This country is placed in Band C

The Czech Republic’s GI ranking in Band C places it in the moderate risk category for corruption in the defence and security sector. The Czech Republic scored higher for Financial and Political Risk, which score in Band B (low risk of corruption). The highest risk areas are Operations and Procurement, which fell in Band D (high risk of corruption).

Political Will to Tackle Corruption

The Czech Republic has made some good progress in establishing an anti-corruption and oversight framework in the MoD. Significantly, the Government has adopted a National Anti-Corruption Strategy for a two-year period and the Inspectorate of the Minister of Defence is responsible for implementing the defence anti-corruption action plan. In practice, however, the quality of civilian oversight over the military is weak and there is very mixed evidence of enforcement or effective application of existing legislation.

The government has been proactive in drafting and implementing the action plan, and including civil society’s actively participation in the process. The action plan includes concrete task with set deadlines and was updated in 2014. Alongside this however, the government should take practical steps to improving its compliance with ratified international standards such as the OECD Convention and UNCAC.

Additionally, strategic documents such as the National Acquisition Strategy, National

Strategy of Armament and White Paper are not coherent and do not consistently guide political considerations and budget decisions. The government could take practical steps to align these, and to actively use them as the basis for political and budgetary decisions.

Appointments and Promotions

There have been allegations of appointments made in a non-transparent manner and indicating nepotism and political patronage. There is no evidence of the existence of formal independent selection and promotion procedures. We recommend that implementation of the recently enacted Act 221 on Professional Soldiers be prioritised and in order to address procedural shortcomings in the appointments and promotions systems be rectified to maintain the effectiveness of the armed forces. This should include an independent, transparent, and objective appointment system for the selection of military personnel at middle and top management level, including in intelligence posts. We recommend that personnel promotions are conducted through an objective, meritocratic process that could include promotion boards outside of the command chain, with strong formal appraisal processes, and independent oversight.

Defence Procurement

The independent Competition Office has identified at least one major case of collusion, which was successfully prosecuted, but it has been criticised for a lack of capacity. Research found no evidence to suggest that key aspects of financial packages (such as payment timelines, interest rates or export credit agreements) are published prior to the signing of the contract, nor that the government requires or encourages suppliers to adopt anti-corruption programmes. A high risk and one implicated in a number of procurement scandals, is the lack of controls and regulations around the use of agents and intermediaries in the procurement process, which, until recently, was compulsory. We recommend that agents and intermediaries are be strongly controlled and limited, with controls to ensure they are subject to scrutiny, the law is not circumvented and a clear policy on their usage. These controls should be public and well known to companies.

Training and Integrity-Building

Anti-corruption training sessions have been conducted for civilian and military staff, which is a welcome development and constitutes good practice, though these are not conducted regularly and only a small number of employees have taken part so far. Operations risks also scored low given the lack of a comprehensive and detailed military doctrine addressing corruption issues for peace and conflict. The Czech republic could benefit from more systematic and specific anti-corruption training that is conducted regularly for civilian and military personnel, in particular those on deployment or contracting in operational environments. This training could include a detailed understanding of what corruption issues personnel may face during deployment. We recommend the MoD consider publishing its guidelines and policies, as well as partnering with and providing training to other contributing nations to share best practices for this area and to ensure the integrity of its military operations.

Leadership 30
01.
score
3

Is there formal provision for effective and independent legislative scrutiny of defence policy?

The Czech Republic Parliament (Poslanecká sněmovna - House) has a Defence Committee. The Committee meets regularly (e.g. recently the Committee met on 12 November, 23 December 2014 and 21 January 2015 and e.g. in election period 2006 - 2010 the Committee had 43 meetings) and meetings are in principle open to the public. There are three subcommittees - for acquisition and arms trade; for strategy and security policy; and for veterans. Parliament has full powers over defence legislation and budget and on the deployment of the Czech army forces abroad (and foreign army forces on Czech territory). The Committee reports prove that defence legislation and budget are scrutinised, although it could not be confirmed from the reports that the committee regularly approves major defence procurements.

There are no indications that Parliamentary control over defence receives any undue pressure from the executive. There are few indications that the Defence Committee has taken an active role in discussing defence strategy in practice however.

COMMENTS -+

Constitution of the Czech Republic, Act Nr. 1/1993, Coll.., Ústava České republiky, § 43

Security strategy of the Czech Republic, 2011 (http://www.mocr.army.cz/images/Bilakniha/CSD/011.pdf)

Defence strategy of the Czech Republic, Praha 2012
(http://www.mocr.army.cz/images/id_40001_50000/46088/STRATEGIE_ce.pdf),

Parliament of the Czech Republic- Defence Committee Web page: http://www.psp.cz/sqw/hp.sqw?k=5000, reports from the Committee meetings, invitations to the meetings

SOURCES -+

Opinion: Agree with Comments

Comment: For public military procurement and contracts is most visible part, and here legislative oversight really plays minimal role and/or fails to step up to perform their powers and duties.

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: The question of effectiveness and independence is questionable. At least, is not clearly visible from the activities of the committee. Moreover, I would suggest it meets irregularly.

Suggested score:

Peer Reviewer-+

02.
score
2

Does the country have an identifiable and effective parliamentary defence and security committee (or similar such organisation) to exercise oversight?

The Czech Republic Parliament (Poslanecká sněmovna - House) has a Defence Committee. The Committee meets regularly, and its meetings are in principle open to the public. There are three subcommittees - for acquisition and arms trade; for strategy and security policy; and for veterans. Parliament has full powers over defence legislation and budget and on the deployment of Czech army forces abroad (and foreign army forces on Czech territory).

In practice, the Committee reports prove that defence legislation and budget are scrutinised. There is limited public visibility of the Committee's work however, and there are no indications that the Committee plays an active role in political discussions regarding the army and national defence.

COMMENTS -+

Constitution of the Czech Republic, Act Nr. 1/1993, Sb., Ústava České republiky, § 43,

Security strategy of the Czech Republic, 2011 (http://www.mocr.army.cz/images/Bilakniha/CSD/011.pdf)

Defence strategy of the Czech Republic, Praha 2012 (http://www.mocr.army.cz/images/id_40001_50000/46088/STRATEGIE_ce.pdf),

František Šulc:The White Paper and Preparing State Defence, In. Vojenské rozhledy, 2013, roč. 22 (54), č. 2, s. 3–14, ISSN 1210-3292, page 3-14

Parliament of the Czech Republic- Defence Committee Web page: http://www.psp.cz/sqw/hp.sqw?k=5000, reports from the Committee meetings

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: I would add here also the Security Committee which is in charge of public order, cyber and energy security and functions of all elements of central integrated emergency system.

Source: Security Committee http://www.psp.cz/sqw/hp.sqw?k=4909

Suggested score:

Peer Reviewer-+

03.
score
3

Is the country's national defence policy debated and publicly available?

Important documents such as the White Paper on Defence and Security Strategy (2011) were prepared in large consultations. For example, working groups on the White Paper on Defence (2011) with about 100 people, including participants from NGOs, and the Prime Minister's foreword to the Security Strategy acknowledges consultations with academics. There is an academic community active on strategic, security and defence issues.
Strategic documents are regularly updated - e.g. Security strategy 2011 and again in 2015, or Defence/Military Strategy 2008 and 2012.

All defence strategic documents are publicly available. Strategic documents, such as the &quoute;White Paper&quoute;, are scrutinised in Parliament. Further, the Parliamentary Defence Committee has a Sub-Committee for strategic issues. It is questionable, however, to what extent this scrutiny reflects a coherent defence policy of the political parties. More focused political discussions appear to be reactive to urgent military issues, such as the deployment of the US anti-missile radar in the Czech Republic or currently (in 2014) in relation to the Ukrainian crisis.

A 2004 report by A. Rašek criticises the lack of political interest in defence issues, the low quality of civilian control over the military and the limited validity of strategic documents.

Response to Government Reviewer: While this report is dated, its thesis still holds - there are strategic documents in place which are not used fully in guiding political considerations and budget decisions.

COMMENTS -+

Antonín Rašek a kol.: &quoute;Polistopadový vývoj armády a bezpečnostní politiky České republiky ve vztahu k Evropské unii&quoute;, (Studijní text), UK FSV CESES. Praha 2004. Pages 43 and 107.

Security Strategy of the Czech Republic, 2011 (http://www.mocr.army.cz/images/Bilakniha/CSD/011.pdf)

Defence strategy of the Czech Republic, Praha 2012 (http://www.mocr.army.cz/images/id_40001_50000/46088/STRATEGIE_ce.pdf),

White Paper on Defence 2011, http://www.army.cz/ministry-of-defence/newsroom/news/the-white-paper-on-defence-2011--63155/

Ministry of Defence web page: http://www.mocr.army.cz/informacni-servis/bilakniha/dokumenty/ceske-dokumenty/dokumenty-46088/

Centre for Security Policy Charles University (Středisko bezpečnostní politiky Centra pro sociální a ekonomické strategie University Karlovy) (http://sbp.fsv.cuni.cz/)

Parliament of the Czech Republic, Defence Committee web page: http://www.psp.cz/sqw/hp.sqw?k=5012&z=6468, accessed June 2014

SOURCES -+

Opinion: Agree with Comments

Comment: Defence policy is open to public and open to consultation, however security community is limited and discussions seem to be going inside this group. Public at large is distant to that issue and MoD could be doing more to attract and initiate stronger public debate.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: We recommend not to mention the source „Antonín Rašek“ (published 2004) because the information presented in this book does not reflect the current situation.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: It is hard to evaluate the quality of public debate on CzR national defence policy. Public debate as it is mirrored in media is dominantly sensationalist and perfunctory.

&quoute;Vojtěch Filip: The Ministry of Defence has been a black hole for money for you&quoute;, published by Prvnizpravy, 14 May 2014, www.prvnizpravy.cz/zpravy/politika/vojtech-filip-ministerstvo-obrany-bylo-za-vas-cerna-dira-na-penize/
&quoute;The debate about the Czech Army Armament: Shadow Minister for Defence CSSD wants to give L-159 and to extend the contract for Gripen&quoute;, published by IHNED.CZ, 30 March 2013, http://evropske-hodnoty.blog.ihned.cz/c1-59606220-debata-o-vyzbrojovani-ceske-armady-stinovy-ministr-obrany-za-cssd-chce-darovat-l-159-a-prodlouzit-smlouvu-o-gripenech

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

04.
score
3

Do defence and security institutions have a policy, or evidence, of openness towards civil society organisations (CSOs) when dealing with issues of corruption? If no, is there precedent for CSO involvement in general government anti-corruption initiatives?

There is a long-lasting cooperation between the Ministry of Defence and the Ministry of the Interior and Transparency International Czech Republic (TI CZ). TI has provided several training sessions for MOD personnel. e.g. on public procurement. The Director of TI was a member of the working group drafting the White Paper on Defence, and analytical material on integrity in defence was commissioned from TI in 2013. On the initiative of TI CZ, on 25 October 2013, the first International Integrity Day in Defence was organised in collaboration with the MOD, TI Czech Republic and TI-UK. There is also extended co-operation between the MOD and military-oriented NGOs expressed e.g. in financial subsidies (see Sources). There is a clear national legislation regulating (and protecting) NGOs. The cooperation of anti-corruption NGOs has no contractual base.

COMMENTS -+

Ministry of Defence web page, Lidé musejí sami chtít proti korupci bojovat, zaznělo na semináři, 25 Octover 2013, http://www.mocr.army.cz/informacni-servis/zpravodajstvi/lide-museji-sami-chtit-proti-korupci-bojovat--zaznelo-na-seminari-90625/

White Paper on Defence 2011, http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088


Act Nr. 248/1995 Coll., on Public Beneficiary Companies

Ministry of Defence and Czech Army web page, section of financial subsidies for NGOs : accessed March 2015, (http://www.mocr.army.cz/finance-a-zakazky/dotacni-politika/-dotacni-politika-ministerstva-obrany-cr-51011/)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The International Integrity Day in Defence took place on 22nd October 2013 and was organized under the patronage of the Minister of Defence.

There is also a successful cooperation between the Ministry of Defence and Oživení o.s. (NGO promoting the principles of good governance and transparency in public sector).

The MoD announced a call for NGOs for proposals within a grant programme „Fight against corruption“ for 2014. A new grant round for 2015 is open for applications now. Programme is intended to support a variety of activities focussing on corruption issues, sharing knowledges in this field and cooperation between civil and public sector.

There is also a team assembled within the MoD to run an aquisition process optimization. A TI CZ analyst has been also involved.

Additional sources:
Governmental Decision Nr. 92, 1st February 2013

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: I generally agree with the statements, however, anti-corruption initiatives in practice are less visible than other cooperation between MOD and NGOs.

Suggested score:

Peer Reviewer-+

05.
score
3

Has the country signed up to international anti-corruption instruments such as, but not exclusively or necessarily, UNCAC and the OECD Convention? (In your answer, please specify which.)

The OECD Convention was ratified and entered into force on March 2000. The UNCAC was signed in 2005 and ratified only in November 2013. The new Act on Criminal Liability of Legal persons was adopted as a prerequisite for the ratification. Country has National Anti-corruption Strategy, established an coordinational body at the Office of Government, there is a specialised anti-corruption police unit (UOKFK) There are no regular reports on implementation; only GRECO monitoring reports are published on Ministry of Justice's web page. There are shortcomings in compliance with some provisions of the conventions, as can be seen in the GRECO monitoring reports. There appears to be a generally low interest from public bodies in relation to international standards in the fight against corruption. Transparency International assesses there to be 'limited to no enforcement' of the OECD Anti-Bribery Convention as well. There is evidence of some steps taken forward towards compliance with the UNCAC.

COMMENTS -+

OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions: Ratification Status as of 21 May 2014, http://www.oecd.org/daf/anti-bribery/WGBRatificationStatus.pdf, accessed April 2014

Council of Europe Conventions and UNCAC: web page of Czech Anti-Corruption Bureau (http://www.korupce.cz/cz/zahranicni-spoluprace/greco/greco-104840/) and (http://www.korupce.cz/cz/zahranicni-spoluprace/ostatni/epac--uncac--iaca-105198/), accessed on May 2014

United Nations Convention against Corruption Signature and Ratification Status as of 5 September 2014, http://www.unodc.org/unodc/en/treaties/CAC/signatories.html, accessed on May 2014

Ministry of Justice web page, Vyhledané dokumentyhttp://portal.justice.cz/Justice2/Soud/soud.aspx?h=1&q=greco, accessed on May 2014

Act 418/2011 Col., on Criminal Liability of Legal Persons

Transparency International, Exporting Corruption, Czech Republic, http://www.transparency.org/exporting_corruption

United Nations Office on Drugs and Organised Crime, The Czech Republic National Information (UNODC/UNCAC) For the 6th International Meeting of the Working Group on Prevention to be held on 31 August – 2 September 2015, https://www.unodc.org/documents/treaties/UNCAC/WorkingGroups/workinggroup4/2015-August-31-to-September-2/Contributions_NV/Contribution_-_Czech_Republic.pdf

SOURCES -+

Opinion: Agree with Comments

Comment: Serious implementation and enforcement weakness is linked to OECD Convention. see TI reports on - www.transparency.org.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The current government intends to develop short - term National Anti - Corruption Action plans. The European Commission's recommendations will be taken into account and will be included in these plans. New legislation will also draw on the recommendations of the international organizations' active in the fight against corruption (e.g. GRECO).

There is also a newly formed Anti-Corruption Council – advisory body to the government composed public administration representatives, open also for NGO and civil society professionals.

Additional source:
Governmental Decision Nr. 418, of Statute and Rule of Procedure of the Anti – Corruption Council , 4th June 2014

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Country monitoring of the OECD Anti-Bribery Convention, CzR links:

Schedule for Phase 3 Evaluations, April 2014 http://www.oecd.org/daf/anti-bribery/anti-briberyconvention/RevisedPhase3Schedule_ENdoc.pdf

Compilation of recommendations made in the Phase 3 reports, December 2013 http://www.oecd.org/corruption/anti-bribery/CompilationofRecommendationsP3Reports_December2013.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

06.
score
2

Is there evidence of regular, active public debate on issues of defence? If yes, does the government participate in this debate?

There are a number of discussion events organised by academic institutions with participation from civil society. There are good examples such as the activities of the Centre for Security Policy of Charles University. Defence officials sometimes participate in such events. There are only a few indications that such discussions are initiated by defence officials or political representatives themselves. The exception was the preparation of the White Paper on Defence (2011), which involved a broader consultative process including academics and civil society. Defence issues are extremely rarely open for public debate by politicians and political parties. More public debates were open very recently in relation to Ukrainian crisis.

There appears to be a lack of public interest in defence which has been noted also by defence officials. The Chief of Staff General Pavel mentioned &quoute;The community interested in security and defence is smaller and smaller, there are less and less possible partners for discussion&quoute; (MoD news, 21 October 2013).

COMMENTS -+

E.g. Miroslav TŮMA, Josef JANOŠEC ,Josef PROCHÁZKA: &quoute;OBRANNÁ POLITIKA ČESKOSLOVENSKÉ A ČESKÉ REPUBLIKY (1989 – 2008)&quoute;, PRAHA 2009

Centre of Security Policy (Charles University) web site: http://sbp.fsv.cuni.cz/SBP-10.html, accessed April 2014

Ministry of Defence web site - follow up debate on White Book on Defence, 21 October 2013: http://www.mocr.army.cz/informacni-servis/zpravodajstvi/diskutujme-vic-o-armade--vyzyvaji-tvurci-bile-knihy-verejnost-90544/

&quoute;WE are in the war announced army experts to shocked Czechs&quoute;, in: TN.Cz web new server, 17.2. 2015, ( http://tn.nova.cz/clanek/armadni-experti-oznamili-sokovanemu-cesku-jsme-ve-valce.html), accessed March 2015

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: There is an impression that public debate on issues of defence is is limited to expert discussions.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

07.
score
3

Does the country have an openly stated and actively implemented anti-corruption policy for the defence sector?

There is a National Anti-Corruption Strategy adopted by the Government for a two year period. The strategy (Item 6.2 of 2013-2014 Strategy and later confirmed by Strategy 2015-2017) requires each central government office to prepare, adopt and implement special ministerial actions plans by 30 April 2014 and evaluate them yearly. The recent Strategy and Action plan was adopted on 15 December 2014. Implementation of the Strategies is discussed on the government level. At the same time the Government Council for Coordination of a fight against Corruption was established with participation of NGOs representatives. The Council is chaired by Minister for Legislation. There is also Inter-ministerial Committee for coordination fight against corruption on executive level with participation of representatives from all ministries including MoD.

At the MoD, the Inspectorate of the Minister of Defence is responsible for the Defence Anti-corruption Action Plan. The action plan exists and is being updated in 2014. There are indications that the responsible body (the Inspectorate) has been active in drafting and implementing the action plan. The Action plan (see source) includes concrete tasks with set deadlines. There is participation of civil society in the drafting and implementation of the plan. For year 2015 a grant scheme was opened at MoD to support NGOs in prevention of corruption in the defence sector. The study of good practices on prevention of corruption in the defence sector of selected countries was commissioned to NGO anti-corruption experts in 2014 and is to be published in 2015.

Response to Government Reviewer: Agreed. The information provided is correct. The new government disassociates itself from the National Anti-Corruption Strategy of the previous government. The new government's Anti-Corruption Plan was adopted after its first draft was finalised.

Response to Peer Reviewer 1: I agree the Inspectorate General webpage is insufficient and provides only limited information on corruption issues (sources added). Score changed to 3 as there is no specific anti-corruption policy for defence. Some of the limitations in policy and implementation are mentioned in Question 8.

COMMENTS -+

Government Council for Coordination of a fight against Corruption web page including all strategic documents: (http://www.korupce.cz/cz/protikorupcni-strategie-vlady/na-leta-2015-2017/strategie-vlady-v-boji-s-korupci-na-obdobi-let-2015-a-2017-119894/ )
MoD web page - fight against corruption: http://www.mocr.army.cz/ministr-a-ministerstvo/lide/inspekce/boj-s-korupci-v-resortu-ministerstva-obrany-94078/, accessed May 2014

&quoute;Resortní interní protikorupční program Ministerstva obrany&quoute; (&quoute;Internal Departmental anti-corruption action plan of MoD&quoute;), July 2014, downloadable at https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.mocr.army.cz%2Fscripts%2Ffile.php%3Fid%3D193981%26down%3Dyes&ei=1DEEVKatCsiUO5WwgNAC&usg=AFQjCNHYSyxdf9Pe9N8Tj_XK-DCbohI8GQ&sig2=AoiDOVLSVNAhAeAt_TL1LQ

Inspection of the Minister http://www.mocr.army.cz/scripts/detail.php?id=94078

Inspectorate General Chief of Staff http://www.acr.army.cz/struktura/generalni-stab/inspektorat-ngs-42915/

Director of supervision acquisitions http://www.mocr.army.cz/ministr-a-ministerstvo/lide-struktura/odbor-dohledu-94137

SOURCES -+

Opinion: Agree with Comments

Comment: True, it is specific and encompassing policy, however active implementation is much more complicated matter.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The current government distances itself from the National Anti-Corruption Strategy adopted by the previous government and is developing the draft of the National Anti – Corruption Action Plan. The new short – term action plan should be brief and clear.

The responsible body for the fight against corruption within defence is the Cabinet of Minister from the 1st July 2014.

Consulting company KPMG and Transparency International CZ participated in the drafting of the ministerial action plan. It was one of the activities within a project supported by the European Union.

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: There is lack of evidence surrounding effective implementation. Although there is Anti-Corruption Strategy, there is not possible to find reports/evaluations e.g. at the page of Inspection of the Minister http://www.mocr.army.cz/scripts/detail.php?id=94078, or at the page of of internal inspection of the General Staff
http://www.acr.army.cz/struktura/generalni-stab/inspektorat-ngs-42915/ , or at Department oversight of acquisitions http://www.mocr.army.cz/ministr-a-ministerstvo/lide-struktura/odbor-dohledu-94137.

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

08.
score
3

Are there independent, well-resourced, and effective institutions within defence and security tasked with building integrity and countering corruption?

The Inspectorate of the Ministry of Defence is authorised with and responsible for its anti-corruption policy. It is a body subordinate to the Minister but independent to the chain of command. They coordinate anti-corruption policy, run an anti-corruption e-mail (korupce@army.cz), provide training, and implement the Ministerial anti-corruption plan. The effectiveness of these activities is difficult to assess, but the control and audit activities seem to be working. Effectiveness may also be hampered by instant organizational changes. Further, the level of transparency of anti-corruption policies is low.
Response to Government Reviewer: Agreed. The Cabinet of Ministers has been in charge of anti-corruption policy from July 2014.

Response to Peer Reviewers: The Cabinet of Ministers, the Inspectorate General and the Internal Audit Institution are the institutions charged with controlling corruption. They are staffed and funded, for example, through the project from EU funds). There is some evidence of their effectiveness, for example a 2014 case where the selling of Žižka barracks was stopped (new source added). However, given the evidence provided by Peer Reviewer 1 (sources added) of political interference in the work of anti-corruption agencies, the score has been lowered from 4 to 3.

COMMENTS -+

&quoute;Optimisation of the anti-corruption system in the defence sector&quoute;, information of the special project funded from EU sources implemented in the MoD,30.3. 2015, MoD and Army web page: )http://www.mocr.army.cz/scripts/detail.php?id=100719)

Ministry of Defence web page on anti-corruption activities: http://www.mocr.army.cz/ministr-a-ministerstvo/lide/inspekce/boj-s-korupci-v-resortu-ministerstva-obrany-94078/ - accessed May 2014

&quoute;Resortní interní protikorupční program Ministerstva obrany&quoute; (&quoute;Internal Departmental anti-corruption action plan of MoD&quoute;), downloadeble at the web page above.

Ministry of Defence web page - instruction how to report corruption and e-mail address: http://www.mocr.army.cz/ministr-a-ministerstvo/lide/inspekce/boj-s-korupci-v-resortu-ministerstva-obrany-94078/, acceesed May 2014

Czech newspaper web site ( &quoute;České noviny.cz): Minister Stropnický stopped selling the Žižka barracks, posted 12.2. 2014, http://m.ceskenoviny.cz/archiv/zpravy/stropnicky-zastavil-prodej-zizkovych-kasaren-za-600-milionu-kc/1042489, accessed August 2014.

SMEsk, 'Nagyová dostala ročnú podmienku, spravodajcu Pohůnka už nestíhajú', 30 June 2014, http://www.sme.sk/c/7261669/nagyova-dostala-rocnu-podmienku-spravodajcu-pohunka-uz-nestihaju.html#ixzz3FloGtUNA

Transparency International, 'Exporting corruption: Progress report 2013: Assessing enforcement of the OECD Convention on combating bribery', http://www.transparency.org/whatwedo/pub/exporting_corruption_progress_report_2013_assessing_enforcement_of_the_oecd

SOURCES -+

Opinion: Agree with Comments

Comment: Recently MoD created special Anti-Corruption Team (body), directly subordinated to minister, how exactly it will fit into whole compliance scheme of the MoD is to determined.
Among other institutions, Military Police and its role should be stressed and on acquisitions reform plans prepared under vice-minister for acquisitions.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The responsible body for the anti - corruption policy is the Cabinet of Ministers (an anti - corruption team of three people) from the 1st July of 2014.

The Inspectorate of the Minister of Defence in cooperation with the Cabinet of Minister announced it is preparing a new system of anti - corruption training with the support of the European Union.

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: The efficiency of internal controlling bodies is questionable. First of all, overview reports are not available.

Secondly, we can see a row of old political corruption scandals around the MoD which show high political influence on decisions within this institution:

The cases studied by anti-corruption police in 2013 - 2014 were usually several years old: for example,
the case of Pandur , the case of estate in the center of Prague, in 2010 (http://zpravy.ihned.cz/cesko/c1-60897960-policie-vyslychala-ministerstvo-obrany-zbavit-se-areal-za-90-milionu-letohradek); the case of CASA aircraft purchases worth more than 3.5 billion, by the government of Mirek Topolanek in 2009; the case purchase of 107 Pandur for 14.4 billion crowns from the Austrian Steyr arms factory with the decision taken in spring 2009 by the government of Mirek Topolanek (http://www.tyden.cz/rubriky/domaci/politika/protikorupcni-policie-vyzvala-uredniky-obrany-k-podani-vysvetleni_283648.html#.U7cEVEBAfME).

There is a new case of a political scandal on the misuse of Military Intelligence by John Nagyová, the head of the Secretariat of the Czech ex-prime minister, now Nečasová (http://www.sme.sk/c/7261669/nagyova-dostala-rocnu-podmienku-spravodajcu-pohunka-uz-nestihaju.html).

The Transparency International, 'Exporting corruption: Progress report 2013: assessing enforcement of the OECD Convention on combating bribery' report provides examples of political interference with anti-corruption agencies and prosecutorial bodies in the Czech Republic.

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: There is existence of such institutions. Their effectiveness is hard to assess.

Interview with Source 1, Academic focusing on security studies, 3 September 2014.
Interview with Source 2, Academic focusing on security studies, 3 September 2014.

Suggested score: 3

Peer Reviewer-+

09.
score
2

Does the public trust the institutions of defence and security to tackle the issue of bribery and corruption in their establishments?

There are strikingly different public views on the army (military personnel) and the political leadership of the MoD. For example, the CVVM public opinion survey in 2014 indicates that the public perceive the defence sector as the third least corrupt sector from 13 sectors surveyed. In the TI Global Corruption Barometer of 2013, 47% of respondents felt that the military was corrupt/very corrupt which resulted in it being the 8th least corrupt institution (on the basis of public perception) from the 12 institutions surveyed. Political parties, public officials, parliament and police were found to be viewed as more corrupt.

COMMENTS -+

The Center for Public Opinion Research (CCVM), Opinion on the prevalence and degree of corruption
by public officials and institutions - March 2014, http://cvvm.soc.cas.cz/media/com_form2content/documents/c1/a7208/f3/po140402.pdf

TI Global Corruption Barometer 2013, Czech Republic, http://www.transparency.org/gcb2013/country/?country=czech_republic

Jana Havlingerová, &quoute;Police investigate corruption in army&quoute; (&quoute;Policie šetří korupci v armádě&quoute;), Without Corruption web page (run by civic association Oživení), posted 28.3. 2007,
http://www.bezkorupce.cz/blog/2007/03/28/policie-setri-korupci-v-armade/, accessed May 2014

&quoute;Parkáková is worried about corruption in army! (&quoute;Parkanovou trápí korupce v armádě&quoute;), in: Novinky.cz - news server on discussion of the Minister of Defence with Czech president on corruption, posted 27.2. 2007: http://www.novinky.cz/domaci/110421-parkanovou-trapi-korupce-v-armade.html, viewed: May 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

10.
score
3

Are there regular assessments by the defence ministry or another government agency of the areas of greatest corruption risk for ministry and armed forces personnel, and do they put in place measures for mitigating such risks?

Corruption risk assessment was previously the responsibility of the Department of Internal Audit but since 2014, it is a task carried out by the Inspectorate of the Ministry of Defence, the main body responsible for anti-corruption policy. The Internal Anti-Corruption Program 2014 included a task to undertake corruption risk assessment. This risk assessment is done regularly. There is some evidences of measures taken (e.g. changes in acquisition processes, or starting an anti-corruption project funded from EU).

Response to Government Reviewer: Yes, the Cabinet of Ministers is responsible for anti-corruption policy since 2014.

Response to Peer Reviewers: It is correct that there is limited evidence that appropriate measures have been put in place on the basis of risk assessments. The correct score should be between 2 and 3. Given the practice of undertaking risk assessments is institutionalised and regular, the score has been lowered from 4 to 3 (not 2 as suggested).

COMMENTS -+

MoD web page - fight against corruption: http://www.mocr.army.cz/ministr-a-ministerstvo/lide/inspekce/boj-s-korupci-v-resortu-ministerstva-obrany-94078/, accessed May 2014

List of documentes related to the projects within MoD Inspectorate focused on improvement of control functions including fight asgainst corruption, found MoD Inspectorate web page, (http://www.unob.cz/events/esf-imo/knihovnaimo/Forms/AllItems.aspx), assesd March 2015

&quoute;Internal Departmental Anti-Corruption Action Plan of MoD&quoute;, (Resortní interní protikorupční program Ministerstva obrany&quoute;), downloadable at the web page above.

&quoute;Optimalization of the fight against corruption in defence sector&quoute;, on MoD web page on EU funded anti-corruption project: (http://www.mocr.army.cz/scripts/detail.php?id=100719)

9 Decemebr - The International anti-corruption Day, in MoD wb page, http://www.mocr.army.cz/informacni-servis/zpravodajstvi/9--prosinec---mezinarodni-den-boje-proti-korupci-77847/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The main body responsible for anti – corruption policy is the Cabinet of Ministers from the 1st July 2014.

The White Paper on Defence does mention the risk management and assumes the existence of mapping of risks (including corruption risks).

The results of Transparency International's Government Defence Anti – Corruption Index published 2013 also helped us to identify significant corruption risks and to mitigate them.

The Internal Departmental Anti – Corruption Action Plan requires lists of corruption risks.

Additional sources:
White Paper on Defence, 2011
Government Defence Anti – Corruption Index 2013

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Although risks have been identified, e.g. in the Departmental Internal Anti-Corruption program of the Ministry of Defence http://www.mocr.army.cz/scripts/file.php?id=183324&down=yes, there is no evidence that appropriate measures have been put in place in many cases.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: I consider the measures to mitigate such risks rather weak. However, I assess positively the following site: http://www.inspekce.army.cz/Korupce.html

Suggested score: 2

Peer Reviewer-+

11.
score
2

Does the country have a process for acquisition planning that involves clear oversight, and is it publicly available?

There is an acquisition planning process - the National Acquisition Strategy and White Book of Defence. Major procurements are stated in strategic documents and frequently discussed in the media. Oversight bodies as management control, Inspectorate of Minister of Defence and Ministry of Defence Audit body are in place. However, a number of media cases and police investigations show clear deficiencies. As an example the case can be mentioned where purchases did not reflect original planning for the purchases of sniper rifles in 2013. Older example are Pandur armoured vehicles where dramatic changes in number of purchased vehicles were never sufficiently explained. Also there were discussions whether the purchased versions fit the needs of Czech army (both cases sourced). All strategic planning documents are publicly available on the internet. Information relating to public procurement (calls and contract) are also publicly available. As mentioned in Questions 22 and 60, asset disposals and purchases are transparent. It is unclear whether acquisition is always carried out according to this process or on an ad hoc basis. Score 2 seems to be correct.

Response to Government Reviewer: Agree

COMMENTS -+

Ministry of Defence and Czech Army website on strategic documents (http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088)

Ministry of Defence website, Finance and Procurement, http://www.mocr.army.cz/finance-a-zakazky/finance-a-zakazky-5145/

&quoute;National Strategy for Acquisition&quoute; (Národní strategie vyzbrojování), 2004: http://www.mocr.army.cz/images/Bilakniha/CSD/006.pdf, viewed May 2014

Jan Grohmann, Michal Voska, &quoute;Purchase of Sniper Rifles under the Scrutiny of Army Newspaper&quoute; (&quoute;Nákup pušek pro přesnou střelbu pod lupou Armádních novin), posted 28.8. 2013, In: Armádní noviny.cz web site, article on procurement of rifles: http://www.armadninoviny.cz/nakup-pusek-pro-presnou-strelbu-pod-lupou-armadnich-novin.html, accessed May 2014

&quoute;Military defends the number of purchased Pandurs. 20 items were never mentioned.&quoute;, , in: iDNE.cz web new server, posted 14.2. 2010, (http://zpravy.idnes.cz/vojaci-haji-pocet-koupenych-panduru-o-dvaceti-nikdo-nemluvil-tvrdi-1fi-/domaci.aspx?c=A100224_194631_domaci_jw), accessed March 2015

&quoute;Pandur. The history of one tender&quoute;, in: armadninoviny.cz web page, posted 11.10. 2012, (http://www.armadninoviny.cz/pandur-historie-jednoho-tendru.html), accessed March 2015

SOURCES -+

Opinion: Agree with Comments

Comment: There are recent plans within MoD to reform Acquisition Strategy, provide much more accurate and complex information on acquisitions to public and bidders through web-site and to define clearly project managers responsible for individual tenders. At the moment it is just plan and impact is to be seen.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is a new team assembled within the MoD to run an acquisitions process optimization. A TI CZ analyst was also involved.

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

12.
score
3

Is the defence budget transparent, showing key items of expenditure? This would include comprehensive information on military R&D, training, construction, personnel expenditures, acquisitions, disposal of assets, and maintenance.

The transparency of the defence budget is fully comparable with the budget of other ministries/sectors. There are very detailed reports on the budget and the final accounts of the previous year are presented on the MoD webpage. It discloses comprehensive information on items such as military R&D, training, construction, personnel expenditures, acquisitions, disposal of assets, and maintenance. Details of the current budget are presented in accounting format at the Treasury website, although it is difficult to get more information on the aforementioned items of expenditures.

RESPONSE TO PEER REVIEWER 2: Links added to Treasury as well as to Budget Act. The problem here is that although the budget is disclosed in detail, it is constructed using accounting standards which do not reflect fully to a functional structure. Text adjusted. Score maintained.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic (Ministerstvo obrany a armáda ČR), web page, part on budget: http://www.mocr.army.cz/scripts/detail.php?id=5146, accessed May 2014.

State budget , chapter 307 - Ministry of Defence, ( Státní rozpočet České republiky na rok 2012 -kapitola 307 – Ministerstvo obrany), presentation, http://www.mocr.army.cz/scripts/detail.php?id=5146, accessed May 2014.

The Act 345/2014, on State Budget 2015 (see http://www.zakonyprolidi.cz/cs/2014-345), accessed March 2015

Ministry of Finances, section on the Ste budget (see http://www.mfcr.cz/cs/legislativa/legislativni-dokumenty/2015/zakon-c-3452014-sb-20139), accessed March 2015

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Department of Defence Infographics, showing approved budget and expenditures for the years 2010-2014 - http://monitor.statnipokladna.cz/2012/statni-rozpocet/kapitola/307

&quoute;How much money gives Czech in his defence?&quoute;, March 24, 2013. Invitation to public discussion on defence expenditures. http://www.evropskehodnoty.cz/kolik-penez-dava-cesko-na-svou-obranu/

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: The information includes key terms, however, they are not &quoute;very detailed&quoute;. Key terms for 2013 are missing.


Sources:
http://www.mocr.army.cz/scripts/detail.php?id=5146, Státní rozpočet České republiky na rok 2012 -kapitola 307 – Ministerstvo obrany, presentation, available on web page - see above, accessed May 2014.

Suggested score: 2

Peer Reviewer-+

12A.
score
2

Is there a legislative committee (or other appropriate body) responsible for defence budget scrutiny and analysis in an effective way, and is this body provided with detailed, extensive, and timely information on the defence budget?

There is a Parliamentary Defence Committee. The Committee discusses the defence budget and Defence State Final Account. There is no indication that this scrutiny plays a key role when revising the defence budget. The proceedings of the committee are not publicly available on the internet.

RESPONSE TO REVIEWERS: Agree with comments. Score changed from 4 to 2 and discussion updated.

COMMENTS -+

Parliament Defence Committee website: Poslanecká sněmovna Parlamentu České republiky web page: http://www.psp.cz/sqw/text/text2.sqw?idd=174316

SOURCES -+

Opinion: Disagree

Comment: I would go for score 2, that better reflects reality. The effectiveness of legislative committee is very low and seems inconsistent in practice.

Suggested score: 2

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: There is also no public information on whether this committee is provided with detailed, extensive, and timely information on the defence budget.

Sources
http://www.psp.cz/sqw/text/text2.sqw?idd=174316

Suggested score: 2

Peer Reviewer-+

12B.
score
4

Is the approved defence budget made publicly available? In practice, can citizens, civil society, and the media obtain detailed information on the defence budget?

The national budget, including the defence budget, is a widely available document. Detailed information about past defence budgets is available on the MoD web page. Information can be also obtained through the Freedom of Information Act by any citizen or NGO.

COMMENTS -+

Ministerstvo obrany a Armáda ČR web page, part of defence budget and procurment: http://www.mocr.army.cz/scripts/detail.php?id=5146.

Act Nr.106/1999 Sb., o svobodném přístupu k informacím (Freedom of Infortmation Act)

Ministry of Finances, state budget information, web page: http://www.mfcr.cz/cs/legislativa/legislativni-dokumenty/2013/zakon-c-4752013-sb-16365

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: In publicly available documents, only basic information (as stated in the document &quoute;Zakladni udaje o statnim rozpoctu kapitoly MO&quoute;) and other numbers according to the &quoute;UN methodics&quoute; is available.

Suggested score: 3

Peer Reviewer-+

13.
score
4

Are sources of defence income other than from central government allocation (from equipment sales or property disposal, for example) published and scrutinised?

Ministry of Defence and Czech Army has an important source of income from seliing property which are currently not usable for the army. In 2011 the income from real estate sale was 364 mil. CZK (approx 14,5 mil. USD, for the year 2012 the estimation was 426 mil. CZK (approx 17 mil. USD). Special MoD agency is responsible for the sale. Items sold are presented on their web page (see source).The received income goes into the MoD budget.
The annual report of budget spending includes a paragraph in each section on the proportion of expenditure financed from own income generated by selling unnecessary property. This information indicates where the money goes to. The whole process is under scrutiny of the Audit Department of the MoD and Inspectorate of the Minister of Defence.
Police operation in 2015 which ended with a criminal charge to four persons for suspicious sell of used tanks engines shows that institutional scrutiny over the above mentioned agency works.

COMMENTS -+

Ministerstvo obrany a Armáda ČR (Defence budget webpage) -http://www.mocr.army.cz/finance-a-zakazky/finance-a-zakazky-5145/

&quoute;Army real estate valuing 205 Mil. Czech Crowns are for sale&quoute;, June 2006, in: Ministry of Defence and Czech Army web page: http://www.mocr.army.cz/informacni-servis/zpravodajstvi/na-prodej-jsou-armadni-nemovitosti-za-205-milionu-korun-71566/

Agentura pro nakládání s nepotřebným majetkem web page (Agency for selling unnecessary equipment /property - http://www.onnm.army.cz/, Accessed May 2014

&quoute;Strange Deal with Tanks Engines. Police charged 4 persons&quoute; , in: Aktualně.cz (http://zpravy.aktualne.cz/domaci/policie-zasahuje-na-ministerstvu-obrany-obvinila-ctyri-lidi/r~072fe45ec1a211e4b98c002590604f2e/)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: This information was not sufficiently detailed for the year 2014.

Suggested score: 3

Peer Reviewer-+

14.
score
2

Is there an effective internal audit process for defence ministry expenditure (that is, for example, transparent, conducted by appropriately skilled individuals, and subject to parliamentary oversight)?

The role of the internal audit is defined in the Act Nr. 320/2001 Coll., on financial audit in the public sector and the Regulation of the Minister of Finance Nr. 416/2004 Coll. regarding the performance of financial audits. Furthermore, there is an Internal Act approved by the Minister (Nr. 8/2006) which defines the position of internal audit within the ministry. Internal audit findings are reported to the management of the MoD and to the minister who is a member of the government. Internal audit unit can be also scrutinized by the Ministry of Finance or Supreme Audit Office (SAO). The report of SAO is submitted to the Parliament.
The audit findings are not public. Internal audit findings of different state bodies are generally not discussed in Parliament. SAO audits are scrutinised at the Control Committee of the Parliament but according to the interviewee not in the Defence Committee.

COMMENTS -+

White Paper on Defence 2011, part 9 on Control system: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Interview with Interviewee 1: Senior audit official, Prague, April 2014.

Ministerial order : NO č. 8/2006

SOURCES -+

Opinion: Agree with Comments

Comment: There are legislative plans to completely redefine role of internal audits in public sector. If implemented, it could dramatically change audit proces in the MoD.

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The role of the internal audit is defined in the Act Nr. 320/2001 Coll., on financial audit in the public sector and the Regulation of the Minister of Finance Nr. 416/2004 Coll. regarding the performance of financial audits. Furthermore, there is an Internal Act approved by the Minister (Nr. 8/2006) which defines the position of internal audit within the ministry. Internal audit findings are reported to the management of the MoD and to the minister who is a member of the government. Internal audit unit can be also scrutinized by the Ministry of Finance or Supreme Audit Office (SAO). The annual report of SAO is submitted to the Parliament.

Additional Sources:
Act Nr. 320/2001 Coll, on financial audit in public sector
Regulation of Minister of Finance Nr. 416/2004 Coll.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Ministry of Finance of CzR, Report on the results of financial audits in the public sector for the year 2012: &quoute;Implementation of internal audit at the Ministry of Defence revealed that the effectiveness of the internal control system is partially reduced by the absence of a comprehensive risk management system. Resort has not yet a unified risk management system in accordance with Act No. 320/2001 Coll., on financial control. This fact is also reflected in the partial findings of several internal audits, where potential risks are not comprehensively defined and managed.&quoute;
The project on internal controls within the MoD was carried out by private consulting company BNV Consulting Ing. (contract signed in 2012, results presented in 2013-2014 on website http://www.unob.cz/events/esf-imo/knihovnaimo/Forms/AllItems.aspx ). It does not provide sufficient information for assumptions on reform of the internal controls system.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Not Qualified

Comment:

Suggested score:

Peer Reviewer-+

15.
score
3

Is there effective and transparent external auditing of military defence expenditure?

The Ministry of Defence is subjected to external audit from the Supreme Audit Office (SAO) and private auditors (e.g. KPMG). SAO findings are scrutinised both by the government and the Control Committee of Parliament. External audits commissioned by the Ministry (e.g. KPMG) are not publicised. The audit of SAO is fully independent (SAO is managed by Collegium elected by the Parliament for life, which is fully independent to decide on SAO matters) and transparently published on SAO web page (examples see sources). SAO audits are done on their own decision and they are not regular. Each SAO audit finding end with a governmental decision on corrective measures.

COMMENTS -+

Act 166/1993 Col., on Supreme Auditing Office

Supreme Audit Office Media Release: &quoute;Ministries purchase 62% of IT related procurement without proper tender&quoute; (Ministerstva zadávají 62 % zakázek na informační a komunikační technologie bez soutěže), Control 13/09, 16.12. 2013, in: http://nku.cz/cz/media/ministerstva-zadavaji-62--zakazek-na-informacni-a-komunikacni-technologie-bez-souteze-id6756/

Supreme Auditing Office, &quoute;Insufficient strategy of MoD enabled purchasing of military equipment without properly justified need&quoute; (Nedostatečná koncepce Ministerstva obrany umožňovala nákup vojenské techniky bez náležitě zdůvodněné potřeby), posted 18.11. 2013, In: Supreme Audit Office findings on the web - Control 12/13: (http://www.nku.cz/cz/media/nedostatecna-koncepce-ministerstva-obrany-umoznovala-nakup-vojenske-techniky-bez-nalezite-zduvodnene-potreby-id6729/).

Letters from Ministry of Defence to Transparency International CZ of 12 December 2012 and following.
(http://www.transparency.cz/co-odhali-audit-ministerstva-obrany/)

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is an external audit commissioned by the Ministry (KPMG) currently publicised on the TI CZ web page. The audit findings are examined by the state police.

Additional source:
www.transparency.cz

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

16.
score
3

Is there evidence that the country's defence institutions have controlling or financial interests in businesses associated with the country's natural resource exploitation and, if so, are these interests publicly stated and subject to scrutiny?

In accordance with the Czech legal system, the Ministry of Industry and Trade is responsible for country natural resources (see § 13, Act 2/1969 Col.,on jurisdiction of state administration bodies). According to this Act, the MoD is not associated with the country's natural resources. MoD is (§ 16) responsible for military ranges. The state owned company &quoute;Military forests and Farms&quoute; which is under jurisdiction of MoD is responsible for forestry (and to some extend farming) on the military ranges. The jurisdiction is preformed in accordance with Act 77/1997 Col., on state owned companies. According §§ 15 and 16 Control Board of the Company (appointed by MoD) can decide on profits only with prior consent of the Government and the profit become the part of the national budget. Information on the &quoute;Military forests and Farms&quoute; can be found on its website and in its Annual reports. The company is also obliged to be audited.

COMMENTS -+

Act 2/1969, Col.., on jurisdiction of state administration bodies, especially §§ 16-19

Act 77/1997 Col., on state owned companies

Military Forests and Farms State Owned Company web page: (Vojenské lesy a statky ČR, s.p. )(http://www.vls.cz/, Accessed May 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: Generally agree with the statement, however, military forests are exploited to some limited extent.

Sources
Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score: 3

Peer Reviewer-+

17.
score
2

Is there evidence, for example through media investigations or prosecution reports, of a penetration of organised crime into the defence and security sector? If no, is there evidence that the government is alert and prepared for this risk?

There are examples of organised corruption in the Army and Defence sector which can be described as organised crime. There is evidence both of vigorous and effective prosecution of such cases by national police (source 1) but also of reprisal in investigations started (source 2). The investigation unit of the Military Police working on this case was later dissolved (source 2). It can be concluded that there is a national capacity to tackle organised crime within the defence by national anti-organised police units.
Recent annual reports of neither Security Intelligence Service nor Military Intelligence Service mention organised crime risks in the defence.

COMMENTS -+

(1) &quoute;Corruption in army has 50 convicts&quoute; (Korupce v armádě má pět desítek obžalovaných), posted 17.3. 2011, in: Deník refrendum web server: http://denikreferendum.cz/clanek/9585-korupce-v-armade-ma-pet-desitek-obzalovanych, accessed May 2014
&quoute;Corruption in army in context&quoute; (Korupce v armádě v souvislostech), in: Aktuálně web server, http://zpravy.aktualne.cz/korupce-v-armade-v-souvislostech/r~i:article:107295/, Accesed April 2014

&quoute;Army Chief dismissed convicted general from his position&quoute;, in: Novinky.cz, 6.3. 2015, (http://www.novinky.cz/domaci/363533-sef-armady-navrhl-odvolat-obvineneho-generala-z-velitelske-funkce.html)

(2) &quoute;They revealed corruption in army. Now they have to quit&quoute; (Odkryli korupci, teď končí), posted 19.8. 2009, http://www.problemyvarmade.cz/odkryli-korupci-ted-konci, accessed April 2014

Military Intelligence web page and its annual reports: (http://www.vzcr.cz/cs/aktuality/article/vyrocni-zprava-o-cinnosti-vojenskeho-zpravodajstvi-2013), accessed March 2015

Security Intelligence Service (BIS) Annual Report from 2013 (http://www.bis.cz/n/2014-10-27-vyrocni-zprava-2013.html), accessed March 2013

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The court aquitted the former Minister of Defence Barták and arms dealer Smrž in May 2014. The judgement has not been considered final.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Another example to support the analysis: the case of the company Staeg contracts
http://www.rozhlas.cz/zpravy/politika/_zprava/namestek-ministra-obrany-hrbata-ve-funkci-konci-picek-ho-odvolal--1203679
http://euro.e15.cz/archiv/uklizecky-s-premrstenou-pokutou-948906
http://www.parlamentnilisty.cz/zpravy/kauzy/Jak-se-pakovali-odeesaci-na-obrane-Jde-o-stamiliony-298792
http://ispigl.eu/denik/?q=node/6288

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

18.
score
3

Is there policing to investigate corruption and organised crime within the defence services and is there evidence of the effectiveness of this policing?

There is a military police with an investigation department. There is no evidence that the military police is vigorous and effective in its investigation of corruption and organised crime. Moreover, a special unit of the military police which used to investigate corruption and had a very good record of success was dismantled on 1 October 2010.

The Organized Crime Detection Unit (ÚOOZ) and Anti-corruption Unit (ÚOKFK) of the national police has jurisdiction over the MoD and the Army. As mentioned in Questions 17, 35 and 50, there is evidence of effective prosecutions in corruption cases and organised crime. Recently (since 2010) they investigated a case related to alleged corruption in the Pandur armored personnel carriers, large corruption at the property maintanace, CASA transport airplanes and others. The police criminal investigation is supervised by prosecutors office. The corruption in property maintanence (see Corruption in Army with 50 criminal charges&quoute;) included charges on &quoute;criminal conspiracy&quoute; (that is organised crime).

Response to Government Reviewer: Your statement cannot be verified by open sources.

COMMENTS -+

&quoute;They revaled a corruption in army, now they had to quit&quoute;, Problems in army web page, August 19, 2009: http://www.problemyvarmade.cz/odkryli-korupci-ted-konci, accessed April 2014

&quoute;Military police dissolves a department, which investigated corruption in army&quoute; (Vojenská policie rozpouští odbor, který rozkryl korupci v armádě), posted 19.8. 2009, in: iDNES.cz, http://zpravy.idnes.cz/vojenska-policie-rozpousti-odbor-ktery-rozkryl-korupci-v-armade
pyo-/domaci.aspx?c=A090819_072754_domaci_pje

&quoute;Dalík asked according to Steyr representative for bribes over Pandurs&quoute; (Dalík si podle zástupce Steyr řekl o úplatek za pandury), posted 18.8. 2013, in: Novinky.cz, http://www.novinky.cz/domaci/310881-dalik-si-podle-zastupce-steyr-rekl-o-uplatek-za-pandury.html


&quoute;Corruption in Army with 50 criminal charges&quoute;, 17.3. 2011, in? Deník Referendum web news server, in: http://denikreferendum.cz/clanek/9585-korupce-v-armade-ma-pet-desitek-obzalovanych
White Paper on Defence 2011:http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The Inspectorate of Minister of Defence cooperates closely with the Anti – Corruption State Police Unit and the Supreme State Prosecutor’s Office.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: The Gripens is one example where investigations had no clear ending.

The Czech anti-corruption police after more than three years again postponed the case of alleged corruption in ensuring Gripen fighters for military aviation. In this case no one will be charged.

'Za údajnú korupciu v kauze stíhačiek Gripen pred súd nikoho nepostavia', published by 24 Hours at a Glance, 9th October 2013, http://www.24hod.sk/za-udajnu-korupciu-v-kauze-stihaciek-gripen-pred-sud-nikoho-nepostavia-cl249515.html

&quoute;Alleged corruption in Gripen&quoute;, published 9 October 2013, m.teraz.sk/zahranicie/cesko-gripen-korupcia-odrocenie/60741-clanok.html

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

19.
score
3

Are the policies, administration, and budgets of the intelligence services subject to effective, properly resourced, and independent oversight?

There is provision for effective, properly resourced and independent parliamentary oversight of the intelligence services’ policies, administration, and budgets. Legislation provides for parliamentary control of Military Intelligence through the Permanent Commission of the Czech Parliament for Control of Military Intelligence (Act 289/2005, §§ 21 to 24). The similar Commission exists for the control of civilian intelligence agency BIS (Act 154/1994, §§ 18 to 21).

In practice there is limited evidence of oversight performance however, and there are media and public debates which question the effectiveness of such control. A recent criminal case where the Head of Military Intelligence is being investigated for allegedly breaching his powers suggests that the critical voices may be correct.

COMMENTS -+

§ 12 a 13 Act Nr. 153/1994 Col. on Intelligence Services

Act 154/1994 Col., on Security Intelligence Service , §§ 18 - 21

§ 21 to 24, Act Nr. 289/2005 Col. on Military Intelligence

Vyšetřování kauzy zneužití Vojenského zpravodajství policie ukončila, in Novinky.cz web news server, December 5, 2013, http://www.novinky.cz/krimi/321182-vysetrovani-kauzy-zneuziti-vojenskeho-zpravodajstvi-policie-ukoncila.html

Komise: Zneužití Vojenského zpravodajství je selháním jednotlivců, in: České noviny, 18.6. 2013, http://www.ceskenoviny.cz/zpravy/komise-zneuziti-vojenskeho-zpravodajstvi-je-selhanim-jednotlivcu/952632

Military Intelligence web page (www.vzcr.cz)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: Annual reports on activities of the Military Intelligence are publicised on the web page www.vzcr.cz.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: On the case of misuse of Military Intelligence:

According to media reports, the state prosecution said in a statement that Jana Necasova, (formerly Nagyova), plus two former heads of the military intelligence agency and an intelligence agent will face charges of misuse of power. The article states that Necas' government collapsed a year ago in a due to allegations of corruption and marital infidelity. The prosecution allege that Nagyova — then Necas' chief of staff — ordered a military intelligence agency to spy on Necas' estranged wife.

&quoute;Mistress _ now wife _ of ex-Czech PM to face trial&quoute;, published June 6, 2014 by AP, https://news.yahoo.com/mistress-now-wife-ex-czech-pm-face-trial-125309199.html

&quoute;Former head of the Cabinet of Prime Minister Jan Nagyová now Nečasová in a case of abuse of military intelligence&quoute;, published by Pravda 30 June 2014, http://spravy.pravda.sk/svet/clanok/322522-manzelka-ceskeho-expremiera-jana-necasova-dostala-rocnu-podmienku/

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

20.
score
2

Are senior positions within the intelligence services filled on the basis of objective selection criteria, and are appointees subject to investigation of their suitability and prior conduct?

The recruitment of employees generally is guided by Act No. 221/1999 on Professional Soldiers. The website of the Military Intelligence agency has a page on recruitment which indicates investigation and assessment processes - it is assumed this is the case for all positions, more so for senior ones.

There is limited information on the human resources policy and the selection process in military intelligence. Neither Annual Reports nor the website provide HR-related information. In principle there are criteria for the selections and promotions.

Response to Government Reviewer: Comments have been removed as appropriate. Score raised to 2.

COMMENTS -+

Military Intelligence web site and Annual reports: http://www.vzcr.cz/cs/vyrocni-zpravy/article/vyrocni-zpravy-o-cinnosti-vojenskeho-zpravodajstvi, accessed May 2014

Act No. 355/2009: Consolidated version of the Act No. 221/1999 on Professional Soldiers. http://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=84817&p_country=CZE&p_count=261

Zaměstnání - Bezpečnostní informační služba České republiky, www.bis.cz/zamestnani.html

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Disagree

Comment: We suggest criteria 2.

Suggested score: 2

Government Reviewer-+

Opinion: Agree with Comments

Comment: Political pressure on the selection process for senior positions within the intelligence services is reportedly high.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

21.
score
2

Does the government have a well-scrutinised process for arms export decisions that aligns with international protocols, particularly the Arms Trade Treaty (ATT)?

The International amrs trade is subjected regulation by the Act 38/1994 Col. on international Arms trade. The country has a system of arms trade control with participation from the Ministries of Industry and Trade, Interior and Defence with the major role of Licencing Authority of the Ministry of Industry and Trade.
The Czech Republic has ratified the ATT on 19 September 2014 and to some extent complies with its provisions despite criticism from Amnesty International (AI).
According to SIPRI, there have been exports to countries with objectionable human rights records such as Vietnam and Cambodia in 2013 and 2014.

COMMENTS -+

Act 38/1994 Col., on international arms trade

Ministry of Industry and Trade - Licencing Service, department on Licencing of arms trade web page:
http://www.mpo.cz/cz/zahranicni-obchod/licencni-sprava/#category269y)

&quoute;President Zeman signed the ATT Treaty, press release of the Ministry of Industry and Trade, posted 23. 9. 2014 (http://www.mpo.cz/dokument153525.html)

Annual Report on Arms Trade, Ministry of Foreign Affaires of the Czech Republic, http://www.mzv.cz/public/e0/30/7f/73464_14945_A_Vyrocni_zprava_Export_zbrani_2006_FINAL.pdf

Amnesty International Press release of 1st April 2014: http://www.amnesty.cz/z879/rok-od-prijeti-att-v-osn-jak-je-na-tom-svet

Parliament of the Czech Republic web page, (http://www.psp.cz/sqw/ischuze.sqw?o=7&s=10&pozvanka=1)

SIPRI, Czech Republic Arms Exports 2010 - 2014, http://armstrade.sipri.org/armstrade/html/export_values.php

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The Parliament has approved the ratification of the ATT in the first round in June 2014. The ratification has to be approved by Comittee on Defence and Committe on Foreign Affairs.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: According to Amnesty International the Czech Republic has violated some provisions of the Arms Trade Treaty (ATT): &quoute; Amnesty International is concerned that some states, including EU members, appear to be continuing arms transfers to countries where there is a clear risk they will be used for serious human rights violations and abuses. For example, as recently as December 2013, the Czech Republic sent tens of thousands of firearms to Egypt’s security forces, who have killed hundreds of protesters during demonstrations following the military’s ousting of President Mohamed Morsi.&quoute; Source: &quoute;UN: Atrocities fuelled by inaction on Arms Trade Treaty promises&quoute;, published by Amnesty International, 1 April 2014, www.amnesty.org/en/news/un-atrocities-fuelled-inaction-arms-trade-treaty-promises-2014-04-01

Ratifying the ATT appears to be politically controversial, according to Jiří Paroubek, former Prime Minister and party LEV 21chairman &quoute;The Czech Republic should not join this agreement until the world's largest arms exporters do that (US and Russia)&quoute;, 22 June 2014, www.parlamentnilisty.cz/politika/politici-volicum/Paroubek-Proc-ma-CR-pockat-s-ratifikaci-mezinarodni-smlouvy-o-obchodu-se-zbranemi-324018

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: The ATT has been signed (June 3rd 2014)

Sources
http://www.mzv.cz/un.newyork/en/news_events/ceska_republika_podepsala_smlouvu_o.html

Suggested score:

Peer Reviewer-+

Risk management 60
22.
score
3

How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?

Disposal of assets is made public on the MoD and Army website. The Redundant Assets Management Agency deals with offers, transfers, sales of redundant material, equipment, property and facilities. Information on the financial results disposals are also made public on the website (there is a special dedicated web page). There is no evidence that publicly provided information is incomplete. The White Paper on Defence describes the structure and composition of assets and their foreseen changes.

Response to Government Reviewer: Information is correct and has been added, with sources.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic (Ministerstvo obrany a Armáda ČR), web page, www.annm.army.cz.

Ministry of Defence and Army of the Czech Republic (Ministerstvo obrany a Armáda ČR), web page, 'Department of defence offers additional unnecessary vehicles and equipment', 14.1.2013 http://www.mocr.army.cz/informacni-servis/zpravodajstvi/ministerstvo-obrany-nabizi-dalsi-nepotrebne-automobily-a-techniku-78769/ Accessed May 2014;

White Paper on Defence 2011:http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: Disposal of assets is made public on the web page www.annm.army.cz.

The Redundant Assets Management Agency deals with offers, transfers, sales of redundant material, equipment, property and facilities.

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: It is not possible to confirm the effectiveness of such controls and whether the information provided is complete.

Suggested score: 3

Peer Reviewer-+

23.
score
2

Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?

Information on asset disposals is publicly available. This is audited by internal audit bodies, the external state auditing body - the Supreme Auditing Office (SAO) - and sometimes by external audit companies. The occurrence of external audits is at the discretion of the SAO however and it is not clear if the results of scrutiny have been consistently made available to the public. Internal audit reports and external auditing company reports were not found to be publicly available.

COMMENTS -+

Supreme Auditing Office website, http://www.nku.cz/default.htm

Supreme Auditing Office website (description of audits of assests disposal at the MoD), 'NKÚ zkontroloval finance na výstavbu a rekonstrukci zařízení správních částí Ministerstva obrany', June 2, 2010, http://www.nku.cz/cz/media/nku-zkontroloval-finance-na-vystavbu-a-rekonstrukci-zarizeni-spravnich-casti-ministerstva-obrany-id5249/

Ministry of Defence and Army of the Czech Republic (Ministerstvo obrany a Armáda ČR), web page: http://www.mocr.army.cz/, Accessed May 2014

&quoute;Redundant Assets Management Agency (RAMA) www.army.cz/scripts/detail.php?id=8768

MoD and Army website, RAMA's actual offers www.onnm.army.cz/

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Redundant Assets Management Agency (RAMA) www.army.cz/scripts/detail.php?id=8768
RAMA's actual offers www.onnm.army.cz/
Report by RAMA www.onnm.army.cz/data/file/1.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

24.
score
2

What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?

The State Budget includes no expenditure on secret items or items relating to national security or intelligence services. According to the Governmental Decree Nr. 522/2005 Coll. defining the list of classified items changed by the Decree Nr. 240/2008 Coll., the defence budget is not classified except in a state of emergency or war.

The budget of the Military Intelligence was CZK 2230.299 million in 2013, which is 5.2% of the defence and security budget (taken here as the defence budget and the intelligence agency budget together for the purpose of calculation). The score has been selected accordingly.

Response to Peer Reviewer 1: Information appreciated. The budget of Miltiary Intelligence for 2013 has been factored in to calculate the proportion of secret expenditure.

COMMENTS -+

Open Budget Survey, Czech Republic 2012, http://internationalbudget.org/wp-content/uploads/OBI2012-CzechRepublicCS-English.pdf, accessed April 2014

Act Nr. 475/2013 Coll, on the state budget for 2013; Ministry of Finances web page, part on the National Budget: http://www.mfcr.cz/cs/legislativa/legislativni-dokumenty/2013/zakon-c-4752013-sb-16365, accessed April 2014

Ministry of Defence and Army of the Czech Republic, Defence Budget, http://www.army.cz/scripts/detail.php?id=5760

Ministry of Defence and Army of the Czech Republic (Ministerstvo obrany a Armáda ČR), web page, Resortní rozpočet, 1993 - 2014, http://www.mocr.army.cz/finance-a-zakazky/resortni-rozpocet/resortni-rozpocet-5146/

National Security Authority: Governmental Decree Nr. 522/2005 Coll. defining the list of classified items changed by the Decree Nr. 240/2008 Coll. (Nařízení vlády č. 522/2005 Sb., kterým se stanoví seznam utajovaných informací, ve znění nařízení vlády č. 240/2008 Sb. ), http://www.nbu.cz/cs/pravni-predpisy/provadeci-pravni-predpisy/narizeni-vlady-c-5222005/, accessed September 2014

Military Intelligence website, Report on The Activities of Military Intelligence in The Year 2013, http://admin.vzcr.cz/shared/clanky/35/V%C3%BDro%C4%8Dn%C3%AD%20zpr%C3%A1va%202013_EN.pdf

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The state budget is made public on the web page www.mfcr.cz.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: The Annual Report on Activities of Military Intelligence in 2012 was made public on the website of Military Intelligence, section of “annual reports”, on November 7, 2013 - chapter Budgetary funds
www.vzcr.cz/shared/clanky/47/V%fdro%e8n%ed%20zpr%e1va%202012_EN.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

25.
score
4

Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?

There are no specific &quoute;secret&quoute; budget items. The governmental decree stipulates that budget items can be classified only in a state of emergency or in a state of war (see Governmentaql Decree 240/2008). There is a special parliamentary commitee for the oversight of military intelligence. In accordance with legislation, 22 members of the Committee are provided with details on the budget by the chief of the service. The Act 154/1994 Coll. in its § 19 explicitly oblige the Director of the Security Intelligence Service to provide Parliamentary control team with the draft budget and the documents necessary for the control of budget spending.

COMMENTS -+

Interview with Interviewee 2: Former parliamentarian, July 2013

Ministerstvo obrany a Armáda ČR, web page: www.mocr.army.cz/

Act Nr. 153/1994 Coll., on Intelligence Services, §§ 12 to 13 a

Act 154/1994 Coll., on Security Intelligence Service, §§ 19

Act Nr. 289/2005 Coll., on Military Intelligence Service, § 22

Act Nr. 148/1998 Coll. on classified information and on Ammendment of certain Acts

National Security Authority: Governmental Decree Nr. 522/2005 Coll. defining the list of classified items changed by the Decree Nr. 240/2008 Coll. (Nařízení vlády č. 522/2005 Sb., kterým se stanoví seznam utajovaných informací, ve znění nařízení vlády č. 240/2008 Sb. ), http://www.nbu.cz/cs/pravni-predpisy/provadeci-pravni-predpisy/narizeni-vlady-c-5222005/, accessed September 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Disagree

Comment: We recommend criteria N/A.
There is no specific secret Military Intelligence budget. The Military Intelligence budget is a part of the ministerial budget.

Suggested score: N/A

Government Reviewer-+

Opinion: Agree with Comments

Comment: 153/1994 Sb. ACT of 7.C July 1994 on the intelligence services of the Czech Republic, Chapter &quoute;Control of Intelligence Services&quoute;, § 12:
&quoute;The activities of the intelligence services is subject to the Government and Parliament. Scope and method of control of intelligence services by the Parliament by a special statute.&quoute;
http://www.vzcr.cz/shared/clanky/18/z%E1kon%20%E8.%20153_1994.pdf
Control of military intelligence activities is regulated by Chapter 5 &quoute;Control of military intelligence activities and obligation maintain confidentiality&quoute;,
289/2005 Sb. ACT of 16 June 2005 on the Military Intelligence, Amended by 274/2008 Sb
http://www.mocr.army.cz/images/id_0000_1000/172/289.pdf
Classified items are regulated by the Law of 11 June 1998 No. 148/1998 Coll. , On protection of classified information and on amendments to certain Acts
http://www.epravo.cz/top/zakony/sbirka-zakonu/uplne-zneni-zakona-ze-dne-11-cervna-1998-c-1481998-sb-cr-o-ochrane-utajovanych-skutecnosti-a-o-zmene-nekterych-zakonu-ve-zneni-zakona-c-1641999-sb-cr-zakona-c-182000-sb-zakona-c-292000-sb-zakona-c-3632000-sb-zakona-c-302000-sb-zakona-c-602001-sb-s-ucinnosti-ke-dni-19-unora-2001-3163.html

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

26.
score
3

Are audit reports of the annual accounts of the security sector (the military, police, and intelligence services) and other secret programs provided to the legislature (or relevant committee) and are they subsequently subject to parliamentary debate?

Supreme Audit Office scrutinised annual accounts of all public bodies including from the security are. Their reports are presented to the Parliament and regularly scrutinised by the Parliamentary Control Committee, which is defined by legislation. However, audits by the SAO are undertaken at its own discretion. While the Parliamentary Defence Committee scrutinises annual accounts, the interviewee stated that defence-related SAO audit reports are not presented to it regularly. Internal audit reports are not presented to Parliament.

COMMENTS -+

Act Nr. 166/1993, Sb., on Supreme Auditing Office

Interview with Interviewee 1: Senior audit official, Prague, April 2014.

Parliament Defence Committee document, e.g. Committee meeting on 30 May 2013: http://www.psp.cz/sqw/text/text2.sqw?idd=174316

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Classified items are regulated by the Law of 11 June 1998 No. 148/1998 Coll., on protection of classified information and on amendments to certain Acts:
http://www.epravo.cz/top/zakony/sbirka-zakonu/uplne-zneni-zakona-ze-dne-11-cervna-1998-c-1481998-sb-cr-o-ochrane-utajovanych-skutecnosti-a-o-zmene-nekterych-zakonu-ve-zneni-zakona-c-1641999-sb-cr-zakona-c-182000-sb-zakona-c-292000-sb-zakona-c-3632000-sb-zakona-c-302000-sb-zakona-c-602001-sb-s-ucinnosti-ke-dni-19-unora-2001-3163.html

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

27.
score
4

Off-budget military expenditures are those that are not formally authorised within a country's official defence budget, often considered to operate through the 'back-door'. In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled?

There is no information available on off-budget funds and expenses. It would be strongly contrary to national legislation which stipulates budgetary principles but does not make any reference to off-budget funds. There are no media reports that indicate the existence of off-budget expenditure either which can lead to the conclusion that while they are controlled through legislation, off-budget military expenditure does not exist.

COMMENTS -+

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Supreme Auditing Office website :http://www.nku.cz/cz/media/nku-zkontroloval-ucetni-zaverku-ministerstva-obrany-id6079/

ct No. 218/2000 Coll., On Budgetary Rules

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Control of the state property and the state budget is based on Act No. 166/1993 Coll., On the Supreme Audit Office, as amended by Act No. 331/1993 Coll., and Act No. 218/2000 Coll., On budgetary rules and on amendment of some related laws (budgetary rules).

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

28.
score
4

In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?

There is no indication of off-budget military expenditures. Reports by the SAO which review defence and security finances do not make any reference to the existence of such expenditure. Furthermore, there are no media reports which confirm there is such expenditure in practice either.

COMMENTS -+

&quoute;Supreme Auditing Office audited the final accounts of Ministry of Defence, in: Supreme Auditing Office web page:http://www.nku.cz/cz/media/nku-zkontroloval-ucetni-zaverku-ministerstva-obrany-id6079/

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

29.
score
3

In law, are there provisions regulating mechanisms for classifying information on the grounds of protecting national security, and, if so, are they subject to effective scrutiny?

There exists clear legislation regulating the classification of information. There is a relatively independent body - the National Security Office - which scrutinises the implementation of this Act. There are special Parliamentary Commissions to scrutinise the security agencies. The office of the Public Defender of Rights monitors and oversees the application of the Freedom of Information Act. While there has been information relating to the possible misuse of the National Security Office in this regard during directorship of Tomáš Kadlec (who was later prosecuted for economical crime), such instances date back approximately ten years (2005). For the last few years, there has been no known criticism of the existing provisions for the classification of information or of their oversight.

Response to Peer Reviewer 1: The example of Jana Nagyová relates to misuse of the military intelligence service and is not relevant here.

COMMENTS -+

Act Nr. 412/2005, Sb., on Classified Information

Activities of National Security Office - independent office for control of the above mentioned act

Parliament of the Czech Republic, Permanent Commission on oversight on National Security Office: http://www.psp.cz/sqw/fsnem.sqw?id=1137

National Security Authority: Governmental Decree Nr. 522/2005 Coll. defining the list of classified items changed by the Decree Nr. 240/2008 Coll. (Nařízení vlády č. 522/2005 Sb., kterým se stanoví seznam utajovaných informací, ve znění nařízení vlády č. 240/2008 Sb. ), http://www.nbu.cz/cs/pravni-predpisy/provadeci-pravni-predpisy/narizeni-vlady-c-5222005/, accessed September 2014

Parliament of the Czech Republic, Permanent Commission on oversight on Military Intelligence: http://www.psp.cz/sqw/fsnem.sqw?id=1138

Wikipedie: Tomáš Kadlec (http://cs.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Kadlec), accessed March 2015

&quoute;Swiss found millions on the account of prominent Czech Official&quoute;, in: Aktuálně.cz web new portal (http://zpravy.aktualne.cz/domaci/svycari-nasli-miliony-na-uctu-predniho-ceskeho-urednika/r~i:article:720675/)

The Public Defender of Rights http://www.ochrance.cz/en/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: In law there are provisions made for the classification of information; however, little control is exercised and in practice there may be evidence of individuals or agencies influencing decisions. The case of Jana Nagyová (the chief-of-staff to the former prime minister Petr Nečas), who has been found guilty of abusing the country’s military intelligence, is an example of such an influence.

http://online.wsj.com/news/articles/SB10001424127887324688404578545343566717894
http://www.radio.cz/en/section/news/a-former-government-chief-of-staff-has-been-found-guilty-of-abusing-the-countrys-military-intelligence

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

30.
score
2

Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?

The Ministry of Defence controls several state-owned commercial businesses in the sense that while these companies are under state ownership, the Ministry of Defence executes their management rights (for example, through appointing the Board of Directors). These businesses are military-oriented and focused on technical adaptation and the repair of military equipment and also &quoute;military forests&quoute; managing training ranges. They are fully transparent, with annual reports available on their website(s).

Response to Peer Reviewer 2: I agree that there is some lack of transparency - as there is in other state-owned commercial businesses as well. Sources have been added and the score has been lowered from 3 to 2.

COMMENTS -+

Examples of annual reports of military controlled business enterprises:

VOP CZ, s.p. (Military Maintenance Factory), Annual Report 2013:http://www.vop.cz/images/file/VZ2013.pdf, accessed April 2014

LOM Praha (Aircraft Maintenance Factory) Annual Report 2012: http://static.lompraha.upgates.com/3/3t0n3mtn3w524c58775958d.pdf

Aktuálně.cz, Šéf leteckých podniků LOM končí, firma má problémy, 20. 1. 2012, http://zpravy.aktualne.cz/domaci/sef-leteckych-podniku-lom-konci-firma-ma-problemy/r~i:article:729788/

Aktuálně.cz, Audit v LOM odhalil chyby, obrana podá oznámení, 26.10.2011, http://zpravy.aktualne.cz/domaci/audit-v-lom-odhalil-chyby-obrana-poda-oznameni/r~i:article:719201/

Česká pozice, Uspěchaný prodej vrtulníků připravil LOM Praha o 100 milionů korun, 7.12.2011
http://ceskapozice.lidovky.cz/uspechany-prodej-vrtulniku-pripravil-lom-praha-o-100-milionu-korun-1cq-/tema.aspx?c=A111206_182033_pozice_47373

Nejvyšší kontrolní úřad/Supreme Audit Office, NKÚ zkontroloval Vojenský opravárenský podnik, 22. 7. 2013,
http://www.nku.cz/cz/media/nku-zkontroloval-vojensky-opravarensky-podnik-cz-id6557/

SOURCES -+

Opinion: Agree with Comments

Comment: There are lot of scepticism over complexity of their reporting and mainly in the past there were many efforts to privatize these companies (especially those focusing on millitary repair works) that created very sensitive environment and lot of lobbying around them. Current status seems relatively stabilazed but situation may change.

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Details of their operations and finances are not always transparent, although companies are subject to external audit.

History of the LOM Praha issues:
http://zpravy.aktualne.cz/domaci/sef-leteckych-podniku-lom-konci-firma-ma-problemy/r~i:article:729788/
http://zpravy.aktualne.cz/domaci/audit-v-lom-odhalil-chyby-obrana-poda-oznameni/r~i:article:719201/
http://ceskapozice.lidovky.cz/uspechany-prodej-vrtulniku-pripravil-lom-praha-o-100-milionu-korun-1cq-/tema.aspx?c=A111206_182033_pozice_47373

Irregularities found by the SAO audit of the Military repair company
http://www.nku.cz/cz/media/nku-zkontroloval-vojensky-opravarensky-podnik-cz-id6557/

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

31.
score
3

Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?

The Ministry of Defence controls several state-owned commercial businesses in the sense that while these companies are under state ownership, the Ministry of Defence executes their management rights. These businesses are subject to annual audits by certified auditors (as can be seen in their publicly available annual reports) and also subject to independent external audit by the SAO. There is no evidence to suggest that such audits are not in line with internationally recognised standards.

COMMENTS -+

Annual report 2012 with Audit Statement of the Letecké opravny Malešice: http://static.lompraha.upgates.com/3/3t0n3mtn3w524c58775958d.pdf

Military forests and Farms Annual report with Audit Statement 2013, http://www.vls.cz/DocumentStore/VLS_Vyrocni%20zprava%202013.pdf

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is a scrutiny by Supreme Audit Office (SAO). Reports of SAO are freely available.

Additional source:
Act Nr. 77/1997 Coll. on state-owned enterprises.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: SAO report for the year 2013 (for the audit results of the MoD owned business see p.25)
http://www.nku.cz/assets/publikace/vyrocni-zprava-nku-2013.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

32.
score
4

Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government's reaction to such enterprise?

There is no indication of the existence of illegal private enterprises owned by the military or the Ministry of Defence personnel. Unauthorised enterprises are forbidden by § 251 of the Czech Penal Code and carry a sanction of up to two years imprisonment. Civil servants and military personnel are forbidden to be members of management bodies of business organization but they can take care of their assets (§ 47 of the Act 221/1999 Coll.). There is no information to suggest that unauthorised private enterprise takes place.

COMMENTS -+

Supreme Auditing Office, Audit of Ministry of Defence Final Annual Accounts, July 2, 2012, http://www.nku.cz/cz/media/nku-zkontroloval-ucetni-zaverku-ministerstva-obrany-id6079/, accessed April 2014

Act Nr. 40/2009 Coll., Penal Code, § 251, Unauthorised Enterprises

Act 221/1999 Coll. on professional military personnel, § 47

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There are strong regulations regarding private enterprise by military personnel in the Act Nr. 221/1999 Coll. and the Labour Act (other defence employees).

Military personnel is allowed to own their private enterprise after leaving active duty.

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

Policies & codes 90
34.
score
2

Do the Defence Ministry, Defence Minister, Chiefs of Defence, and Single Service Chiefs publicly commit - through, for example, speeches, media interviews, or political mandates - to anti-corruption and integrity measures?

There have been strong anti-corruption statements by the present Minister. There were visible anti-corruption actions also by the previous Minister [as can be seen in an interview with the Minister in Respekt (16.3. 2014)], such as the decision to audit all suspicious contracts (see Czech Radion website) and through the appointment of the Transparency International CZ Director Ondračka as his advisor. There is no evidence that other senior military staff take such a strong stance on integrity and anti-corruption.

COMMENTS -+

Ministerstvo obrany a Armáda ČR, website, Lidé musejí sami chtít proti korupci bojovat, zaznělo na semináři, 25.10.2013, http://www.mocr.army.cz/informacni-servis/zpravodajstvi/lide-museji-sami-chtit-proti-korupci-bojovat--zaznelo-na-seminari-90625/

Interní komunikační portál, Ministerstvo obrany povede nový tým, 4. 2. 2014, https://www.ikp.army.cz/aktualita/ministerstvo-obrany-povede-novy-tym

Pokud se Stropnický stane ministrem obrany, chce ušetřit desítky milionů, Deník.cz. 21.1.2014 : http://www.denik.cz/z_domova/pokud-se-stropnicky-stane-ministrem-obrany-chce-usetrit-desitky-milionu-20140121.html

Jaroslav Spurný: Zcela jiná mise, Interview with Minister of Defence Martin Stropnický, Respekt 12/2014,(http://respekt.ihned.cz/c1-61853540-zcela-jina-mise), abreviation found also http://www.mocr.army.cz/informacni-servis/forum/ministr-obrany-poskytl-rozhovor-casopisu-respekt-pro-clanek-v-rubrice-o-kom-se-mluvi-95460/)

Stropnický nařídil audit sporných zakázek na ministerstvu obrany, Český rozhlas (Czech Radio), 3. 4. 2014, http://www.rozhlas.cz/zpravy/politika/_zprava/stropnicky-naridil-audit-spornych-zakazek-na-mo-za-manipulace-hrozi-vinikum-trestni-oznameni--1334767

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The newly formed management of the MoD prefers transparency in the acquisition processes.
There is a new anti – corruption team in the Cabinet of the Minister from the 1st July 2014.
There is also a team assembled within the MoD to run an acquisitions process optimisation, the TI CZ analyst was also involved.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Minister Stropnicky's new anti-corruption move: the MoD creates an anti-corruption team which will be directly subordinate to the Minister.

www.parlamentnilisty.cz/arena/monitor/Stropnicky-vyhlasil-boj-proti-korupci-Pomoci-mu-ma-protikorupcni-tym-323827 19 June 2014

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

35.
score
3

Are there effective measures in place for personnel found to have taken part in forms of bribery and corruption, and is there public evidence that these measures are being carried out?

There are measures in place to address corruption and bribery. Bribery is punishable irrespective of the amount of bribes. In cases of suspicion of corruption, investigations are begun. There is a common practice that if somebody is accused by the police, he/she is released from service. The most famous examples are the cases of Military Intelligence Chief General Kovanda and Colonel Pohůnek.

Response to Peer Reviewer 1: Given the evidence provided that the case of Colonel Pohůnek was not effectively addressed with appropriate sanctions and that there is a risk of political interference in the work of anti-corruption agencies (TI 2013 report), the score is lowered from 4 to 3 (sources added).

COMMENTS -+

Act Nr. 40/2009 Coll., Penal Code (http://business.center.cz/business/pravo/zakony/trestni-zakonik/), § 329 - 334

Act Nr. 221/1999 Coll., on Professional Military Servicemen (zákon o vojácích z povolání), § 9 and 19, sect, 1, g, h,.

Ministr Picek odvolal ze služby Kovandu a Pohůnka z vojenské rozvědky, in: IDNES.cz web news portal, 17. 6. 2013, Zdroj: http://zpravy.idnes.cz/kovanda-pohunek-postaveni-mimo-sluzbu-dyi-/domaci.aspx?c=A130617_123811_domaci_mzi, accessed May 2014

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Korupce v armádě má pět desítek obžalovaných, in Denik Referendum: http://denikreferendum.cz/clanek/9585-korupce-v-armade-ma-pet-desitek-obzalovanych

Korupce na Moravě, in Armyforum: http://www.armyforum.cz/post366.html

Soud zastavil stíhání zpravodajce Pohůnka z kauzy Nagyová, 30 June 2014, http://zpravy.idnes.cz/soud-zastavil-stihani-pohunka-det-/domaci.aspx?c=A140630_125602_domaci_bse

Aktuality.sk, ČR: Jana Nečasová dostala na rok podmienku za zneužitie spravodajcov, 30 June 2014, http://www.aktuality.sk/clanok/256168/cr-jana-necasova-dostala-na-rok-podmienku-za-zneuzitie-spravodajcov/

New Europe Online, Czech court convicts former PM's aide for intelligence abuse, 1 July 2014, http://www.neurope.eu/article/czech-court-convicts-former-pms-aide-intelligence-abuse

iDNEZ.cz, Žalobci chtějí přísnější trest pro Nečasovou, podali odpor, July 1, 2014, http://zpravy.idnes.cz/zalobci-podali-odpor-v-kauze-nagyova-dvk-/domaci.aspx?c=A140701_173556_domaci_jj

Transparency International, &quoute;Exporting Corruption Progress Report 2013: Assessing Enforcement of the OECD Convention on Combating Foreign Bribery&quoute;, http://www.transparency.org/whatwedo/publication/exporting_corruption_progress_report_2013_assessing_enforcement_of_the_oecd

&quoute;General out of the service&quoute;, in: Novinky.cz web new portal, posted 10.3. 2015:(http://www.tyden.cz/rubriky/domaci/general-mimo-sluzbu-je-obvinen-z-cachru-s-armadnim-majetkem_335837.html#.VRvOHcv9kdU)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The court acquitted Colonel Pohůnek (30. 6. 2014).

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: The court can issue a minimal sentence for corruption. For instance, in a case of misuse of military intelligence organiser Ms. Nagyova-Necasova has received a 12-month suspended sentence, conditional on four years of probation monitored for good behaviour.

The District Court for Prague 1 has also passed the cases of the two remaining defendants, former VZ heads Ondrej Palenik and Milan Kovanda, to the Defence Ministry for disciplinary proceedings.

The court also stopped prosecuting colonel Jan Pohůnek in the case of Jana Nagyová. Pohůnek was charged with abuse of Military Intelligence. According to the courtsm his conduct was not a crime:
http://zpravy.idnes.cz/soud-zastavil-stihani-pohunka-det-/domaci.aspx?c=A140630_125602_domaci_bse
http://www.aktuality.sk/clanok/256168/cr-jana-necasova-dostala-na-rok-podmienku-za-zneuzitie-spravodajcov/
http://www.neurope.eu/article/czech-court-convicts-former-pms-aide-intelligence-abuse

As it was written in one of the columns, &quoute;Court cosmetically threatened to a jealous government official.&quoute;
http://www.neurope.eu/article/czech-court-convicts-former-pms-aide-intelligence-abuse

Prosecutors have filed a protest against the annual probation, imposed to Nečasová. They also filed a complaint for the suspension of prosecution of colonel Pohůnek and for the court's decision to pass the case of Milan Kovanda and Ondrej Páleník to the Ministry of Defence.Complaints will be addressed by the Municipal Court in Prague.
http://zpravy.idnes.cz/zalobci-podali-odpor-v-kauze-nagyova-dvk-/domaci.aspx?c=A140701_173556_domaci_jj

There are a number of older cases of corruption investigations which have also ended without clear results. For instance: &quoute;Foreign Bribery Cases and Investigations. The trial in Vienna, which began in December 2012, of the Austrian businessman and lobbyist Count Alfons Mensdorff-Pouilly concluded in January 2013. In Czech Republic, the case concerned the lease of Gripen jets (BAE was one of the shareholders of Gripen at the time). The Czech police initiated the investigation, however, no charges have been brought yet&quoute; - the Transparency International report &quoute;Exporting Corruption Progress Report 2013: Assessing Enforcement of the OECD Convention on Combating Foreign Bribery&quoute; which mentions examples of political interference with anti-corruption agencies and prosecutoring bodies in the Czech Republic.

Suggested score: 3

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: Such measures are not always effective. The judicial system is also often weak when combatting serious corruption

Sources
http://zpravy.idnes.cz/v-kauze-gripenu-nebude-policie-nikoho-stihat-f3a-/domaci.aspx?c=A091130_144850_domaci_ban

Suggested score: 3

Peer Reviewer-+

36.
score
1

Is whistleblowing encouraged by the government, and are whistle-blowers in military and defence ministries afforded adequate protection from reprisal for reporting evidence of corruption, in both law and practice?

Whistleblowing is a novel concept in the country and there is no specific legislation or plans for the adoption of any comprehensive legislation in this regard. Draft laws had been previously discussed but nothing has been finalised as yet. There have been mixed signals sent by different governments (between 2013 and 2014) towards cases of whistleblowing.

There are, however, laws which apply to the legal status of those wanting to report corruption or unethical behaviour. Such regulation is only partial and not always in support of those potentially reporting wrongdoing.

However, there is a mechanism in place to report corruption via email to the Inspectorate General. These e-mails are taken seriously and those reporting on this line are kept anonymous. There is no evidence that this line is actively promoted.

COMMENTS -+

Inspectorate of the Minister of Defence website - information of anti-corruption e-mail: (http://www.inspekce.army.cz/Korupce.html, accessed March 2015)

Protikorupční strategie vlády (Governmental Anti-corruption Strategy), adopted on 16 January 2013, by the Governmental decision Nr. 39, http://www.korupce.cz/cz/protikorupcni-strategie-vlady/protikorupcni-strategie-104809/

Governmental Anti-Corruption Strategy 2015 - 2015, adopted in December 2014, in: www.korupce.cz (governmental anti-corruption portal), http://www.korupce.cz/cz/protikorupcni-strategie-vlady/na-leta-2015-2017/strategie-vlady-v-boji-s-korupci-na-obdobi-let-2015-a-2017-119894/

Whistleblowing Protection Laws – EU Member States Laws, http://journalism.cmpf.eui.eu/maps/whistleblowing/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The line korupce@army.cz is actively promoted by the MoD (on the recommendation of TI CZ). It has been promoted in the army magazine A@report (2x per year) and there have been posters promoting this line in the main buildings of the Ministry, the building of the General Staff and the University of Defence. The number of reports on corruption through this line has increased in 2014. In 2013 there were 13 reports, while in 2014 to date (July 2014) there have been 15 reports.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: In a 2013 Transparency International report (Exporting corruption: Progress report 2013: Assessing enforcement of the OECD Convention on combating bribery', http://www.transparency.org/whatwedo/pub/exporting_corruption_progress_report_2013_assessing_enforcement_of_the_oecd), the Czech Republic is named among the countries where there is a lack of adequate rules or practice on whistleblowers. It states: &quoute;Legal protections for whistleblowers and witnesses are weak in both the public and private sectors. There is no comprehensive stand-alone law for whistleblowers and no additional grounds to defend against unfair dismissal aside from those already provided in Czech labour law.&quoute;

Further sources:
OECD, Phase 3 Report on Implementing the OECD Anti-Bribery Convention in the Czech Republic, March 2013, http://www.oecd.org/daf/anti-bribery/CzechRepublicphase3reportEN.pdf

&quoute;Plans have been floated to integrate whistleblower protections into the Czech Anti-Discrimination Act, though they are not expected to go beyond the Labour Code. A whistleblower centre is being considered as a component of a new anti-corruption strategy for 2013-2014. However, the strategy resembles a checklist rather than a detailed strategy. &quoute;

Transparency International, WHISTLEBLOWING IN EUROPE: LEGAL PROTECTIONS FOR WHISTLEBLOWERS IN THE EU, pages 35-36, (2013), http://www.stt.lt/documents/soc_tyrimai/2013_WhistleblowingInEurope_EN.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

37.
score
1

Is special attention paid to the selection, time in post, and oversight of personnel in sensitive positions, including officials and personnel in defence procurement, contracting, financial management, and commercial management?

There is no expressed policy on attention given to sensitive positions. There is allegedly a corruption risks assessment in the army which includes special rules for identifying sensitive personnel and for dealing with them. This system is, however, not publicly available. Additionally, some positions require a security vetting which is performed by the independent National Security Office in accordance with the Act 412/2005 Coll., on Protection of Secret Information, §§ 6 - 14. Information about which positions require a higher level of security vetting is not publicly available.

Response to Government Reviewer: Given the lack of public and verifiable information on the subject, score 1 is maintained.

COMMENTS -+

Act. Nr. 412/2005 Coll., on Protection of Secret Information and Security Qualification, especially §§ 6 -14

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Transparency International, National Integrity Study - Czech Republic 2011, http://issuu.com/transparencyinternational/docs/2011_nisczechrepublic_en/165

Discussions of Assessor in the capacity of NGO representative with MoD officials responsible for anti-corruption policy in 2013 -2014.

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Disagree

Comment: We recommend criteria 3.

Suggested score: 3

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

38.
score
4

Is the number of civilian and military personnel accurately known and publicly available?

The number of civilian and military personnel is known and information on the numbers of personnel throughout the ministry and armed forces are made available publicly by the Ministry of Defence with a high level of detail (including ranks) and in time trends. Such information is available both on the Ministry of Defence web page and in the White Paper of Defence (2011).

COMMENTS -+

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Ministry of Defence and Army of the Czech Republic website, Vývoj skutečných počtů osob v resortu MO ČR v letech 1993-2014, http://www.mocr.army.cz/scripts/detail.php?id=51566

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: The development of actual numbers of persons in the Ministry of Defence of the Czech Republic in the years 1993-2014
http://www.mocr.army.cz/dokumenty-a-legislativa/fakta/vyvoj-skutecnych-poctu-osob-v-rezortu-mo-cr-v-letech-2011---1993-51566/

Ministry of Defence have decreased by 740 soldiers and 1,040 employees Jan. 1, 2014
http://www.denik.cz/z_domova/ministerstvo-obrany-zestihlilo-o-740-vojaku-a-1040-zamestnancu-20140101.html

Budget - Facts and Trends 2012
http://www.mocr.army.cz/images/mo/pdf/Rozpocet_2012.pdf

Analysis of the number of workers and wage expenditures of the central government during the years 2001 - 2011, http://www.ihp.sk/analyzy/%20Anal%FDza%20po%E8tu%20pracovn%EDkov%20a%20mzdov%FDch%20v%FDdavkov%20centr%E1lnej%20vl%E1dy%20v%20obdob%ED%20rokov%202001%20-%202011.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

39.
score
4

Are pay rates and allowances for civilian and military personnel openly published?

Pay rates of military personnel is regulated by Act 221/ 1999 Coll. and subsequent Governmental Decree 565/2006 Coll., on Pay Rates of Military personnel. While the basic rates are given to every position, § 8 of the Governmental Decree stipulates bonuses up to 100% of the basic rate. Decisions on the bonuses have not been transparent and were rather discretionary. Pay rates and legally granted allowances are publicly available on the Army Career website. In 2013, a new career system was prepared and approved by the government and then approved by Parliament in September 2014 by the Act 332/2014 Coll. to be enacted since 1.7. 2014. The new Act limits the potential for discretion on bonuses. The pay rates of civil servants are regulated by Governmental Decree 304/2014 Coll., on Pay rates of Civil Servants, which is also public. There is also a new section on service performance evaluation including right to appeal unjust evaluation. All relevant documents are publicly available.

COMMENTS -+

Act No. 221/1999 Coll., of Professional Soldiers

Act No. 565/2006 Coll., on Pay Rates of Professional Soldiers

Act No. 332/2014 Coll., amending Act 221/2006 Coll. on Professional Soldiers. enacted since 1.7. 2015

Act No. 234/2014 Coll. on Civil Service
Governmental Decree 304/2014 Coll., on Pay rates of Civil Servants

Ministry of Defence and Army of the Czech Republic website, Vláda schválila novelu zákona o vojácích z povolání, 22.5.2013: http://www.mocr.army.cz/informacni-servis/zpravodajstvi/vlada-schvalila-novelu-zakona-o-vojacich-z-povolani-84234/

&quoute;Salaries of soldiers get changed - an overview&quoute; ( Platy vojáků se mění - Přehled), in: Naše peníze web page, posted 23.5. 2013,: http://www.nasepenize.cz/platy-vojaku-se-meni-prehled-11584, accessed April 2014

&quoute;A brief overview of benefits of the Czech Army soldiers&quoute;(Stručný přehled benefitů a zabezpečení vojáků AČR), in: Nová armada (new army) web page, posted 14.7. 2012, http://nova-armada.webnode.cz/news/strucny-prehled-benefitu-a-zabezpeceni-vojaku-acr/, accessed April 2014

&quoute;Government discussed an amendment which will link army salaries with their career&quoute;, in: Deníklegie qweb page, posted 21.5. 2013, http://www.deniklegie.cz/domains/deniklegie.cz/index.php/obrana/1229-vlada-projedna-novelu-ktera-spoji-platy-vojaku-s-jejich-karierou, accessed April 2014

&quoute;Minister Stropnický: The aim of the amendment is to give soldiers modern and predictable career system&quoute; (Ministr Stropnický: Cílem novely je dát vojákům moderní a předvídatelný kariérní řád), posted 14.5. 2014, in: Parlamentní listy web page: http://www.parlamentnilisty.cz/politika/politici-volicum/Ministr-Stropnicky-Cilem-novely-je-dat-vojakum-moderni-a-predvidatelny-karierni-rad-318938, accessed September 2014

&quoute;Conditions of the service are stipulated by the Act Nr. 221/1999 Coll. on military personnel and by Minister order 85/2010&quoute; (Podmínky průběhu služby vojáka jsou dány zákonem č. 221/1999 Sb.,
o vojácích z povolání, ve znění pozdějších předpisů, a rozkazem ministra obrany ČR č. 85/2010), Kariera.army.cz (army career) web page: .http://kariera.army.cz/cz/sluzebni-pomer, accessed April 2014

&quoute;Parliament approved the changes in military payroll&quoute; ( Sněmovna schválila změny v odměňování vojáků), posted 19.9. 2014, in: České noviny web page, http://www.ceskenoviny.cz/domov/zpravy/snemovna-schvalila-zmeny-v-odmenovani-vojaku/1124916?utm_source=rss&utm_medium=feed, accessed September 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: PETR BOUCHAL, PETR JANSKÝ, Státní úředníci: Kolik jich vlastně je, kde a za jaké platy pracují? Studie 4/2014, Národohospodářský ústav AV ČR, v. v. i. http://idea.cerge-ei.cz/files/IDEA_studie_4_2014.pdf (Civil servants: how many they are, where and at what salaries they work?)

Budget - Facts and Trends 2012
http://www.mocr.army.cz/images/mo/pdf/Rozpocet_2012.pdf

Analysis of the number of workers and wage expenditures of the central government during the years 2001 - 2011
http://www.ihp.sk/analyzy/%20Anal%FDza%20po%E8tu%20pracovn%EDkov%20a%20mzdov%FDch%20v%FDdavkov%20centr%E1lnej%20vl%E1dy%20v%20obdob%ED%20rokov%202001%20-%202011.pdf

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: A major issue that exists is the non-transparent award of bonuses.

Source:
Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score: 3

Peer Reviewer-+

40.
score
3

Do personnel receive the correct pay on time, and is the system of payment well-established, routine, and published?

Pay rates of military personnel is regulated by Act 221/ 1999 Coll. and subsequent Governmental Decree 565/2006 Coll., on Pay Rates of Military personnel. While basic pay rates apply to every position, § 8 of the Governmental Decree stipulates bonuses up to 100% of the basic rate. Decisions on the bonuses are not transparent and rather discretionary. Pay rates and legally granted allowances are publicly available on the Army Career website. In 2013, a new act on professional soldiers was prepared and approved by the government and then approved by Parliament in September 2014 by the Act 332/2014 Coll. to be enacted since 1.7. 2014. The new Act limits the potential for discretion on bonuses (decision on bonuses is much more specific), specifies details on pay and rights of soldiers for information and approach to documentation. There is also a new section on service performance evaluation including right to appeal unjust evaluation. All relevant documents are publicly available. There is no evidence to suggest that personnel do not receive the correct pay on time.

COMMENTS -+

Act Nr. 221/1999 Coll., on Professional Military Servicemen (zákon o vojácích z povolání), § 66 (http://www.vojak.cz/public/img/legislativa_-_download/zakon_c_221_1999_sb_o_vojacich_z_povolani.pdf)

Act No. 565/2006 Coll., on Pay Rates of Professional Soldiers

Act No. 332/2014 Coll., amending Act 221/2006 Coll. on Professional Soldiers. enacted since 17.7. 2015

Problémy v armádě (Problems in the Army) website, 'Stránky věnující se problémům v armádě', http://www.problemyvarmade.cz/problemy-v-armade

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

41.
score
1

Is there an established, independent, transparent, and objective appointment system for the selection of military personnel at middle and top management level?

There are no established mechanisms in civil service departments for appointments to higher positions, and the system of military promotions is unclear. The media has published a number of stories that allege that appointments have been non-transparent and based on personal choice, indicating a problem of promotions for nepotistic, political or patronistic reasons.

There are plans in the legislative process for establishing a more accurate and transparent recruitment system (Career System) by amendment to the Act on Professional Soldiers ( Act 221/199 Col.).

Response to Peer Reviewer: Agree with comments. Additional source added and discussion updated.

COMMENTS -+

Problémy v armádě (Problems in the Army) website, http://www.problemyvarmade.cz/, accessed April 2014 (Website of retired officers, focused on critical views on different aspects of the Czech military, including favouritism)

&quoute;The Career System will get the Army on the Move and also will eliminate irregularities&quoute; Kariérní řád dá armádu do pohybu, odstraní i nešvary&quoute;, in: Ministry of Defence and Army of the Czech Republic website, posted 28.6. 2014, http://www.acr.army.cz/informacni-servis/zpravodajstvi/karierni-rad-da-armadu-do-pohybu--odstrani-i-nesvary-99815/, accessed September 2014

&quoute;Appointments of colonels will be more strict, there will be less of them&quoute; (Jemnování plukovníků se zpřísní, bude jich míň), in Aktualne.cz, May 2013: http://zpravy.aktualne.cz/domaci/jmenovani-plukovniku-se-zprisni-bude-jich-min/r~i:article:779317/, accessed May 2014

Act Nr. 221/1999, Col. of Professional Soldiers

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: Amendment to regulations were expected by 2012, and then in 2013. As of June 2014 this is still pending. The Minister of Defence has promised that the MOD will clearly specify requirements soldiers must meet in order to be appointed to higher ranks or to move to higher positions, in additional to introducing a new transparent system regarding salary regulations and other aspects.

http://www.mocr.army.cz/informacni-servis/zpravodajstvi/pro-vsechny-budou-platit-stejna-pravidla--chvali-poslanci-novelu-zakona-o-vojacich-z-povolani-99817/
http://www.vojak.cz/cz/aktuality/84/navrh-zmeny-zakona-c-221-1999-sb-o-vojacich-z-povolani?action=history
The amendment to the Act on Professional Soldiers (Sněmovní tisk 476/0, část č. 1/2 Novela z. o vojácích z povolání)
http://www.psp.cz/sqw/text/text2.sqw?idd=74377

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

42.
score
1

Are personnel promoted through an objective, meritocratic process? Such a process would include promotion boards outside of the command chain, strong formal appraisal processes, and independent oversight.

There is no evidence of the existence of formal independent selection and promotion procedures.
The law mentions that military appointments are based on qualifications, regular evaluation and length of service. The law stipulates that selection boards may be established, which means that they also may not be established. There is no evidence of transparent, independent procedures.

The new act on military personnel was drafted and currently is being approved. It aims to establish a career system for military personnel and should exclude unequal treatment in terms of selection procedures and payment.

Response to Peer Reviewer 2: Information and sources have been added above.

COMMENTS -+

Act 221/1999 Sb., on Military Personnel, § 6

Ministry of Defence and Army website, &quoute;The same rules will be for everybody, members of Parliaments appreciate the new act on military personnel' in: posted 27.6. 2014,
http://www.mocr.army.cz/informacni-servis/zpravodajstvi/pro-vsechny-budou-platit-stejna-pravidla--chvali-poslanci-novelu-zakona-o-vojacich-z-povolani-99817/

Parliament of the Czech Republic, Chamber of Deputies, Amendment to the Act on Professional Soldiers (Sněmovní tisk 476/0, část č. 1/2 Novela z. o vojácích z povolání)
http://www.psp.cz/sqw/text/text2.sqw?idd=74377&quoute;

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: In June 2014, the Minister of Defence Stropnický promised that the MOD will clearly specify the requirements soldiers must meet in order to be appointed to higher ranks or to move to higher positions, it will introduce the new transparent salary regulations etc. He mentioned the current &quoute;curious situations, which are now quite common within the military that if a soldier is appointed to higher ranks, his salary decreases&quoute;.

Currently there are cases when some soldiers have a substantial portion of income in form of irregular component of salary (ie service in emergency, overtime) which could be increased artificially.
http://www.mocr.army.cz/informacni-servis/zpravodajstvi/pro-vsechny-budou-platit-stejna-pravidla--chvali-poslanci-novelu-zakona-o-vojacich-z-povolani-99817/

The amendment to the Act on Professional Soldiers (Sněmovní tisk 476/0, část č. 1/2 Novela z. o vojácích z povolání), http://www.psp.cz/sqw/text/text2.sqw?idd=74377

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

43.
score
N/A

Where compulsory conscription occurs, is there a policy of not accepting bribes for avoiding conscription? Are there appropriate procedures in place to deal with such bribery, and are they applied?

There has been no compulsory conscription since 2005.

COMMENTS -+

White Paper on Defence 2011:http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Ministry of Defence and Army of the Czech Republic website, Active Reserve, http://www.army.cz/scripts/detail.php?id=5762

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

44.
score
N/A

With regard to compulsory or voluntary conscription, is there a policy of refusing bribes to gain preferred postings in the recruitment process? Are there appropriate procedures in place to deal with such bribery, and are they applied?

There has been no compulsory conscription since 2005.

COMMENTS -+

Kariéra.Army.cz - web page of the Personnel section of Ministry of defence describing recruitment process: http://kariera.army.cz/cz/

White Paper on Defence 2011: http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

SOURCES -+

Opinion: Disagree

Comment: It´s not an issue in the country now.

Suggested score: N/A

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

45.
score
4

Is there evidence of 'ghost soldiers', or non-existent soldiers on the payroll?

A general media search revealed no evidence of ghost-soldiers. There was no evidence or mention of such issues found on the MoD and Army website either. Payment systems are well-established and the number of personnel is publicly disclosed which would serve to further lessen the risk of such occurrences.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic, web page: http://www.mocr.army.cz/

White Paper on Defence 2011:http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Act Nr. 221/1999 Coll., on Professional Military Servicemen (zákon o vojácích z povolání), § 66 (http://www.vojak.cz/public/img/legislativa_-_download/zakon_c_221_1999_sb_o_vojacich_z_povolani.pdf)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

46.
score
3

Are chains of command separate from chains of payment?

Payment is based on the position of the civil or military personnel. The payment (basic salary) reflects their appointed position. In this respect, the chain of command is separated from the chain of payment. There are performance bonuses which are determined at the discretion of the higher commander, meaning these are not separate from the chain of command as is standard. However, whether payment of allowances is made through the chain of command is unclear.

COMMENTS -+

Kariéra. Army.cz, Ministry of Defence web page on recruitment: http://kariera.army.cz/cz/sluzebni-pomer

Problémy v armádě, web page of retired soldiers: http://www.problemyvarmade.cz/osobni-priplatek-nenarokova-slozka-platu

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

47.
score
3

Is there a Code of Conduct for all military and civilian personnel that includes, but is not limited to, guidance with respect to bribery, gifts and hospitality, conflicts of interest, and post-separation activities?

There is a Code of Conduct for civil servants and public administration employees. This Code includes a clear provision on corruption, forbidding the acceptance of any gifts. There is also a Code of Ethics for Ministry of Defence employees, adopted on February 2013. It includes anti-corruption provisions that prohibit receiving unauthorised gifts and benefits, as well as stated obligations to report known corruption cases and to avoid conflict of interests. There is no mention of post-separation activity however. However, it may not be fully appropriate as a guide to anti-corruption in the defence sector. The Code is compulsory for all Ministry of Defence personnel although there is no evidence that it is applied as a priority to ensure the high performance of personnel.

The Defence Internal Anti-Corruption Programme, the main defence anti-corruption policy document /action plan, contains a critical assessment of the Code and calls for its amendment.

Response to Peer Reviewer 1: Source added, comments adjusted. The available evidence indicates that the 2013 Code and the MoD anti-corruption programme are very positive improvements, although there are some remaining issues. Significantly, there is no clear guidance on post-separation activity, whilst guidance on other areas is quite broad. Score 3 is maintained on the basis that the code is not comprehensive and it is unclear whether there is a robust oversight mechanism.

COMMENTS -+

Ministerstvo obrany a Armáda ČR, website: http://www.mocr.army.cz/

Etický kodex zaměstnanců Ministerstva obrany (RMO6/2013).(Code of Ethics of MOD Personnel).

Etický kodex úředníka a zaměstnance veřejné správy: http://www.vlada.cz/assets/media-centrum/aktualne/Eticky_kodex_uredniku_a_zamestnancu_verejne_spravy.pdf

Resortní interní protikorupční program ministerstva obrany, Praha 2014 (Defence Internal Anti-Corruption Programment)

The Code of Ethics for Ministry of Defence Employees, Adopted February 1, 2013, www.mocr.army.cz/scripts/file.php?id=179333&down=yes

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The MoD is drafting a new Code of Ethics for Ministry of Defence employees (including military staff). The draft should provide practical guidance for ethical dilemmas.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: The Code of Ethics for Ministry of Defence employees, adopted February 1, 2013 is available publicly at the MoD page http://www.mocr.army.cz/scripts/file.php?id=179333&down=yes (&quoute;ROZKAZ ministra obrany ze dne 1. února 2013 Etický kodex zaměstnanců Ministerstva obrany&quoute;). [accessed on June 28, 2014]

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: It is not publicly available. However, the defence anti-corrupton programme is rather vague regarding the content.

Suggested score:

Peer Reviewer-+

48.
score
1

Is there evidence that breaches of the Code of Conduct are effectively addressed ,and are the results of prosecutions made publicly available?

The Code exists and it is compulsory for all Ministry of Defence personnel. There is, however, no information that the Code is used as an important tool in ensuring the high performance of Ministry of Defence employees. The Defence Internal Anti-Corruption Programme, the main defence anti-corruption policy document /action plan, contains a critical assessment of the Code and calls for its amendment. Additionally, a blog written by an army Captain (see sources) criticised that, in drafting the Code, the spiritual service of the army was not consulted. Other criticism has been that the Code is rather bureaucratic and does not provide practical guidance for ethical dilemmas.
A project aiming to optimise the fight against corruption in the Ministry of Defence, funded by the European Social Fund (project number CZ.1.04/4.1.00/B6.00004 ), started recently in June 2014. It aims to create an effective instrument for determining the level of implementation of the Code of Ethics of MoD employees i.e. external audit of ethical behaviour, increased protection of whistle-blowers etc.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic, web page: http://www.mocr.army.cz/

Code of Ethics of Ministry of Defence personnel ( Etický kodex zaměstnanců Ministerstva obrany (RMO6/2013).

Code of Ethics for Civil Servants and Public Administration Employees (Etický kodex úředníka a zaměstnance veřejné správy: http://www.vlada.cz/assets/media-centrum/aktualne/Eticky_kodex_uredniku_a_zamestnancu_verejne_spravy.pdf

Defence Internal Anti-Corruption Programme (Resortní interní protikorupční program ministerstva obrany), Praha 2014

Blog: Code of Ethics of Ministry of Defence personnel (Etický kodex zaměstnanců resortu MO), January 30 2014, http://www.cbrn-mil.cz/index.php/blog-1/91-eticky-kodex-zamestnancu-resortu-mo

&quoute;Optimising the fight against corruption in the defence sector&quoute;, project funded from European Social Fund, posted 27.11. 2014 ( of http://www.esfcr.cz/projekty/optimalizace-systemu-boje-s-korupci-v-rezortu-ministerstva)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: A project aiming to optimise the fight against corruption in the Ministry of Defence, funded by the European Social Fund (project number CZ.1.04/4.1.00/B6.00004 ), started recently in June 2014. It aims to create an effective instrument for determining the level of implementation of the Code of Ethics of MoD employees i.e. external audit of ethical behaviour, increased protection of whistleblowers etc.
&quoute;Optimizing the fight against corruption in the Ministry of Defence&quoute;, Duration of the project: the first June 2014 to 30 September 2015, www.esfcr.cz/projekty/optimalizace-systemu-boje-s-korupci-v-rezortu-ministerstva

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

49.
score
1

Does regular anti-corruption training take place for military and civilian personnel?

There is a system for anti-corruption training in the defence sector focused on a limited number of people. According to the Defence Internal Anti-Corruption programme (the official MoD anti-corruption strategy coordinated by the MOD's Inspectorate General), updated in January 2014 under the current Minister, it is not sufficient (not sufficiently complex, regular and focused) and should be fundamentally altered. The criticism reflects a more anti-corruption stand of the present minister and dissatisfaction over previous anti-corruption efforts (as being too bureaucratic).There are plans and programmes for developing new systems for anti-corruption training.

COMMENTS -+

Defence anti-corruption programme (Resortní interní protikorupční program ministerstva obrany), Praha 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The MoD is developing a new system of anti-corruption training for military and civilian personnel with the support of the European Union.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: According to the MoD presentations, the coordinator of the updated departmental anti-corruption program ( „Aktualizovaný rezortní protikorupční program (ARPP)“) has training functions which involve external trainers on an ad hoc basis (Transparency International, ČMÚD http://www.cmud.cz/)

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

50.
score
2

Is there a policy to make public outcomes of the prosecution of defence services personnel for corrupt activities, and is there evidence of effective prosecutions in recent years?

There is no separate military judiciary. Prosecution is conducted by national police and supervised by national prosecutor. According the Code of Penal Procedures, while preparatory criminal proceeding are not public (§ 8a), judicial proceedings at the court are public (§199). In practice laying a charge (indictment) is usually accompanied by leaking the relevant names into the press. There were several major cases in recent years where defence personnel were prosecuted, including staff at the highest positions (Deputy Minister - source 1 and the former Minister - source 2). Deputy Minister Barták was acquitted, many recent cases are still pending, some ended by sentences (see previous questions and source &quoute;25 years sentences..&quoute;). There are no indications that the publicity of prosecutions was suppressed. There is evidence of higher activity of police and prosecutors in investigating and prosecuting corruption in defence sector in recent years. As mentioned in Question 35, there is a risk of political interference in the work of anti-corruption agencies in regard to corruption cases.

COMMENTS -+

Act No.: 141/1961 Coll, Code of Penal Procedures, especially § 8 a,b, c), and §199

&quoute;Why was Martin Barták released?&quoute; (Proč byl Martin Barták osvobozen) in Respekt, 14. 5. 2014, http://respekt.ihned.cz/komentar/c1-62181770-proc-byl-martin-bartak-osvobozen

&quoute;Wasting of money and corruption will end, promised Minister Parkánová. Read how this ended&quoute; (Plýtvání a korupce skončí, slibovala kdysi ministyně Parkanová. Přečtěte si, jak to dopadlo), in: Parlamentní listy web news server, 6. 2. 2014, http://www.parlamentnilisty.cz/arena/monitor/Plytvani-a-korupce-skonci-slibovala-kdysi-ministyne-Parkanova-Prectete-si-jak-to-dopadlo-302746

&quoute;25 years sentences for corruption in army&quoute;, in: euro.E15.cz web news portal, posted 31.2. 2014, (http://euro.e15.cz/archiv/25-let-za-armadni-korupci-1073778)

&quoute;Corruption in army - 50 persons charged&quoute;, in: Deník Referendum web page, posted 17.3. 2011, )http://denikreferendum.cz/clanek/9585-korupce-v-armade-ma-pet-desitek-obzalovanych)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Disagree

Comment: As mentioned previously in the assessment, such prosecutions do not always lead to a successful end. Nonetheless, this could be a problem of weak judicial branch.

Sources:
Interview with Source 1, Academic focusing on security studies, 3 September 2014.
Interview with Source 2, Academic focusing on security studies, 3 September 2014.

Suggested score: 3

Peer Reviewer-+

51.
score
3

Are there effective measures in place to discourage facilitation payments (which are illegal in almost all countries)?

Facilitation payments are strictly illegal (if defined as bribes) and are punishable in accordance with the Penal Code (§ 331 - §333). Additionally, the Act on Professional Military Servicemen (Act 229/1999) prohibits accepting any gifts or other benefits related to performance in service. There are mechanisms for prosecution in the Code of Penal Procedures or through disciplinary procedures stipulated by the Professional Military Servicemen Act. In 2010 a major case ( &quoute;Černé fondy..&quoute;) revealed that such practices existed in the General Staff of the Czech Army between 2002 to 2007. In 2014 a major corruption scandal related to defence resulted in 52 convicted with both conditional and unconditional sentences.

COMMENTS -+

Act Nr. 40/2009 Coll, Penal Code, § 229 - 334

Act Nr. 221/1999 Coll., on Professional Military Servicemen, § 48, section (1), h, and section III

Act Nr. 141/1961 Coll, Code of Penal Procedures

Resortní interní protikorupční program Ministerstva obrany, Praha 2014 (Defence Internal Anti-Corruption Programme)

Strategie vlády v boji s korupcí na období let 2013 a 2014 (Governmental Anti-Corruption Strategy): http://www.korupce.cz/assets/protikorupcni-strategie-vlady/na-leta-2013-2014/Strategie-2013-a-2014---aktualni-verze_1.pdf

Černé fondy na generálním štábu: Sedm milionů, tři obžaloby, in : Parlamentní listy web page, 11.6. 2010: http://www.parlamentnilisty.cz/arena/monitor/Cerne-fondy-na-generalnim-stabu-Sedm-milionu-tri-obzaloby-167758

&quoute;For machination with army tenders there is also a sentence of 5 years imprisonment&quoute;, In. Lidovky.cz, posted 26.3. 2014 (http://www.lidovky.cz/kvuli-manipulaci-armadnich-zakazek-padl-i-petilety-trest-pzk-/zpravy-domov.aspx?c=A140326_125032_ln_domov_vsv)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: The ongoing process with 52 alleged cases proves that effectiveness might be questionable.

Sources:
http://www.novinky.cz/domaci/330677-za-manipulaci-armadnich-zakazek-s-52-obzalovanymi-padly-prvni-tresty.html

Suggested score:

Peer Reviewer-+

Training 60
52.
score
2

Do the armed forces have military doctrine addressing corruption as a strategic issue on operations?

Corruption in operations is gradually being given more attention. A formal doctrine does not exist but corruption is often recognised and mentioned as an important strategic issue. It was mentioned at the Integrity in Defence Round Table in October 2013 and it is strongly articulated in the Defence Internal Anti-Corruption Programme from 2013. E.g. task 1,7. obliging Chief of Staff to include anti-corruption training into preparatory scheme of staff before being send to overseas operations, or task 3.3. obliging Deputy Chief of Staff to identify the sources of possible corruption at overseas operations or monitoring mission, analyse them and adopt necessary measures.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Ministry of Defence and Army of the Czech Republic website, Resortní interní protikorupční program Ministerstva obrany, Praha 2014 (MOD internal anti-corruption programme): http://www.mocr.army.cz/ministr-a-ministerstvo/lide/kabinet/referat-protikorupcnich-aktivit-100526/

Ministry of Defence and Army of the Czech Republic website, 'People themselves must want to fight against corruption, it was said at the seminar', 25.10.2013, www.mocr.army.cz/informacni-servis/zpravodajstvi/lide-museji-sami-chtit-proti-korupci-bojovat--zaznelo-na-seminari-90625/, accessed April 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

53.
score
0

Is there training in corruption issues for commanders at all levels in order to ensure that these commanders are clear on the corruption issues they may face during deployment? If so, is there evidence that they apply this knowledge in the field?

There is no publicly available evidence that there is systematic anti-corruption training for commanders regarding corruption during deployment. While some anti-corruption events for officers have been held, like the anti-corruption seminar in September 2013 (source interviewee 3), there is no evidence that they were focused on corruption during deployment. The new Defence Internal Anti-Corruption Programme, adopted in January 2014, describes anti-corruption training as insufficient and calls for a number of new measures, including training.

Response to Peer Reviewer 1: The section specified (paragraph 1.1.3) in the Defence Internal Anti-Corruption Programme confirms the inadequacies in training. It states that regular training only takes place for control staff and lists plans for the future. Given there is no evidence of anti-corruption training focused on operations, score 0 has been selected. General anti-corruption training is covered in Question 49.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, Resortní interní protikorupční program Ministerstva obrany, Praha 2014 (MOD internal anti-corruption programme): http://www.mocr.army.cz/ministr-a-ministerstvo/lide/kabinet/referat-protikorupcnich-aktivit-100526/

Ministry of Defence and Army of the Czech Republic website, 'People themselves must want to fight against corruption, it was said at the seminar', 25.10.2013, www.mocr.army.cz/informacni-servis/zpravodajstvi/lide-museji-sami-chtit-proti-korupci-bojovat--zaznelo-na-seminari-90625/, accessed April 2014

Interview with interviewee 3, NGO employee, April 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: Under the departmental internal anti-corruption program, there is a systematic anti-corruption education. Some information on the types of trainings is provided in paragraph 1.1.3 (Education in the fight against Corruption).

Resortní interní protikorupční program Ministerstva obrany, Prague 17.1.2014 , 22 p. http://www.mocr.army.cz/scripts/file.php?id=183324&down=yes.

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

54.
score
3

Are trained professionals regularly deployed to monitor corruption risk in the field (whether deployed on operations or peacekeeping missions)?

Corruption in missions was not a theme until recently (see first source). The Inspectorate of the Ministry of Defence (which is responsible for anti-corruption) can operate on missions, but there is no evidence that anyone is sent to the field with the task of monitoring corruption from the Inspectorate.
There is a Vulnerability Assessment Team (VAT) which visit overseas missions twice a year. The team as a part of supreme command supervision is requested to identify weak points in support, logistics and established processes. The members of VAT team can adopt immediate measures in the field. While it is not focused specifically on corruption it can deal with corruption situation as it also supervised local contracting.
Corruption cases and situations can also be detected and dealt with by Military Police Cells which are deployed along with forces. There are no reports available from these missions in the public arena.

Response to Government Reviewer and Peer Reviewer 1: Given the evidence provided of a Vulnerability Assessment Team (VAT) and of military officers who are trained to monitor corruption, score is raised from 1 to 3 (sources added). The score should be between 2 and 3 given there is no public evidence of regular reporting. However, score 2 would reflect irregular deployment which does not appear to be the case.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, 'People themselves must want to fight against corruption, it was said at the seminar', 25.10.2013, www.mocr.army.cz/informacni-servis/zpravodajstvi/lide-museji-sami-chtit-proti-korupci-bojovat--zaznelo-na-seminari-90625/, accessed April 2014

Ministry of Defence and Army of the Czech Republic website, Resortní interní protikorupční program Ministerstva obrany, Praha 2014 (MOD internal anti-corruption programme): http://www.mocr.army.cz/ministr-a-ministerstvo/lide/kabinet/referat-protikorupcnich-aktivit-100526/

Ministry of Defence and Army of the Czech Republic website, &quoute;Vulnerability Assessment Team (VAT) searched in Afganistan for weak points&quoute;, posted 2.4. 2013: http://www.mise.army.cz/aktualni-mise/ukolove-uskupeni/zpravodajstvi/vat-hledal-v-afghanistanu-slaba-mista-81461/

Ministry of Defence and Army of the Czech Republic website, Military Police, http://www.army.cz/scripts/detail.php?id=6264

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is a Vulnerability Assessment Team (VAT) intended to control the processes (operational issues, contracts etc.) in foreign operations. The VAT consists of specialists from various areas (e.g. finance and logistic experts). If there is any suspicion of corruption, they are authorized to investigate it.

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: The Vulnerability Assessment Team, are deployed twice a year on foreign missions, and may include anti-corruption specialists. http://www.mise.army.cz/aktualni-mise/ukolove-uskupeni/zpravodajstvi/vat-hledal-v-afghanistanu-slaba-mista-81461/

Also, Military Police officers serve within contingents/units deployed abroad, and are trained to monitor corruption. http://www.army.cz/scripts/detail.php?id=6264

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

55.
score
2

Are there guidelines, and staff training, on addressing corruption risks in contracting whilst on deployed operations or peacekeeping missions?

As mentioned in Question 53, there is a Vulnerability Assessment Team (VAT) deployed twice a year which supervises local contracting, signifying training and guidelines. The new Defence Internal Anti-Corruption programme (task 1.7) requires the inclusion of anti-corruption training as a part of a preparatory training before being sent on missions but it does not specifically mention contracting procedures.

A single legislative framework appears to exist which addresses corruption risks in contracting, and covers contracts concluded on Czech territory or abroad. The researcher was not able to verify the content however.

RESPONSE TO REVIEWERS: The peer reviewer's statement is accepted but could not be verified, as the source is missing. No further evidence beyond the MoD Anti-corruption program (and the VAT) was found, although it is true that the same legal obligations (requiring e.g. effectiveness and value for money ) are valid both for in country and overseas operations.

Discussion has been updated. Score downgraded from 3 to 2 on review as the situation shows that although some relevant guidelines and training may relate to this form of corruption, they are likely to be very general and it is unclear how well they are applied.

COMMENTS -+

Act No. 320/2001 Coll., of financial control in public administration

Ministry of Defence and Army of the Czech Republic website,: http://www.mocr.army.cz/

Ministry of Defence and Army of the Czech Republic website, Resortní interní protikorupční program Ministerstva obrany, Praha 2014 (MOD internal anti-corruption programme): http://www.mocr.army.cz/ministr-a-ministerstvo/lide/kabinet/referat-protikorupcnich-aktivit-100526/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: There is a single legislative framework on corruption risks in contracting, with regard to contracts concluded on Czech territory or abroad.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

56.
score
2

Private Military Contractors (PMCs) usually refer to companies that provide operational staff to military environments. They may also be known as security contractors or private security contractors, and refer to themselves as private military corporations, private military firms, private security providers, or military service providers.

The use of Private Security Companies is not part of the Czech Military Doctrine and there are no indications that they exist or are used. There is no evidence of appropriate legislation to govern this however. Non-military private security companies are used in the civilian sector (e.g. transport of money, property guarding). There have been several previous attempts to regulate this industry by a separate Act, but no law has been passed at the time of research and research indicates these drafts have never considered military contractors.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, http://www.mocr.army.cz/

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Draft Law proposal on private security activities, Ministry of Interior web site, no date, (http://www.mvcr.cz/clanek/navrh-zakona-o-soukrome-bezpecnostni-cinnosti.aspx) , accessed March 2015

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

Personnel 50
57.
score
2

Does the country have legislation covering defence and security procurement and are there any items exempt from these laws?

All government procurement is covered by the Act No. 137/2006 Coll., on Public Procurement, with recent major amendment in April 2012 (so called transparency amendment). Security and defence procurement is defined in § 10 a). The Act further specifies general exceptions from the Act in §18. In provision 18 1) a), and b) those security and defence contract are excepted from the Act, which &quoute;deals with classified information&quoute; or &quoute;are necessary for protection of substantial security interest of the country&quoute; . Further there are exception on arms and ammunitions under certain cost in § 18 4) h) of the Act. on and some other exceptions for contract on overseas operations. All exclusions from the Act on security or defence grounds must be justified. All economical operations including procurement are subjected to Act No. 320/2001 Coll., on Financial Control which in § 4 d) requires that all economical operations effective, efficient and purposeful. All tenders are subjected to external audit of Supreme Auditing Office. There are indications that exceptions have been misused (see Supreme Auditing Office finding on IT contracts).

COMMENTS -+

Act Nr.137/2006 Sb, on Public Procurement as amended

Act 320/2001, on Financial Control

Supreme Auditing Office, 'Ministry awarded 62% of orders for information and communication technology without competition', 16. 12. 2013, http://www.nku.cz/cz/media/ministerstva-zadavaji-62--zakazek-na-informacni-a-komunikacni-technologie-bez-souteze-id6756/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: The government is currently drafting new procurement legislation.

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

58.
score
2

Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?

While purchasing itself is rather transparent, the procurement cycle is not. Needs assessment and long term strategic purchases can be found in different strategic documents which are not very coherent, e.g. in outdated National Strategy of Armament of 2004. The White Paper on Defence (Part 8) stresses the importance of improving the defence procurement cycle process. The present Minister has adopted concrete steps in reforming the procurement / acquisition process. The results are not known however. A number of needs assessments (including for L159 light attack jets, armoured vehicles and transporters, transport air planes, etc.) have been heavily criticised in public and political debates.

RESPONSE TO REVIEWERS: The key question here is the level of disclosure that occurs at each stage from assessment of needs, through contract implementation and sign-off, all the way to asset disposal. Although there is some evidence to indicate that improvements have been made to the defence procurement process, there are ongoing issues around the transparency of the cycle. Overall it appears that the defence procurement cycle is openly disclosed in summary form only, in line with the criteria for Score 2. Score maintained.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011:http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

National Strategy of Armament of 2004, in: (http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088)

Ministry of Defence and Army of the Czech Republic website: http://www.mocr.army.cz/

&quoute;President Zeman criticized low defence expenditures and L-159 fighter jets decaying on the ground&quoute; , In. Czech TV website, posted 12.3. 2014, http://www.ceskatelevize.cz/ct24/domaci/265983-zeman-kritizoval-nizke-vydaje-na-armadu-i-hnijici-l-159/, accessed September 2014

Interview with interviewee 4, NGO staff, July 2014

SOURCES -+

Opinion: Disagree

Comment: To follow life cycle of procurement proces is almost impossible for public now, although there are plans to change that and make it more visible and accessible.

Suggested score: 1

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is a new team assembled within the MoD to run the acquisitions process optimisation. A Transparency International (Czech Republic) analyst was also involved.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: The procurement cycle process for the purchase of sensitive security equipment, works and services which are classified information are protected by legislation (e.g. Act N. 412 of 21 September 2005 on the Protection of Classified Information) and are not publicly disclosed, which creates a risk of potential irregularities and corrupt practices.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

59.
score
2

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

There is a standard oversight mechanism very similar to other government procurements. In accordance with the Act on Financial Control there is a obligation to arrange for both managerial control and partly independent internal audit. There is a special Order of the Minister specifying audit performance within the Ministry. (8/2006). The internal audit reports are not public. Additional government oversight is provided by the Independent Competition Office and by the Supreme Auditing Office. Both bodies are independent and their findings are made public. There have been a number of cases which were mishandled (see interview with Minister Stropnický in Respekt journal on 16.3. 2014) indicating that the oversight mechanisms are not completely effective.

COMMENTS -+

Act 137/2006 Coll. , on Public Procurement

Act No. 320/2001 Coll., on Financial Control

Act No. 166/1993, on Supreme Auditing Office

Order of the Minister of Defence No. 8/2006 on internal audit

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Ministry of Defence and Army of the Czech Republic website, Finance and Procurement, http://www.mocr.army.cz/finance-a-zakazky/finance-a-zakazky-5145/

Ministry of Defence web portal, &quoute;Minister of defence gave an interview for the Respekt journal&quoute; (Ministr obrany poskytl rozhovor časopisu Respekt pro článek v rubrice O kom se mluví, 17.3.2014 http://www.mocr.army.cz/informacni-servis/forum/ministr-obrany-poskytl-rozhovor-casopisu-respekt-pro-clanek-v-rubrice-o-kom-se-mluvi-95460/

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

60.
score
3

Are actual and potential defence purchases made public?

Ministry of Defence procurement is made public via electronic system (Tendermarket, Bulletin of Public Procurement) that enables interactive search. The Ministry also uses an &quoute;electronic market place&quoute; which automatically selects the tender winner with the lowest price. These systems are designed to prevent intentional manipulation by contracting personnel. A long list of accomplished procurement contracts is published on the Ministry website.

Strategic procurement plans are presented in publicly available strategic documents such as the White Paper on Defence. It is difficult to assess if these strategic documents demonstrate that extensive long-term forward purchase planning occurs, however the researcher contends this is unlikely.

RESPONSE TO TI CHAPTER REVIEWER: The description of the purchasing system and its transparency has been elaborated in more detail. Additional sources added. The TI reviewer's opinion can not be verified. No evidence was found to justify score 2, noting that it appears that there is a policy to disclose defence purchases, and that most defence purchases are published. Score maintained.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, Invitation to tender - July 2012, http://www.osmap-ssm-mo.army.cz/2012_07.php

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Ministry of Defence and Army of the Czech Republic, &quoute;Transformation of Ministry of Defence&quoute;, Praha 2007: http://www.mocr.army.cz/images/Bilakniha/CSD/transformace_resortu_MO___R_2007.pdf

Tendermarket web page (https://www.tendermarket.cz/home.seam)

Bulleting of Public Procurement (http://www.vestnikverejnychzakazek.cz/)

SOURCES -+

Opinion: Disagree

Comment: Confidentiality and security is often used to legitimize that but there are some purchases which remain opaque from public, all efforts to reform that remain to be implemented.

Suggested score: 2

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

61.
score
0

What procedures and standards are companies required to have - such as compliance programmes and business conduct programmes - in order to be able to bid for work for the Ministry of Defence or armed forces?

Until recently, direct procurement from defence technology companies was not possible and an &quoute;intermediary&quoute; was required . This measure, originally declared as to be a anti-corruption measure finally appeared to enable overpricing and was abandoned. There are no indicators nor evidence that any specific criteria for defence companies such as compliance programmes or business codes are applied.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic web page: http://www.mocr.army.cz/

Act Nr. 137/2006 Coll.., on Public Procurement

Ernst & Young Global Limited, Global Fraud Survey 2012: http://www.ey.com/GL/en/Services/Assurance/Fraud-Investigation---Dispute-Services/Global-Fraud-Survey---a-place-for-integrity, accessed 2013

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: There are only general business codes and compliance programmes effective in the Czech Republic, for example, Corporate Governance Code based on the OECD Principles, and alike.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

62.
score
2

Are procurement requirements derived from an open, well-audited national defence and security strategy?

The White Paper on Defence describes the key areas of strategic purchasing of 25 key military equipment (page 68,69). This is (as far as it is possible to follow) implemented, for example, a recent procurement of jet fighters.
However, a number of procurement deals are undertaken according to arising operational /mission needs. For example, strategic purchase of assault rifles was accomplished in 2013. These rifles were compatible with German magazine standards. Field experience from overseas brought a need for riffles with magazines compatible with US standards was made in 2013. Accordingly, extraordinary purchase had to be made.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

&quoute;Insider: Army wants the different type of magazine from the arms factory&quoute; (Insider: Armáda chce po zbrojovce pušky pro jiný typ zásobníku), in: Finanční noviny, 17.10.2013,: www.financninoviny.cz/zpravy/insider-armada-chce-po-zbrojovce-pusky-pro-jiny-typ-zasobniku/996773

&quoute;Army made a somersault with rifles for their soldiers&quoute; (Armáda udělala salto s puškami pro své bojovníky), in Aktualne.cz, 17.10. 2013: http://zpravy.aktualne.cz/domaci/armada-udelala-salto-s-puskami-pro-sve-bojovniky/r~8761efa0369811e3a080002590604f2e/

&quoute;Czech Republic signed a new contract with Sweden about lease of Gripen jets&quoute;, In. Parlamentní listy.cz web news portal, 16.5. 2014 (http://www.parlamentnilisty.cz/arena/monitor/Cesko-podepsalo-se-Svedskem-novou-smlouvu-o-pronajmu-stihacek-Gripen-319331)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

63.
score
1

Are defence purchases based on clearly identified and quantified requirements?

A formal procedure of needs assessment is in place. Some strategic acquisition is done within this strategic consideration, e.g. prolongation of the lease of Gripen jet. However, there are numerous sources of information (see media articles in sources) which indicate that this assessment is not done properly - unnecessary material is purchased while required equipment is scarce or missing. In the past there were cases of opportunistic procurement or ad hoc changes to the requirements of strategic equipment (for example, armoured vehicles, plans for purchase of mortar vehicles, changes in number of armoured Pandur vehicles to be purchased, change of type of assault rifles etc).

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

&quoute;Czech Republic signed a new contract with Sweden about lease of Gripen jets&quoute;, In. Parlamentní listy.cz web news portal, 16.5. 2014 (http://www.parlamentnilisty.cz/arena/monitor/Cesko-podepsalo-se-Svedskem-novou-smlouvu-o-pronajmu-stihacek-Gripen-319331)

&quoute;Insider: Army wants the different type of magazine from the arms factory&quoute; (Insider: Armáda chce po zbrojovce pušky pro jiný typ zásobníku), in: Finanční noviny, 17.10.2013,:http://www.financninoviny.cz/zpravy/insider-armada-chce-po-zbrojovce-pusky-pro-jiny-typ-zasobniku/996773

&quoute;Army made a somersault with rifles for their soldiers&quoute; (Armáda udělala salto s puškami pro své bojovníky), in Aktualne.cz, 17.10. 2013:http://zpravy.aktualne.cz/domaci/armada-udelala-salto-s-puskami-pro-sve-bojovniky/r~8761efa0369811e3a080002590604f2e/

&quoute;Vondra dismissed the deputy for corruption and started changes in the ministry &quoute; (Vondra odvolal náměstka kvůli korupci, také rozjel rezortní změny), Czech TV website, 1. 9. 2010, http://www.ceskatelevize.cz/ct24/domaci/100095-vondra-odvolal-namestka-kvuli-korupci-take-rozjel-rezortni-zmeny/

&quoute;The case of mortars showed also on overpriced armoured vehicles&quoute; (Kauza minometů ukázala i na předražené armádní nákupy obrněnců), in: iDNES.cz web news portal, 2.9. 2010, http://zpravy.idnes.cz/kauza-minometu-ukazala-i-na-predrazene-armadni-nakupy-obrnencu-pva-/domaci.aspx?c=A100902_214255_domaci_mad, accessed May 2014

&quoute;Soldiers defend the number of purchased Pandurs armoured vehicles. Twenty vehicles were never under consideration, they insist&quoute; (Vojáci haji počet koupených pandurů. O dvaceti nikdo nemluvil, tvrdí), 24.2. 2010, in: IDNES, http://zpravy.idnes.cz/vojaci-haji-pocet-koupenych-panduru-o-dvaceti-nikdo-nemluvil-tvrdi-1fi-/domaci.aspx?c=A100224_194631_domaci_jw

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: There is a new team assembled within the MoD to run acquisitions process optimisation. A TI CZ analyst was also involved.

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: In response to problems with procurement (such as the Pandur armoured transport aircraft CASA), the government established a National Bureau of Armaments with the aim of bringing greater cohesion to military purchases and reducing the number of potentially risky contracts. However, its functioning has been criticised in the media (&quoute;Myths and reality in defence acquisitions&quoute;, published by Parlamentnilisty.cz on 25 May 2014, www.parlamentnilisty.cz/politika/politici-volicum/Seda-CSSD-Myty-a-skutecnost-v-obrannych-akvizicich-320025).

Interview with former head of the National Bureau of Armaments, published by Ceska Pozice, 23 October 2013, http://ceskapozice.lidovky.cz/byvaly-sef-armadnich-zbrojiru-chtel-jsem-aby-armada-rychleji-nakupovala-1a4-/tema.aspx?c=A131017_220225_pozice_136761

&quoute;National Bureau of Armaments has a new director&quoute;, 17 April 2014, published by 24 News, www.ceskatelevize.cz/ct24/domaci/270043-urad-pro-vyzbrojovani-ma-novou-reditelku-chce-zjednodusit-nakupy/

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: Mismanagement of funds and high volatility of requirements is characteristic.

Sources
Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score:

Peer Reviewer-+

64.
score
2

Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?

According to a 2011 study by Jiří Skuhrovec, the Ministry of Defence has historically been one of the weakest ministries in the Czech Republic with regard to public procurement. Currently, a considerable amount of defence purchasing is undertaken through an electronic purchasing system which is open to all bidders and any discrimination is not possible as all parties can see the call and offer a bid. However, there are also many cases with tenders with only one selected bidder. These exceptions are, for instance, described in the Supreme Auditing Office's findings regarding IT procurement (see above). It is difficult to assess the level of single-sourcing which is broadly estimated as fifty percent of the value of contracts.

COMMENTS -+

&quoute;62% of IT procurement at ministries is single sourced&quoute; ( Ministerstva zadávají 62 % zakázek na informační a komunikační technologie bez soutěže), Supreme auditing office:, 16.12. 2013: http://www.nku.cz/cz/media/ministerstva-zadavaji-62--zakazek-na-informacni-a-komunikacni-technologie-bez-souteze-id6756/

&quoute;Transparency of public procurement in the Czech Republic&quoute; ( Otevřenost zadávacích řízení v ČR), CSO Oživení, Praha 2011:http://www.bezkorupce.cz/wp-content/uploads/2011/06/Otevrenost_final1.pdf

Jiří Skuhrovec, Jana Chvalkovská: &quoute;Analysing public procurement dataů (Práce s daty o veřejných zakázkách&quoute;, 2011, PowerPoint presentation on Bez korupce.cz websute : http://www.bezkorupce.cz/wp-content/uploads/2011/08/presentace-zIndex.pdf

SOURCES -+

Opinion: Agree with Comments

Comment: Still at MoD a large (perhaps alarmingly high) proportion of contracts is not done through open tenders but though &quoute;negotiated procedure&quoute;, which is legal but allows government agency to negotiate with selected bidders only.

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

65.
score
2

Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?

There are general requirements regarding the code of conduct for tender boards expressed in the Public Procurement Act. While some public institutions have more detailed and specific codes on tender boards (like declarations of absence of conflict of interest), there is no publicly available information to suggest there is any such document at the Ministry of Defence. Tender board decisions are subject to the scrutiny of the Competition Office. This scrutiny is done upon request and results are made public. Further there is a internal control and audit bodies work of which is not made public. There is also an external control of Supreme Auditing Office whose findings are again public.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website: http://www.mocr.army.cz/

Act Nr. 137/2006 Coll., on Public Procurement, § 74 and 75

Act 166/1993 Coll., on Supreme Auditing Office

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

66.
score
2

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

Collusion is legally forbidden in accordance with Act No. 143/2001 Coll., on Protection of Competition, §3. They may also be considered as a crime in accordance with § 257 of the Penal Code. Oversight over collusions entrusted to the independent Competition Office. There are no specific measures for defence sector. There is evidence of detecting collusion in the defence sector (contracts on defence constructions) by the Competition Office (source 1). A big case of collusion connected with corruption in army construction tenders recently culminated in prison sentences (source 2). However, Competition office is criticised for the lack of capacity. It is likely that majority of collusions remain undetected.

COMMENTS -+

Act Nr. 40/2009, Coll., Penal Code, §§ 248,256,257

Act No. 143/2001 Coll., on Protection of Competition, especially §3

Act 273/1996 Coll., on Competition Office

Office for the Protection of Competition website, http://www.uohs.cz/cs/uvodni-stranka.html

Platform for Transparent Public Procurement (Transparentní veřejné zakázky), http://www.transparentnizakazky.cz/

Source 1: &quoute;The first collusion in Czech Public procurement in the Czech Republic, Competition office had investigated it in the army&quoute; (První kartel u veřejných zakázek v Česku: ÚOHS ho odhalil v armádě), in: Novinky.cz, 22.7. 2010, http://www.novinky.cz/domaci/206632-prvni-kartel-u-verejnych-zakazek-v-cesku-uohs-ho-odhalil-v-armade.html, accessed May 2014

Source 2: &quoute;Corruption in army has fifty charged&quoute; (Korupce v armádě má pět desítek obžalovaných), in: Deník referendum,17.3. 2011,http://denikreferendum.cz/clanek/9585-korupce-v-armade-ma-pet-desitek-obzalovanych, accessed May 2014

&quoute;Three years to get Competition Office decision? Too much rules out a court&quoute;, in iHned,cz web news portal, posted 20.8.2010 (http://byznys.ihned.cz/c1-45804000-tri-roky-na-reseni-pripadu-uohs-to-uz-je-moc-rozhodl-soud)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree with Comments

Comment: There are weaknesses in the legislation that aims to prevent collusion. While one large defence collusion case was investigated this does not mean that there are no others but may point to weak and ineffective prevention measures.

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: The mechanisms in place are not effective in discouraging collusion.

Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score:

Peer Reviewer-+

67.
score
2

Are procurement staff, in particular project and contract managers, specifically trained and empowered to ensure that defence contractors meet their obligations on reporting and delivery?

There is limited evidence regarding this question. To a large extent, procurement staff seem to be professional and training is provided. There is some evidence that delivery has been occasionally problematic and that the procurement staff's reaction was too late - for example, difficulties with CASA transport planes, which were delivered with equipment not meeting contract requirements. The procurement bodies also suffering by frequent organizational changes and staff rotation (see dissolving of the National Office for Arming).

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

&quoute;Casa aircraft has passed tests and can not be deployed in Afganistan&quoute; (Letoun CASA neprošel testy a zatím nesmí do Afghánistánu), in E 15 news server, 5.4.2011, http://zpravy.e15.cz/domaci/udalosti/letoun-casa-neprosel-testy-a-zatim-nesmi-do-afghanistanu-550390#utm_medium=selfpromo&utm_source=e15&utm_campaign=copylink

&quoute;Ministry dissolved the National Office for Arming&quoute; , in týden.cz web page, posted 18.2. 2015, (http://www.tyden.cz/rubriky/domaci/ministerstvo-obrany-zrusilo-narodni-urad-pro-vyzbrojovani_333751.html#.VR1V78v9kdU),

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

68.
score
3

Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?

There are a range of available mechanisms to submit a complaint - from complaining to the procuring authority, to the Competition Office, to police or to an NGO (such asTransparency International). In discussions with companies representatives it is often said (I have not found hard data) that companies are reluctant to report malpractice as they are afraid of reprisal by the contracting authority. There is no evidence that there are reprisals for companies who submit a complaint. On contrary there are evidences that sometimes companies use complaints arbitrarily to stop the tender (see source). These are general findings, there are no specific findings related to the security/defence industry.

COMMENTS -+

&quoute;Public procurement platform&quoute; (Platforma pro transparentní veřejné zakázky), http://www.transparentnizakazky.cz/

Competition office (Úřad pro ochranu hospodářské soutěže):http://www.uohs.cz/cs/uvodni-stranka.html, especially the list of Office decissions

Act Nr. 137/2006 Coll., on Public Procurement, § 110 and following.

&quoute;Complains against tender will be limited by stricter cautions&quoute;, in: apuen.cz web page, posted 14.10. 2014, http://www.apuen.cz/stiznosti-na-tendry-omezi-prisnejsi-kauce

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree with Comments

Comment: Companies can also use the email hotline korupce@army.cz to complain about malpractice in procurement. All reports (including anonymous reports) are taken seriously and properly investigated.

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

69.
score
2

What sanctions are used to punish the corrupt activities of a supplier?

There is a full range of sanctions for corrupt behaviour applicable to both the contracting authority and the supplier. These sanctions range from administrative sanctions awarded by the Competition office (which is independent) and criminal prosecution. Such cases are being investigated more frequently. Historically, cases were not reported and the prosecution was reluctant. Nowadays, prosecution is more vigorous. The majority of related criminal cases are against Ministry of Defence staff, but some are also against suppliers. The possibility of debarment exists but it is not often used (7 cases altogether by March 2015).

COMMENTS -+

Act No. 140/1961 Sb., Penal Act, e.g. §§ 128,129

Bulleting of debarment (http://www.isvz.cz/isvz/VZ/VestnikZakazPlneniVZ.aspx)

&quoute;The major corruption case: 54 persons charged in the defence&quoute; (Rekordní korupční kauza: na obraně obviněno 54 lidí), in Novinky.cz news web server, 17.2. 2011, http://www.novinky.cz/domaci/225545-rekordni-korupcni-kauza-na-obrane-obvineno-54-lidi.html

&quoute;25 years sentences for army corruption&quoute; (25 let za armádní korupci), in E15, 31.3.2014, http://euro.e15.cz/archiv/25-let-za-armadni-korupci-1073778, accessed May 2014

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

70.
score
1

When negotiating offset contracts, does the government specifically address corruption risk by imposing due diligence requirements on contractors? Does the government follow up on offset contract performance and perform audits to check performance and integrity?

According to a study published in 2014, the Czech Republic government states that offsets will be used on a case-by-case basis.

There have been several offset programmes in the past. There is no information about the due diligence process and auditing of the offset programs performed by the Defence Ministry or the Ministry of Industry and Trade. The offset programmes are coordinated by the Ministry of Industry and Trade in accordance with Governmental decree 499/2010. There has been an audit of offset programmes by the Supreme Auditing in Office in 2012 which criticised their ineffectiveness.

Response to Peer Reviewer 1: Given the evidence of an independent audit undertaken annually of offset programmes, the score has been increased from 0 to 1. The score should be between 1 and 2 but 1 was selected as there are no clearly defined due diligence requirements.

COMMENTS -+

Supreme Auditing Office control conclusion Nr. 12/08, http://www.nku.cz/scripts/rka/detail.asp?cisloakce=12/08&rok=0&sestava=0

Ministry of Industry and Trade: Guidelines for implementing offset programmes (Směrnice pro realizaci programů průmyslové spolupráce), issued by Ministerial decree 19/2010: http://www.mpo.cz/dokument80825.html, accessed May 2014

Governmental decree 499/2010

&quoute;defence and Interior Ministries did not use offset programs effectively: SAO&quoute;, published March 11, 2013 by iDNES news, http://zpravy.idnes.cz/obrana-a-vnitro-nevyuzivaly-offsetove-programy-efektivne-uvadi-nku-1g9-/domaci.aspx?c=A130311_080710_domaci_jpl the EDA

&quoute;Gripen offset program in the Czech Republic has fulfilled 23.74 billion CZK&quoute;, SAAB company press release 15th June 2014, www.saabczech.cz/clanek/offsetovy-program-gripen-jiz-v-ceske-republice-splnil-2374-miliardy-kc/

Martin Trybus, “Buying Defence and Security in Europe: The EU Defence and Security Procurement Directive in Context,” October 2014.

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: The government imposes due diligence requirements on contractors during offset contract negotiations, and follows up on offset contract performance with audits: Under the terms of agreement, offset programs are subject to an annual independent audit. Additionally, the MoD has its internal audit unit (although details are not publicly available). The Supreme Audit Office (SAO) performs an audit of offset programmes. However, the SAO findings, as it was stated in the evaluators comment, criticise their ineffectiveness.

&quoute;defence and Interior Ministries did not use offset programs effectively: SAO&quoute;, published March 11, 2013 by iDNES news, http://zpravy.idnes.cz/obrana-a-vnitro-nevyuzivaly-offsetove-programy-efektivne-uvadi-nku-1g9-/domaci.aspx?c=A130311_080710_domaci_jpl the EDA

&quoute;Gripen offset program in the Czech Republic has fulfilled 23.74 billion CZK&quoute;, SAAB company press release 15th June 2014, www.saabczech.cz/clanek/offsetovy-program-gripen-jiz-v-ceske-republice-splnil-2374-miliardy-kc/ (Report approved by the Ministry of defence informs about the past performance of the industrial cooperation program, which was part of the agreement of lease 14 Czech Gripen from the Swedish government.)

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

71.
score
1

Does the government make public the details of offset programmes, contracts, and performance?

According to a study published in 2014, the Czech Republic government states that offsets will be used on a case-by-case basis.

Off-set programmes are an important part of military procurement. Below there is a list of some major offset programmes from the years 1999 - 2011:
Armoured transporter Pandur – offset - 18,2 bill Czech crowns
Transport aircraft CASA – offset 3 bill.
Armoured vehicles Iveco – offset 3 bill.
Transport aircraft Airbus – offset 3 bill.
The major contract was made on 14 June 2004 with Gripen International for 10 years with a value of 25 bil. CZK.
However, it was not possible to find a publicly available contract. The only evaluation found in MoD web page from 2006 mentions that about 34% of the contract was fulfilled.

Offset programs in defence are audited by the SAO. An SAO 2013 press release mentions that the government stopped using offset programmes in 2012. It was not possible to verify this information.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, Offsets, http://www.army.cz/scripts/detail.php?id=6516

&quoute;Off-sets - billions for Czech companies which will be soon over&quoute; (Offsety - miliardy pro české firmy, které brzy dojdou), in: Czech TV web page, posted 14.3. 2013, http://www.ceskatelevize.cz/ct24/ekonomika/218541-offsety-miliardy-pro-ceske-firmy-ktere-brzy-dojdou/

The state did not used off-set programs for the support of Czech industry effectively (Stát nevyužíval offsety na podporu českého průmyslu efektivně), SAO press release, posted 11.3. 2013,
http://img.ct24.cz/multimedia/documents/45/4463/446227.doc -

Supreme Auditing Office Control Conclusion Nr. 12/08:http://www.nku.cz/scripts/rka/detail.asp?cisloakce=12/08&rok=0&sestava=0

Ministry of Industry and Trade press release: Off-set programmes have a positive impact on Czech economy (Offsetový program Gripen má pozitivní dopad na českou ekonomiku), 7.6.2007, accessed April 2014

Martin Trybus, “Buying Defence and Security in Europe: The EU Defence and Security Procurement Directive in Context,” October 2014.

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: The EDA Steering Board adopted in April 2008 a Code of Conduct on Offsets that was further amended in May 2011 to clarify the scope of its application, and CzR is one of the subscribing countries. The Code has significantly increased the transparency of offset policies and practices.
www.eda.europa.eu/projects/projects-search/offsets

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

72.
score
1

Are offset contracts subject to the same level of competition regulation as the main contract?

According to a study published in 2014, the Czech Republic government states that offsets will be used on a case-by-case basis. Offset programmes are not regulated by law. There is a Government decree on offset programmes from 1998, as well as regulation by the Ministry of Industry and Trade. In 2012 offset programmes were stopped by the government as they allegedly breach EU legislation (see Governmental decision 594 of 15 August 2012). This decision was later criticised by the Supreme Auditing Office in its finding No. 8 of 2012. The same finding criticise ineffective management of offset programs by relevant Ministries of Defence and Industry and Trade and stated that the state got less then it could from offset programmes.

According to guidelines issued by the Ministry of Industry and Trade, there is no need for full competition. The level of competition is limited to the so-called &quoute;Offset Commission&quoute; decision.

COMMENTS -+

&quoute;Směrnice pro realizaci programů průmyslové spoluipráce&quoute;, Opatření ministra průmyslu a obchodu 19/2010; 7.10.2013, http://www.mpo.cz/dokument80825.html

&quoute;Guidelines for offset programmes&quoute;, Regulation of the Minister of Industry and Trade from 2010
USNESENÍ VLÁDY ČESKÉ REPUBLIKY ze dne 17. června 1998 č. 421 + P o postupu při realizaci kompenzujících transakcí (offsetových programů)

Governmental Decision No. 594 of 15 August 2012 on changes in Guidelines for offset programmes implementing, in: vlada.cz Government website, ( https://apps.odok.cz/djv-agenda?date=2012-08-15)

Supreme Auditing Office control findings 12/08 (in: SAU web site (http://www.nku.cz/scripts/rka/detail.asp?cisloakce=12/08&rok=0&sestava=0)

Martin Trybus, “Buying Defence and Security in Europe: The EU Defence and Security Procurement Directive in Context,” October 2014.

SOURCES -+

Opinion: Not Qualified

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Disagree

Comment: Offset contracts are generally subject to the same level of competition as the main contract. A voluntary, non-legally binding Code of Conduct on Offsets, signed by CzR, supports competitiveness and mitigate any adverse effects of offsets (A Code of Conduct on Offsets Agreed by the EU member states, 3 May 2011, European Defence Agency, www.eda.europa.eu/docs/default-source/documents/The_Code_of_Conduct_on_Offsets.pdf).

However, according to the SAO, offsets are not administered effectively.

Ministry did not use offsets effectively, the SAO found. Thus, the state lost at least a billion&quoute;, published 11 March 2013, http://zpravy.ihned.cz/c1-59479210-offsetovy-program-ministerstvo-efektivita
&quoute;The new contracts for Gripen's missing offset program&quoute;, published 17 March 2013, www.parlamentnilisty.cz/arena/monitor/E15-V-novych-smlouvach-na-gripeny-chybi-offsetovy-program-311648

Suggested score: 2

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

73.
score
1

How strongly does the government control the company's use of agents and intermediaries in the procurement cycle?

Until recently, the use of intermediaries was a compulsory part of military procurement. This was presented as an anti-corruption measure. After a number of scandals with the alleged involvement of political figures (such as the cases of intermediary company Omnipol and Casa transport air planes), it was determined that intermediaries posed a higher corruption risk. The law No. 38/1994 Coll., on international arms trade has been changed and intermediaries are no longer compulsory (§12a), authorising the MoD to be engaged in international arms trade on its own. However, it appears that they may still be used and control over them seems to be very weak (see sources).

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, White Paper on Defence 2011, www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088

Sněmovna zpřísnila pravidla veřejných zakázek v obraně a bezpečnosti , in: vz24.cz (server on public procurment), 14.7.2011, http://www.vz24.cz/clanky/snemovna-zprisnila-pravidla-verejnych-zakazek-v-obrane-a-bezpecnosti/?date=1310594400

Act 137/2006 Coll., on public procurement, ammendment of 2011

Act 38/1994 Coll., on international Trade with Military Material as amended by Act 248/2011 Coll., especially § 12a) (http://www.zakonyprolidi.cz/cs/1994-38)

Armáda bude moci nakupovat vojenský materiál bez prostředníků, 22.6.2011, http://zpravy.kurzy.cz/270360-armada-bude-moci-nakupovat-vojensky-material-bez-prostredniku/

&quoute;Thanks to intermediaries and agents army lost 1,5 bil. CZK. Kaousek disagree&quoute;, in: Czech TV web page, posted 6.8. 2012, (http://www.ceskatelevize.cz/ct24/domaci/190288-kvuli-prostrednikum-tratila-armada-1-5-miliardy-kalousek-nesouhlasi/)

Letouny CASA u zkoušek znovu propadly, mají špatnou ochranu, in Novinky.cz news web portal, 3.7. 2012, http://www.novinky.cz/domaci/272311-letouny-casa-u-zkousek-znovu-propadly-maji-spatnou-ochranu.html, accessed May 2014

Czech Radio web portal, Omnipol popírá, že by získal za letouny CASA provizi 890 milionů korun, in 26.9. 2010, http://www.radio.cz/cz/rubrika/zpravy/omnipol-popira-ze-by-ziskal-za-letouny-casa-provizi-890-milionu-korun, accessed May 2014

Richard Háva a Omnipol, in: mapovani.cz web portal, http://www.mapovani.cz/tema/richard-hava-a-omnipol/646, not dated, accessed May 2014

SOURCES -+

Opinion: Agree with Comments

Comment: In practice agents are use very often but their control or oversight is very limited (it is not problem of MoD only, but of whole public sector).

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: Such controls are very vague.

Source: Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score:

Peer Reviewer-+

74.
score
0

Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?

There is very little evidence regarding this question. The MOD publishes information on planned tenders and their results. In cases of selling unused property the full contracts are also made public. Since 2015 all paid invoices are made public as well. There is no indication and evidence that financial packages are published prior to the signing of the contract. It is very unlikely that such a practice occurs.

COMMENTS -+

Ministry of Defence and Army of the Czech Republic website, http://www.mocr.army.cz/

Ministry of Defence - Section for Economy and Property, department of property management web page: (http://sem-mo-osm.army.cz/)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

75.
score
0

Does the government formally require that the main contractor ensures subsidiaries and sub-contractors adopt anti-corruption programmes, and is there evidence that this is enforced?

There is no evidence that the government requires or encourages the supplier to adopt anti-corruption programmes. There are some limits on sub-contracting in the law and more strict requirements may be set out in tender conditions. There is no evidence that this is done in defence procurement. The White Book of Defence just mention support for improvement of management system and quality management in defence industry.

COMMENTS -+

Act Nr. 137/2006 Coll.., on Public Procurement, § 109

White Book of Defence, (page 116) in: Ministry of Defence and Czech Army web page, (http://www.mocr.army.cz/ministr-a-ministerstvo/odkazy/odkazy-46088)

SOURCES -+

Opinion: Agree

Comment:

Suggested score:

TI Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Government Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Researcher + Peer Reviewer-+

Opinion: Agree

Comment:

Suggested score:

Peer Reviewer-+

76.
score
2

How common is it for defence acquisition decisions to be based on political influence by selling nations?

It is very difficult to answer this question given the lack of publicly available information. There is evidence of political pressure from a selling nation in the case of building a Czech nuclear power station. The pressure of selling nations in defence procurement is difficult to document and assess. There have been cases of alleged impropriety by contractors (Gripen jet, Pandur armoured vehicles, Casa transport planes etc.). There was a 2003 case where there were reports of political pressure from the USA for the country to buy F-16 jets, although, the contract was awarded to Jas Gripen instead.
Apart from influence by selling nations, there is an alleged strong political influence in the acquisition process. This was the case regarding Gripen jets in 2002 where reported corruption in political circles was investigated in 2007 but without any result. Also, in the case of the CASA transport planes the political influence of deputy minister Barták reportedly overruled original military need. Investigations began in 2009.
In the Pandur case, major changes in the number of purchases were not well explained and there have been discussions questioning whether the purchased versions fit the requirements. An advisor to the PM, Mr Dalik, was convicted for corruption in this case.

COMMENTS -+

&quoute;Facts: All about corruption case of Gripens&quoute; (Fakta: Vše o korupční kauze Gripeny), in: Aktualne.cz news website, 17. 6. 2009, http://zpravy.aktualne.cz/fakta-vse-o-korupcni-kauze-gripeny/r~i:article:368149/

&quoute;To the Tatra case&quoute; (Ke kauze Tatra): in Vaše věc website, 8.12.2011, http://vasevec.parlamentnilisty.cz/blogy/ke-kauze-tatra, accessed May 2014

&quoute;President Obama will meet Prime Minister Nečas: building of the nuclear power station of Temelín is in stake&quoute; (Nečase přijme Obama: Ve hře je zakázka na dostavbu Temelína), in Parlamentní listy.cz web new portal, 26.10. 2011, http://www.parlamentnilisty.cz/arena/monitor/Necase-prijme-Obama-Ve-hre-je-zakazka-na-dostavbu-Temelina-212183

&quoute;USE is lobbying for F-16 jets&quoute; (USA tlačí na koupi stíhaček F - 16), posted 18.7. 2003, in: ihned web server: http://hn.ihned.cz/c1-13109920-usa-tlaci-na-koupi-stihacek-f-16, accessed September 2014

&quoute;Mr. Barták pressed for purchase of CASA planes, the witness in Parkánová case said&quoute;, in: iDNES.cz web portal, posted on 2.7. 2012, (http://zpravy.idnes.cz/letouny-casa-chtel-bartak-rika-danhel-dsb-/domaci.aspx?c=A120701_214039_domaci_skr)

&quoute;Dalík ask for 18 mil. EUR for Pandurs, stated Austrian witness over videolink&quoute;, in: lidovky.cz web news portal, posted 14.10. 2014, (http://www.lidovky.cz/rakousky-svedek-vzkazal-pres-video-dalik-chtel-za-pandury-18-milionu-erur-1qg-/zpravy-domov.aspx?c=A141013_103922_ln_domov_sij), accessed March 2015

SOURCES -+

Opinion: Agree

Comment:

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TI Reviewer-+

Opinion: Agree

Comment:

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Government Reviewer-+

Opinion: Agree

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Researcher + Peer Reviewer-+

Opinion: Agree with Comments

Comment: Despite the fact that such information is not made public, the media often reports such news, which does indicate that this is a common practice. The latest case could be the rent of Grippen airplanes.

Source:
Interview with Source 1, Academic focusing on security studies, 3 September 2014.

Suggested score:

Peer Reviewer-+