FORESTS are the key to the world’s environmental well-being. Their degradation is a pressing social, economic and environmental challenge, affecting the daily lives of millions of people. The importance of forests has long been recognised, yet even after years of advocacy from local and global pressure groups, the illegal harvesting of timber continues to thrive on the back of corrupt behaviour and opaque systems.

Transparency International’s Forest Governance Integrity Programme (FGI) tackles corruption as a primary driver of illegal logging and poor forest management. The programme looks at corruption at all stages in the timber production and processing chain and examines how it facilitates the unsustainable harvesting, production, conversion, export, import and procurement of timber and wood products. The activities of a regional FGI centre in Indonesia and local FGI units in China, Indonesia, Malaysia, Papua New Guinea and the Solomon Islands will contribute to curbing corruption and improving forest governance. This will be done by using Tl’s proven strengths and experiences in research, analysis, monitoring, awareness-raising and advocacy, and using them to build on, and strengthen, existing forest governance institutions and initiatives, and help create new ones.

GOAL The Forest Governance Integrity Programme works towards a society where corruption-free forest governance and sustainable management enable increased economic development, poverty reduction and environmental protection.

WHAT WILL THE PROGRAMME ACHIEVE?

The programme contributes to curbing corruption and strengthening forest governance systems in Asia Pacific through improved transparency and accountability. Specifically, it focuses on the following nine Prime Areas of Intervention:

• Reducing political corruption: Improved transparency, accountability and anti-corruption measures in public institutions and political parties in the exercise of their forest sector-related functions.

• Reducing foreign bribery in supply countries: Improved transparency, accountability and anti-corruption measures by forest sector companies in their overseas operations and in their transactions with foreign public officials.

• Reducing corruption in licensing and concessions: Improved transparency, accountability and anti-corruption measures in the issuance and ownership of forest-related licenses and concessions.

• Reducing incidence of timber laundering: Improved transparency, accountability and anti-corruption measures put in place for public institutions and private enterprises responsible for the trans-national movement and certification of timber.

• Reducing judicial corruption: Improved judicial integrity in the adjudication of forest sector-related prosecution and litigation.

• Improving due diligence of financial institutions: Improved practices of financial institutions which service forest sector clients; decreased incidence of money laundering and reduction in loans to companies engaged in illegal forest activities.

• Reducing unsustainable demand for timber and wood products: Improved customs and procurement regulations in countries with sizeable imports.

• Strengthening national/regional forest governance initiatives: More effective development and implementation of initiatives such as the EU FLEGT VPAs (Forest Law Enforcement Governance and Trade Voluntary Partnership Agreements].

• Strengthening international governance initiatives.

Current Status of Project:

The FGI programme is well on track and its first component, the Forest Governance Integrity Anti Corruption Advocacy Analysis and Monitoring

(FAAA) Phase 1 is rapidly developing.

The Kick Off Meeting was held in Jakarta from 29th of June till the 2nd of July 2009 with the participation of the five involved countries.

The key areas of focus during the Kick Off meeting were on Introduction to the Project, Project Management, Finance Management, Work Plan and Knowledge Management.

Follow-up action proceeding from the Kick Off meeting for the Malaysian Chapter would be:

· To have closer ties with FGI regional office in Jakarta and TI-S

· To produce diagnostic report on Forestry in from Malaysia

· To source for matching fund ( 20% of Funding)

For more information on the FGI project please refer to following link:  http://www.transparency.org.my/scan0007.pdf

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