PREVENTION OF CONFLICT OF INTEREST ACCORDING TO CZECH LAW presentation for INTERNATIONAL SEMINAR PROGRAMME OF THE SERVICES ASCERTAINING CONFLICT OF INTEREST

PREVENTION OF CONFLICT OFPREVENTION OF CONFLICT OF INTEREST INTEREST ACCORDING TO CZECH LAWACCORDING TO CZECH LAW

presentation for

INTERNATIONAL SEMINAR PROGRAMME OF THE SERVICES INTERNATIONAL SEMINAR PROGRAMME OF THE SERVICES ASCERTAINING CONFLICT OF INTERESTASCERTAINING CONFLICT OF INTEREST

OF THE DENUBEOF THE DENUBE REGION STATESREGION STATESSOFIA – 28-29.06.2012SOFIA – 28-29.06.2012

The Office of the Government of the Czech Republic

Section to Coordinate the Struggle

Against Corruption

www.vlada.cz

The Office of the Government The Office of the Government of the Czech Republicof the Czech Republic


Mgr. Milan Kryštof Čech, D.B.A.e-mail: [email protected]


Rules are Contained in

Act No 159/2006 Journal of LawsAct No 159/2006 Journal of Laws

Name of this act:

„Conflicts of interest and incompatibility of certain functions“

presentation is based on the version valid since 1.7.2012


This Act regulatesThis Act regulates

The obligations of public officials to perform their functions so as to avoid conflicts between their personal interests and the interests in its function

The obligation of public officials to report property or other benefits (gifts etc.) which received for the term of office, or financial obligations that the public is a functionary Incompatibility of certain activities of public officials with its functions

The liability of public officials for breach of duties stipulated by this Act, including sanctions


Which authority is competent to take report under this act from public officials

Methodology of keeping the registry notifications received from public officials Viewing conditions in the public register of notifications public officials

Penalties for violation of the law


To wTo whom this Act applieshom this Act applies??

1.1. on the public officialson the public officials2.2. at the registration authoritiesat the registration authorities3.3. on on the the person who have request about person who have request about

information which public officials notifiedinformation which public officials notified


Who is under this Act a public officialWho is under this Act a public official??

- Member of Parliament of the Czech Republic

- Senator Senate of the Czech Republic

- Member of the Government

- Head of another central state administration

- President and Inspector the Office for Personal Data Protection

- Chairman of the Office for Standards, Metrology and Testing


- Member of the the Czech Telecommunication Office

- Chairman of the Energy Regulatory Office

- Board member of the Czech National Bank

- President, vice president and member of the Supreme Audit Office

- Ombudsman and his deputy

- Member of the Council for Radio and Television Broadcasting


- Director of security force, member and head of the security forces 1st and 2nd management level - Member of the Board, a member of management, supervisory or supervisory body of a legal entity established by law, state budgetary organizations, contributory organizations of territorial self - Head of 2nd to 4th management level of a legal entity established by law, state budgetary organizations, contributory organizations governing unit - Head of government departments and head of office on 2nd to 4th management level


-Head official governing unit who is involved in the execution of administrative activities -Member of the Regional Council or a member of the Council of the City Prague

- Member of the municipal, district or city district territorially divided statutory cities and boroughs of the City Prague

- The mayor, deputy mayor and councilors of the village community and the region


For aFor all public officials ll public officials is ais absolutely bsolutely prohibitedprohibited

• use their position to gain advantage for themselves or for use their position to gain advantage for themselves or for othersothers

• refer to its function in his personal affairs and businessrefer to its function in his personal affairs and business

• give allowed in return for payment or other benefit use of his give allowed in return for payment or other benefit use of his name or image with connection of its function for advertisementname or image with connection of its function for advertisement


SSome activities are incompatible with holding a ome activities are incompatible with holding a public officepublic office. . For For mostmost important public officials important public officials is prohibitedis prohibited

• make businessmake business• engage in other gainful activityengage in other gainful activity• be a statutory body or member of an organ company which make be a statutory body or member of an organ company which make

businessbusiness• be employed by another subject than the one where hold public officebe employed by another subject than the one where hold public office

public officials relevant for this restriction are in the public officials relevant for this restriction are in the previous previous listlistss marked in redmarked in red

public officials marked in violet – similar prohibition for them under public officials marked in violet – similar prohibition for them under service actservice act


ThTheseese restriction shall not apply to the restriction shall not apply to the followingfollowing situations situations

• management of own management of own propertyproperty

• for scientific, literary, artistic, sporting activities , if is for scientific, literary, artistic, sporting activities , if is not a own business of public officialnot a own business of public official


WWith the function member of parliament and ith the function member of parliament and senator are incompatible functions in an senator are incompatible functions in an employment or service relationship, where is employment or service relationship, where is decided in the exercise of state administrationdecided in the exercise of state administration

• in the Ministry or other administrative office

• in the court or public prosecutor's office

• in the Army, Police, Supreme Audit Office, etc.


When there conflict of interest, When there conflict of interest, happen, happen, public public officialsofficials have strictlyhave strictly prohibitedprohibited

Prioritize personal interests above those that have to defend the title of his office


PPersonal interest in this contextersonal interest in this context isis

• obtaining personal benefitsobtaining personal benefits

• prevent the reduction of property or other prevent the reduction of property or other benefitbenefit


When a public official holds position in the management or control bodies of companies with ownership interest or voting rights for Czech Republic, does not belong to them a reward for it.


PPublic official not allowed have 1 year ublic official not allowed have 1 year after leaving office engagement in a after leaving office engagement in a company that in last 3 years before company that in last 3 years before made a made a „„bigbig““ contract with the State, contract with the State, local government etc. if public official local government etc. if public official decided about it.decided about it.


Types of notification of public officialsTypes of notification of public officials

1. notification of personal interests - be administered immediately

2. notification of business or other profitable activity and employment – be administered no later than July 30th next year

3. notification of property be administered no later than July 30th next year


Notification of conflict of interestNotification of conflict of interest

• If a conflict of interest occurs during the negotiations in which If a conflict of interest occurs during the negotiations in which the public official is involved is obliged to inform about conflict of the public official is involved is obliged to inform about conflict of interest no later than the start decision. interest no later than the start decision.


Notification of propertyNotification of property

The public official is obliged to announce that during the function acquired:

• property or other right to real estate (all)• ownership to things more expensive than 25 000 CZK if their total value

exceeded during the year amount of 500 000 CZK• shares when their value from one issuer exceeded 50 000 or 100 000

CZK in the case of multiple issuers• capital interest in a company if its value exceeds 50 000 or 100 000 CZK

in the case of capital interest in several companies

(25,70 CZK = 1 EUR)


NNotiotification fication of income, gifts and commitmentsof income, gifts and commitments

• with the exception of salary, income for the year that exceeded amount 100 000 CZK. Incomes below 10 000 CZK not include to this amount.

• outstanding financial obligations if their amount exceeds 31th December of the calendar year amount 100 000 CZK (borrowings,loans, contractual obligations in the lease with option to purchase, bill of exchange obligations)

public official is required to specify each item including persons counterparty


Registration authoritiesRegistration authoritiesThere is no single registry for all public officials

Registers are kept by:• Parliament• Senate• Ministries and other central authorities,• Czech National Bank,• regional authorities,• municipalities, cities, towns, villages


Role of Role of Ministry of JusticeMinistry of Justice in this system in this system

maintains a list of all registers, but the information about notified facts specific public official can only be obtained in the relevant register


Registers are public and everyone has Registers are public and everyone has the right to view them free of chargethe right to view them free of chargefor opportunity inspect in the registry, person must first register with register operator for identification the person who looks to the registry, and after that:

• may take copies and extracts

• notification can inspect personally or by remote access


The possibility of using data obtained from The possibility of using data obtained from the Registrythe Registry

All data can be further processed and used only to identify potential conflicts of interest in the performance of public officials


The possibility of publishing data obtained The possibility of publishing data obtained from registersfrom registers

Generally it is prohibitedIt is allowed published only the information contained in the register

relating to:• Member of Parliament of the Czech Republic

• Senator Senate of the Czech Republic

• Member of the Government

• Member of the Council for Radio and Television Broadcasting

• Member of the Regional Council or a member of the Council of the City Prague

• Member of the municipal, district or city district territorially divided statutory cities

and boroughs of the City Prague


Everyone has the right to notify the competent Everyone has the right to notify the competent registryregistry that that there is a suspicionthere is a suspicion on on

• falsity of the data

• incompleteness of the data


VViolations committed by public officialsiolations committed by public officials

• failed to give notice

• complied with the deadline for its submission

• stated inaccurate, false or incomplete information

• performed a function or activity which the law considers like incompatible with public office


VViolations committed by individualsiolations committed by individuals

• useusedd or further processe or further processes s information kept in the information kept in the registry for any purpose other than to identify potential registry for any purpose other than to identify potential conflicts of interestconflicts of interest

• discloses information where it is not alloweddiscloses information where it is not allowed

• notify the user name and password for remote access notify the user name and password for remote access to be use unauthorized personto be use unauthorized person


These These violations violations are dealt with by the are dealt with by the competent administrative authority competent administrative authority according to the according to the place place where it was where it was committedcommitted

maximum possible penalty isa fine of up to 50 000 CZK


Thank you for your attention

Documents

PREVENTION OF CONFLICT OF INTEREST ACCORDING TO CZECH LAW presentation for INTERNATIONAL SEMINAR PROGRAMME OF THE SERVICES ASCERTAINING CONFLICT OF INTEREST