LEY 26366 PERU PDF

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Publications in this series look at topics such as open government, preventing corruption and promoting integrity in the public service, risk management, illicit trade, audit institutions, and civil service reform. Visit www. Public sector integrity is crucial for sustained socioeconomic development.

This report assesses Peru's integrity system at both the central and subnational levels of government. It provides a set of recommendations to strengthen and consolidate this system, instil a culture of integrity, and ensure accountability through control and enforcement. Beyond reviewing the institutional arrangement of the system, the report analyses the policies and practices related to political finance, the promotion of public ethics and the management of conflict of interests, lobbying, whistleblower protection, internal control and risk management, as well as the disciplinary regime and the role of the criminal justice system in containing corruption.

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A sound governance system that delivers inclusive policies and effective public services and mitigates risks of corruption is indispensible if Peru is to sustain the significant results it has achieved in reducing poverty and inequality and improving well-being.

This peer review — which is part of the OECD Peru Country Programme — provides strategic guidance on how to enhance the public integrity system based on a comparative analysis of its structures, instruments and processes.

The peer review acknowledges the steps Peru has taken to strengthen its integrity system. For example, the High-level Commission against Corruption CAN , created in , recognises the need to involve actors from the public and private sectors and civil society in promoting an inclusive and co-ordinated integrity and anti-corruption policy across all levels. The Commission also promotes and supports the establishment of Regional Anti-corruption Commissions CRAs in all 25 regions to develop regional anticorruption plans and respond to context-specific challenges.

The review also addresses existing gaps and reflects on how the country could build a coherent and comprehensive public integrity system, cultivate a culture of integrity across government, and enable effective accountability in line with the OECD Recommendation on Public Integrity. At the system level, for example, the CAN currently does not include all key actors, and thus may not be able to effectively ensure co-ordination and policy coherence, steer the development of the National Anti-corruption Plans and monitor their implementation.

The peer review recommends steps to strengthen Regional Integrity Systems by establishing effective co-ordination mechanism between central and regional levels, as well as between regions. Peru would benefit from developing a single policy framework for promoting public sector integrity and managing conflict-of-interest situations. Ways to do so include better integrating internal control into public management, making a clearer distinction between internal control and external audit, and introducing a dedicated corruption risk management policy.

Finally, both disciplinary and criminal justice systems could be reinforced to reduce impunity. Peru has a unique opportunity to further advance its fight against corruption by moving away from a case-driven and reactive approach towards deeper structural changes. Realising this ambitious agenda does not hinge upon a single entity; rather it requires a co-ordinated effort across the public sector that also involves the private sector and society as a whole.

Finally, this review benefited from invaluable input provided by OECD peers. All peers significantly contributed to the policy dialogue with the Peruvian counterparts and enriched the Integrity Review with their views, experience and comments.

Table of contents Acronyms and abbreviations Governance and corruption in Peru: An overview Promoting a comprehensive and co-ordinated integrity system in Peru Strengthening public ethics and conflict-of-interest management in Peru Implementing whistleblower protection in Peru Ensuring a sound internal control and risk-management framework in Peru Laying the foundations for transparency and integrity in lobbying in Peru Overview of the main disciplinary regimes for public officials in Peru Detailed Table 8.

Enhancing the Peruvian criminal justice system for enforcing integrity Tables 2. The composition of the CAN as of October Annual budget of the CAN, Staff profiles at the CAN October Key primary legislation on conflict-of-interest in Peru Awareness-raising activities for managing conflict of interest Actions for disclosing private interests by public officials Internal audit reporting lines in LAC countries Maximum donation ceilings for individuals in selected OECD countries The institutional capacity of electoral management bodies in selected OECD countries Oversight bodies for monitoring lobbying rules and guidelines Practices in OECD member countries to promote awareness and develop the capacities of public officials on lobbying rules and guidelines Overview of the main disciplinary regimes for public officials in Peru Comparative overview of administrative procedures in Peru and selected countries Figures 1.

Peru experienced continuous growth in gross domestic product GDP per capita Peru has made important progress in fighting extreme poverty and reducing inequality The ten most important problems for business in Peru, The five most important problems for citizens in Peru, Countries with a central function not necessarily an independent agency responsible for the development and maintenance of conflict-of-interest policies Level of disclosure and public availability of private interests within the executive branch Peruvians willing to report wrongdoings would report primarily to the media The reasons why Peruvians may choose not to report wrongdoings Entry into force of dedicated whistleblower protection laws: A timeline Peru indicated that it does not provide activities to raise awareness of whistleblower protection The relationship between public governance, internal control, and risk management The basic pillars of a sound internal and external control and audit framework Trust in political parties in Peru, Direct public funding to political parties in OECD countries Ban on anonymous donations to political parties in OECD countries Compliance rates in the United Kingdom, Lobbying regulation timeline Transparency in lobbying activities would help alleviate actual or perceived problems of influence peddling by lobbyists Types of information that stakeholders believe should be made publicly available Perceived effectiveness of various awareness-raising measures OECD countries with a review mechanism of their lobbying rules and guidelines Total sanctions disciplinary and functional regimes , Executive summary Over the past 15 years, Peru has experienced socio-economic development and improved well-being, and has significantly reduced poverty and inequality.

For this progress to be sustainable and resilient, a sound governance system is needed to control corruption and provide a stable environment. While Peru has made important progress in strengthening its public integrity system, challenges remain, particularly the need to reinforce institutions and mitigate corruption risks. Key findings Since , a High-level Commission Against Corruption CAN , supported by a network of Regional Anti-corruption Commissions, has brought together several institutions from the public and private sectors and civil society to promote co-ordination and improve the integrity system across the country.

However, the CAN does not include all important actors, and its technical secretariat needs to be strengthened so it can be more effective. Currently, ethics and conflict-of-interest policies are fragmented, with no clear leadership for them; furthermore sanctions for integrity violations are not well formulated. In addition, Peru has adopted explicit provisions protecting whistleblowers, but they are currently not implemented effectively and there is no strategy for communicating about them or evaluating their results.

The review also shows that internal control and risk management processes are not always properly implemented, and that there is some confusion in the public administration regarding the roles and tasks of internal control. The risk of policy capture through the funding of political parties and campaigns, including through illicit sources of funding and informal lobbying, is perceived as high in Peru. Currently, there are two different administrative disciplinary regimes for Peruvian civil servants and employees, posing risks to the effective and fair enforcement.

Enforcement authorities also lack in-house expertise or access to accounting and public procurement experts, especially at the regional level. Key recommendations To ensure a coherent and comprehensive public integrity system, the CAN should focus on its core mandate of ensuring co-ordination and policy coherence and should follow up and communicate on the status of National Anti-corruption Plans. To this end, the CAN could develop capacities in information management and communication and could be formally incorporated into the organisational structure of the Presidency of the Council of Ministers PCM as a Specialised Technical Organ.

Regional anti-corruption plans could be further developed to ensure that all key stakeholders are involved and that the technical secretariats of the Regional Anticorruption Commissions are implemented, strengthened, and fully utilized. To cultivate a culture of integrity, Peru could create a single policy framework for promoting public ethics and managing conflict-of-interest situations across the public sector.

Also, the roles and responsibilities of the agencies involved in developing and updating public ethics and conflict-of-interest policies require clarification. A clear lead role should be assigned to SERVIR, but effective co-ordination among the other actors should also be ensured.

The role of the Office of the Comptroller General CGR in auditing asset declarations could be strengthened by granting it further powers to crosscheck information through agreements with tax authorities and other relevant public bodies. Finally, the law on whistleblower protection could be fine-tuned and its implementation ensured through a broad communications strategy and increased awareness-raising efforts. To enable accountability, Peru could address internal control, political finance, lobbying, and the administrative and criminal justice systems.

Internal control and risk management functions should be mainstreamed in broader public management reforms. A clearer separation between internal control and internal audit could be achieved by redesigning the role and the operations of the Institutional Control Offices OCIs to focus on advising and supporting management, and on providing assurance over internal control processes.

Also, a dedicated corruption risk management policy could support government entities in their efforts to implement controls to prevent, detect and sanction corruption effectively.

With respect to lobbying and political finance, responsibility for the lobbying registry and policy could be shifted to a strengthened and independent ANTAI, and compliance with registration and reporting could be made easier. The negative perception of lobbying could be addressed through training and public awareness campaigns.

In political finance, the public funding programme in the Law on Political Organisations should be effectively resourced and enforced, and anonymous donations could be banned or the current threshold amount lowered. In addition, the investigative and sanctioning power of the ONPE could be strengthened and human and technical resources re-evaluated accordingly.

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