I 106TH CONGRESS 2D SESSION H. R. 4697 To amend the Foreign Assistance Act of 1961 to ensure that United States assistance programs promote good governance by assisting other countries to combat corruption throughout society and to promote transparency and increased accountability for all levels of government and throughout the private sector. IN THE HOUSE OF REPRESENTATIVES Mr. GEJDENSON (for himself, Mr. LANTOS, Mr. BERMAN, Mr. SMITH of New Jersey, Mr. ACKERMAN, Mr. PAYNE, and Mr. ROTHMAN) introduced the following bill; which was referred to the Committee on International Relations A BILL To amend the Foreign Assistance Act of 1961 to ensure that United States assistance programs promote good governance by assisting other countries to combat corruption throughout society and to promote transparency and increased accountability for all levels of government and throughout the private sector. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4. This Act may be cited as the "International Anti-Cor 5 ruption and Good Governance Act of 2000". 68-024 D-01-5 2 1 SEC. 2. FINDINGS AND PURPOSE. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (a) FINDINGS.-The Congress finds the following: (1) Widespread corruption endangers the stability and security of societies, undermines democ racy, and jeopardizes the social, political, and economic development of a society. (2) Corruption facilitates criminal activities, such as money laundering, hinders economic development, inflates the costs of doing business, and undermines the legitimacy of the government and pub lic trust. (3) In January 1997 the United Nations General Assembly adopted a resolution urging member states to carefully consider the problems posed by the international aspects of corrupt practices and to study appropriate legislative and regulatory measures to ensure the transparency and integrity of financial systems. (4) The United States was the first country to criminalize international bribery through the enactment of the Foreign Corrupt Practices Act of 1977 and United States leadership was instrumental in the passage of the Organization for Economic Cooperation and Development (OECD) Convention on Combatting Bribery of Foreign Public Officials in International Business Transactions. 1 2 3 4 5 6 7 8 9 10 3 (5) The Vice President, at the Global Forum on Fighting Corruption in 1999, declared corruption to be a direct threat to the rule of law and the Sec retary of State declared corruption to be a matter of profound political and social consequence for our efforts to strengthen democratic governments. (6) The Secretary of State, at the Inter-American Development Bank's annual meeting in March 2000, declared that despite certain economic achievements, democracy is being threatened as citi 11 zens grow weary of the corruption and favoritism of their official institutions and that efforts must be 23 made to improve governance if respect for demo cratic institutions is to be regained. (7) In May 1996 the Organization of American States (OAS) adopted the Inter-American Convention Against Corruption requiring countries to provide various forms of international cooperation and assistance to facilitate the prevention, investigation, and prosecution of acts of corruption. (8) Independent media, committed to fighting corruption and trained in investigative journalism techniques, can both educate the public on the costs of corruption and act as a deterrent against corrupt officials. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 (9) Competent and independent judiciary, founded on a merit-based selection process and trained to enforce contracts and protect property rights, is critical for creating a predictable and con sistent environment for transparency in legal procedures. (10) Independent and accountable legislatures, responsive political parties, and transparent electoral processes, in conjunction with professional, accountable, and transparent financial management and procurement policies and procedures, are essential to the promotion of good governance and to the combat of corruption. (11) Transparent business frameworks, including modern commercial codes and intellectual property rights, are vital to enhancing economic growth and decreasing corruption at all levels of society. (12) The United States should attempt to improve accountability in foreign countries, including by (A) promoting transparency and accountability through support for independent media, promoting financial disclosure by public officials, political parties, and candidates for public office, open budgeting processes, adequate and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 5 effective internal control systems, suitable financial management systems, and financial and compliance reporting; (B) supporting the establishment of audit offices, inspectors general offices, and anti-corruption agencies; (C) promoting responsive, transparent, and accountable legislatures that ensure legislative oversight and whistle-blower protection; (D) promoting judicial reforms that criminalize corruption and promoting law enforcement that prosecutes corruption; (E) fostering business practices that promote transparent, ethical, and competitive behavior in the private sector through the development of an effective legal framework for commerce, including anti-bribery laws, commercial codes that incorporate international standards for business practices, and protection of intellectual property rights; and (F) promoting free and fair national, state, and local elections. (b) PURPOSE.-The purpose of this Act is to ensure 24 that United States assistance programs promote good gov 25 ernance by assisting other countries to combat corruption |