The Corruption Prevention and Combating Bureau (KNAB) encourages both public and private sector institutions to use the methodology which allows to assess the effectiveness of the internal control systems implemented by institutions for preventing corruption and conflicts of interest.
According to observations by KNAB, many institutions of a public person are still implementing internal control systems for preventing corruption in a formal manner, without assessing their effectiveness. Therefore, KNAB together with the Organisation for Economic Co-operation and Development analysed the current approaches and contributions of institutions towards assessing internal control systems in Latvia and developed a specific methodology. The development of a methodology was one of the objectives of the Corruption Prevention and Combating Action Plan 2023–2025.
The methodology allows to assess the extent to which the institution has established and strengthened a culture of integrity, identified and assessed corruption risks, ensured an appropriate response to identified risks, as well as introduced transparent and regular communication at all levels of the organisation and implemented a purposeful monitoring and evaluation plan for the continuity and development of the system.
The methodology is based on five assessment principles: fostering a culture of integrity, identifying and preventing corruption risks, responding to corruption risks, clear and regular communication, and also purposeful monitoring and evaluation. Each principle has distinct criteria that enable a thorough analysis of the institution’s approach to managing corruption risks. The assessment is based on four levels of maturity: Developing, Established, Integrated, and Optimised. This methodology allows an institution to conduct a thorough assessment of the strengths of its current internal control system and also to promptly identify areas that require improvements or adjustments, thus strengthening institutional governance.
The methodology is primarily intended for public institutions in Latvia, though it is also recommended for private sector institutions in order to promote transparency of governance and compliance of operations with the public interest, as well as to reduce corruption risks in the business environment. KNAB recommends regular assessment of the effectiveness of the corruption prevention system. However, such assessment is required immediately in the case of a significant change within the institution, such as a staff reorganisation or a modification of information systems.
KNAB reminds that Cabinet Regulation No. 630 of 17 October 2017, Regulations Regarding the Basic Requirements for an Internal Control System for the Prevention of Corruption and Conflict of Interest in an Institution of a Public Person, prescribes a mandatory requirement for all state and local government institutions to develop and implement an internal control system for preventing corruption.
The assessment of the effectiveness of internal control systems for preventing corruption and conflicts of interest and the development of the methodology were carried out within the framework of the project Strengthening the Corruption Prevention Framework in Latvia. The project was funded by the European Commission’s Directorate-General for Structural Reform Support under the Technical Support Instrument.
Methodology available in Latvian, only: