ECONOMIC AND SOCIAL COUNCIL RECOMMENDS DECLARATION AGAINST CORRUPTION AND BRIBERY IN GLOBAL TRADE FOR ADOPTION BY GENERAL ASSEMBLY

Press Release
ECOSOC/5691

ECONOMIC AND SOCIAL COUNCIL RECOMMENDS DECLARATION AGAINST CORRUPTION AND BRIBERY IN GLOBAL TRADE FOR ADOPTION BY GENERAL ASSEMBLY

States would pledge to deny the tax deductibility of bribes paid by any private or public corporation or individual of a Member State to any public official or elected representative of another country, by the provisions of a draft United Nations declaration against corruption and bribery in international commercial transactions approved by the Economic and Social Council this afternoon as it concluded its work for 1996.

The Council, acting without a vote, approved the proposed declaration as orally amended and recommended it for adoption by the General Assembly.

By other provisions of the declaration, States would also pledge to criminalize bribery of foreign public officials in an effective and coordinated manner, but without in any way precluding, impeding or delaying international, regional or national actions to further implement the declaration.

In addition, Member States would agree that actions taken by them to establish jurisdiction over acts of bribery of foreign public officials in international commercial transactions shall be consistent with the principles of international law regarding the extraterritorial application of a State's laws.

Speaking before action on the text, the representative of Malaysia expressed concern that the draft would be a first-step in linking bribery to trade.

Speaking after action, the representative of Ireland, on behalf of the European Union, said criminalization of corruption, particularly in its international aspects, had serious political, economic, social and legal implications. The matter must be considered by legal experts to determine various methods of dealing with the problem. He noted that the Union's concerns were described in amendments it had introduced during negotiations on

the draft, adding that the fact that it had not insisted on those amendments should not prejudice further negotiations on them.

The representative of the United States expressed his delegation's appreciation to co-sponsors and all others who had worked constructively for the adoption of the draft declaration.

In other actions this afternoon, the Council appointed Vladislav M. Dolgopolov, of the Russian Federation, to the Committee on Natural Resources; and William Michael Mebane, of Italy, and Dmitri B. Volfberg, of the Russian Federation, to the Committee on New and Renewable Sources of Energy and Energy for Development. It also elected Belarus to the Commission on Human Settlements.

Further consideration of matters related to implementation of General Assembly resolution 50/227 -- which concerns measures for the restructuring and revitalization of the United Nations in the economic, social and related fields -- and action on a pending draft decision submitted by the Committee on Non-governmental Organizations, were deferred to the 1997 organizational session of the Council.

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Documents before Council

Among documents before the Council was a draft decision (document E/1996/L.57) submitted by Council Vice-President Karel Kovanda, Czech Republic, on the basis of informal consultations held on draft decision III contained in the report of the Committee on Non-governmental Organizations (document E/1996/102).

Under its provisions, the Council would affirm that the documentation of the Committee on Non-governmental Organizations should be issued in all six official languages of the Council. In addition, it would request the Secretariat to prepare for the Council at its organizational session for 1997, an assessment of ways to implement the decision within existing resources.

Concerning elections, a note by the Secretary-General (document E/1996/L.13/Add.3) transmits the name of Vladislav M. Dolgopolov of the Russian Federation as a candidate nominated by his Government to serve on the Committee on Natural Resources.

Another note by the Secretary-General (document E/1996/L.15/Add.3) transmits the names of William Michael Mebane, of Italy, and Dmitri B. Volfberg, of the Russian Federation, as candidates nominated by their respective Governments to serve in the Committee on New and Renewable Sources of Energy and on Energy for Development.

In addition, two conference room papers (documents E/1996/CRP.3/Rev.1 and CRP.5/Rev.1) concerning the implementation of resolution 50/227, on further measures for the restructuring and revitalization of the United Nations in the economic, social and related fields, were also available for information. A report updating information on the establishment, terms of reference, membership and composition, terms of office of members, reporting procedure and frequency of meetings of subsidiary bodies of the Council and the Assembly in the economic, social and related fields was also available (document E/1996/97).

Further before the resumed substantive session was a twice revised text which would have the Council transmit to the General Assembly for adoption, a draft resolution on corruption and bribery in international commercial transactions (document E/1996/L.26/Rev.2*). The draft is sponsored by Argentina, Bulgaria, Canada, Costa Rica, Mexico, Nicaragua, Paraguay, Philippines, Poland, Russian Federation, South Africa, United States and Venezuela.

In the draft's preambular part, the Assembly would recall the work carried out by it and by the Council on the issue of illicit payments and on promoting the development of a code of conduct for transnational corporations,

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"consideration of which helped call attention to and raise international awareness of the adverse consequences of bribery in international commercial transactions", says the draft.

In the operative part, the Assembly would start by adopting the proposed United Nations declaration against corruption and bribery in international commercial transactions, which is annexed to the text of the draft resolution. By other provisions of the draft, the Council and its subsidiary bodies, in particular the Commission on Crime Prevention and Criminal Justice, would be requested to examine ways to further the implementation of the declaration, so as to promote the criminalization of corruption and bribery in international commercial transactions and to keep that issue under regular review.

Also by the draft resolution, the Assembly would invite other bodies of the United Nations system, including the United Nations Conference on Trade and Development (UNCTAD), to take action to promote the objectives of the draft resolution and the proposed declaration. Private and public corporations, including transnational corporations, and individuals engaged in international commercial transactions would be encouraged to cooperate in its implementation.

The Secretary-General would be requested to inform States and organizations of the text's adoption, to encourage action towards making its provisions widely known and to promote its effective implementation. He would also be requested to prepare a report for the Assembly's fifty-third session, including information, among others, on steps taken by States and regional organizations to combat corruption and bribery in international commercial transactions, on how the incidence of such acts impacts on economic and social development and environmental protection, and on measures undertaken to promote social responsibility and to eliminate them.

Under the provisions of the proposed United Nations declaration against corruption and bribery in international commercial transactions, Member States individually and through international and regional organizations, would commit themselves to take effective and concrete action to combat all forms of corruption, bribery and related illicit practices in international commercial transactions, particularly to pursue enforcement of existing laws prohibiting such bribery. They would call upon private and public corporations, including transnational corporations, and individuals within their jurisdiction engaged in international commercial transactions to promote the objectives of the declaration.

In addition, States would also pledge to criminalize acts of bribery in international commercial transactions of any public official or elected representative, by any private or public corporation or individual.

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The proposed declaration would define "bribery" as including the offer, promise or giving, as well as the soliciting, demanding, accepting or receiving of any payment, gift or other advantage, directly or indirectly, by any private or public corporation, including a transnational corporation, or individual from a State to any public official or elected representative of another country as undue consideration for performing, or refraining from the performance, of that official's or representative's duties in connection with an international commercial transaction.

Further by the declaration, States would pledge to deny, in countries that do not already do so, the tax deductibility of bribes paid by any private or public corporation or individual of a Member State to any public official or elected representative of another country. They would also pledge to develop or maintain accounting standards and practices that improve the transparency of international commercial transactions, and that encourage private and public corporations, including transnational corporations, and individuals engaged in international commercial transactions to avoid and combat corruption, bribery and related illicit practices.

States would also pledge to develop or to encourage the development of business codes, standards or best practices that prohibit corruption, bribery and related illicit practices in commercial transactions; and to examine establishing illicit enrichment by public officials or elected representatives as an offence. In addition, States would cooperate and afford one another the greatest possible assistance in connection with criminal investigations and other legal proceedings brought in respect of corruption and bribery in international commercial transactions. They would ensure that bank secrecy provisions do not impede or hinder criminal investigations or other legal proceedings relating to illicit practices in international commercial transactions.

In addition, States would pledge that actions taken in furtherance of the declaration should respect fully the national sovereignty and territorial jurisdiction of Member States, as well as their rights and obligations under existing treaties and international law, and should be consistent with human rights and fundamental freedoms. They would also agree that actions taken by them to establish jurisdiction over acts of bribery of foreign public officials in international commercial transactions should be consistent with principles of customary international law regarding the extraterritorial application of a State's laws.

Also before Council was a set of amendments (document E/1996/L.56), introduced by Ireland (on behalf of the European Union), to an earlier version of the above text, contained in document E/1996/L.26/Rev.1.

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Action on Declaration against Corruption

KAREL KOVANDA (Czech Republic), a Council Vice-President, briefed Council members on the results of informal consultations on the draft resolution on corruption and bribery in international commercial transactions. He said the draft had over the past weeks and month been the object of extensive consultations. It had come to his attention that co-sponsors had continued with their informal consultations with Council members and had ironed out several additional paragraphs.

The representative of the United States said Brazil, Chile, Mozambique, Pakistan, Peru and Uruguay had joined in co-sponsoring the draft. He then read out oral amendments to the draft. Among other revisions, operative paragraph 2 would read as follows: "To criminalize such bribery of foreign public officials in an effective and coordinated manner, but without in any way precluding, impeding or delaying international, regional or national actions to further the implementation of this Declaration".

In addition, he went on, amended paragraph 12 would read: "Member States agree that actions taken by them to establish jurisdiction over acts of bribery of foreign public officials in international commercial transactions shall be consistent with the principles of international law regarding the extraterritorial application of a State's laws."

Following the introduction of the oral amendments, the representatives of Cote d'Ivoire, Lebanon, South Africa, Czech Republic and Japan joined as co-sponsors of the text. The representative of Colombia said he would join consensus. The representative of Ireland, on behalf of the European Union, said the Union would go along with the text.

The representative of Australia said her country opposed bribery and corruption and joined the consensus on the issue, but had yet to decide on the draft's references to criminalization and tax deductibility of bribery.

The representative of China said that although his views on certain issues had not been reflected in the amended draft, he would not stand in the way of adopting the resolution.

The representative of Egypt suggested that in operative paragraph 6 of the proposed declaration, the word "international" be inserted before the phrase "commercial transactions". In addition, paragraph 12 of the declaration, when it referred to bribery of foreign public officials, did not sufficiently clarify it. He wondered if public and private corporations, including transnational corporations could be included within its purview.

JEAN-MARIE KACOU GERVAIS (Cote d'Ivoire), the Council President, asked if the co-sponsors agreed with the amendment proposed by Egypt.

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The representative of the United States said it would be easy to incorporate the first suggestion by the representative of Egypt. However, it would be difficult to incorporate his second suggestion.

The representative of Egypt said that while the text would have been improved by further clarification, he could accept the text as it stood.

The representative of Malaysia expressed concern that the draft would be a first-step in linking bribery to trade. However, despite those concerns, he was pleased to join the consensus on the text.

The Council then adopted, without a vote, the twice revised draft resolution as orally amended.

Speaking after action, the representative of Ireland, on behalf of the European Union, said criminalization of corruption, particularly in its international aspects, had serious political, economic, social and legal implications. The matter must therefore be considered by legal experts to determine various methods of dealing with the problem, as well as to consider the possible negotiations of appropriate international instruments. The Union's concerns were described in amendments contained in document E/1996/L.56. The fact that it had not insisted on those amendments should not prejudice further negotiations on them.

The representative of the United States expressed his delegation's appreciation to co-sponsors and all others who had worked constructively for the adoption of the draft resolution.

Action on Non-governmental Organizations

Next, the Council took up the draft decision (document E/1996/L.57) submitted by Council Vice-President Mr. Kovanda (Czech Republic), on the basis of informal consultations held on draft decision III, contained in the report of the Committee on Non-Governmental Organizations (document E/1996/102).

The Council President drew attention to the financial implications of a new draft decision III contained in document E/1996/L.58 which was then introduced.

Mr. KOVANDA (Czech Republic), a Council Vice-President, introduced the new text. Under its provisions, the Council would affirm that the documentation of the Committee on Non-governmental Organizations should be issued in all six languages of the Council, and request the Secretariat to prepare for the Council at its organizational session for 1997, an assessment of ways to implement those decisions within existing resources. He said that at the last resumed substantive session of the Council, it had been pointed out that a statement on the financial implications of the draft decision

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should be provided before action on the draft. That statement, which was also included in document E/1996/L.58, indicated that adoption of the draft decision would entail costs of $860,000.

He stressed that it might have been not entirely felicitous that the words "within existing resources" had been added at the end of the entire paragraph, thus creating ambiguity. It might be asked whether the phrase referred to the implementation of the decision or the Secretariat's assessment of that decision. In fact, the phrase "within existing resources" referred to the Council's request that the Secretariat assess ways to implement the proposed decision.

The representative of Tunisia agreed that the Secretariat had not properly understood the Council's intention. The Council had affirmed that all documentation should be issued in the Organization's six languages. He wanted to know why the Committee on Non-governmental Organizations was the only body which could not be provided with services in all six languages. He asked for a detailed statement on documentation and the basis on which the statement on financial implications had been created and suggested that the proposed decision should include only the first three lines of the paragraph read out by Mr. Kovanda, concluding with the phrase, "prepare for the Council".

The representative of the Russian Federation said a decision should be taken on the basis of document E/1996/L.57. The representative of the United Kingdom added that his country was willing to join the consensus on document E/1996/L.57.

The representative of the United States said the Committee had called for its documentation to be prepared in all the Organization's official languages. What that documentation was to be had been left unspecified. That was the reason the Council had called for an assessment. It was impossible to say what the cost of translating the Committee's documents would be until it was determined which documents would in fact be translated. He believed that document E/1996/L.58 had been based on the idea that all the Committee's documents would require translation. In fact, what was needed was an assessment of how to handle the documentation.

The representatives of Germany and China said the question of financial implications should be addressed to the Assembly's Fifth Committee (Administrative and Budgetary). Moreover, the Secretariat should prepare a new assessment of how to implement the request within existing resources.

MILES STOBY, Director, Division for Policy Coordination And Economic and Social Council Affairs, said a proposal by the Committee on Non-governmental Organizations had called for translating documents into additional languages. Under the Organization's rules and regulations, determined by Member States,

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the Secretariat was required to say whether or not that would cost anything. The Office of Conference Services had responded to that requirement.

Between now and next year, the Committee could change its documentation requests, he said. An assessment could be done within existing resources, but unless the amount of documentation was reduced, there would be additional costs as reflected in the statement on the financial implications. He added that the Secretariat's statement related to the first part of the proposed draft decision. It did not refer to the second part. It did not matter to the Secretariat whether the Committee on Non-governmental Organizations worked with three or six languages. However, it was required to tell Member States what a proposed decision would cost. There was no confrontation involved. Mr. KOVANDA (Czech Republic) suggested that the phrase "within existing resources" be moved to third line of the proposed draft after the word "Council". Moreover, in the last line of the paragraph the word "decision" should be changed to "affirmation".

Following a 10-minute suspension for consultations on the draft decision, the representative of Germany read the following text: "The Economic and Social Council affirms that, in accordance with Rule 32 of the Council's Rules of Procedure, all documentation to the Council should be issued in all six official languages and requests the Secretariat to present to the Council at its organizational session of 1997 an assessment of all available options to implement this rule with regard to the Committee on Non- governmental Organizations".

The representative of the Russian Federation objected to the adoption of the orally revised draft text on the grounds that it did not cover the Council's subsidiary bodies. In fact, it merely restated a rule of procedure.

The Council President then declared that the body had been unable to reach consensus on a text that did not present enormous difficulties. The draft text would be sent to the 1997 organizational session of the Council along with other proposals put forward on the matter.

The Council then decided to defer action on the Committee's draft decision until its 1997 organizational session and requested the Secretariat to prepare an assessment of ways to implement the decision within existing resources.

Other Matters

The Council next took up the item entitled "Implementation of General Assembly resolution 50/227: Further measures for the restructuring and revitalization of the United Nations in the economic, social and related fields".

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Mr. KOVANDA (Czech Republic) said that in the item's consideration, efforts had been directed at reducing duplication between the Council and the General Assembly's Main Committees, particularly the Second (Economic and Financial) and Third (Social, Humanitarian and Cultural) Committees.

However, due to insufficient time to consider that issue in informal consultations, the Council decided to postpone its consideration to the organizational session for 1997.

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