Improving Frameworks for Preventing Corruption (HR0052)

Which public issue does the measure address? In order to continue the continuous strategic implementation and building up the system of anti-corruption measures in the Republic of Croatia, after the period of validity of the current Anti-Corruption Strategy 2015-2020 (OG 26/15), a new Anti-Corruption Strategy 2021-2030 was adopted in October 2021. Corruption as a social phenomenon is conditioned by awareness of social values and acceptable behaviour and has a powerful effect on the rule of law and trust in institutions. Such climate also undeniably affects the economic prosperity and prosperity of all citizens. Therefore, the activities aimed at fighting corruption at all levels are a priority for the state and society as a whole. The effective fight against corruption therefore involves not only state bodies, independent institutions and justice, but also the whole of society, the business community, citizens and the civil sector as well as the international community. Despite the recognised existence of the necessary framework for the effective fight against corruption in the public sector and the networking of state bodies, which contributes to the formulation of anti-corruption policies in all branches of government, there is room and need for further improvements in the legislative and institutional framework for the fight against corruption. The strategy sets priorities in strengthening preventive mechanisms to combat corruption, through strengthening the institutional and legislative framework for combating corruption, strengthening the transparency and openness of public authorities, improving the integrity system and conflict of interest management in public administration. In addition, the Strategy will focus on strengthening the anti-corruption potentials in the public procurement system as a special priority area, and on raising awareness about the harmful effects of corruption and the necessity of effectively combating and preventing it.

What does the measure include? The measure includes improving the legislative framework in certain areas of preventing corruption and adopting the first implementation document in the new strategic framework. A legal framework in the field of lobbying is currently being developed. Regulating lobbying as a legal and legitimate practice according to the highest ethical standards is planned, ensuring transparency in the work of lobbyists and a positive impact on the quality of regulations and decisions adopted by the legislative and executive branches of government. In addition, the adoption of the first triannual Action Plan or the period 2022-2024 for the implementation of the Strategy for 2021-2030 is planned. The Action Plan will contain specific activities for effective corruption risk management within the framework of previously strategically defined specific objectives and measures in individual sectoral priority areas. With each planned activity, setting the competent authorities for implementation, clearly indicating the implementation deadlines, necessary financial resources and the indicators of the results of the implementation of the activities within each individual measure will be necessary.

How does the measure contribute to resolving the public issue? In addition to the continuous implementation and building up the existing anti-corruption measures, the new strategic framework aims to strengthen existing and create new systematic solutions for preventing corruptions at all levels, which needs to raise awareness of the harmful effects of corruption and make it socially unacceptable. Furthermore, the new strategic framework insists on a stronger affirmation of the role of citizens, civil society and the media as indispensable partners for public authorities in the uncompromising fight against corruption and in monitoring its effectiveness. Involving citizens, the media and civil society as "a view from outside" in detecting and monitoring the corruption risks of public policies helps public authorities in working more responsibly, transparently and to adequately influence the reduction of the possibility of corruption.

Why is this measure relevant to the values of the Open Government Partnership? The measure is relevant for the fight against corruption because it contributes to the recognition and prevention of corruption as a socially unacceptable phenomenon. The measure is also relevant because it allows for the continuous implementation and building up of existing anti-corruption mechanisms and the strengthening of existing and creating new systematic solutions to prevent corruption. It also raises awareness of the harmful effects and social unacceptability of corruption. Furthermore, this measure contributes to a stronger affirmation of the role of citizens, civil society and the media as indispensable partners for public authorities in the uncompromising fight against corruption and in monitoring its effectiveness.

Activities: Implementation start date: Implementation end date:

12.1. Adopting the Action Plan 2022- 2024 with the Anti-Corruption Strategy 2021-2030 Underway July 2022

12.2. Drafting the Lobbying Act Underway April 2023

Number and title of activities: 12.1. Adopting the Action Plan 2022-2024 with the Anti-Corruption Strategy 2021-2030 Implementation indicators: - Draft Action Plan 2022-2024 with the Anti-Corruption Strategy 2021-2030 produced - Public consultation for the Draft Action Plan 2022-2024 with the Anti-Corruption Strategy 2021-2030 conducted Action Plan 2022-2024 with the Anti-Corruption Strategy 2021-2030 adopted The baseline value of result indicators: After the period of validity of the current Anti-Corruption Strategy 2015-2020 (OG26/15) and the adoption of the Anti-Corruption Strategy 2021-2030, the adoption of the Action Plan 2022-2024 with the Anti-Corruption Strategy 2021-2030 is planned 66 Source of data and frequency of data collection: - Report on the conducted public consultation procedure – e-Consultation Portal - Official Gazette Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 109, Ministry of Justice and Public Administration, activity A629000 Administration and management, and they relate to resources for the ordinary activities of the Ministry. Implementation start date and implementation deadline: Underway – July 2022

Number and title of activities: 12.2. Production of the draft Lobbying Act Implementation indicators: Draft Lobbying Act produced The baseline value of result indicators: / Source of data and frequency of data collection: - Decision on the establishment of the working group - Report on the conducted public consultation procedure – e-Consultation Portal Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 109, Ministry of Justice and Public Administration, activity A629000 Administration and management, and they relate to resources for the ordinary activities of the Ministry. Implementation start date and implementation deadline: Underway – April 2023

Action Plan Review

Commitment 12. Improving Anti-Corruption Legislation

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Substantial

(Ministry of Justice and Public Administration)

For a complete description of the commitment, see Commitment 12 in Croatia’s action plan: https://www.opengovpartnership.org/documents/croatia-action-plan-2022-2024/.

Context and objectives:

Since joining OGP in 2011, Croatia has always included anti-corruption commitments in its OGP action plans—from drafting the new anti-corruption strategy and analysis of lobbying issues to specific commitments and milestones linked to whistleblower protection and building CSO capacity for anti-corruption activities.

This commitment foresees the adoption of an action plan to combat corruption over the next three years, implementing the new Anti-Corruption Strategy 2021–2030. [30] It also seeks to introduce new legislation to regulate lobbying—a previously unregulated area. Civil society representatives will participate in the mechanism for monitoring the implementation of the commitment, primarily through the work of the Council for the Prevention of Corruption. [31]

The action related to lobbying follows on from a comprehensive comparative analysis, [32] produced as part of Croatia’s 2014–2016 action plan, [33] which informed the decision on whether to amend the existing legislative framework or draft a new law dedicated specifically to lobbying. [34] As The Council of Europe Group of States against Corruption (GRECO) reports, there is a real need to address the issue due to a clear lack of transparency surrounding the interests and people influencing policies and government decisions. [35] The professional lobbying sector is relatively small in Croatia, but direct contacts between representatives of businesses and members of the government are commonplace. Prompted by this and other reports, as well as the results of the conducted analysis, [36] stakeholder opinions, [37] and IRM recommendations, [38] the Ministry of Justice and Public Administration decided to regulate lobbying as a legal and legitimate practice according to the highest ethical standards, ensuring transparency and a positive impact on the quality of regulations and decisions adopted by the legislative and executive branches of government. [39]

Potential for results: Substantial

The first milestone, a three-year action plan that operationalizes the new Anti-Corruption Strategy 2021–2030, was adopted immediately after Croatia’s OGP action plan was submitted. [40] This is the first such document envisaged in this strategic period up to 2030. [41] It is a comprehensive document, with almost 150 pages of measures and activities envisaged to implement the five specific goals set forth by the strategy: strengthening the institutional and normative anti-corruption framework, strengthening transparency and openness of public authorities, strengthening the system of integrity and conflict of interest management, strengthening anti-corruption policies in public procurement, and raising public awareness. [42] This is the first time an anti-corruption strategy with clearly defined indicators and milestones has been adopted within the strategic planning regulatory framework. [43] Considering the new strategic planning system with strict rules on monitoring, reporting, and evaluating progress, and the fact that there are two bodies that monitor implementation of the strategy and the action plan—one linked to the executive branch of government (Council for the Prevention of Corruption) and the other to the legislative branch (National Council for Monitoring the Implementation of the Anti-Corruption Strategy [44])—there is reasonable expectation that the envisaged activities will be carried out according to plan.

The second milestone of this commitment—drafting a lobbying act—has substantial potential for results. Regulating lobbying activities in Croatia has been a contentious issue for years, and CSOs have called for regulation of lobbying for many years. [45] Without clearly established and defined standards of behavior between lobbyists and government officials to regulate them, professional lobbying is labeled a dubious activity with potential for corruption. The regulation of lobbying in Croatia would for the first time establish lobbying activities as a transparent, legal, and legitimate profession (with the possibility of monitoring and supervision) in accordance with the highest ethical standards. [46] The Anti-Corruption Strategy also envisages the digitization of registration and deletion procedures; the possibility of public access to data from the future registry of lobbyists; and the potential to inform citizens about the drafted normative framework.

The law seeks to regulate the definitions of lobbying activities and who is considered a lobbyist, the principles of communication with a lobbyist, and details on the lobbyist register. This would mean that, for the first time, the public would be able to know who is lobbying, for what purpose, and to which public officials. Professional lobbyists would also be held to legal and ethical standards they are not currently beholden to.

The European Commission’s report on the rule of law in Croatia in 2019, [47] 2020, [48] and 2021 [49] stressed that lobbying is an area which needs to be regulated in line with the highest ethical standards, ensuring the achievement of standards of transparency in the work of lobbyists. The need to regulate lobbying activities was also highlighted by GRECO, as its recommendations in this area are still not implemented. [50] Much like the Anti-Corruption Strategy, the Government Program for 2020–2024 [51] also envisages the adoption of comprehensive regulation. In addition, the National Recovery and Resilience Plan 2021–2026 planned for digitization of registration/deletion procedures, public access to data in the (future) register of lobbyists, and informing citizens about the (future) regulatory framework. [52] The Ministry of Justice and Public Administration established a working group in June 2021 for that purpose. [53] It has met three times so far, with the latest meeting taking place on 11 October 2022. The drafting process is expected to last until the end of 2022, according to a ministry representative. [54] The OGP action plan sets the deadline for completion of the drafting process for April 2023, and the anti-corruption action plan foresees the act will be adopted by the end of 2023.

Opportunities, challenges, and recommendations during implementation

IRM reiterates the recommendations set forth by GRECO, in that (i) rules be introduced on how persons entrusted with top executive functions engage in contacts with lobbyists and other third parties who seek to influence governmental legislative and other activities; and (ii) sufficient information about the purpose of these contacts be disclosed, such as the identity of the person(s) with whom (or on whose behalf) the meeting(s) took place and the specific subject matter(s) of the discussion.

As previously stated, an interdisciplinary working group has been established to draft the act. However, relevant anti-corruption CSOs, Transparency International and Gong, are not included despite the ministry listing them as potential members when collecting data for the latest European Commission country report on rule of law. [55] Gong has since criticized the lack of relevant anti-corruption CSOs on this (and other) anti-corruption working groups as a way for the government to avoid politically problematic issues. [56] Civil society stakeholders confirmed to IRM that this form of openwashing [57] has been used repeatedly in the past several years in various legislation-drafting procedures to fake a critical civil society, especially in issues surrounding anti-corruption. [58]

Following recommendations from GRECO and obstacles identified during the research process for this Action Plan Review, IRM suggests that during implementation:

• The ministry include stakeholders with relevant experience and expertise in transparency and open governance in the drafting process of the lobbying act before the public consultation period. This would ensure that experts on the topic are present in discussions, which can help improve the quality of the draft (e.g., by putting forward the case for the public interest) and draw from international experience. Ireland has used two OGP action plans (2014–2016 [59] and 2021–2023 [60]) to set up a leading lobbying regulation system. The most recent plan has sought to make amendments to the current system, based on several years of experience in implementation. An especially noteworthy addition is a cooling-off period for public officials.
• Any regulation of lobbying activities considers explicitly including third parties seeking to influence government’s decision-making, beyond only professional lobbyists. The professional lobbying sector is relatively small in Croatia, and direct contacts between representatives of businesses and members of the government are commonplace. The definition of lobbying therefore needs to include “in-house” lobbyists, those that work inside a particular organization, defending the interests of that organization. The definition should also include senior staff within organizations (e.g., a CEO of a corporation) for whom lobbying is not necessarily part of their job description but who can gain access to government officials or influence public decisions. To ensure its effective implementation, the working group could also consider including sanctions for noncompliance in the draft, in line with other existing legislation. These sanctions could have a sliding scale, including the threat of criminal sanctions, (temporary) de-registration, and disciplinary proceedings (in the case of public officials).
• Aside from regulating lobbying activities, the ministry could also ensure transparency around the activities of persons in top executive and legislative functions through open agendas. Public officials should be required to maintain and publish records of their meetings, the participants, and the topics discussed therein. For example, ministries in the UK publish data on meetings, hospitality, gifts, and overseas travel for senior officials and ministers. Italy’s Anti-Corruption Authority, European Union commissioners, and members of their cabinet publish such meetings and details of topics covered on a weekly and rolling basis. [61]