Social media may not be the right media for agencies

22 August 2013

Medical staff are developing a reputation for misusing patient information. As an occupational group they are high social media users.  According to a DomPost report today a New Zealand Doctor survey found 55 per cent of GPs used Facebook.  That has given rise to incidents including posting medical photographs and patient notes, improper criticism of colleagues, and other inappropriate observations.

United States research by the Ethics Resource Center would suggest this is not uncommon. There is wide misuse of social media by professional groups. People who are frequent users of social media tend to have the poorest regard for codes of conduct and employer controls on information use. The report content may persuade employers to proscribe any social media use and to preclude access through workplace tools..

Perhaps unsurprisingly there is extensive use of social media in the workplace. Survey respondents were grouped into the frequency of their social media use.  Three out of four social networkers do so when at work, with 28% indicating they do so for an hour or more each day. Many admit that none of this is related to their work.

“Active social networkers” are people who spend at least 30 percent of their day participating in a social network. These active users seem to have least concern for ethical controls. They report that they would comment about their employer organisation if it were in the news; they would post information about work projects, and about a third say they comment about colleagues and clients.

The ERC noted that social networking is transforming the office environment in unpredictable ways. Getting benefit from this is a challenge for leaders who must also manage the risks. “Creative businesses can also use social networking to their advantage in terms of workplace ethics, using it internally to reinforce company values and build work­force loyalty and cohesion,”

The State Services Integrity and Conduct Surveys in 2007 and 2010 were based on ERC research material.  Both the SSC  and the Department of Internal Affairs have published guidance on social media use.

www.stuff.co.nz/national/health/9071725/Doctors-warned-over-social-media-use

www.ethics.org/nbes/

www.ssc.govt.nz/guidance-social-media-use

https://webtoolkit.govt.nz/guidance/social-media/

Fronting up to fiddling

21 August 2013

Earthquakes may well bring out the best and the worst of human nature. Once restoration work in Christchurch got underway, a significant level of fraud was anticipated. The Earthquake Commission reported today that it has doubled the number of complaints made to the Police in the past five months. Most cases involve customers claiming for non-earthquake damage; others are where contractors have submitted false invoices. The report data suggests the frequency could be as high as 4%  (40 complaints from 1000 audited claims).

On a more massive scale the British Government has reported progress by the Fraud, Error and Debt (FED) Taskforce in tacking public sector losses through fraud and error. The National Fraud Authority assessed that more than £21 billion was “lost” by agencies in 2011 – mainly through tax and welfare fraud, with losses through error in tax calculations and benefit assessments accounting for a further £9.6 billion. Procurement fraud accounts for about £4 billion.

The estimate is that £7 billion in extra tax revenue is now being harvested each year, more than half by reducing fraud.

The report highlights cross government measures to reduce fraud and error, better system design, a focus on prevention, a “zero tolerance “ for fraud, fraud awareness training for all civil servants and better vetting processes to reduce opportunities for “insider enabled” fraud. Strengthened resilience is being achieved through a network of Counter Fraud Champions. The Cabinet Office Minister believes savings of  £65 billion will be achieved.

www.radionz.co.nz/news/national/217531/eqc-fraud-complaints-double

www.publicfinance.co.uk/news/2013/08/anti-fraud-effort-saves-whitehall-65bn-claims-maude/

www.gov.uk/government/uploads/system/uploads/attachment_data/file/62522/HMG-Fraud-and-Error-Report-Feb-2011-v35.pdf

Too few Kiwis who count deal digitally with agencies

20 August 2013

The State Services Commission today published a new collation of statistics gathered from respondents to further Kiwis Count surveying.

The figures reflect progress in delivering on the Better Public Services result area 10 – that New Zealanders can complete their transactions with the Government easily in a digital environment.

The results are a bit like the proverbial curate’s egg.  Although the internet is shown to now be the preferred channel when looking for, or dealing with, public services, there is a heavy and persistent preference by many for dealing in person with agencies.  Ministers have acknowledged that more online integration of government services will be necessary. The report indicates, counter-intuitively that while 90% of the population have dealt with agencies on line, fewer –  85 per cent – have searched on line for information about public services.

Ministers seem disappointed that there is a persistent dislike for dealing on line with government. The mantra that e-government is transformational has yet to become a reality; the Department of Internal Affairs has a “Service Transformation Programme”. Although 91% of the population has used the internet in the last year, the internet is not particularly ”sticky” and there remains a heavy demand for traditional service delivery methods. The challenge is for 70% of New Zealanders to ‘go digital’ for their most common transactions with government by 2017 – to be achieved this requires a 75% increase on current usage.

There is some consolation for NZ Post in an observation on the SSC website;. “When asked how they would like public services to get in touch with them, a half of New Zealanders want to be contacted by letter, 44% by email and nearly a third by phone.” Lest that be reflective of the mathematical abilities of pollsters, presumably respondents were able to indicate more than one preference!

 

www.scoop.co.nz/stories/PA1308/S00319/more-kiwis-interact-with-public-services-online.htm

www.ssc.govt.nz/bps-results-for-nzers

www.dia.govt.nz/SOI/2012/strategic-direction.html

www.ssc.govt.nz/kiwis-count-channels-report-2013

 

Tax free perks not a good look for UK civil servants

19 August 2013

Arrangements to reform support arrangements for British Ministers were garnered from a number of jurisdictions before improvements were  announced last month. There was general endorsement of changes. But there seems little public sympathy for tax free advantages senior officials have been receiving, and which have attracted the attention of the Commons Constitutional select committee.

Yesterday media reported that the Select Committee chair was critical of fringe benefits received by senior civil servants which instead of being taxed as occurs in the private sector, were having tax paid by their departments. ”Highly unusual” provisions were identified where agencies were paying tax so officials could receive rent-free accommodation, first class rail travel and cars.

Those receiving tax paid perks include the Cabinet secretary (who shares his Toyota Prius with the Head of the Civil Service), the head of NHS and the head of the Serious Fraud Office.

Providing a car (and driver) for the Cabinet secretary costs British taxpayers more than $175,000 annually. Ironically the Cabinet secretary has been responsible for implementing major budget cuts on departments of up to 25% and consequential losses of hundreds of thousands of public sector jobs.  The Cabinet Office confirmed that it has paid tax for the car he uses for official travel between Westminster and his home.

The NHS head has reportedly had benefits in addition to his salary which incurred tax of about $100,000 annually.

This type of benefit has been taxable for 37 years and fewer than 0.5% of employers pay the tax for their employees.  In so doing they create a further benefit which itself must have tax paid on it.

In New Zealand the disclosures of expenses each six months by chief executives include any refunds of fuel and other maintenance costs for cars.  Chief executives generally own their vehicles and can recover actual costs.

www.rightsandwrongs.co.uk/component/content/article/20263-public-money-paying-top-civil-servants-tax-bills

www.myfinances.co.uk/pensions/2013/08/18/taxpayer-foots-the-bill-for-senior-civil-servants-tax-perks?

www.independent.co.uk/money/tax/scottish-civil-servants-pick-up-1m-tax-perk-8772740.html

www.gov.uk/government/organisations/cabinet-office/series/civil-service-reform

www.ssc.govt.nz/ce-expenses-faqs

www.theguardian.com/politics/2013/jul/10/ministers-new-powers-civil-servants

Amended legislation to give long term shape to the State Services

15 August 2013

The Head of the State Services’ presentation to public sector leaders earlier this month was published yesterday on the SSC website. It sets out the Commissioner’s vision and expectations. These are shaped by the facilitative character of the State Sector Amendment Act – a permissive tool that will assist change. The vision for the State Services must not only be on 2013, but on 2023, 2033 and beyond. The future is to be shaped by a focus on results, leadership and stewardship.

Expected results require underlying problems to be addressed by the Better Public Services goals, and evaluated by the Performance Improvement Framework. Leadership will flow from recreating a career service, attracting the right graduates, providing opportunities in, out and across the State Services, and developing chief executives committed not to an agency but to the public service.  And the culture of stewardship, undefined in the amended legislation, involves the things currently done well by agencies but also the challenges of capital management, resilience, strategic use of information and attention to the fundamental and transformational characteristics of integrity and trustworthiness.

The occasion was a celebration of the State Sector Amendment Act. Enacted with the votes of 95 of Parliament’s 121 members, the Act provides a mandate for change while entrenching New Zealand’s traditional system that

“(a)   is imbued with the spirit of service to the community; and

(b)    operates in the collective interests of government; and

(c)     maintains appropriate standards of integrity and conduct; and

(d)    maintains political neutrality; and

(e)    is supported by effective workforce and personnel arrangements; and

(f)    meets good-employer obligations; and

(g)   is driven by a culture of excellence and efficiency; and

(h)   fosters a culture of stewardship.”

http://ssc.govt.nz/sscer-speech-ipanz-30july13

www.legislation.govt.nz/act/public/2013/0049/latest/DLM4598813.html

Release of “Integrity Plus” National Integrity Survey

14 August 2013

Today the New Zealand chapter of Transparency International releases the National Integrity Survey 2013 – the findings of governance arrangements and their effectiveness in preventing corruption. The content is more comprehensive than gathered in the previous New Zealand NIS ten years ago, and is reflected in the tag “Integrity Plus”.  This reflects a broader application of the template promoted by TI than has occurred elsewhere. It has produced a finer resolution than evident in the NIS results published recently in UK and Australia because there is coverage of civil society and business in addition to the primary focus on the public sector.

The survey involves an analysis of the pillars supporting government – portrayed as a Greek temple by the late Jeremy Pope, the New Zealander who developed the manual  Confronting Corruption: The Elements of a National Integrity System when he was a director at Transparency International.  As a co-founder of TI he was also instrumental in establishing the Corruption Perceptions Index in 1995.  It is universally acknowledged now as a primary indicator of efforts made by national governments to improve the quality of their public administrations.

The 2013 Integrity Plus NIS for New Zealand has been dedicated to Jeremy Pope. He died this time last year.

www.transparency.org.nz/index.php/tinz-2013-integrity-plus-national-integrity-system-assessment

https://integritytalkingpoints.com/2012/08/31/integrity-is-more-than-just-measuring-corruption-the-passing-of-jeremy-pope/

http://liberation.typepad.com/liberation/2013/05/draft-report-for-transparency-international-on-the-state-of-the-new-zealand-media.html

http://transparency.org.nz/

Australian Government now observing caretaker convention

12 August 2013

Last Monday, in anticipation of the general election, the Australian Parliament was prorogued and the House of Representatives was dissolved.  This wording indicates a minor distinction between the Australian and the New Zealand Parliamentary procedures. Because New Zealand has a unicameral House, on proroguing Parliament, the Parliament is dissolved also.  In Australia it is the House of Representatives that has been dissolved – only if there were to be a double dissolution- involving both Houses, would Parliament be dissolved.

A greater distinction  highlighted is that proroguing the House of Representatives brings the caretaker government convention into force. The convention in Australia is that the Government takes on a caretaker status throughout the election period until a new Government takes office.  That is not the case in New Zealand where the pre election authority of a Government is reduced to caretaker status only if the election has been called because the Government has lost the confidence of the House.

In New Zealand the theory is that the Government retains full powers – on the basis that there must always be a Government – but that those powers are constrained if there is uncertainty about who has the majority support of Parliament. A caretaker arrangement will be declared if the Government has lost a confidence motion and a new Ministry is being negotiated,  or if, following an election, there is uncertainty about who has the majority support required  to form a new Government.

The reality is that there is probably not much difference in practice between Australia and New Zealand.  Once an election is underway New Zealand Governments tend to act as if executive power were limited.  Commonly they will

  • Defer making major policy decisions that are likely to commit an incoming government;
  • Defer making significant appointments;
  • Defer entering major contracts or undertakings, and
  • Defer programme advertising  which could create a perception of public spending for party political purposes.

Under the Australian caretaker convention these are explicit obligations.

 

www.comlaw.gov.au/Details/C2013G01196

www.dpmc.gov.au/guidelines/docs/caretaker_conventions.pdf

www.comlaw.gov.au/Details/C2013G01196

www.cabinetmanual.cabinetoffice.govt.nz/6.16

www.cabinetmanual.cabinetoffice.govt.nz/node/30#6.9

Paying through the nose

8 August 2013

What may give heart to staff challenged to correctly pay 110,000 school employees through the Novopay project, is this week’s news that a payroll failure in Queensland dwarfs the impact of Novopay . A claim is that “the replacement of the Queensland Health payroll system must take a place in the front rank of failures in public administration (in Australia). It may be the worst.”

A $1bn blowout in costs on the project has been attributed to IBM acting unethically when bidding to develop a new payroll application. The job started at an estimated cost of $6m in 2007. “The application is a dud: staff have been overpaid, underpaid, forced to repay money and sometimes not paid at all”.

Novopay features as one of four notable projects on the 2013 project management Catalogue of Catastrophes  webpage.  The Boeing Dreamliner blunder on a project priced at more than $18 bn puts the $34 m cost of Novopay into proportion.  Another sizeable payroll failure this year involves an amalgamation of 13 systems paying 234,000 Californian state employees.  That $234 m system couldn’t work as it was meant to.   And a project for Marin County near San Francisco  which has cost $34m is the fourth featured failure.  What is interesting about Marin is that the provider, who is alleged to have gained the contract through deceptive conduct, was Deloitte – the consultants brought in by the NZ Ministry of Education to solve the Novopay problems.

http://www.theregister.co.uk/2013/08/06/ibm_committed_ethical_transgressions_to_win_botched_project/

http://delimiter.com.au/2013/08/07/its-not-our-fault-ibm-blames-govt-for-payroll-disaster/page/5/

http://calleam.com/WTPF/?p=5835

http://en.wikipedia.org/wiki/Novopay

Spilt milk and crocodile tears?

6 August 2012

It’s been a tough few weeks for food safety in China.  Obviously Fonterra hasn’t helped.   Well, from reports that the Chinese media is getting ‘stuck into’ New Zealand, perhaps Fonterra is helping draw attention away from China’s home grown problems.

In late July  Xinhua reported that a Kunming factory was using dirty ditch water to make vermicelli.   At the same time China TV reported that ice served at a Beijing KFC outlet had 13 times more bacteria than water for its toilets. And ironically last week just ahead of the Fonterra announcement, the New York Times reported on widespread smuggling of baby formula by parents who distrust the quality of Chinese milk. Bad news if smugglers trafficked a contaminated Fonterra product.

A US reaction is the announcement of stricter regulations for imported foods.  The FDA will require all imports to meet standards required in domestic production. To prevent contamination, food importers will have to document factory conditions, conduct audits of production facilities, and subject themselves to FDA inspections. But Fonterra already matches those expectations.

China sets lower food standards than in most countries selling into that market. Safety standards list only 62 chemical pollutants as harmful — compared with 4,000 in the United States and 10,000 in Japan.

Chinese consumers are accustomed to unsafe food – which of course has been a cause of the burgeoning smuggling of infant milk formula.  The current criticism of New Zealand – perhaps because of its reputation for the purity of its environment and food – seems almost a rationalisation of China’s problems – whether contaminated milk, rat meat being sold as lamb or contaminated pigs being dumped into the Huangpu River.

Unsurprisingly a 2012 Pew survey found that 41% of respondents in China were deeply concerned about food safety – up from 12% in 2008.  However 50% said they were more concerned about corrupt officials.

Fonterra’s failure may be a godsend to those officials.  Can a country that threatens the health of China’s infants really be clean, green and integrity-rich?

http://www.pewglobal.org/2012/10/16/growing-concerns-in-china-about-inequality-corruption/

http://shanghaiist.com/2013/07/22/factory_uses_feet-washing_water_to_make_vermicelli.php 

www.nytimes.com/2013/05/04/world/asia/rat-meat-sold-as-lamb-in-china-highlights-fears.html?ref=foodsafety&_r=0

The other side of the coin

5 August 2013

Everyone taking up a contract of employment accepts a duty of trust and confidence to their employer.  At its simplest the obligation is to respect the interests of the employer. Employees must act reasonably to protect their employer’s property. That includes safeguarding the employer’s information and their intellectual property.

Some choose to disregard that duty and breach the trustworthiness required of them.  The spectacular contemporary example of Edward Snowden, breaching his duty of trust to the US National Security Agency, is widely recognised as an act of betrayal. Snowden was motivated apparently by higher ideals, but acknowledges that he betrayed his employer. That is what disregard for a duty of trust and confidence involves.

A more common occurrence is the misuse of an employer’s property – which may amount to theft.

For State servants, often the most valuable property that their employing agency entrusts to them is information. It is only through their work that they become familiar with the content. Access to that information flows solely from the relationship with their employer. It is agency information. In a Department it belongs the Minister and the chief executive. In a Crown Entity it belongs to the Minister and the board Members. It never belongs to employees, although they may be tasked with using it for agency purposes. And of course agency information is often someone’s personal information and subject to the Privacy Act. Most agencies’ information is governed by the Official Information Act. If there are statutory grounds for making the information public, that is a responsibility of the agency chief executive or board; they may delegate responsibility for disclosure. It is not a discretion for an employee to decide what should be published.

Where a State servant becomes aware, as a consequence of information gained though their employment, that powers are being exercised improperly and appear to reflect serious wrongdoing, the Protected Disclosures Act provides a statutory process for alerting senior officials who can remedy matters. It is never appropriate to pass that information to the media.

The focus being given to the GCSB has led to much comment recently about journalists, the function of the “fourth estate” and the role of the media to blow the whistle on misconduct in government.

Journalists depend on information for their stories.  Investigative journalism is the art of cultivating information sources.  That cultivation may involve suborning an official, of encouraging disclosure of official information in breach of a State servant’s duty to properly manage that information.  A reporter may intentionally undermine the trust and confidence obligation a State servant has to their agency.

At times the Parliamentary Press Gallery has characteristics in common with foxes running free in the hen house.   Journalists getting a story lead from a contact in Parliament will seek off-the-record comment from State servants, although knowing that few will have authority to respond.

One of the 18 Standards of Integrity and Conduct for the State Services is to treat information with care and use it only for proper purposes. The Head of the State Services explains in Understanding the Code that

“…it is a breach of trust for us to make use of information that we have learned through our work, or to disclose it in any way, unless we have permission to do so. We should always be very circumspect about discussing our organisation’s information when we are not directly engaged in organisation business, and be aware that, unless we have authorisation or it is a matter of public record, we do not disclose official information at external meetings (despite any claim to “Chatham House” rules) or in any academic activities we undertake.”

The code was developed and applied to agencies (including their employees) by statutory prescription. The code is delegated legislation. Journalists when championing the freedom to seek out newsworthy stories may wish to consider the implications of cajoling others to breach their lawful duties. Perhaps the propensity to approach State servants knowing they cannot discuss agency business, but encouraging comment regardless, is why the NZDF considered investigative journalists to be potentially subversive. Is the intention of such approaches not to subvert obligations under the code of conduct?

www.ssc.govt.nz/node/1913

www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10906677