Economic Governance and Management • • Establishes mechanisms to facilitate the rapid analysis of audit reports and improves the monitoring of whether the recommendations of the executive are implemented. [Parliament] Accelerates the reform of parastatal enterprises, whose deficits and debts have started to weigh heavily on public funds, in order to improve the management of public resources. [Parliament] Objective 4: Summary of the CSAR 553. This section on the fight against corruption and money laundering focuses on corruption and money laundering in public administration. The CSAR deals with corruption in the political sphere under democracy and good political governance (see chapter 3) and with corruption in state-owned and private enterprises under corporate governance (see chapter 5). This section focuses on the legislation adopted and the institutions established. 554. The major laws dealing with corruption and money laundering are POCA of 2002, the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) of the same year and the Public Procurement Act of 2006. Other relevant laws are the Companies Act of 2001, the Mutual Assistance in Criminal and Related Matters Act of 2003 and the Banking Act of 2004. 556. Chapter 4 In addition to defining corruption, the Prevention of Corruption Act, as amended in 2006, establishes ICAC. ICAC investigates cases of corruption and money laundering and increases public awareness about them. FIAMLA defines money laundering, labels it an offence, and establishes the FIU. The Public Procurement Act aims to promote transparency and accountability in public procurement by establishing the principles and procedures to be followed in the public procurement of goods, public works, consultancies and other services. The institutions established for this purpose are the PPO, which is responsible for policy making and monitoring, but has no role in conducting procurement activities or resolving procurement disputes, and the CPB. The CSAR describes the composition of the board of ICAC (a director-general and two members); its four divisions (corruption investigation, corruption prevention and education, legal, and administration and finance); and the procedures it follows when Economic Governance and Management conducting investigations. According to the CSAR, ICAC may only investigate allegations of corruption. It has no power to arrest or prosecute offenders. This is the responsibility of the Mauritius Police Force (MPF) and the director of public prosecutions (DPP). 557. The CSAR does not cover the achievements and effectiveness of ICAC. However, the CSAR does summarise a survey on corruption conducted by ICAC in 2004 and the response to its questionnaires for the present CSAR. Some of the findings of the 2004 survey were that: (i) corruption is the most important problem facing Mauritius, followed by unemployment and drug use (this finding was apparently consistent with earlier surveys conducted in 1999 and 2002); (ii) highlevel and petty corruption both increased in the previous two years; (iii) the Customs Department, the police and the National Transport Authority were considered to be the most corrupt institutions; (iv) ministers and politicians were said to be “very much” involved in corruption; and (v) corruption is likely to increase. Interestingly, though, nearly 84 per cent of the respondents stated that they had no direct experience of being asked for a bribe. Unfortunately, the next survey on corruption will be conducted only in 2010. 558. There are some serious limitations about using questionnaires when preparing the CSAR. Their findings can only suggest the views of some segments of the population in Mauritius. They are by no means representative. With this caveat in mind, a summary of the findings from the questionnaire of the CSAR on the work of ICAC follows: • • • • • • Fight corruption and money laundering i. 555. 212 Chapter 4 Corruption is a major threat to the economic and social wellbeing of the country. ICAC still has to prove itself as a credible, competent and independent institution in the fight against corruption. The long delay in handling complaints by ICAC serves as a major deterrent for citizens who wish to complain. Courts also take a long time to give verdicts. ICAC is politically driven and there is hardly any tangible action against malpractices committed by politicians in power. Political and other forms of interference affect investigations. ICAC does not use its resources effectively. 559. There is therefore little credence in the laws and mechanisms to fight corruption. 560. The CSAR summarises the comments of the director-general and two board members of ICAC on the results of the questionnaire. Not 213