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Current Highlights - September  2002

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New Reports and Surveys
  • TI publishes new Corruption Perceptions Index 2002
  • Freedom House releases a new Nations in Transit 2002 Report
  • Fighting Corruption in Croatia: Small Businesses are Corruption's Biggest Victims
  • New International Crisis Group report reveals "endemic corruption" in Macedonia
  • Education in Serbia: How much for a future?
  • Corruption in the Serbian Health System: How Much Does a Healthy Baby Cost?
Global and Regional Meetings
  • Anti-Corruption Citizen Advocacy Offices: best practices and development of a network -- International Workshop for countries of transition economies
  • Civil Society Against Corruption: What We Can Do (Anti-corruption Monitoring) -- International Conference for for countries of transition economies
  • Transparency, Accountability and Honest Government -- workshop organized by Adam Smith Institute
  • Technical Assistance Workshop on the Denial of Tax Deductibility for Bribes -- workshop in the framework of the Baltic Anti-Corruption Initiative (BACI)
  • Reconstructing 'public interests' in a globalizing world -- this is a core theme of the International Institute for Public Ethics  Biennial Conference 2002
  • Training on Governance, Ethics and Anti-Corruption Reforms -- by the University of Birmingham

Country News

  • Kyrgyzstan: Kyrgyz Government moves to stamp out shadow economy
  • Latvia: Premier signs decree on party financial declarations
  • Macedonia: Macedonia introduces financial police
  • Russia: Putin issues Ethics Code for Civil Servants
  • Russia: Duma to consider Draft Witness-Protection Law

Headline News

  • Selected news headlines collected from various news sources: Albania, Azerbaijan, Belarus, Bosnia-Herzegovina, Bulgaria, Czech Republic,  Estonia, Georgia, Kazakhstan, Kosovo, Latvia, Macedonia, Poland, Romania, and Russia.

Visit our website http://www.nobribes.org/

HIGHLIGHTS IN DETAILS...

New Reports and Surveys

TI publishes new Corruption Perceptions Index 2002 --
The TI Corruption Perceptions Index 2002 ranks 102 countries. Seventy countries - including many of the world's most poverty-stricken - score less than 5 out of a clean score of 10. Corruption is perceived to be rampant in Indonesia, Kenya, Angola, Madagascar, Paraguay, Nigeria and Bangladesh, countries with a score of less than 2. Countries with a score of higher than 9, with very low levels of perceived corruption, are predominantly rich countries, namely Finland, Denmark, New Zealand, Iceland, Singapore and Sweden.

Some changes highlighted in the CPI were identified by Peter Eigen. "In the past year, we have seen setbacks to the credibility of democratic rule. In parts of South America, the graft and misrule of political elites have drained confidence in the democratic structures that emerged after the end of military rule. Argentina, where corruption is perceived to have soared, joins Panama, Honduras, Guatemala, Nicaragua, Venezuela, Bolivia, Ecuador, Haiti and Paraguay with a score of 3 or less in the CPI 2002."

While some countries in transition from communism - most notably Slovenia, which has a cleaner score than EU member countries Italy and Greece - are perceived to be increasingly less corrupt, many countries in the former Soviet Union remain ridden with corruption. "The recent steps by President Vladimir Putin to introduce tax reforms and new laws fighting money-laundering are beginning to show the prospect of a lessening in perceived corruption in Russia," explained Peter Eigen, "but the CPI 2002 indicates that Russia has a long way to go and remains seriously corrupt, together with Uzbekistan, Georgia, Ukraine, Kazakhstan, Moldova and Azerbaijan, all of which score less than 3 out of 10."

More information

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Freedom House releases a new Nations in Transit 2002 Report --
Nations in Transit, published annually by Freedom House, is the only comprehensive, comparative, multidimensional study focusing on 27 former Communist states. This year's study reveals that the worst conditions for economic and political freedom persist in Central Asia.

Get Report

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Croatia:
Fighting Corruption in Croatia: Small Businesses are Corruption's Biggest Victims --
Corruption is the biggest obstacle to developing small and medium companies in Croatia, says a survey conducted by Hands, the non-government organization that undertook the study.  As many as 86 percent of those interviewed have encountered corruption either as victims or eyewitnesses.

The survey, recently presented to the public, was carried out from September 2000 to November 2001. About 4,500 entrepreneurs were asked to fill out a questionnaire, but only 108 agreed to take part.

Marin Mostarcic, leader of the How to Cope with Corruption Project, says that one-half of the interviewed business people admitted to having resorted to bribery, aware that it was illegal, but stressed they still would report instances of corruption if they could do it anonymously.

They admit to giving bribes during public auctions, when closing business deals and to obtain loans.

The survey shows that 77 percent of entrepreneurs do not trust the legal system, citing the ambiguity of laws and enforcement as the main reason. They say large companies, inspectors and local authorities are the most corrupt.

Very few mentioned travel at the expense of their company, VAT and income tax scams, gifts to business partners or sales of stolen goods as forms of corruption.

A recent study on corruption in Croatian state institutions, completed in February 2002, shows that one in six Croatian citizens was directly and clearly asked by a traffic police officer to pay in exchange for him turning a blind eye to a traffic violation.

The incidence of such cases has fallen eight percent compared with February 2001, when about 25 percent of all interviewed people had a similar experience. This year's study, however, has shown that a number of physicians, as well as state and private company managers, are asking for bribes.

Every tenth citizen said he/she had to bribe a physician in order to exercise his/her right to a specific type of treatment or medical service.

According to a survey taken in Croatia and seven other Eastern European countries by the Bulgarian Vitosha Research and USAID, Croatian citizens say the most corrupt professionals are police, physicians, municipal clerks, customs officers, judges and lawyers.

The survey shows that people are increasingly losing trust in politicians, and the number of those who perceive this group as very corrupt increased eight percent in 2002 compared to 2001.

Most people are convinced that corruption and bribery have roots in the former socialist system.

Another thing that the survey shows is that there are some positive effects in the struggle against corruption. All respondents said instances in which they were asked to pay or advised to bribe officials in order to obtain an otherwise free service have become less frequent.

Source: Beta News Agency 18 Aug 2002

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Macedonia:
New International Crisis Group report reveals "endemic corruption" in Macedonia --
Corruption in the Republic of Macedonia is endemic, especially among the leading authorities, the International Crisis Group [ICG] claims in its latest report on Macedonia. The report entitled "Macedonian open secret: How corruption is leading the country to collapse", which Dnevnik managed to obtain exclusively yesterday, says that corruption can not only reduce economic progress and "feed" organized crime, but also increases the risk of political and social instability.

Edward Joseph, ICG project director for Macedonia, says, "The country is actually functioning on the principle of racketeering and the racketeers are managing to benefit from this. The country is really functioning as a firm in which a conspiracy among ethnic leaders is being used to escalate interethnic tension. This is present at all social levels. The racketeers are using the rivalry among the ethnic leaders to reinforce the interethnic tension."

ICG Vice President Jon Greenwald emphasized, "If we allow corruption to expand, it will continue to break up Macedonia's brittle unity and will send dangerous signals throughout the western Balkans."

The report, whose contents will be disclosed at a news conference in Skopje today, details several cases of suspected corruption. The ICG states that the Macedonian Customs is one of the possible centers of corruption... The Health Fund is also suffering from corruption. It takes 5 per cent of the value of the company that wins the tender on public procurements, which are then paid to one of the ruling parties. The report also gives the example of a minister who sold licenses for meat and cheese imports. The board of Macedonian Telecommunications is suspected of breaking the principles of the European Development Bank on the distribution of dividends.

"Only an idiot or a corrupt government official can sign a privatization agreement like the one for the sale of Okta," the ICG report says.

"Most of the property of this Macedonian bank was transferred to loyal party soldiers of a ruling party, since the Constitutional Court ruled that a party cannot possess such property." The ICG also mentions the case of Macedonia Tabak in the report, saying that the company was declared bankrupt and then another firm, Tabak 2000, took it over.

Finally, a month before the Assembly election, the ICG appeals to every political party to begin a common and effective fight against corruption.

"It would be a great mistake if anyone thought that the change of government after the September election would mean a solution to this problem," Greenwald stressed. The ICG encourages the government seriously to reconsider and publicize all information on suspected cases of corruption, so that Macedonia's citizens might form their own opinion.

The ICG also recommends that the political parties adopt a national strategy for the fight against corruption.

Source: Dnevnik, Skopje, in Macedonian 14 Aug 02 pp 1, 5 and BBC Monitoring Service 17 Aug 2002

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Serbia: Education in Serbia: How much for a future? --
Students, pupils, their parents, professors, and the Education Ministry are all convinced that corruption permeates every nook and cranny of the education system.

Estimates vary on how widespread corruption actually is, but surveys show that there is great disparity among those claiming that bribery does exist and those willing to admit they offered or were asked to pay cash in exchange for some services. Still, what makes education different from the other segments of society with which it shares a leading position on the corruption list is its special social role and responsibility.

A survey done this year by the University Students Association shows that education now rests on very shaky foundations. Only 32 percent of all students would not give money for moral reasons to avoid losing a school year, student loan or a scholarship.

Out of the 4,000 students who participated in the poll only 11 percent said a student could pass an exam without resorting to bribery. Only two percent of those enrolled in the School of Medicine said that, compared with 27 percent at the School of Mathematics and Natural Sciences.

A total of 31 percent of all students believe that passing exams thanks to personal connections is commonplace, and 57 percent of medicine students are convinced of this. But 19 percent personally know professors and teaching assistants who take money in exchange for good grades. The same goes for 47 percent of those studying medicine, and nine percent of those studying mathematics and natural sciences. They are unwilling to admit they were personally involved in corruption -- only three percent said they enrolled with a little outside help, but 75 percent have heard of others being enrolled in such manner...

The Education Ministry is preparing a plan of action to fight corruption. However, nobody is willing to disclose any details yet...

Source: Beta News Agency 05 Aug 2002

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Serbia:
Corruption in the Serbian Health System: How Much Does a Healthy Baby Cost?
--
"We plan to have more children," is the most common answer that journalists receive when they attempt to get a straight response from parents on corruption in the fields of gynecology and obstetrics, the sector of medicine dealing with childbirth. In a country where more people die than are born every year, this response obviously serves as an excuse for common people not ready to discuss this issue openly. The majority of these young parents will tell you off-the-record about how they were asked to pay money for services, or how they offered money of their own accord, to get normal treatment in maternity hospitals. They, however, are not prepared to divulge any details on maternity wards or doctors... According to a recent study by the Center for Investigating Alternatives, 29 percent of the citizens in Serbia reported having been asked for money or a favor by a physician, last year. The results of this study also indicate that people have understanding for people who are "forced" to make bribes. Half of the respondents said that both sides -- the briber and the bribed -- should be punished, while 45 percent said only the person who accepted the bribe should be punished. With people so tolerant of bribery, it is not surprising that the overwhelming majority would rather reach for their wallet than make use of their rights, in situations where their health or the health of their loved ones is at stake...

Source: Beta News Agency 19 Aug 2002

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Global and Regional Meetings
 

International Workshop: Anti-Corruption Citizen Advocacy Offices: best practices and development of a network --
An international workshop on Anti-Corruption Citizen Advocacy Offices will be held on 23-24 September, 2002 in Samara, Russia. The objectives of the workshop are to develop efficient “best practice” approaches to (1) enhance the work of anticorruption citizen advocacy offices for rendering professional legal assistance to victims of corruption and protecting their interests; and (2) raise the legal awareness of citizens and organizations on issues related to their rights and responsibilities in interacting with the government for the purpose of reducing the level of corruption and preventing future cases. Participants of the workshop will be professional lawyers, representatives of existing anti-corruption citizen advocacy offices and similar organizations that provide anti-corruption legal services from countries of the former Soviet Union and Eastern and Central Europe. The workshop is organized by the Samara Center of Law and Povolzhye Humanitarian Foundation with the support of Management Systems International (MSI) and financial sponsorship of the East-East program of the Open Society Institute of the Soros Foundation.

Workshop information.

Contact information: Katerina Perelygina, tel. (+7 8462) 166372, (+7 89272)913552, e-mail: pek@zmail.ru,katya@rambler.ru

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Civil Society Against Corruption: What We Can Do (Anti-corruption Monitoring) --
An international conference under this title is scheduled for October 10th-12th, 2002. The Steering Group of the meeting consists of representatives of the Center Strategia, St. Petersburg and Center Transparency International – Russia. The following areas of   anti-corruption monitoring will be analyzed at the meeting: public participation in decision-making process; public legislative expertise; protection of civic rights and civic education; public monitoring of the budget process; public monitoring of the procurement procedures; public monitoring of privatization; and public monitoring of electoral funds. This conference is a follow-up to the International Conference under the title “Anti-corruption Strategies for Transition Economies: Common Problems, Common Solution” that was held in July 2001 in Kyiv, Ukraine. The Conference is a joint initiative of a group of regional NGOs: Center Transparency International – Russia, Coalition Freedom of Choice, Ukraine and Transparency International – Ukraine. The 2001 conference brought together representatives of numerous civil society organizations that implement anti-corruption projects aimed at promoting transparency, accountability and integrity from such countries as Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Latvia, Lithuania, Moldova, Russia, Ukraine, and Estonia. Participants of the Conference agreed on the need for a permanent Regional Integrity Dialogue (RID) as a systemic tool to exchange information, best practices and case studies, all aimed at increasing efficiency of anti-corruption programs in the region. The RID is open for any organizations and institutions of Central and Eastern Europe. The only condition is interest in permanent, honest and open dialogue, and information exchange to increase the efficiency of anti-corruption efforts in the region.

More information

Conference Program

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Transparency, Accountability and Honest Government --
A workshop will be organized by the Adam Smith Institute on 18-20 September, 2002  at Le Meridien Russell Hotel, London, United Kingdom. This workshop will examine the causes and consequences of corruption and will provide practical information and review the range of possible approaches that can encourage transparency, accountability and honest government.

Participants will learn how to apply anti-corruption initiatives in eight key areas: Legal and Institutional Frameworks; Regulatory and Policy Frameworks; Free use of knowledge; Procurement; Ethics and attitudes; Managing Practices; Public Sector Human Resources; Pay, incentives and discipline.

Workshop Agenda

More information

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Technical Assistance Workshop on the Denial of Tax Deductibility for Bribes --
This workshop was held in Riga, Latvia, on 27 - 28 August 2002 in the framework of the Baltic Anti-Corruption Initiative (BACI), and was a follow-up to the status report review meeting held in Tallinn in February 2002. During that meeting, the three Baltic States had identified the need for a technical assistance workshop on the denial of tax deductibility for bribes.

The purpose of the workshop was threefold:
(1) to raise awareness of the OECD anti-bribery instruments and particularly on the provisions to deny tax deductibility for bribes, as well as the OECD countries’ experiences in implementing relevant legislation;
(2) to present participants with ways to detect bribes disguised as legal payments and introduce the OECD Bribery Awareness Handbook for Tax Examiners as a tool to identify bribes;
(3) to assist the Baltic States in developing necessary provisions on the denial of tax deductibility of bribes.

Draft Agenda

More information on ACN website

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Reconstructing 'public interests' in a globalizing world --
This is a core theme of the International Institute for Public Ethics  Biennial Conference 2002 that will be held on 4-7 October 2002, Sheraton Hotel, Brisbane, Australia
.The Biennial IIPE Conference follows on from the Ethics in the Public Service (EPS) Conferences held since the late 1980s. The 2000 IIPE Conference was held in Ottawa, Canada and was opened by Canada’s Prime Minister, The Right Honourable Jean Chrétien. Participants shared their views on the central challenges of ethics programs, from the perspective of both state-of-the-art theory and lessons learnt from the most effective practices. Attendees from a variety of academic, government, business and non-governmental organizations shared their experiences. The 2002 IIPE Conference in Brisbane promises to develop this tradition. Academics and practitioners in ethics and governance are coming from around the world to discuss and debate how "the public interest" can be reconstructed in a globalising world, given the range of 'publics' who are affected by the actions of: accountants, auditors, business executives, doctors, politicians, priests, public servants, scientists, soldiers; etc. The Conference will also discuss some of the more pressing issues for public ethics in today's tumultuous world, such as: responding to asylum seekers and displaced persons; responding to international terrorism; and East / West Dialogue on the 'Public Interest'.

More information

Conference Agenda

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Training on Governance, Ethics and Anti-Corruption Reforms --
This training will be held on 28 October – 15 November 2002 at the University of Birmingham, International Development Department, School of Public Policy.

This international seminar has been designed in response to the growing recognition of the need to fight corruption and improve integrity and standards in public service, as part of the agenda for better governance. The seminar will draw on the experience and expertise of UK academics and practitioners with wide international experience on issues of governance, ethics and corruption. The seminar is designed to help participants:

  • to understand and appreciate the complexity of corruption and its causes;
  • to design and implement workable strategies for detecting, investigating and preventing corruption in public, private and voluntary sectors;
  • to understand the relationship between anti-corruption reforms, ethics and governance;
  • to design codes of conduct and strategies for improving the infrastructure for managing ethics in public service.

Download the Training flyer for more information.

More information

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Country News
 

Kyrgyzstan:
Kyrgyz Government moves to stamp out shadow economy --
Prime Minister Nikolai Tanaev has established a commission chaired by Deputy Premier Djoomart Otorbaev and Finance Minister Bolot Abdildaev that is charged with drafting within one month a program to legalize the shadow economy, Interfax reported on 26 August. According to the National Statistics Committee, the shadow economy accounts for a minimum of 13 percent and possibly as much as 40 percent of GDP.

Source -- RFE/RL Newsline 27 Aug 2002

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Latvia:
Premier signs decree on party financial declarations --
Riga, 14 August: Prime Minister Andris Berzins has signed the Cabinet of Ministers' decree today that set the procedure on how political parties submit and make public their annual financial declarations, financial declarations for pre-election and election periods, statements on estimated election costs and information on donations received. The cabinet's regulations have been sent to all 59 political organizations registered in Latvia today, they will be run in the government's official newspaper Latvijas Vestnesis tomorrow, 15 August, the State Chancellery's communications department told LETA.

According to the law on financing of political organizations, all political parties must begin placing information on accepted donations and gifts on the Internet, effective 15 August. According to the cabinet's transitional provisions, information that is being made public by political organizations will be accessible on the Internet homepage of the Corruption Prevention Council at "www.pretkorupcija.lv", until the Corruption Prevention Bureau launches operations. Political parties' financial declarations for 2001 can already be viewed there.

Representatives of the Corruption Prevention Council will hold a seminar at the Cabinet of Ministers on Monday, 19 August, at 2 p.m. The leaders of all political parties have been invited to attend the seminar, where the procedures will be explained as described in the cabinet's regulations.

Source: LETA news agency, Riga, in English 1256 gmt 14 Aug 02

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Macedonia:
Macedonia introduces financial police --
The Finance Ministry announced that the new financial police will start work at the beginning of September, RFE/RL's Macedonian broadcasters reported on 21 August. The new police unit will work within the framework of the Finance Ministry. Its main duty is to combat illegal financial transactions, such as money laundering, tax evasion, or illegal trade activities. Unlike the tax inspectors, the financial police are armed and have distinctive uniforms. Many experts believe the gray economy contributes up to 50 percent to Macedonia's GDP, and that the state loses some $200 million every year because of tax evasion.

Source: RFE/RL Newsline 23 Aug 2002

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Russia:
Putin issues Ethics Principles for civil servants
Russian President Vladimir Putin signed a decree outlining a series of ethical principles for public officials. The decree says Russia's civil servants will be expected to observe the law, serve the public efficiently and courteously, avoid conflicts of interest, and remain politically neutral... Putin's decree, among other things, says government workers "must display courtesy and attentiveness in dealings with citizens." More important, civil servants "must not show any preference toward any professional or social groups and be independent of influence."

Draft laws set to be introduced into parliament next month include measures to define various categories of civil servant. These measures will have the scope of giving greater budgetary power to individual agencies to pay higher salaries if they can save money elsewhere by cutting headcounts.

Text of the Decree.

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Russia:
Duma to consider Draft Witness-Protection Law --
A draft law on protecting witnesses and victims of crimes will be introduced in the State Duma during the fall session that begins on 11 September, RosBalt reported on 27 August. According to the head of the Interior Ministry's criminal law department, Yevgenii Sadkov, the draft law will include provisions to protect personal information about the victims of crimes and their relatives, a measure authorities hope will encourage more victims to testify. The draft law also contains provisions that would allow witnesses to identify suspects without being seen by them and other provision that would authorize closed court sessions under certain circumstances. Finally, the law would also authorize the authorities to relocate important witnesses and take measures to conceal their identities. RC

Source: RFE/RL Newsline 07 Aug 2002

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Headline News

Selected news headlines collected from various news sources:

To get more detailed information go to the News Page

ALBANIA:
A Scapegoat -- Beta News Agency 28 Aug 2002

ALBANIA:
Albanian Pyramid-Scheme Boss Arrested -- RFE/RL Newsline 27 Aug 2002

AZERBAIJAN:
Azerbaijani Oposition Again Claims Referendum Outcome Falsified -- RFE/RL Newsline 27 Aug 2002

BELARUS:
Prosecutor-general gives update on high-profile corruption cases-- Belarusian television, Minsk, in Belarusian 1800 gmt 7 Aug 02 and BBC Monitoring Service 07 Aug 2002

BOSNIA-HERZEGOVINA:
Whistleblower upheld in UN Bosnia police case -- International Herald Tribune 08 Aug 2002

BULGARIA:
Bulgarian Officials Discuss Anticrime Strategy -- RFE/RL Newsline 22 Aug 2002

CZECH REPUBLIC:
Ex-minister: MPs investigating corruption at Foreign Ministry "politics"-- CTK news agency, Prague, in English 1743 gmt 6 Aug 02 and BBC Monitoring Service 06 Aug 2002

CZECH REPUBLIC:
Former top official denies corruption allegations -- CTK news agency, Prague, in English 0622 gmt 12 Aug 02 and BBC Monitoring Service 12 Aug 2002

ESTONIA:
Estonian Culture Endowment Chief Confesses to Embezzlement Charges is Fired -- RFE/RL Newsline 19 Aug 2002

GEORGIA:
Georgian Official Calls for Blacklist of Corruption Suspects -- RFE/RL Newsline 22 Aug 2002

KAZAKHSTAN:
Kazakhstan Assess Success of Anticorruption Measures -- RFE/RL Newsline 25 Aug 2002

KAZAKHSTAN:
Watchdog says former officials convicted lawfully -- Khabar Television, Almaty, in Russian 1400 gmt 9 Aug 02 and BBC Monitoring Service 10 Aug 2002

KOSOVO:
Corruption in Kosovo: Authorities Silent on Media Allegations -- Beta News Agency 18 Aug 2002

LATVIA:
Latvian Premier Guilty of Conflict of Interest? -- RFE/RL Newsline 19 Aug 2002

MACEDONIA:
Serious allegations ahead of elections -- Beta News Agency 25 Aug 2002

POLAND:
Former Polish Defence Official Indicted for Corruption -- RFE/RL Newsline 26 Aug 2002

ROMANIA:
Romanian President Criticizes failure to Attract Foreign Investment -- RFE/RL Newsline 22 Aug 2002

ROMANIA:
Romanian Party Grants So-Called Suspension of Official -- RFE/RL Newsline 22 Aug 2002

RUSSIA:
Krasnoyarsk Candidate Ready to Bury Corruption -- RFE/RL Newsline 25 Aug 2002

RUSSIA: Interior Ministry Sets Priorities on Economic Crime  --RFE/RL Newsline 26 Aug 2002

RUSSIA:
Assassinated Deputy Allegedly Worth $100 Million
-- RFE/RL Newsline 27 Aug 2002

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Website Updates

New reports.

New surveys

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Check for updates about The 11th International Anti-Corruption Conference (IACC) --
25-28 May 2003, Seoul, Korea.

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