MANAGING CONFLICT OF INTEREST IN PUBLIC SECTOR

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• MANAGING CONFLICT OF INTEREST IN PUBLIC SECTOR
• COMMISSION 4

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INDEX

• DEFINING CONFLICT OF INTEREST
• SYNOPSIS OF PRESENTATIONS
• BROADER ISSUES OF CONCERN
• CHALLENGES
• SOLUTIONS
• CONCLUSION

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WHAT IS CONFLICT OF INTEREST?

• A Conflict of Interest involves a conflict
  between the public duty and the private interest
  of an employee.
• The employees private capacity interest could
  improperly influence the performance of official
  responsibility.

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SYNOPSIS OF PRESENTATIONS

• NATIONAL PROSECUTING AUTHORITY
• Advocates the advancement of self regulation by
  an individual to do the right thing even when no
  one is looking.
• That is, emphasis is on individual and
  organisational behaviour as deterrent to commit
  corrupt activities
• NB This integrity model brings a fresh approach
  to issues of anti-corruption by emphasis on own
  individual conduct.
• Has 4 pillars
• Promotion
• To assist individuals by training officials as
  ethics champions (i.e., Integrity Champions (162
  trained employees)
• Prevention
• Have in place integrity registers (i.e., gifts,
  RWOPS)
• Declaration of secrecy Declaration of interest
  wrt tenders
• Combating
• Advocacy awareness

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SOUTH AFRICAN REVENUE SERVICES (SARS)

• SARS brings about approach of no gift no
  corruption
• Puts emphasis on the following as deterrent to
  conflict of interest
• Nobody is allowed to receive gifts,
• SARS employees are not allowed to borrow money
  from their clients
• Dont accept discounts
• No to any benefits from service providers even
  those contracted to SARS
• No lunch offers
• No invites to matches without permission
• Declaration of private interest which focuses on
  these
• All must declare annually which is on-line
• Ethics Committee reviews all applications/declarat
  ion
• Outside work similar to field of work is not
  allowed
• Non compliance results in disciplinary measures
• Suspicious activity system can give alerts
• Life style audits

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PUBLIC SERVICE COMMISSION

• Financial Disclosures Framework for SMS
• PSC asserts that since 2000/01, theres steady
  increase in compliance rate
• That its focus is mainly on SMS level and above.
• Depts need constant reminders for them to comply
  timeously
• In 2008/09 started to scrutinise submitted
  disclosures in selected national depts and
  provinces (See report)
• Outcomes of which indicated
• Direct link between duties of SMS and business
  activities of company in which they held
  Directorship/partnership
• SMS involved in 3 or more companies with no
  time to his official responsibilities.
• 2 or more in same dept involved in same
  companies where he could make a decision that
  favour one another.
• Almost 21 of SMS may have potential conflict of
  interest
• Repeat offenders would now be reported to SCOPA
• Framework does not include other categories of
  employees, BUT proposal on reviewed Framework
  includes all officials in Finance Procurement
  Units

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BROADER ISSUES OF CONCERN

• Broader issues raised by the commission
• Framework covering spouses of SMS not yet
  approved
• No action is being taken against SMS members not
  complying with current Disclosure Framework
• No action is being taken against Executive
  Council members implicated in conflict of
  interest issues
• The paper reported that South Africas civil
  servants have scored more than half-a-billion
  rand in irregularly awarded government tenders.
  It claimed the tenders were awarded to companies
  owned by the civil servants themselves or those
  belonging to their spouses and relatives. D/Min
  of DPSA on 30/07/09
• Senior managers and, or junior officials register
  companies in names of unemployed and illiterate
  people
• Non- SMS members are not required to disclose
  financial interest

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CHALLENGES

• Non or late submissions of declaration of
  interest by departments
• Members involved in procurement adjudication are
  not declaring private interest
• No compliance to pre-screening or non- Personnel
  Suitability Checks Directive
• Conflict of Interest Policies are always
  legalistic
• Integrity/disclosures form or registers are
  reactive
• Public service code of conduct is not enforced or
  implemented by depts
• No capacity to identify red flags or investigate
  potential conflict
• Policies not enforced or discriminately
  implemented

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SOLUTIONS

• Include conflict interest in departmental
  induction manual
• Constant awareness on ethical conduct
• Implement pre-screening Directive as early
  detection mechanism
• Consistent enforcement of policies/framework/codes
  
• Keep maintain electronic data-base of
  declarations
• Use of simple language/words in framework for all
  to understand
• Inclusion of non SMS members in framework

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SOLUTIONS (continued)

• All employees to disclose spousal interests
• Life-style audits be part of conflict of interest
  policies
• Enforce signing of confidentiality clauses on all
  bids/tenders
• Create capacity to deal with conflicts of
  interest
• Enforce disciplinary measures for non-compliance
  to the framework
• When suppliers register to tender/bid they must
  sign code of ethics

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CONCLUSION

• THANK YOU