NZ National Integrity System survey a case of “to the pure all things are pure”?

9 December 2013

Today is World Anti Corruption Day. Ten years ago the United Nations assigned 9 December as the day to raise awareness of corruption and the role of the UN Convention Against Corruption in combating and preventing it.  The Convention came into force in 2005.

New Zealand however has not yet enacted legislation which will facilitate full compliance with the UNCAC.  And the tardiness to do so was one of the substantive findings of the Transparency New Zealand “Integrity Plus” National Integrity Survey assessment published today.  The Integrity Plus NIS has been a major undertaking by Transparency New Zealand.  It has taken a large group of enthusiasts much of the year to collate and write up data. The assessment runs to 374 pages.

The assessment is substantially more comprehensive than the initial NIS conducted of New Zealand in 2003, or in any of the many other countries where NIS assessments have been carried out.  The Integrity Plus NIS assessment is based on an evaluation of the 12 pillars of institutional integrity applying a Greek Temple model devised by the late Jeremy Pope, when a director at Transparency International, in the late 1990s. These pillars reflect not only the legislature, the executive, the judiciary, and the public sector but also law enforcement, the electoral system, Ombudsmen, the Auditor General’s office, political parties, media, civil society and business. These last three “pillars” provide a pan societal perspective.

The conclusions seem to be somewhat self-fulfilling.  Transparency New Zealand has been concerned about an impending surge of corruption for a number of years.  Although New Zealand continues to be rated by international assessors as sharing with Denmark the accolade of having the World’s least corrupt public sector – and has done for a number of years – there is a suspicion that this cannot really be the case – that there must be an undisclosed shaft of corrupt practices running through government.  The problem is that evaluation methods used internationally don’t reveal the nature or scale of corruption which those methods show up in other jurisdictions.  In the end the fall back position is perception and a sense that the devil must be at the door.

In the Integrity Plus NIS, Transparency New Zealand seems hard pressed to substantiate concerns about growing untrustworthiness of public officials. It has reported that political party funding threatens the parliamentary process, and that the purity of free and fair advice being given to Ministers is diminishing.  But the evidence purporting to support worsening corruption was primarily the delay in the ratification of the UN Convention against Corruption – to which many other countries can be seen to have committed as a prerequisite for admission to the WTO –  and in growing referrals of suspected corruption to the Serious Fraud Office.

It may not be wholly cynical to say that latter measure has an element of agency self promotion. Hon Phil Goff at the Select Committee review last week of the SFO ( a sponsor of Transparency New Zealand, along with 22 other State sector organisations ) questioned whether the alleged rise in fraud and corruption was significant, or simply a rise from a very low base. The SFO which takes a zero tolerance approach to corruption, said that any increase is significant. Its explanation included a reference to more people in New Zealand from overseas requesting things considered corrupt in New Zealand, but not elsewhere, although the incidence of fraud “cannot be said to be solely a result of international influence”.  That was not a particularly convincing justification for reporting a growth in public sector corruption.

A benefit of the Integrity Plus NIS assessment is not in what intensive inquiry has found, but what has not been found, despite the best endeavours of well qualified researchers.  The flavour of the report reflects public concerns voiced by Transparency New Zealand for several years. The data on which the report is constructed discloses nothing new. The baggers and bloggers who repeatedly belittle the commitment to integrity of officials and the abiding strength of the spirit of service among all but a minute percentage of State servants will no doubt allege that the Integrity Plus NIS is the product of more patch protection by bureaucrats.

The purpose of the Integrity Plus NIS however is to evaluate the pillars of good government.  There are many measures that have been implemented in other jurisdictions which if adopted here could reinforce government institutions and harden them against the corrosive effect of corrupt practices.  But then many of the countries that have endeavoured through such measures to prevent corruption, have poorer good government ratings than New Zealand and have neither the quality of life of their citizens of nor the ease of doing business for their commercial interests of New Zealand (although Forbes Magazine this week has downgraded New Zealand to second best place for business, behind Ireland and ahead of Hong Kong.)

www.transparency.org.nz/docs/2013/Integrity-Plus-2013-New-Zealand-National-Integrity-System-Assessment.pdf

www.un.org/en/events/anticorruptionday/

www.ssc.govt.nz/transparency-international-report-dec13

www.oecdbetterlifeindex.org/countries/new-zealand/

www.doingbusiness.org/data/exploreeconomies/new-zealand

www.forbes.com/best-countries-for-business/

Is there a rash of corruption if only New Zealanders looked for it?

4 December 2013

The credibility of the New Zealand assessment in the 2013 Corruption Perceptions Index has been challenged in some quarters. The reasoning is that if there are well published instances of corruption then the least corrupt public sector rating must surely be misplaced.  Hasn’t the Minister for Sport announced a programme starting next year to counter corruption in competitive sport; didn’t the Chair of the Remuneration Authority rationalise increasing salaries for public sector chief executives as a means of minimising corruption; hasn’t the High Court directed that an MP – a former Minister and former Auckland mayor –  stand trial for a false election expenses declaration?  What credibility can there be in the Transparency International findings?

Some criticisms seem based on a naive belief that CPI material is gathered by officials with an interest in patch protection, and that there has been no serious attempt to uncover the layer of corruption just waiting discovery.

The CPI relates to public sector corruption.  Many published incidents are not relevant to the Index; they don’t relate to the actions of agencies or their staff.  In other cases it is the taking of remedial action that has created public awareness.  And some examples are just nonsense, as with the “finding” in a corruption barometer survey earlier this year,  that 3% of New Zealanders had paid a bribe to a judge, and 20% felt the courts were corrupt.  Yesterday on Pundit, Andrew Geddis commented that the John Banks case, where the Crown took over the court application to initiate proceedings against him, and the High Court showed no reluctance to order a criminal trial,  shows that New Zealand is a country where “…the rule of law works.”

The latest CPI is the first time when TI has recommended comparing ratings with the previous year.  Until now that sort of comparison would mislead about trends. This year for example, the improved scoring of 9.1 for New Zealand (and Denmark) is a qualitative improvement on the 9.0 score in 2012.

The international assessors consider that standards of the New Zealand public sector in 2013 had improved.  Australia and Iceland are examples of highly regarded countries but where the score is declining.  This is reflected perhaps in the recent announcement of a special programme to counter corrupt practices believed to occur regularly within the Australian Customs Service.

When comparing standards in other countries, New Zealand’s officials were the least corrupt. It is not that there is no corruption, just that there is less than elsewhere.

 

www.fcpablog.com/blog/2013/12/3/the-2013-corruption-perceptions-index.htm

www.customs.gov.au/site/131127mediarelease-task-force-Pharos.asp

http://pundit.co.nz/content/next-years-public-law-exam-question-is-here-somewhere

www.newlawjournal.co.uk/nlj/content/sign-timesor-aberration

Why are we not excited about again topping the Corruption Perception Index?

3 December 2013

Another year gone. Another year when New Zealand has been rated as having the world’s least corrupt public administration.  This year Denmark is up there with us. Last year Finland was there also. In each of the last six years New Zealand has ranked among the least corrupt.  Since the survey began in 1995 our public sector has always ranked among the five least corrupt.  Perhaps that is why most of us are not particularly moved by the occasion.

At the Institute of Public Administration (IPANZ) end of year function this evening (at which David Farrar, Mark Unsworth and  Linda Clark shared their entertaining assessments on the year in politics)  four people commented to me on the absence of blog posts recently ( and one person who I thought would comment said nothing)  but only one person commented on the publication today of the results of the 2013  Transparency International Corruption Perception Index.  The CPI is the validation of good government. It is an assessment of perception, but the perception of the experts making the assessment is close to reality.  New Zealand’s public administration can be proud of the fact that by international standards, it continues to be seen as largely corruption-free. Good government is based on public trust and confidence. The CPI confirms that New Zealanders can be confident that their public officials are trustworthy and (with remarkably few exceptions) are imbued with the spirit of service as required by the State Sector Act.

It is interesting to see how countries move in and out of the least corrupt rankings. Iceland, Finland, Sweden and Singapore have also been positioned at times alongside New Zealand. It is interesting to characterise these highest ranking countries. They are small,  developed, democratic, largely egalitarian economies, with a strong focus on the rule of law. New Zealand however is a much less homogenous society than the Scandinavian countries that are similarly well ranked (and Singapore, which is the best of class in Asia).

This year’s placings are not dissimilar to previous years – although Iceland continues to slide.

2013 2012
New Zealand 1 1
Denmark 1 1
Finland 3 1
Sweden 4 4
Norway 5 7
Singapore 5 5
Switzerland 7 6
Netherlands 8 9
Australia 9 7
Canada 9 9

( And the reason for the hiatus in postings is that my laptop has packed up on me!)

http://www.transparency.org/cpi2013

http://www.transparency.org.nz

Release of Integrity Plus gets closer -Transparency International’s NZ assessment

20 November 2013

The impressive numbers who attended the Transparency International AGM in Wellington yesterday anticipating the release of the enhanced National Integrity System evaluation will have a few more days to wait.  Despite a media release by the Minister of Justice welcoming the findings, these will not be available until later in the week.  The extensive and unique process developed for this New Zealand NIS evaluation has required considerably more time than its dedicated contributors first contemplated.

Attendance figures suggest a strengthening of cooperation between government and civil society. The Minister of Justice, the Opposition Justice spokesperson and two former Governors-General spoke.

The Minister confirmed New Zealand’s intolerance of corruption and the Government’s commitment to the anti-corruption aspirations of the UN Convention Against Corruption, the OECD Anti Bribery Convention, and Anti Money Laundering arrangements. She outlined a programme to strengthen a people centred justice system that enhances trust and confidence in the Courts, a national plan of action to implement Open Government Partnership responsibilities and an ongoing focus on delivering Better Public Services with the “Kiwis Count” survey measures of quality improvement. She spoke of supporting “all twelve of the integrity pillars” – a reference to the Greek temple integrity model developed by the late Jeremy Pope.

Dame Sylvia Cartwright, who for five years has been working in corruption riddled Cambodia as one of two international judges on the Supreme Council of Magistracy, spoke of the appalling absence of good government in that country and the almost unconceivable differences in the lives of citizens living in countries rating at the top of the Corruption Perceptions Index and those like Cambodia in the bottom decile.

The Opposition Justice spokesperson, as the Chair of the New Zealand  branch of Global Organisation of Parliamentarians Against Corruption, acknowledged the importance of a continuing focus on standards. Despite a  belief that New Zealand’s politicians were ethically motivated, among other remarks, he noted that the promotion of transparency through systems involving self disclosure “has gaps”.

 

www.transparency.org.nz/2013/National-Integrity-System-Assessment-New-Zealand-2013

www.national.org.nz/Article.aspx?articleId=42572

http://my.lawsociety.org.nz/news/gopac-turns-ten

 

Who’s doing the right thing? – State Services integrity and conduct survey

19 November 2013

The Legal Research Network (LRN) has published its 2013  Ethics & Compliance Leadership Survey Report. LRN is an NGO (established in 1994 “BE” – before Enron) that promotes the democratisation of information to help people around the world do the right thing.  It began promoting open government long before the Open Government Partnership was contemplated.

The survey findings are based on responses from ethics and compliance leaders across industries and geographies.

  • 80% saw business performance and value creation as the greatest benefits of an ethical culture
  • 74%  listed data privacy as the top ethics and compliance risk
  • 70% considered conflicts of interest as the second greatest threat
  • 68% rated electronic data protection as the third greatest threat,  and
  • 62% saw bribery and corruption as the next threat to ethics and compliance.

Interestingly, the survey indicates that ethics leaders consider social media to be a top risk also.

A finding is that programs with the primary mandate of “ensuring ethical behaviour and alignment of decision-making and conduct with core values” score higher on the LRN Program Effectiveness Index than programs that focused solely on “ensuring compliance with rules and regulations.”

The message is that compliance with codes of conduct for compliance sake is less effective than an organisation structured around the “6 trust elements – where

  • there are standards of integrity and conduct
  • there is promotion of the standards of integrity and conduct
  • the standards of integrity and conduct are integrated into the behaviour of employees
  • managers model the standards of integrity and conduct in their behaviour
  • staff know the consequences for behaviour that breaches the standards of integrity and conduct
  • the organisation acts decisively when breaches occur.

Awareness of these 6 trust elements will be measured in the State Services Integrity and Conduct survey now underway.

www.lrn.com/operational-guidance-whitepapers/2013-ethics-compliance-leadership-survey-report

www.ssc.govt.nz/node/5390

www.ssc.govt.nz/integrity-and-conduct-survey-2013-faqs

NZ looking good in OECD Government at a Glance

17 November 2013

The OECD Policy Forum on Restoring Trust in Government met on 14-15 November to explore measures to counter the declining public confidence which citizens have in their public administrations – including legislators, judges, police and civil servants.

The Forum was the occasion for launching the 2013 (3rd) edition of Government at a Glance.  This is a collation of statistics relating to good government measures across the OECD.  Previous editions have been among the most frequently sold and downloaded of all OECD materials.

This edition argues the need for governments to be more inclusive, transparent, receptive and efficient.  Among other things this needs trustworthy institutions which gain public trust because of the quality of the services they deliver and the openness and transparency of the way they operate.

The importance of trustworthiness of course is nothing new.  That is the characteristic which underpins the State Services Commissioner’s expectations of all who work in the State Services. Trustworthiness is something which we can all shape.  The only way we can influence the public trust in government is through the trustworthiness we exhibit.  The 2013 State Services integrity survey getting under way this week is a measure of the trustworthiness that State servants see in their agency and their colleagues.

The importance of trustworthiness was the theme of Dame Onora O’Neill’s TED talk earlier this year.

The indicators in Government at a Glance provide international comparisons and trends in eight broad areas: strategic governance; public finance, budgeting practices; public sector pay and employment; women in government; public procurement; open and inclusive government and quality and accessibility of public services.

The New Zealand statistics included in the report are generally among the OECD ‘leaders’.

Trust in Government is assessed as improving 2% since 2007 from 59% to 61% – (whereas the OECD average declined  5% over the last two years).

New Zealanders are 10% more satisfied with government  than the OECD average. Their confidence in government is 61% (whereas the OECD average is 40%).  The components are:

  •  Police 83% (OECD 72%),
  •  Education 71% (OECD 66%),
  •  Health care system 83% (OECD 71%)
  •  Justice system 58% (OECD 51%)

www.oecd.org/general/focus/restoring-trust-in-government.htm

www.oecd.org/gov/GAAG2013_CFS_NZL.pdf

www.ted.com/talks/onora_o_neill_what_we_don_t_understand_about_trust.html?utm_source=email&source=email&utm_medium=social&utm_campaign=ios-share

Counting on academic Kiwis to improve public services

12 November 2013

The Victoria University School of Government awards ceremony last night included an address by the Deputy Prime Minister. He spoke of academic input into structures needed for effective government.   The Kiwis Count findings updated last week confirm strengthening public perceptions of the quality of the State Services and significant increases in levels of trust in agencies. These results are a testament to the engagement of frontline staff.  They show a focus on solving problems. That is what good government is all about.  But he wanted less separation between academics and agencies, from policy makers and government.

He spoke of the Better Public Services goals providing transparency and public accountability. He echoed a theme of previous speeches to public sector audiences – of using resources effectively.  The solo mothers are known, as are the names of the children in care and those failing to read, the prisoners at the gate, and those on the invalid’s benefit. There are substantial savings to be made in remedying these situations. Use of information may be the way. Agencies hold massive amounts of information;  the way they use it is what marks their difference.  Solutions will lie in using that information. What we need are ethical and practical applications to deal with these challenges.

He acknowledged that no one had all the answers.  That’s where research can help.  He admired the intellectual effort and personal commitment of people like the evening’s award winners. “Show us what works – and there is no limit on what we will spend.”

The Kiwis Count June 2013 Quarter results show overall satisfaction has steadily improved over the past six years. In the last 12 months, satisfaction with public services improved from 72 to 73 points and trust in public servants ‘to do what is right’ increased from 67 points in 2007 to 77 points in 2013.

The Kiwis Count summary indicates that –

  • In the last 12 months, satisfaction with public services has improved again.
  • There has been a steady improvement in overall satisfaction with public services over the past six years.
  • The overall service quality score for the June quarter 2013 is 73. This is one point higher than the June quarter 2012 result and five points higher than when it was first measured in 2007.
  • The quality of service score for three services significantly increased in the June 2013 quarter.
  • Since measurement began, there is a 14 point spread between the service with the most improvement to the service with the least improvement.
  • Thirteen NZ services have a service quality score that match or are above the comparable Canadian service “best in class” score.

www.beehive.govt.nz/release/kiwis-say-public-services-better-more-trustworthy

www.ssc.govt.nz/kiwis-count-update-jun13

www.stuff.co.nz/dominion-post/news/politics/8525370/Objectives-more-than-saving-money

Spying, transparency, trustworthiness and the most Open Governments

11 November 2013

A monumental anniversary.

The aspirations for good government of a number of the 1200 enthusiasts at the London Open Government Summit at the beginning of November include explicit transparency as the process for shining through blinkered policies like those that led to the implosion of European societies in 1914 and the exhaustion by 1918 of their national economies, consequent upon the ‘Great War’

The extent to which countries are seen to meet Open Government standards is somewhat variable – and possibly dependent on the eye of the beholder – as shown by the ratings given in comparable surveys published in conjunction with the Open Government Summit.  The Open Knowledge Foundation published its findings as the first Open Government Index; the Open Data Institute published its research as the first Open Data Barometer.

New Zealand, rated fourth in the Open Government Barometer, shared eighth place with Australia in the Open Government Index.  A constant is that the United Kingdom and the United States were the most highly rated in both surveys.

But these lead states would have been squirming with the Aruna Roy question put to the US Secretary of State at a plenary session: “There’s more transparency in governments, there’s more accountability,” she said. “And at the same time, there are more restrictive laws being passed by all governments today than ever before and there is an attempt at surveillance by my government and your government. Why is this happening?”

John Kerry “… defended the motives of US intelligence agencies, insisting no-one innocent was being abused and that surveillance … had prevented many terrorist plots, but acknowledged that trust needed to be restored and that surveillance had, in some cases, gone too far…”

The distinctions between the surveys are perhaps more in matters measured than the evaluations per se. The top ten of both surveys rank more or less the same countries – the striking differences occur further down the list with Korea, Estonia, Japan, Spain and Israel being part of the top 20 on the Barometer, but  excluded in favour of Moldova, Bulgaria Malta and Portugal on the Index.

The Barometer assessed 77 countries while the Index assessed 70, both including only a minority of Open Government Partnership member states. The Barometer includes a ‘radar’ image of survey findings of the participating countries.  That for New Zealand is somewhat eccentric in pattern suggesting that there is much room for improvement in some of the elements assessed.

The Index asked about the availability and accessibility of information in ten key areas –including government spending, election results,  transport timetables, and pollution levels. The Barometer survey explored the adoption of the Open Government Declaration principles,  including right to information laws, the penetration of OG Declaration in layers of government, whether there was much demand for open data and the extent to which there was training and encouragement of innovation regarding open data.

Open Government Barometer 2013 Open Government Index 2013
United Kingdom 1        1 United Kingdom
United States 2        2 United States
Sweden 3        3 Denmark
New Zealand 4        4 Norway
Norway 5        5 Netherlands
Denmark 5        6 Finland
Australia 7        7 Sweden
Canada 8        8 New Zealand
Germany 9        8 Australia
France 10     10 Canada
Netherlands 10     11 Iceland
Republic of Korea 12     12 Moldova
Iceland 12     13 Bulgaria
Estonia 14     15 Malta
Finland 14     15 Italy
Japan 14     16 France
Spain 17     17 Austria
Austria 18     18 Portugal
Israel 18     19 Slovenia
Italy 20     20 Switzerland
Russia 20

https://index.okfn.org/country

www.opendataresearch.org/dl/odb2013/Open-Data-Barometer-2013-Global-Report.pdf

www.opengovpartnership.org/blog/jane-dudman/2013/11/06/open-government-after-londons-ogp13-theres-still-plenty-more-do

Improving regulatory compliance

7 November 2013

The Solicitor-General, Chair of the Productivity Commission, and the Chief Executives of NZ Transport Agency and Maritime NZ expressed views on the future look of regulatory compliance at a Leaders’ Forum in Wellington yesterday. With more than 17,000 State sector employees having regulatory responsibilities, obvious national advantage will flow from more collaboration, a sharper focus and better training.  Agencies with regulatory responsibilities have much more in common than any “uniqueness” flowing from their jurisdictional differences.  Exploiting those commonalities presents opportunities to enhance the contribution agencies make to good government.

The Forum sought to reinvigorate the Compliance Common Capability Programme which has evolved over the last five years, and to encourage sector- wide engagement in mutually supporting and trust-building programmes.  Speakers promoted a focus on contributions to the CCCP steering group, assessment of processes that will strengthen the impact of enforcement, and participation in common training.

A Productivity Commission investigation into the design and operation of regulatory regimes, scheduled for Tabling in mid 2014, may also stimulate political interest in regulatory compliance changes.

Agencies were encouraged to participate in capability training and activities of the CCCP Regulatory Compliance Learning Council, which will be promoted through the network in the New Year.

 

www.linkedin.com/groups/New-Zealand-Regulatory-Compliance-Learning-4850160/about

New Zealanders have the good life compared with many others in the OECD

6 November 2013

New Zealand rates well in the Better Life Index published today.  The OECD reports that New Zealand performs well in areas that are considered essential for “the good life”.

New Zealand is placed at the top of the OECD for health status, and above average for many of the other ten measured elements including civic engagement, personal security, environmental quality, subjective well being, education and skills, housing, social conditions, and jobs and earnings.

However,  New Zealand is below the OECD average for income and wealth, and for work-life balance.

The survey indicates that household disposable income grew in New Zealand by around 6% from 2007 to 2010 while in countries of the Euro area, income dropped on average by 2% between 2007 and 2011,

That change is evident for anyone contemplating the purchase of a new European car.

Although 4% of New Zealanders live in households where all adults are unemployed, that incidence is lower than the OECD average.

Australia remains the lucky country.

Although the survey doesn’t explicitly identify which country offers the best life,  if each of the 11 categories is given equal weight, Australia’s ranks first, followed closely by Norway and the United States. New Zealand ranks higher than Australia for health, and for work life balance and life satisfaction.

 

www.oecdbetterlifeindex.org/

www.oecdbetterlifeindex.org/countries/australia/