016

17th International Anti-Corruption Conference (IACC)

INTIACA

INTERNATIONAL ANTI-CORRUPTION ACADEMY Muenchendorfer Strasse 2 2361 Laxenburg /ViennaAustria

T: +43 2236 710 718 100F: +43 2236 710 718 311E: [email protected]