Dangerous relations between the public and private sectors

Issued by Transparency International Hungary



Transparency International Hungary’s (TI) most recent study, supported by the Dutch Embassy in Budapest, reveals: Absent adequate regulation, public officials working in the private sector and businessmen working in public administration can breed abuses of office, profiteering, and undue influence.

Transparency International maintains that the movement of employees between the two sectors is completely natural, yet the international anti-corruption organisation warns of its risks also. For example, a high-ranking public official may abuse the powers of his office by favouring a certain company, thus securing himself a future job with that company. Or a former public official now working for a private company may influence his former colleagues to reach a decision in favour of his current employer in a public procurement tender or when granting authorisations. It can be equally risky when an authority in charge of regulation and oversight of a market hires decision-makers and advisors from the companies it supervises and legislation is shaped by their interests.

The study accounts the reasons for the revolving door phenomenon, the risks of corruption, domestic, foreign and international regulations, and the specificities of the Hungarian business sector. It also advances recommendations for certain actors of the public and private sector for solving the issue. The study establishes that the demand of economic enterprises for professionals well versed in politics arises out of helplessness in the face of politics and fickle legislation.

“The revolving door phenomenon must be regulated to avoid the public administration becoming slave to private interests,” emphasized Noémi Alexa, CEO of TI. The anti corruption policy recently passed by Parliament touches on the phenomenon only tangentially.

TI is thus prepared to aid the work of the Ministry of Public Administration and Justice, which is in charge of action against corruption, and to inform noted figures of the business sector of the results.


For any press enquiries please contact

Noémi Alexa, Executive Director
T: +36 1 783 0248
E: .(JavaScript must be enabled to view this email address)

Latest

Support Transparency International

On trial for corruption: Teodoro Obiang, son of the president of Equatorial Guinea

In the first case brought by civil society in France, Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, is on trial for corruption.

Corruption Reporting Award: Honouring investigative journalism

For the third year Transparency International has sponsored the Corruption Reporting Award as part of the One World Media Awards. Check out this year's winner, Stealing Paradise, a shocking investigation into corruption, intimidation and the sale of idyllic islands in the Maldives.

Glass quarter full? The state of global anti-money laundering in four charts

Out of the hundreds of commitments governments have made to fight corruption and money laundering, one of the easiest to keep track of is to implement the global anti-money laundering standards.

Ukraine takes important first step towards ending corporate secrecy

Ukraine has taken a first step in the fight against corporate secrecy and corruption by agreeing to share data on who ultimately owns and controls Ukrainian companies.

Who doesn’t know the Cayman Islands is a great place to hide money? The Cayman Islands

In May, the Cayman Islands government quietly released a report that just about acknowledges the country's deficiencies at thwarting money laundering.

Your ideas welcome: help us set higher standards in state-owned companies

We need your help to draw up principles for fighting corruption in state-owned enterprises. Please share your ideas!

Brazil: Open data just made investigating corruption easier

All of the official documentation of from Brazil’s biggest corruption scandal – Operation Car Wash or Lava Jato – is now available to search easily online.

Social Media

Follow us on Social Media

Would you like to know more?

Sign up to stay informed about corruption news and our work around the world