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Cyprus committed to address corruption, but more steps needed

Cyprus has demonstrated commitment to prevent and address corruption by amending legislation and establishing the Coordinating Body against Corruption, the European Commission notes in its first ever EU Anti-Corruption Report, published Monday.

The report says that upon the recommendation of the Council of Europe`s Group of States against Corruption (GRECO), Cyprus established the Coordinating Body against Corruption in 2003.

Following GRECO recommendations, Cyprus took steps to harmonise provisions on corruption across the criminal code and more recent laws ratifying the OECD Criminal Law Convention on Corruption. Consistency was thus improved concerning pecuniary penalties for corruption offences. While recognising such improvements, GRECO recommended additional steps to improve consistency and legal certainty, it is noted.

According to the report, there is growing awareness in Cyprus of the need for transparency regarding the assets of high-level officials and politicians.

“For the first time, three presidential candidates voluntarily published lists of assets and loans ahead of the February 2013 presidential elections. Following the elections, the President also asked ministers to disclose their assets and to sign a code of conduct. The ministers` declarations were made public in July 2013. This positive trend would be consolidated by a statutory asset disclosure mechanism that includes the means to verify declarations, accompanied by dissuasive penalties in cases of non-compliance” the report notes.

It further says that a Code of Conduct for Public Servants was drafted by the Ombudsman and approved by the Council of Ministers. The Code states that public servants ought to behave properly, honestly, independently, competently, with integrity and professionalism in contacts with co-workers and the public. Public servants are also obliged to report potential conflicts of interest. The Public Servants Academy will organise training on the new Code.

In addition, it is noted that in December 2012, the Political Parties Funding Act came into force. It responds to a number of suggestions raised by GRECO. The Act aims to ensure greater accountability and provide unified standards for the accounting of political parties and for audits of parties’ accounts, extending not only to income and expenses but also to assets and debts. The legislation covers political parties and associated entities, including affiliates such as youth clubs and student associations.

The report recommends additional efforts to be taken to ensure closer coordination of relevant bodies, effective disclosure of assets and conflicts of interest, and greater transparency in the financing of political parties as well as in public procurement.

The following points require further attention: 1. Strengthening the disciplinary regime for public servants, and streamlining procedures to ensure effective investigation of corruption within the police, 2. Introducing codes of conduct for elected and appointed officials for them to declare assets periodically and to disclose potential conflicts of interests, with independent supervision and dissuasive penalties 3. Lowering the thresholds for donations to political parties, limiting the ability of state-owned companies to sponsor political events, regulating donations to election candidates and campaigns, obliging parties to publish their financial statements and accounts online (including the identity of donors), and establishing external supervision of election candidates’ income and expenditure and 4. Developing uniform and effective tools to prevent and detect corruption in public procurement at national and local level, including internal and external control mechanisms and risk management tools within contracting authorities.

According to a 2013 Eurobarometer, 57 % respondents from the general public report that corruption affects their daily lives (EU average 26 %), and 78 % think that it is widespread (EU average 76 %).

In addition, 92 % say that bribery and the use of connections is often the easiest way to obtain certain public services (EU average 73 %), while 12 % state that government measures against corruption are effective (EU average 23 %), and 14 % find that such measures are applied impartially (EU average 33%).

A total of 83 % of Cypriots (the highest percentage in the EU) say that the only way to succeed in business is through political connections, and 90 % believe that excessively close links between business and politics lead to corruption (also the highest percentage in the EU).