Financial Crime World

Public Prosecutor’s Office Plays Vital Role in Ensuring Political Accountability

Introduction

A recent series of cases, including that of a former Minister of Tourism who resigned due to inaccurate asset declarations by his spouse, has highlighted the importance of political accountability in ensuring the effectiveness of Croatia’s verification mechanism.

The Need for Strengthened Conflict of Interest Prevention System

The European Commission’s 2013 Monitoring Report stressed the need for immediate measures to establish a strong and effective conflict of interest prevention system. However, at present, the Conflict of Interest Commission relies heavily on other authorities, such as the tax administration, to carry out verifications.

Proposed Solutions

  • The Commission is working on setting up its own databases and integrated registers to facilitate swift verifications.
  • The national anti-corruption action plan aims to develop more user-friendly electronic forms for asset declarations, which would simplify registration and cross-checking.
  • Civil servants are regulated by other legislation, with breach of conflict of interest rules treated as any other breach of duty.

Challenges

  • Consistency in disciplinary procedures remains a challenge, with some authorities struggling to implement effective internal control mechanisms.
  • Awareness-raising efforts have been limited, with some arguing that a more proactive approach is needed, particularly at local level and in state-owned companies.

Judicial Conflicts of Interest

  • Judicial conflicts of interest are governed by statutory legislation, supervised by the Judicial Council and State Prosecutorial Council.
  • Recent amendments require judges’ and prosecutors’ asset declarations to be made public, with over 20 disciplinary sanctions applied for non-disclosure.

Public Administration Integrity

  • Croatia has implemented various safeguards, including codes of ethics for civil servants and hotlines to report corruption.
  • However, a recent Eurobarometer survey found that 89% of respondents believed bribery and connections were often the easiest way to obtain certain public services in Croatia.

Professionalism within Public Administration

  • The Commission’s reports have consistently emphasized the need to improve professionalism within public administration, address administrative capacity constraints, and complete a new legal basis for a professional civil service.
  • The draft legislation is currently being prepared at government level, with consultations ongoing with trade unions.

State-Owned Companies

  • Recent legislative amendments have raised concerns about direct political appointments to supervisory boards, despite the need for integrity checks.
  • The Public Prosecutor’s Office plays a vital role in ensuring that these appointments are made in accordance with the law and do not compromise public interests.