KNAB Gathers Feedback and Prepares a New Model of Integrity 0 13

Of these, 15 were individuals, and evaluations were also provided by the Association of Large Cities of Latvia, the Latvian Civil Alliance, and the company "Conexus Baltic Grid."

The opinions received are currently being assessed by KNAB.

As previously reported, KNAB proposes to reform the regulation of conflicts of interest in public administration by shifting from a formal system of prohibitions to a risk-based integrity system, which means considering each situation substantively, including apparent, potential, and actual conflicts of interest.

It is planned that the integrity law for public service and conflict of interest prevention initiated by KNAB will replace the existing regulation and make it clearer, easier to apply in practice, and aligned with modern principles of good governance.

KNAB emphasizes that the draft law includes a number of significant changes, including strengthening oversight of the establishment of an internal control system commensurate with risks in public administration institutions, increasing the accountability of institution heads, and extending requirements to all public administration employees.

The bureau explains that the current regulation on preventing conflicts of interest has been in effect for over 23 years and has undergone more than 37 amendments to adapt to the requirements of the Organisation for Economic Co-operation and Development (OECD), the European Commission, and other international obligations, as well as to address specific cases that have arisen in practice. As a result, the regulation has become complex, fragmented, and primarily based on prohibitions rather than a unified and consistent approach to risk management.

The new draft law is based on a transition to a risk-oriented and preventive model for managing integrity and conflicts of interest. It clarifies and strengthens the responsibilities of heads of public sector institutions. Their duties will include maintaining an internal control system to prevent risks of conflicts of interest and corruption, timely identification and management of risks, with particular attention also to assessing apparent conflicts of interest.

They will also be required to ensure that integrity and conflict of interest risks are assessed substantively, not just in the context of formal prohibitions.

The new draft law clarifies restrictions on accepting gifts. Public administration employees will be prohibited from accepting any gifts related to the performance of their official duties that may or could influence their objectivity, neutrality, or the reputation of public administration.

Clear restrictions on dual employment are also established, stipulating that public administration employees cannot engage in additional work for another employer or conduct business activities during working hours at their primary place of employment, as well as in conditions of conflict of interest risk.

Deputy Head of KNAB for Strategy and Policy Sandis Vectevs noted that the reform of conflict of interest regulation in Latvia signifies a transition from a formal, prohibition-based approach to a risk-based integrity system.

He emphasized that the existing regulation, focused on formal compliance, does not always prevent situations where decisions are legally permissible but do not meet standards of integrity behavior in the public's perception. "Therefore, the goal of the reform is to enhance accountability for managing conflicts of interest, implement the principle of apparent conflict of interest, and increase the role of institution heads in ensuring integrity," Vectevs noted, adding that this reform essentially represents a shift in mindset—from formal compliance to accountability to society.

Compared to the existing regulation, the new draft law no longer uses the term "public official." Instead, it establishes basic requirements for all public administration employees, as well as strict restrictions and prohibitions for senior officials—heads of public sector institutions, appointed and elected officials in the Saeima, the Cabinet of Ministers, and local government bodies. Administrative liability for non-compliance with these requirements will remain.

For other employees, restrictions and prohibitions will be defined within the internal control system of each institution, with disciplinary responsibility provided for violations. Heads of institutions will be required to assess substantively apparent, potential, and actual risks of conflicts of interest and corruption in each case.

The draft law introduces a risk-oriented approach to identifying and managing conflicts of interest. This means transitioning from a formal system of prohibitions to assessing each situation substantively, determining whether there is a real or apparent risk of conflict of interest and what measures are necessary to prevent or mitigate it.

KNAB explains that this approach allows for consideration of the circumstances of specific situations and the risks associated with the position, while also promoting more transparent and integrity-driven public administration.

The draft law has been developed taking into account the practical problems identified, including the complexity and fragmentation of the existing regulation. Recommendations from the OECD, arising from the assessment of the existing regulation by this international organization, have been considered in its development.

One of the main reasons for developing new regulation was the desire to strengthen oversight of public sector institutions and proactively prevent risks, rather than merely applying sanctions after violations occur.