Improved Anticorruption Policies (ME0062)
Overview
At-a-Glance
Action Plan: Montenegro Action Plan 2018-2020
Action Plan Cycle: 2018
Status: Active
Institutions
Lead Institution: The Union of Municipalities MoF The Tax Administration The Chamber of Economy
Support Institution(s): NA
Policy Areas
Access to Information, Anti-Corruption, E-Government, Fiscal Openness, Open Data, Publication of Budget/Fiscal Information, Subnational, Sustainable Development Goals, Whistleblower ProtectionsIRM Review
IRM Report: Montenegro Design Report 2018-2020
Starred: Pending IRM Review
Early Results: Pending IRM Review
Design i
Verifiable: Yes
Relevant to OGP Values: Access to Information , Public Accountability
Implementation i
Completion: Pending IRM Review
Description
Improved anticorruption policies
Commencement and completion dates: January 2019 – December 2019
Responsible institution The Union of Municipalities MoF The Tax Administration The Chamber of Economy
Commitment
The issue at stake Given the lack of transparency, citizens have problems in understanding budgeting processes at the local and the national levels. This is further aggravated by the fact that for the time being only annual budgets and final accounts are being published, having a negative bearing on three pillars of budget accountability: transparency, oversight and public participation. Citizens are not familiar with budget policies and the ways how central and local level budgets are planned and spent. The lack of information concerning whistle-blowers, the legal theory and practices in their protection and potential misuses indicate the need for further awareness-raising activities to make the institutions, staff, interested parties and citizens better informed on the matter.
Commitment In line with the OGP principles, budget transparency may prove to be a significant step forward in overall openness of institutions and open new scope for interactions with citizens.
Opening of budgets poses a particular challenge in the context of public participation in policy development, implementation and monitoring. In reference to his, this measure is expected to address in quite a simple manner the need of citizens and target groups to have a more direct insight into financial performance of municipalities and country at large. This will enable continuous broader assessments and analyses of public finance management efficiency and cost-effectiveness. A functional portal with easily searchable databases and sets of data providing insights into specific sections of the budget is an appealing and efficient channel for familiarisation with the decisions on revenue collection and allocation. Development of budget brochures for citizens and of brochures on whistle-blowers fall under public education and information activities to raise awareness of transparency and accountability among individuals, institutions and society at large.
How will it help address the issue
The delivery on this commitment will make budgets more credible. The “Open Budget” portal will provide overviews of local and central budgets, in line with transparent financial management rules, providing graphic presentations of financial statements, presenting debts and liabilities by type, etc., together with the possibility for giving comments. Thus, members of the public and entities interested in public finance will have an easily accessible and understandable database using infographics and generating various types of data for different sections of the budget, and information on budget outlays. Moreover, the data will be provided in such a manner to allow further processing. Promotion and awareness raising of the importance of whistle-blowers in a society, together with a comparative overview of legal provisions and practices of more developed democracies will be one step towards addressing the issue stated above.
Its relevance to OGP values
The delivery on this commitment is relevant for fiscal responsibility, transparency, availability of information, citizen participation in monitoring local public spending in a systematic and functionally sustainable manner and overseeing the work of institutions in line with the principles of ethics and accountability.
Additional information Compatibility with SDGs Reference to SDG 16: ‘Pease, Justice and Strong Institutions 16.6 – Develop effective, accountable and transparent institutions at all levels
BUDGET €19,500
Actions with verifiable results and implementation dates
6.1. Visual presentations of state and local budgets – €10,000 - Annually update visual presentation of the country budget http://budzet.sntcg.com/ - post visual presentations of local budgets at their respective webpages similarly to the presentation at http://www.mojgrad.me
6.2. Budget for Citizens brochure – €5,000 - Based on the template to be developed by the Union of Municipalities, local selfgovernments will prepare brochures presenting local budgets suited to citizen needs to be used during public consultations and posted on their respective webpages
6.3. Comparative review/study on whistle-blower protection – Whistleblower Cases – €4,500
- the study in place with recommendations for further improvement of the legal framework for governing reports made by whistle-blowers, procedures as per reports, procedures as per requests for whistle-blower protection, etc.
Points of Contact
Responsible person in the implementing entity Igor Pavićević, the Institute of Chartered Accountants, Mitar Bajčeta, the Chamber of Economy
e-mail / phone igor.pavicevic@isrcg.org
IRM Midterm Status Summary
6. Improved anticorruption policies
Language of the commitment as it appears in the action plan:
“In line with the OGP principles, budget transparency may prove to be a significant step forward in overall openness of institutions and open new scope for interactions with citizens.
Opening of budgets poses a particular challenge in the context of public participation in policy development, implementation and monitoring. In reference to his, this measure is expected to address in quite a simple manner the need of citizens and target groups to have a more direct insight into financial performance of municipalities and country at large. This will enable continuous broader assessments and analyses of public finance management efficiency and cost-effectiveness.
A functional portal with easily searchable databases and sets of data providing insights into specific sections of the budget is an appealing and efficient channel for familiarisation with the decisions on revenue collection and allocation.
Development of budget brochures for citizens and of brochures on whistle-blowers fall under public education and information activities to raise awareness of transparency and accountability among individuals, institutions and society at large.”
Milestones:
6.1. Visual presentations of state and local budgets
6.2. Budget for Citizens brochure
6.3. Comparative review/study on whistle-blower protection Whistle- blower Cases
Start Date: November 2018
End Date: December 2019
Context and Objectives
This commitment addresses budget transparency and whistleblower protection. It calls for visual presentations of the state and local budgets and publishing citizen brochures. It also proposes a comparative study on whistleblower protection to provide recommendations for the legal framework.
A framework to implement program budgeting has been in place in Montenegro since the 2018 Public Financial Management action plan. [19] However, its implementation remains behind schedule because line institutions do not proactively publish budget information and there is no mechanism to ensure quality checks of published data. [20] Furthermore, Montenegro does not participate in the International Budget Partnership’s Open Budget Index survey, making it difficult to establish a baseline of what budget areas need improvement. [21]
Montenegro’s 2014 Law on Prevention of Corruption includes provisions to protect whistleblowers in the public and private sectors. [22] However, the European Commission has noted that results remain limited, with a continued decrease in requests for protection of individuals reporting threats to the public interest. [23] Several high-profile whistleblower cases attracted media attention in recent years, which caused public authorities to engage in a variety of citizen awareness-raising campaigns. [24]
The commitment is verifiable, as most of its milestones provide specific activities and a timeline for implementation (such as an annually updated visual presentation of the national and local budgets and the development of a citizens brochure). However, Milestone 6.3 (comparative study on whistleblower protection) could be more specific, as it is not clear how this study will inform the current legal framework.
The commitment is relevant to access to information and public accountability. The visual presentation of the national and local budgets can inform citizens about the budgetary cycle. Furthermore, the citizens brochures for local governments (Milestone 6.2) can help citizens better understand local budgets. It should be noted, however, that Montenegrin regulations and practices only allow citizens to participate in public budgeting at the local level and not at the national level.
Regarding whistleblower protection, it is not clear what changes are expected after the preparation of the comparative study under Milestone 6.3. Notably, however, this is the only activity in the action plan that will be implemented by an NGO (Institute of Certified Accountants). [25] According to a representative of the Institute of Certified Accountants, Montenegro aims to adopt the provisions of the EU’s 2019 Directive on Whistle-blower Protection, which will cover all legal entities (state owned and private) with more than 50 employees. [26]
Together, the activities under his commitment could have a moderate potential impact, particularly on budget transparency at the local level.
Next steps
Moving forward, the IRM recommends continuing to focus on budget transparency and whistleblower protection, but as two separate commitments. The government could consider the anticorruption proposals from Operations Team members [27] such as expanding opportunities for parliament and the public to scrutinize the budget, and improving participatory budgeting. Also, the European Commission notes that line institutions still do not proactively publish budget information, and that mechanisms could be put into place to ensure their publication. [28] The IRM recommends publishing information on every item of spending, in readable format, and on a regular basis.
On whistleblower protection, the IRM recommends drafting a standalone whistleblower protection law (separate from the 2014 Law on Corruption Prevention) with enforcement mechanisms.
[19] European Commission, “Commission Staff Working Document, Montenegro 2019 Report” (29 May 2019), https://bit.ly/2s0h3KB.
[20] Id.
[21] International Budget Partnership, The Open Budget Survey, (2017), https://www.internationalbudget.org/open-budget-survey/open-budget-index-rankings/.
[22] Mark Worth, Whistleblower Protection in Southeast Europe (Regional Anti-corruption Initiative, 2015), https://rm.coe.int/16806fffb0.
[23] European Commission, “Commission Staff Working Document, Montenegro 2019 Report.”
[24] Tina Popović and Mila Radulović Podgorica, “Montenegro, how not to protect whistleblowers” (Daily Newspaper, 15 Dec. 2017), https://www.balcanicaucaso.org/eng/Areas/Montenegro/Montenegro-how-not-to-protect-whistleblowers-184622.
[25] Representative of the Operational Team member, NGO Institute of Certified Accountants, interview by IRM researcher, 12 Sept. 2019.
[26] Information provided to the IRM by Igor Pavicevic, Institute of Certified Accountants, during the pre-publication period of this report, 19 March 2020.
[27] “Pregled Komentara, Prijedloga I Sugestija Članova Operativnog Tima Za Sadržaja Nacionalnog Akcionog Plana Partnerstva Za Otorenu Upravu Za 2019” (2018), https://www.otvorenauprava.me/wp-content/uploads/2018/10/Predlozi-OT.pdf.
[28] European Commission, “Commission Staff Working Document, Montenegro 2019 Report.”
Commitments
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National Identification Document (NID)
ME0057, 2018, Access to Justice
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e-Democracy
ME0058, 2018, E-Government
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Proactive Publication of Information
ME0059, 2018, Access to Information
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Efficient Collection of Administrative Fees
ME0060, 2018, Access to Justice
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Electronic Tax Returns
ME0061, 2018, E-Government
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Improved Anticorruption Policies
ME0062, 2018, Access to Information
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Non-Governmental Participation in the Privatisation Council
ME0001, 2012, Public Participation
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Establishment of Electronic Enterprise Registration
ME0002, 2012, E-Government
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Merging of Inspectorates and Extracting Them from Ministries and Administration Authorities
ME0003, 2012, Private Sector
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Implementation of New Building Permit Legislation
ME0004, 2012, Private Sector
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Establishment of Special Body to Support Investment and Development Projects
ME0005, 2012, Private Sector
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Create e-Register of Licenses
ME0006, 2012, E-Government
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Adopt Regulations for Registry Maintenance
ME0007, 2012, Legislation & Regulation
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Development of an Action Plan with Measures to Improve Regulatory Framework in Montenegro
ME0008, 2012, Legislation & Regulation
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Quarterly Evaluation of Implementation of That Action Plan
ME0009, 2012, Legislation & Regulation
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Train Civil Servants in RIA
ME0010, 2012, Capacity Building
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Apply RIA in Preparation of the Work Programme of the Government
ME0011, 2012, Legislation & Regulation
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‘Full RIA’ Is Implemented for All Laws
ME0012, 2012, Legislation & Regulation
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Employment of Foreigners Reform
ME0013, 2012, Citizenship & Immigration
-
Concessions and Public-Private Partnership: Regulatory Framework
ME0014, 2012, Legislation & Regulation
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Concessions and Public-Private Partnership: Regulation on Procedure
ME0015, 2012, Legislation & Regulation
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Affirm and Advance Existing Functions of the E-Government Portal
ME0016, 2012, E-Government
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e-Government Portal: More Complex Electronic Services Available at the Portal and Acceptance of Electronic Documentation
ME0017, 2012, E-Government
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e-Government Portal: Enable Citizens to Have an Active e-Participation in Creation of Laws and Other Strategic Documents
ME0018, 2012, E-Government
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Established Online Platform for e-Petitions
ME0019, 2012, E-Government
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e-Petitions: Online Platform Is Made Fully Efficient
ME0020, 2012, E-Government
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Southeast Europe Regional Forum
ME0021, 2012, Capacity Building
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Public Consultations
ME0022, 2012, Public Participation
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Direct Contact with Non-Governmental Organisations
ME0023, 2012, Civic Space
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Systems to Improve Direct Contact with Citizens
ME0024, 2012, Public Participation
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Free Access to Information
ME0025, 2012, Access to Information
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Plain Administrative Language
ME0026, 2012, Capacity Building
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Preventing Conflicts of Interest: Raising Public Awareness
ME0027, 2012, Anti-Corruption
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Preventing Conflicts of Interest: Training for Public Officers and Public Campaigns
ME0028, 2012, Anti-Corruption
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Preventing Conflicts of Interest: Political Independency of the Commission for Prevention of the Conflict of Interest
ME0029, 2012, Anti-Corruption
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Strengthening Integrity
ME0030, 2012, Anti-Corruption
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Application of Code of Ethics: Establish an Ethical Board, as an Independent Body
ME0031, 2012, Anti-Corruption
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Application of Code of Ethics: Code of Ethics Training for Civil Servants
ME0032, 2012, Anti-Corruption
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Application of Code of Ethics: Ensure Application of the Code of Ethics Through Operation of Disciplinary Bodies and Periodic Check
ME0033, 2012, Anti-Corruption
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Application of Code of Ethics: Strengthen Tax Administration and Customsadministration Internal Control Mechanisms
ME0034, 2012, Anti-Corruption
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Transparency of Criteria for Employment, Bonuses, and Promotion in the Public Sector
ME0035, 2012, Anti-Corruption
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Reporting on Unpermitted Building Construction
ME0036, 2012, Infrastructure & Transport
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Protection of Persons Reporting Corruption
ME0037, 2012, Anti-Corruption
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Procurement Corruption: Help Desk
ME0038, 2012, Anti-Corruption
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Procurement Corruption: Regulation and Awareness-Raising
ME0039, 2012, Anti-Corruption
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Establishing Central Public Procurement Bodies
ME0040, 2012, Anti-Corruption
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Electronic Public Procurement System
ME0041, 2012, Anti-Corruption
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Budget Transparency: Amend the Organic Law on Budget with Precise Deadlines and Specific Fiscal Rules
ME0042, 2012, Fiscal Openness
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Budget Transparency: Presentation of the Annual Budget and Its Revisions in a Visually Comprehensible and Simple Manner
ME0043, 2012, Fiscal Openness
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Budget Transparency: Identify and Develop Performance Indicators
ME0044, 2012, Fiscal Openness
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Budget Transparency: Amend the Chart of Accounts to Improve the Expenditure Control
ME0045, 2012, Fiscal Openness
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Budget Transparency: Improve Cooperation Between the Internal Audit System and State Audit Institution
ME0046, 2012, Fiscal Openness
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Combatting All Forms of Discrimination: Carry Out Activities Defined in the Signed Memorandum of Cooperation with the NGOs
ME0047, 2012, Civic Space
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Combatting All Forms of Discrimination: Trainings for Police Officers for Professional Conduct with LGBT Persons
ME0048, 2012, Capacity Building
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Combatting All Forms of Discrimination: Trainings for Police Officers Related to Disabled Persons
ME0049, 2012, Capacity Building
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Combatting All Forms of Discrimination: Free-Up Public Traffic Areas Used by Disabled. Define Procedures for Control of Passengers & Vehicles
ME0050, 2012, Human Rights
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Combatting All Forms of Discrimination: Adjust the Security Centre in Accordance with Disabled Persons’ Needs and Appoint a Contact Person
ME0051, 2012, Human Rights
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Improving Media Freedoms
ME0052, 2012, Civic Space
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Corporate Social Responsibility (CSR)
ME0053, 2012, Private Sector
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Support to CSR in Montenegro
ME0054, 2012, Private Sector
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Organisation of Workshops on Corporate Social Responsibility
ME0055, 2012, Capacity Building
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Development of Manual
ME0056, 2012, Capacity Building