CONFLICTS OF INTEREST IN THE PUBLIC SECTOR

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CONFLICTS OF INTEREST IN THE PUBLIC SECTOR
KWAZULU-NATAL OFFICE OF THE PREMIER
Ms Louise Janse van Rensburg, Manager Human
Resource Policy Practices, HRM

• 6 October 2009

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CONTENTS

• Definition
• Examples of Conflicts of Interest
• Conflicts of Interest Draft Framework
• Professional Ethics
• Current Situation
• Draft Framework Proposals
• Conclusion

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Definition

• A conflict of interest is a conflict between the
  public duties and private interests of a public
  official in which the public official has
  private-capacity interests which could improperly
  influence the performance of his/her official
  duties and responsibilities.

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Types of Conflict of Interest

• There are at least three types of conflict of
  interest, namely
• Apparent or perceived conflict of interest
• Potential conflict of interest
• Actual conflict of interest

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Examples of Conflicts of Interest

• Business interests, eg partnerships,
  shareholdings, board membership, investments in
  private entities.
• Post public-employment with a private entity that
  has done business with his/her department.
• Receiving of gifts or hospitality from a private
  entity doing business with dept.

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Examples continued

• Public servant represents the department in a
  decision-making process in which the business
  entity under discussion is associated with
  him/her
• Former public servant uses information obtained
  from past positions to benefit a private entity
  to the disadvantage of the employer or potential
  competitors

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Conflict of Interest Draft Framework

• Establishes measures and standards for managing
  conflicts of interest in the p s.
• Proposes measures and mechanisms for managing
  conflicts of interest in the public service.
• Provides guidelines on the management of
  potential conflicts vis-à-vis financial
  interests, gifts, hospitality other benefits,
  post-public employment, remunerative work outside
  the public service.

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Draft Framework cont.

• Constitutional values human dignity, equality,
  advancement of human rights freedoms, supreme
  law.
• Constitutional principles high standard of
  professional ethics, impartiality,
  accountability, transparency.

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Professional Ethics

• Public servants serve the public
• Must not misuse/abuse public office for private
  gain
• Public good must be placed above private gain
• Public duties must be carried out without
  prejudice to any individual or group

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Current Situation

• 1997 Code of Conduct for the public service
• 2001 Declaration of financial interests by
  senior management services
• 2002 Public Service Anti-Corruption Strategy
• Legislation supporting the ethics infrastructure
  PSA, PS Regulations, PFMA, PAIA, PAJA, PDA, POCA

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Current Situation cont.

• International instruments
• SADC Protocol against Corruption
• African Union Convention on Preventing
  Combating Corruption
• UN Convention against Corruption
• Organisation for Economic Cooperation and
  Development (OECD) Convention on Combating
  Bribery of Foreign Public Officials in
  International Business Transactions

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Current Situation cont.

• Batho Pele White Paper for Transforming Public
  Service Delivery
• Remunerative Work outside the Public Service
• Public Service Commission Report
• Draft Framework on Conflicts of Interest

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Draft Framework Proposals

• Declaration of financial interests assets
• To be extended to all middle managers,
• responsibility managers, supply chain
• management employees. Details of spouses assets
  interests in certain categories of employees.

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Draft Proposals cont.

• Gifts, hospitality and other benefits
• Prohibition on solicitation or acceptance of
  gifts, hospitality or private benefits of any
  value from private entities contracted to the
  department. This excludes tokens offered or
  accepted within the normal standards of courtesy
  or protocol by any entity.

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Draft Proposals cont.

• Post-Public Service Employment
• Restrictions on post-employment activities of
  former public servants. Prohibition on use of
  insider information. Proposed 12 month
  cooling-off period.

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Draft Proposals cont.

• Restrictions on Remunerative Work
• outside the Public Service
• Written permission required. Public servants
  will be prohibited from doing any work or serving
  on any board of any private entity where this may
  lead to a conflict of interest.

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Draft Proposals cont.

• Ethics Officers Ethics Committees
• Ethics officers appointed to ensure
  organisational integrity and to manage the
  conflicts of interest policy in a department.
• Ethics committee to oversee the implementation
  of ethics and anti-corruption initiatives.

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Draft Proposals cont.

• Enforcement
• Contravention of any provisions of the framework
  constitutes a misconduct. Criminal sanctions may
  be applicable for contraventions of any law
  governing conflicts of interest.

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Conclusion

• A Conflicts of Interest Framework will promote
  ethical conduct by providing firm guidelines for
  departments to ensure there are no conflicts of
  interest in the conduct of employees. Ethical
  conduct is required if service delivery is to be
  improved.

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KWAZULU-NATAL OFFICE OF THE PREMIER
Thank you.
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