PREVENTION OF CONFLICT OF INTEREST ACCORDING TO CZECH LAW presentation for

1. PREVENTION OF CONFLICT OFINTEREST ACCORDING TO CZECH LAW presentation for INTERNATIONAL SEMINAR PROGRAMME OF THE SERVICES ASCERTAINING CONFLICT OF INTEREST • OF THE DENUBEREGION STATES • SOFIA – 28-29.06.2012

2. The Office of the Government of the Czech Republic Section to Coordinate the Struggle Against Corruption www.vlada.cz The Office of the Government of the Czech Republic

3. Mgr. Milan Kryštof Čech, D.B.A. e-mail: cech.milan.krystof@vlada.cz The Office of the Government of the Czech Republic

4. Rules are Contained in Act No 159/2006 Journal of Laws Name of this act: „Conflicts of interest and incompatibility of certain functions“ presentation is based on the version valid since 1.7.2012 The Office of the Government of the Czech Republic

5. This Act regulates • The obligations of public officials to perform their functions so as to avoid conflicts between their personal interests and the interests in its function • The obligation of public officials to report property or other benefits (gifts etc.) which received for the term of office, or financial obligations that the public is a functionaryIncompatibility of certain activities of public officials with its functions • The liability of public officials for breach of duties stipulated by this Act, including sanctions The Office of the Government of the Czech Republic

6. Which authority is competent to take report under this act from public officials • Methodology of keeping the registry notifications received from public officialsViewing conditions in the public register of notifications public officials • Penalties for violation of the law The Office of the Government of the Czech Republic

7. To whom this Act applies? • on the public officials • at the registration authorities • on the person who have request about information which public officials notified The Office of the Government of the Czech Republic

8. Who is under this Act a public official? - Member of Parliament of the Czech Republic - Senator Senate of the Czech Republic - Member of the Government - Head of another central stateadministration - President and Inspector the Office for Personal Data Protection - Chairman of the Office for Standards, Metrology and Testing The Office of the Government of the Czech Republic

9. - Member of the the Czech Telecommunication Office- Chairman of the Energy Regulatory Office- Board member of the Czech National Bank- President, vice president and member of the Supreme Audit Office- Ombudsman and his deputy- Member of the Council for Radio and Television Broadcasting The Office of the Government of the Czech Republic

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

11. Head official governing unit who is involved in the execution of administrative activities-Member of the Regional Council or a member of the Council of the City Prague- Member of the municipal, district or city district territorially divided statutory cities and boroughs of the City Prague- The mayor, deputy mayor and councilors of the village community and the region The Office of the Government of the Czech Republic

12. For all public officials is absolutely prohibited • use their position to gain advantage for themselves or for others • refer to its function in his personal affairs and business • give allowed in return for payment or other benefit use of his name or image with connection of its function for advertisement The Office of the Government of the Czech Republic

13. Some activities are incompatible with holding a public office. For most important public officials is prohibited • make business • engage in other gainful activity • be a statutory body or member of an organ company which make business • be employed by another subject than the one where hold public office • public officials relevant for this restriction are in the previous lists marked in red • public officials marked in violet – similar prohibition for them under service act The Office of the Government of the Czech Republic

14. These restriction shall not apply to the following situations • management of own property • for scientific, literary, artistic, sporting activities , if is not a own business of public official The Office of the Government of the Czech Republic

15. With the function member of parliament and senator are incompatible functions in an employment or service relationship, where is decided in the exercise of state administration • in the Ministry or other administrative office • in the court or public prosecutor's office • in the Army, Police, Supreme Audit Office, etc. The Office of the Government of the Czech Republic

16. When there conflict of interest, happen, public officialshave strictly prohibited • Prioritize personal interests above those that have to defend the title of his office The Office of the Government of the Czech Republic

17. Personal interest in this contextis • obtaining personal benefits • prevent the reduction of property or other benefit The Office of the Government of the Czech Republic

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

19. Public official not allowed have 1 year after leaving office engagement in a company that in last 3 years before made a „big“ contract with the State, local government etc. if public official decided about it. The Office of the Government of the Czech Republic

20. Types of notification of public officials • notification of personal interests - be administered immediately • notification of business or other profitable activity and employment – be administered no later than July 30th next year • notification of property be administered no later than July 30th next year The Office of the Government of the Czech Republic

21. Notification of conflict of interest • If a conflict of interest occurs during the negotiations in which the public official is involved is obliged to inform about conflict of interest no later than the start decision. The Office of the Government of the Czech Republic

22. Notification of property • The public official is obliged to announce that during the function acquired: • property or other right to real estate (all) • ownership to things more expensive than 25 000 CZK if their total value exceeded during the year amount of 500 000 CZK • shares when their value from one issuer exceeded 50 000 or 100000 CZK in the case of multiple issuers • capital interest in a company if its value exceeds 50 000 or 100 000 CZK in the case of capital interest in several companies • (25,70 CZK = 1 EUR) The Office of the Government of the Czech Republic

23. Notification of income, gifts and commitments • with the exception of salary, income for the year that exceeded amount 100 000 CZK. Incomes below 10 000 CZK not include to this amount. • outstanding financial obligations if their amount exceeds 31th December of the calendar year amount 100 000 CZK (borrowings,loans, contractual obligations in the lease with option to purchase, bill of exchange obligations) • public official is required to specify each item including persons counterparty The Office of the Government of the Czech Republic

24. Registration authorities • There is no single registry for all public officials • Registers are kept by: • Parliament • Senate • Ministries and other central authorities, • Czech National Bank, • regional authorities, • municipalities, cities, towns, villages The Office of the Government of the Czech Republic

25. Role of Ministry of Justice in this system • maintains a list of all registers, but the information about notified facts specific public official can only be obtained in the relevant register The Office of the Government of the Czech Republic

26. Registers are public and everyone has the right to view them free of charge • for opportunity inspect in the registry, person must first register with register operator for identification the person who looks to the registry, and after that: • may take copies and extracts • notification can inspect personally or by remote access The Office of the Government of the Czech Republic

27. The possibility of using data obtained from the Registry • All data can be further processed and used only to identify potential conflicts of interest in the performance of public officials The Office of the Government of the Czech Republic

28. The possibility of publishing data obtained from registers • Generally it is prohibited • It is allowed published only the information contained in the register relating to: • Member of Parliament of the Czech Republic • Senator Senate of the Czech Republic • Member of the Government • Member of the Council for Radio and Television Broadcasting • Member of the Regional Council or a member of the Council of the City Prague • Member of the municipal, district or city district territorially divided statutory cities and boroughs of the City Prague The Office of the Government of the Czech Republic

29. Everyone has the right to notify the competent registry that there is a suspicion on • falsity of the data • incompleteness of the data The Office of the Government of the Czech Republic

30. Violations committed by public officials • failed to give notice • complied with the deadline for its submission • stated inaccurate, false or incomplete information • performed a function or activity which the law considers like incompatible with public office The Office of the Government of the Czech Republic

31. Violations committed by individuals • used or further processes information kept in the registry for any purpose other than to identify potential conflicts of interest • discloses information where it is not allowed • notify the user name and password for remote access to be use unauthorized person The Office of the Government of the Czech Republic

32. These violations are dealt with by the competent administrative authority according to the place where it was committed • maximum possible penalty is • a fine of up to 50 000 CZK The Office of the Government of the Czech Republic

33. Thank you for your attention The Office of the Government of the Czech Republic