How to Infuse Momentum in Anti-Corruption Reforms

Round Table
May 27, 2003
Sheraton Sofia Hotel Balkan

The aim of round table discussion organized by Coalition 2000 was to outline the different forms and manifestations of crime, as well as relevant means and resources to limit it.

In his speech Dr. Ognian Shentov, CSD Chairman, pointed out the dynamics of the major spheres of “grayness” in the economy and the public-private partnership as a main factor for success in countering the “gray-black” economy. "Our surveys and data support the thesis of a shrinking gray sector, although it is still too early to make categorical assessments how sustainable this trend is.", Dr. Shentov underlined. He mentioned privatization, import and customs among the main sources of “grey-black” relations and corruption.

The Minister of Economy Nikolay Vassilev said that corruption could not be defeated by one institution alone. A large public support and consensus are needed to make the fight against corruption a priority. Minister Vassilev suggested several measures to combat corruption – appointment of qualified people, legislation to prevent corruption in the grey sector, restricted state intervention in the economy, reduced taxes and reform in the customs.

According to Dr. Vassil Kirov, Director of Financial Investigation Agency, organized crime leads to degradation of the economy, the administration and the social relations. Organized criminal groups are buying off state officials and judges, while only part of the money is redirected to the legal economy.

Ms. Karen Kramer, Resident Legal Adviser at the US Embassy, stressed on the need to create a legislative framework to abolish the bank and tax secret in order for the prosecution and the investigation to collect enough evidence to charge persons involved in contraband activities. According to data, cited by Tihomir Bezlov, program coordinator at the CSD, only 2-3 % of the businessmen settle their business problems in court.

General Boyko Borissov, Secretary General of MoI, drew the discussion to another important point related to the preconditions for effective fight against corruption and crime. People who are directly involved in countering corruption and crime are motivated when they feel the support of the state and when they are not afraid of dismissal by the next government coming into power. However, the reality in the Ministry of Interior is quite different. "We are left with no protection from the state; directors of services and all officials of the Ministry are the most unprotected people in the country. They are not motivated to work", General Borissov stated.

The following measures for the successful fight against the criminal economy were outlined:

• Improving the legal environment for business, and particularly the implementation of the laws. A very important priority in this direction is the improvement of the legislation, specifically commercial law, including insolvency, as well as the tax, customs, bank and financial legislation.
• Extending the powers and increasing the efficiency of the work of the Financial Intelligence Agency, the Customs Agency, the tax authorities, the National Audit Office and other control agencies in their fight against corruption and crime.
• Broadening the partnership between the government and the civil society in countering corruption, in particular with the law-enforcement institutions, and implementation of civil monitoring of the fight against organized crime and of the measures against the new economic crime in particular.

Agenda

Economy of Crime and Anticorruption Reforms - Discussion topics

Media coverage

See also:International Conference: Economy of Crime: Grey Sector, Trafficking, Corruption, 29 and 30 November, 2002, Sofia

Corruption, Contraband and Cross-Border Crime Resource Center