TM Standard Slides for SARS Presentations Template

1
MANAGING CONFLICTS OF INTEREST AT
SARS Presentation at the Second Session of the
Anti-Corruption Learning Network Port
Elizabeth 30 31 July 2009
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• WHAT IS CONFLICT OF INTEREST
• A conflict between the public duty and private
  interests of a public official in which the
  official has private capacity interests which
  could improperly influence the performance of his
  / her duties and responsibility.

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• INTERNAL MECHANISMS TO MANAGE CONFLICTS OF
  INTEREST AT SARS
• Gifts Policy
• Declaration of Private Interests Policy

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• GIFTS POLICY
• Defining a Gift
• A gift is an item of value that one person
  presents to another.
• A gift may be offered as an expression of
  gratitude with no obligation to repay in kind or
  may be given to create a feeling of obligation.
• A gift includes, but not limited to money,
  vouchers, entertainment, hospitality, travel,
  commodity, property, meals, beverages, sport and
  entertainment tickets, invites to function, cash
  and benefits.

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• GIFTS POLICY
• In terms of the Gifts Policy, SARS officials may
  not
• Accept or solicit any gifts.
• Accept loans from a taxpayer or organisation.
• Procure goods or services for personal use at a
  discounted rate not offered to the general
  public.
• Derive any additional benefit or discount from
  vendors who do business with SARS.

6

• GIFTS POLICY
• In terms of the Gifts Policy, SARS officials may
• Accept coffee, lunch and dinner invitations, on
  condition that they pay for themselves.
• Accept such invitations if they are employed by
  divisions whose functions include building
  relationships with international tax and customs
  administrations or other entities.
• Accept invitations to appropriate entertainment
  events on condition that prior approval is
  obtained from the Ethics Committee Office.
• All gifts and invitations, whether accepted or
  not, must be declared.

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• DECLARATION OF PRIVATE INTERESTS POLICY
• Objectives
• To establish rules of conduct in respect of
  conflict of interest.
• To minimise the possibility of conflicts arising
  between private
• interests and official duties and obligations.
• To ensure the primary professional loyalty of all
  SARS officials.

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• DECLARATION OF PRIVATE INTERESTS POLICY
• Examples of possible conflicts of interest
  situation
• Gifts and other forms of benefits.
• Affiliations with for-profit and non-profit
  organisations, other government entities and
  government owned corporations.
• Affiliations with political, trade union or
  professional organisations.

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• DECLARATION OF PRIVATE INTERESTS POLICY
• SARS officials Shall
• Refrain from engaging in any outside matter of
  financial or interest incompatible with the
  performance of their duties.
• Not realise any personal gain of any form which
  shall influence the conduct of ones SARS duties.
• Not knowingly use SARS property, funds,
  information, position or power for personal gain.
• SARS officials must declare any private interests
  annually (April May) or whenever new interests
  arise.

10

• ADMINISTERING THE DECLARATION OF PRIVATE
  INTERESTS
• At SARS, the following steps are followed in
  administering the Declaration of Private
  Interests
• If the employee has no private interests, this
  fact should be declared to the Ethics Committee
  annually in the declaration of private interests
  form.

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• ADMINISTERING THE DECLARATION OF PRIVATE
  INTERESTS
• If the employee has private interests, the
  following steps are followed
• Declare the private interests to the Ethics
  Office annually.
• Ethics Committee reviews declaration to determine
  if a conflict exists.
• Ethics Committee will conduct investigation in an
  open, fair and honest manner.
• Employee may clarify and/or appear before the
  Ethics Committee.

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• ADMINISTERING THE DECLARATION OF PRIVATE
  INTERESTS
• If the employee has private interests, the
  following steps are followed
• Resolution of the Conflict is minuted by the
  Ethics Committee.
• Employee is notified of the Ethics Committee
  decision in writing.
• Employee has the right to appeal in writing
  against the decision within 30 days of the date
  of the correspondence.

13

• ADMINISTERING THE DECLARATION OF PRIVATE
  INTERESTS
• SARS responds to non-conformity in the following
  ways
• Disciplinary measures will be taken.
• Through the suspicious activity report system.
• Life style audits may be conducted on you.
• Failure to declare is detected by the system

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• PRACTICAL CONSIDERATIONS TO BE TAKEN INTO ACCOUNT
  WHEN IMPLEMENTING CONFLICTS OF INTERESTS MEASURES
• Manual processing of declaration forms for 15 000
  SARS employees is practically impossible.
• Electronic processing has been implemented at
  SARS.
• Electronic version is more user friendly and
  makes sorting of data easier.
• Need for Awareness workshops on Declaration of
  Private Interest.
• Disciplinary action for non compliance.

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• SUCCESES AND CHALLENGES OF THESE MEASURES
• Declaration of Private Interests keeps employees
  on their toes in terms of corruption.
• 92 compliance rate by employees.
• 100 compliance by EXCO and top management.
• Capacity to conduct detailed verification of
  submissions lacking.
• Lack of understanding of what the Declaration
  entails in some cases.
• Incomplete declarations.

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• CONCLUDING REMARK
• Awareness and training of employees regarding
  declarations of private interest is a continuous
  process as government continues to hire new
  staff.
• The success of the declaration of private
  interests process requires the commitment of
  sufficient human resources.