GRECO assessment: Tallinn's anti-corruption prevention system operates effectively

TALLINN - According to an assessment by the Council of Europe's Group of States against Corruption (GRECO), Tallinn's anti-corruption prevention system is operating effectively, and no significant shortcomings were identified.

The recommendations do not stem from identified violations but are aimed at further developing the existing system and ensuring a more uniform application of its principles.

Tallinn's previous anti-corruption action plan was implemented from 2019 to 2024, leading to several activities with a positive impact. For instance, good corporate governance practices were introduced in city-owned companies and foundations, the quality of recruitment and selection for city leaders was improved, public procurement was centralized, and rules for preventing conflicts of interest in procurement were established. GRECO's assessment confirms that this past work has created a solid foundation for further developing the system.

"Honest and transparent city governance builds trust. Tallinn has many things to be proud of, but we must take the recommendations into account to take the next necessary steps. Transparent governance creates the foundation for business and economic development," said Tallinn Mayor Peeter Raudsepp.

The assessment confirms that internal control and risk management are effective in Tallinn. In areas considered to have a higher risk of corruption, including public procurement, detailed planning, and the processing of building permits, no additional recommendations were deemed necessary. This indicates that the city's practices in these areas are stable and functional. Anti-corruption efforts are based on a value-driven approach, which has been implemented in both management and personnel selection. GRECO highlights several good practices, including multi-level checks in procurement to prevent conflicts of interest and systematic risk assessment in city agencies.

The recommendations primarily concern the development of training and counseling, clarifying guidelines, and designing risk-based checks for declarations of interest. These are directions that support the gradual development of the system. Tallinn will continue to strengthen its follow-up control and internal audit capabilities to maintain a balance between trust-based management and effective oversight.

The report also highlights risks related to the composition of supervisory boards, including politicization and the potential for conflicts of interest. To mitigate these, it is recommended that the principles be more precisely defined and applied more uniformly.

"When forming supervisory boards, it is important to maintain a balance between owner representation, necessary competence, and independence. This helps reduce conflicts of interest and potential risks," said City Secretary Priit Lello.

The formation of supervisory boards for city-owned companies and foundations is based on the current participation policy, which sets a framework for members' competence, independence, and the avoidance of conflicts of interest. GRECO's assessment provides a basis for refining these principles and better harmonizing their implementation.

The City of Tallinn is developing a new anti-corruption action plan in cooperation with the international audit and advisory firm PwC, which is scheduled for completion in the first half of 2026. The goal of the action plan is to consolidate existing practices, incorporate the development directions outlined in GRECO's recommendations, and support their more uniform implementation throughout the city system.

Some recommendations pertain to the national level, including the regulation of lobbying and the development of whistleblower protection.

Tallinn will use the results of the assessment to further develop its system, ensuring a clearer and more uniform application of its principles throughout the entire city system.