VZCZCXRO5319
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHBW #0254/01 0480723
ZNR UUUUU ZZH
R 170721Z FEB 10
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 0798
INFO EUROPEAN POLITICAL COLLECTIVE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 03 BELGRADE 000254 
 
SENSITIVE 
SIPDIS 
DEPT FOR EUR/SCE (P. PETERSON) 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KCOR SR
SUBJECT: SERBIA: ANTI-CORRUPTION AGENCY STARTS OPERATION 
 
REF: 08 BELGRADE 1040 
 
Summary 
 
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¶1. (SBU) Serbia's new Anti-Corruption Agency officially opened its 
doors January 1, 2010, after months of preparatory work.  Despite 
government officials' strong statements supporting anti-corruption 
efforts, some observers noted that the new agency lacked effective 
enforcement power; others were more positive but noted many 
challenges for the agency.  Wrangling over the budget and the 
government's failure to take some ACA recommendations brought into 
question the government's seriousness about anti-corruption 
efforts.  The government so far seems to be primarily interested in 
the appearance of a robust anti-corruption body and has far to go 
in showing it will truly support the ACA.  End Summary. 
 
 
 
Anti-Corruption Agency Established 
 
---------------------------------- 
 
 
 
¶2.  (U) The Serbian Anti-Corruption Agency (ACA) was established by 
the Law on the Anti-Corruption Agency, passed October 2008.  The 
Law grants the ACA, which reports to the National Assembly, the 
power to make inquiries into violations of the law and refer them 
for possible prosecution in the areas of political party financing, 
public officials' financial disclosures, and rules on conflict of 
interest.  The ACA has the authority to supervise the National 
Strategy for Anti-Corruption, create anti-corruption regulations, 
and take complaints from the public.  The ACA takes on the role of 
the former National Assembly Committee for Prevention of Conflict 
of Interest, which was charged with preventing MPs from 
simultaneously holding prohibited second offices, such as 
mayorships.  The ACA will also maintain a register of financial 
disclosures and collect and scrutinize party financing reports. 
The Assembly established the ACA's board of directors in March 
¶2009. 
 
 
 
¶3. (SBU) In July 2009, board of directors president Cedomir Cupic 
announced the selection of former Embassy employee Zorana Markovic 
to be ACA Director and Vladimir Jankovic to be her deputy. 
Markovic had applied in an open competition and was chosen 
unanimously by the board, beating out 27 other candidates, 
including some prominent individuals.  Markovic told us in July 
that she was surprised to have been chosen, attributing her 
selection to her previous good work in this area. 
 
 
 
¶4. (U) Government officials' and politicians' statements throughout 
2009 were supportive of the Agency and anti-corruption efforts in 
general.  At the inaugural meeting of the ACA board in April 2009, 
National Assembly speaker Slavica Djukic-Dejanovic stated that 
anti-corruption was one of Serbia's "fundamental strategies." 
Board member Zoran Stojiljkovic noted the ACA had real tools and 
would be more than an advisory body.  President Tadic, commenting 
later that month on the investigation for abuse of office of 
Zrenjanin mayor Goran Knezevic (Reftel), highlighted the need for 
investigations into party financing and stated "Let there be no 
dilemma, no one will be protected and no one will enjoy the 
protection of any state institution regardless of which party they 
are from." 
 
 
 
¶5.  (SBU) Initial reactions from non-governmental circles were 
mixed, however.  Verica Barac, the outspoken director of the 
independent Anti-Corruption Council, decried the ACA as a "charade" 
designed to neutralize her Council and please the EU.  Others such 
as Nemanja Nenadic from Transparency Serbia were cautiously 
positive that the ACA could be more effective than previous 
anti-corruption bodies if the National Assembly chose good people 
to run it and gave it the necessary budget. 
 
BELGRADE 00000254  002 OF 003 
 
 
Public Awareness Raising 
 
------------------------ 
 
 
 
¶6. (SBU) Markovic told us that prevention and communication were 
among the ACA's most important tasks, and she began these in 
earnest immediately.  Starting just days after their appointments, 
Markovic and deputy Jankovic began to speak out on corruption 
issues.  They gave several press interviews about the importance of 
public accountability and transparent party financing, government 
regulations on accepting gifts, and new conflict of interest 
provisions that went into effect in January 2010 prohibiting state 
officials from holding multiple public positions.  Markovic also 
highlighted the need for additional laws to protect competition, 
better regulate party financing, and establish a public acquisition 
commission.  In July, Markovic criticized the parties' financial 
statements, stating that they appeared falsified.  The ACA 
established a website in November 2009 with information for the 
public. 
 
 
 
Agency Highlights Need for Funding 
 
---------------------------------- 
 
 
 
¶7. (U) Markovic also immediately began to speak publicly about the 
importance of appropriately funding anti-corruption efforts.  In 
July, the ACA released a public statement that, while Markovic had 
requested 160 million dinars ($2.3 million), only 9 million 
($129,000) had been earmarked in the 2010 budget, demonstrating 
that the government commitment to fighting corruption was not real. 
Markovic also criticized the government in December for not 
including funding for the establishment of a promised public 
acquisition commission in the 2010 budget, calling it a "gross 
oversight." 
 
 
 
Agency Officially Launches 
 
-------------------------- 
 
 
 
¶8. (U) On International Anti-Corruption Day, December 9, 2009, the 
ACA co-sponsored a conference with OSCE, Transparency Serbia, and 
UN Development Program (UNDP) to herald the official January 1 
launch of its operations.  The conference was well-attended by 
civil society and the diplomatic community but lacked high-level 
government representation.  UNDP representative William Infante 
noted that the creation of the ACA was a good start and 
demonstrated government will but that the ACA would have to work 
closely with police and prosecutors since it lacked investigative 
authority.  Anti-Corruption Council head Barac wished Markovic luck 
and greater support than she had received.  The ACA currently has 
about 20 staff with plans to hire more soon. 
 
 
 
Obstacles Ahead 
 
--------------- 
 
 
 
¶9. (SBU) While the ACA has made a good start, observers note that 
there are still tough challenges ahead.  A recent UNDP-funded poll 
by Medium Gallup showed that 41% of Serbs believed that corruption 
had increased in the past year, highlighting the long road the ACA 
must travel to build public confidence in the state.  Transparency 
Serbia's Nenadic noted in December that, in addition to the huge 
task of hiring staff and getting them up to speed, it was clear 
that the ACA would have to fend off political pressure as well.  On 
February 1, press reported that the Democratic Party (DS) requested 
the ACA exempt MPs in the Vojvodina Assembly from the limit of one 
public office, which by law took effect January 1 and must be 
 
BELGRADE 00000254  003 OF 003 
 
 
implemented by April 1.  Reportedly the DS made the request because 
so many Vojvodina MPs also hold positions in municipal governments 
that the Vojvodina Assembly would require new elections if MPs are 
forced to choose one position.  Markovic responded to press 
inquiries that "public office" needed to be better defined but the 
ACA would strictly follow the law and was not planning to make any 
exceptions. 
 
 
 
Comment 
 
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¶10.  (SBU) Any success for the new agency will likely be thanks to 
the personal efforts of its staff.  Currently, the government, 
sensitive to the importance of the issue to the EU and others, 
seems interested only in fighting corruption when it is not 
inconvenient to the coalition parties.  The Vojvodina MP issue will 
be a telling test both of the government's seriousness and the 
ACA's ability to overcome political pressure.  End Comment. 
WARLICK