I
106TH CONGRESS
2D SESSION
H. R. 4697
To amend the Foreign Assistance Act of 1961 to ensure that United States
assistance programs promote good governance by assisting other coun-
tries to combat corruption throughout society and to promote trans-
parency and increased accountability for all levels of government and
throughout the private sector.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 2000
Mr. GEJDENSON (for himself, Mr. LANTOS, Mr. BERMAN, Mr. SMITH of New
Jersey, Mr. ACKERMAN, Mr. PAYNE, and Mr. ROTHMAN) introduced the
following bill; which was referred to the Committee on International Rela-
tions
A BILL
To amend the Foreign Assistance Act of 1961 to ensure
that United States assistance programs promote good
governance by assisting other countries to combat cor-
ruption throughout society and to promote transparency
and increased accountability for all levels of government
and throughout the private sector.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘International Anti-Cor-
ruption and Good Governance Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) Widespread corruption endangers the sta-
bility and security of societies, undermines democ-
racy, and jeopardizes the social, political, and eco-
nomic development of a society.
(2) Corruption facilitates criminal activities,
such as money laundering, hinders economic devel-
opment, inflates the costs of doing business, and un-
dermines the legitimacy of the government and pub-
lic trust.
(3) In January 1997 the United Nations Gen-
eral Assembly adopted a resolution urging member
states to carefully consider the problems posed by
the international aspects of corrupt practices and to
study appropriate legislative and regulatory meas-
ures to ensure the transparency and integrity of fi-
nancial systems.
(4) The United States was the first country to
criminalize international bribery through the enact-
ment of the Foreign Corrupt Practices Act of 1977
and United States leadership was instrumental in
the passage of the Organization for Economic Co-
operation and Development (OECD) Convention on
Combatting Bribery of Foreign Public Officials in
International Business Transactions.
(5) The Vice President, at the Global Forum on
Fighting Corruption in 1999, declared corruption to
be a direct threat to the rule of law and the Sec-
retary of State declared corruption to be a matter of
profound political and social consequence for our ef-
forts to strengthen democratic governments.
(6) The Secretary of State, at the Inter-Amer-
ican Development Bank’s annual meeting in March
2000, declared that despite certain economic
achievements, democracy is being threatened as citi-
zens grow weary of the corruption and favoritism of
their official institutions and that efforts must be
made to improve governance if respect for demo-
cratic institutions is to be regained.
(7) In May 1996 the Organization of American
States (OAS) adopted the Inter-American Conven-
tion Against Corruption requiring countries to pro-
vide various forms of international cooperation and
assistance to facilitate the prevention, investigation,
and prosecution of acts of corruption.
(8) Independent media, committed to fighting
corruption and trained in investigative journalism
techniques, can both educate the public on the costs
of corruption and act as a deterrent against corrupt
officials.
(9) Competent and independent judiciary,
founded on a merit-based selection process and
trained to enforce contracts and protect property
rights, is critical for creating a predictable and con-
sistent environment for transparency in legal proce-
dures.
(10) Independent and accountable legislatures,
responsive political parties, and transparent electoral
processes, in conjunction with professional, account-
able, and transparent financial management and
procurement policies and procedures, are essential to
the promotion of good governance and to the combat
of corruption.
(11) Transparent business frameworks, includ-
ing modern commercial codes and intellectual prop-
erty rights, are vital to enhancing economic growth
and decreasing corruption at all levels of society.
(12) The United States should attempt to im-
prove accountability in foreign countries, including
by—
(A) promoting transparency and account-
ability through support for independent media,
promoting financial disclosure by public offi-
cials, political parties, and candidates for public
office, open budgeting processes, adequate and
effective internal control systems, suitable fi-
nancial management systems, and financial and
compliance reporting;
(B) supporting the establishment of audit
offices, inspectors general offices, and anti-cor-
ruption agencies;
(C) promoting responsive, transparent, and
accountable legislatures that ensure legislative
oversight and whistle-blower protection;
(D) promoting judicial reforms that crim-
inalize corruption and promoting law enforce-
ment that prosecutes corruption;
(E) fostering business practices that pro-
mote transparent, ethical, and competitive be-
havior in the private sector through the develop-
ment of an effective legal framework for com-
merce, including anti-bribery laws, commercial
codes that incorporate international standards
for business practices, and protection of intel-
lectual property rights; and
(F) promoting free and fair national, state,
and local elections.
(b) PURPOSE.—The purpose of this Act is to ensure
that United States assistance programs promote good gov-
ernance by assisting other countries to combat corruption
throughout society and to improve transparency and ac-
countability at all levels of government and throughout the
private sector.
SEC. 3. DEVELOPMENT ASSISTANCE POLICIES.
(a) GENERAL POLICY.—Section 101(a) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2151(a)) is
amended in the fifth sentence—
(1) by striking ‘‘four’’ and inserting ‘‘five’’;
(2) in paragraph (3), by striking ‘‘and’’ at the
end;
(3) in paragraph (4), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(5) the promotion of good governance through
combating corruption and improving transparency
and accountability.’’ .
(b) DEVELOPMENT
ASSISTANCE
POLICY.—Para-
graph (4) of the third sentence of section 102(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151–1(b))
is amended—
(1) in subparagraph (E), by striking ‘‘and’’ at
the end;
(2) in subparagraph (F), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following: