Enforcing integrity may further politicise the US civil service

4 August 2013

Senior US federal officials may face the music very quickly if they breach integrity standards. Several Republican senators and representatives are promoting bills that requires agencies to place members of the Senior Executive Service  (non political appointees) on three months leave without pay when misconduct is alleged, to enable an investigation to take place. At the conclusion of the three months, the official is to be suspended, sacked or reinstated. The promoters of the bill are said to be “fuming” that officials receive full pay while protracted employment investigations take place.

The Government Employee Accountability Act appears to be a response to incidents like the “lavish” conference spending by the General Services Administration several years ago, and the recent allegation of targeting by the Inland Revenue Service of prominent Republican party members.  CNN reports that initial assessments about the IRS, likely to be confirmed, are that the practice was poor management rather than political bias. Since then the Snowden disclosures about widespread electronic surveillance have captured public attention and these legislative proposals may be an attempt to bring attention back to a party-political sensitivity for the Administration..

Ironically the legislation is part of an initiative to “Stop Government Abuse” – which looks minor compared with Snowden’s disclosures.

It provides an option to immediately terminate the employment of senior executives neglecting their job, inappropriately using public money or behaving in a way that may endanger public interests. Process and appeal rights will be preserved although employee groups are criticising the “guilty until proven innocent” character of the legislation.  A concern is that the Senior Executive Service will implode with senior appointments being increasingly politicised, political appointees being outside the scope of the bill.

www.govexec.com/pay-benefits/2013/07/congress-takes-aim-senior-execs/67613/?oref=top-story

http://edition.cnn.com/2013/06/14/politics/irs-targeting

Will smoke-free Auckland add momentum to plans elsewhere?

31 July 2013

Auckland Council with its plan to “de-normalise smoking behaviour” and make the city smoke-free seems to be marching to a beat with international reverberations.  The Irish Health minister has announced an intention to join New Zealand, Niue, Sweden and Denmark in being smoke free by 2025. Scotland is aiming for 2034 and Finland by 2040.  The prohibitions on smoking in New Zealand prisons (opposed by the High Court) and the Waitemata DHB psychiatric ward (with High Court endorsement) may generate increasing momentum.

Results of a Gallup survey in the United States published last week show that strong enthusiasm for smoking constraints continues. More Americans than ever want to ban smoking outright: 55% would outlaw smoking in all public places. Nearly half a century after the US Surgeon General’s report that smoking was harmful to health, 82% say smoking is very harmful and 59% believe that second hand smoke is very harmful.

Smoking is already banned in Bhutan as it is seen as bad for Buddhist karma.

www.thelocal.se/46708/20130313/#.UUDecjf_nTo  

www.irishmirror.ie/news/irish-news/politics/health-minister-james-reilly-wants-2088251

http://www.chinadaily.com.cn/hkedition/2011-09/07/content_13635365.htm

Does sex corrupt like cash?

30 July 2013

Public servants in Singapore are better paid than in almost all other jurisdictions. The rationale is that well rewarded officials will resist corrupt temptations.  It may work for most.  Singapore is 5th on the latest Corruption Perceptions Index  – seen as having  the least corrupt public administration after New Zealand, Denmark,  Finland and Sweden but ahead of Switzerland and Australia.  (Singapore was not among the 97 countries surveyed for the 2013 TI Global Corruption Barometer published earlier this month.)

Incidents in Singapore although not widespread appear to periodically involve a spectacular breach. The latest involved a court appearance last week by a director of the Corrupt Practices Investigation Bureau. He was charged with theft from his agency of more than $NZ 2 million, that he then spent in casinos. He has also been charged with corruption and fraud offences.

Unsurprisingly the Deputy Prime Minister and Minister in charge of the Civil Service expressed concern that a senior anti-corruption officer entrusted with maintaining government integrity was charged with fraud.

Other recent high-profile cases include the head of Singapore’s Civil Defence Force, imprisoned last month for giving preference to an equipment supplier in return for sexual favours. He argued unsuccessfully that sexual favours unlike cash payments, were not corruption.  The former head of the Police drug enforcement unit however, was acquitted recently on similar charges.

The corrupting effect of sexual favours  seems to be viewed with more ambivalence in China.  A Transparency International blog commented recently about non cash gift-giving in business where perks ranging from sexual favours and massages to clothing and restaurant entertainment are not regarded as bribes.

To be charged with a bribe under the Chinese Penal Code requires a minimum and direct payment in cash of the equivalent $NZ 1,200. Other benefits – like sexual favours – are not covered by the code.

www.foxnews.com/world/2013/07/24/singapore-anti-graft-official-charged-with-fraud/#ixzz2aQWldErN

http://www.interaksyon.com/article/63997/singapore-jails-ex-civil-defense-chief-over-sex-scandal

http://blog.transparency.org/2013/07/16/sexual-favours-are-not-considered-corruption-in-china/

http://cpi.transparency.org/cpi2012/results/

New Zealanders rate politicians as the most corrupt institution

29 July 2013

The Transparency International Global Corruption Barometer published in early July is unlikely to have much statistical accuracy (for example the “finding” is that 3% of New Zealanders have paid a bribe to the judiciary in the last 12 months) but it may well provide a sound reflection of public perceptions.  Disinterested providers in each of the 107 jurisdictions polled a total of 114,000 participants with a common question set.  The New Zealand data was processed by Colmar Brunton from a survey of over 1000 people.

One matter surveyed was the perception of the most corrupt of ten specified national institutions;  ranging from police to politicians, media to the military, and from judges to religious organisations.

In 51 of the countries included in the Barometer, politicians were considered to be the most corrupt of the institutions surveyed. The rating average was 3.8 out 5 (where 1 means not at all corrupt and 5 means totally corrupt). Religious organisations were seen on average as the least corrupt with a rating of 2.6.

This may well reflect a prejudice that a common motivation in politics is that the end justifies the means, that politicians only stand for those things that will get them elected, and cannot afford to put principles ahead of the possibility of losing. Adlai Stevenson (who unsuccessfully campaigned twice for the US presidency) said the problem with running for office is that it is hard to do so without proving you are unworthy of serving; Bismarck said that politics ruins the character.

The 51 countries where politicians were seen as the most corrupt of national institutions included New Zealand, Australia, Norway, Finland, France, Germany, Japan, United Kingdom, United States and Canada.

In Canada the media spotlight currently is on an expenses scandal in the Senate.  Four senators who claimed expenses for living in the capital were found not to have their primary residence  in the province they represented as required by the constitution. A parliamentary committee dominated by government members sought to minimise the breaches. Although one senator has repaid $90,000, and two have denied any fault, the RCMP is now conducting a criminal inquiry. The CBC reported that a consequence of the controversy was 49% of Canadians saying they wanted to reform the Senate, 41% wanted to see it abolished, 6% wanted to keep it as it was, and 4% were unsure.

http://issuu.com/transparencyinternational/docs/2013_globalcorruptionbarometer_en/18?e=0

www.cbc.ca/news/politics/story/2013/06/19/pol-nanos-number-june19-senate.html

http://en.wikipedia.org/wiki/Canadian_Senate_expenses_scandal#cite_note-11

https://integritytalkingpoints.com/2013/07/09/is-it-credible-that-3-of-new-zealanders-bribed-a-judge-last-year/

Added robustness in NZ lawmaking

25 July 2013

Enhanced rule of law measures to ensure that future New Zealand legislation “ is robust and consistent with good legislative practice” come into force next week. A  disclosure statement will be a key feature of new legislative proposals considered by Parliament. This requirement will itself be codified, but in the interim administrative processes are specified in a Cabinet Circular.

The Circular sets out the requirement that any Cabinet Committee paper seeking new legislation must state what is intended as the final content of the Bill. The explanatory note of a Bill when Introduced is to have a hyperlink to a disclosure statement published on the Parliamentary Counsel Office website. The Department responsible for the Bill is to ensure the disclosure statement includes:

  • General Policy Statement  of what the proposed law seeks to achieve, and how those objectives will be met.
  • Background Material and Policy Information  that indicates policy issues incorporated in the proposed law.
  • Testing of Legislative Content  identifying how quality assurance has been carried out on the proposed law.
  • Significant Legislative Features  including any unusual provisions in the proposal.

The disclosure statement must be finalised with PCO no later than two working days prior to the intended introduction of the Bill. MPs will get hard copies of the disclosure statement when the Bill is distributed.

The Treasury which has administrative responsibility for the scheme, will monitor and refine processes pending empowering legislation.

The World Justice Project evaluates the quality of the Rule of Law in all jurisdictions by scoring 44 sub-factors. These include “Government Powers limited by legislation” as part of Accountable Government, and “Laws are publicised” as part of Open Government and Regulatory Enforcement.  The disclosure statement that will now accompany New Zealand legislation should have a positive impact on these measures when the 2013 Rule of Law Index is published later this year.

Of the 97 countries listed on the 2012 Index, New Zealand ranked 6th for Accountable Government and 4th for Open Government and Regulatory Enforcement.

www.dpmc.govt.nz/cabinet/circulars/co13/3

http://worldjusticeproject.org/sites/default/files/country-profiles/New_Zealand_CP.pdf

Disclosure of agencies’ chief executive’s expenses now entrenched

24 July 2013

The six monthly disclosure by States Services chief executives of travel, gifts and hospitality expenses seems to have become an accepted and largely unremarkable contribution to transparency – and more importantly, integrity modeling.   Disclosures for the January – June 2013 period, expected to be published by the end of July,  have already been posted to www.data.govt.nz by 19 agencies.  What is notable is the large degree of consistency among the early publishers, although the readiness of some Crown entities seems to have been matched this month by a growing number of departments. The State Services Commissioner whose disclosure was published today joins four other Public Service chief executives.

The disclosures to varying degrees record the lobbying that chief executives are exposed to. Some are explicit in naming the people providing gifts and hospitality.

What hasn’t “caught on” is the example set by the Treasury in publishing the agency gift and hospitality register. Launched in the face of criticism and in line with  a Deloitte report recommendation in 2011, Treasury has since posted annually its register of gifts and hospitality valued more than $50 accepted by staff.  The report for the last 12 months is now due for release.

https://data.govt.nz/search/SearchForm?action_doCustomSearch=&x=0&y=0&Search=CEexp%20Jan-Jun2013

www.treasury.govt.nz/publications/informationreleases/giftregister/giftreg-2011-12.pdf

www.treasury.govt.nz/downloads/pdfs/deloitte-gift-oct11.pdf

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

Some relief from earthquake aftershocks

22 July 2013

For Wellingtonians discombobulated with the earthquakes on Sunday, some light relief relevant to the theme of this blog can be found in the 2013 edition of The Encyclopedia of Ethical Failure prepared by the United States Department of Defense.  Matt Lane drew my attention to the updated collation of crime, greed, and stupidity across the United States Government,  published last week.  As a training resource, it has always be accessible as a MS document on the Defense website, but has been promoted now on the Freakonomics site.

The encyclopedia comprises short accounts of misconduct by more than 160 employees across the US Government.  The circumstances are all entertaining – to the extent that looking at the misfortunes of others is entertainment.  The purpose of course is to provide training material that conveys the integrity message through  pertinent, memorable and genuine examples.  The Introduction highlights a goal of providing real examples of Federal employees who have intentionally or unwittingly violated required standards of conduct. Some cases are humorous, some sad, and all are real. It recognises that some will anger you if you are a government employee and some will anger you as a taxpayer. There is a message in them all.

The examples reflect mismanaged conflicts of interest; of putting personal advantage ahead of the commitment to the community expected of all who work in public service. All provide useful talking points of what is the ‘right way’ of managing work responsibilities. They show how all agencies present opportunities to abuse power and position. By inference integrity is what makes the difference.  In none of the cases would a reasonable person suggest that the offending employee was acting in the public interest. In all cases the spirit of service has been subverted by self interest.

A reference to these US Defense resources were included in early SSC guidance on implementing the code of conduct.  The relevance continues. The Encyclopedia of Ethical Failure  has topical examples that all managers can use to give effect to at least two of the “6 Trust Elements”, of “promoting the standards of integrity” and “managers modeling” those standards.

www.freakonomics.com/2013/07/18/government-employees-gone-wild-a-new-freakonomics-radio-podcast/

www.dod.mil/dodgc/defense_ethics/resource_library/guidance.htm

www.ssc.govt.nz/node/5390

www.freakonomics.com/about/

http://blog.mattlane.co.nz/

Gentle squeeze on lobbying begins in UK

19 July 2013

David Cameron blew hot on lobbying before the 2010 General Election anticipating that access for lobbyists to government decision-makers would be  “the next big political scandal” . His concern was that lobbying had “…tainted our politics for far too long (with) the far-too-cosy relationship between politics, government, business and money.”

In Government he seems to have blown cold, despite a pledge to tackle lobbying in the coalition agreement between the Conservatives and LibDems.  But this week something is happening. The Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Bill 2013-14 had its First Reading in the Commons.

Those hoping that strong sun light will be shone onto those seeking to influence decision-makers will consider the Bill to be a very mild disinfectant.  The content has been widely derided by industry and the public. The Alliance for Lobbying Transparency is not enthusiastic. They wanted the Government to promote much more expansive controls than proposed.

The Bill will

  • register lobbyists and the interests they represent
  • cap at £390,000 the spending by any organisation – excluding political parties – during elections
  • limit spending by organisations campaigning for or against a specific party or in a particular constituency
  • police the certification of union membership numbers
  • provide for independent certification and enforcement

The spending controls will affect trade unions, community groups and the churches. The union movement feels itself unfairly targeted while “rich corporate lobbyists” are less affected. They will not be required to show who is lobbying whom, about what, and how much they are spending.  The Bill reduces the amount that unions and third parties can contribute to election campaigns from £988,000 to £390,000.

Media attention is now on the way that the Conservative party’s chief electoral strategist, who runs a large international lobbying consultancy, will escape the registration requirements.

The legislation will enable Britain to comply with some of the OECD’s Ten Principles for Transparency and Integrity in Lobbying.  New Zealand complies with none.

http://services.parliament.uk/bills/2013-14/transparencyoflobbyingnonpartycampaigningandtradeunionadministration.html

www.bbc.co.uk/news/uk-politics-23346037

www.oecd.org/gov/ethics/Lobbying%20Brochure%202012.pdf

www.spinwatch.org/index.php/issues/lobbying/item/5517-spinwatch-statement-on-lobbying-register

http://www.guardian.co.uk/commentisfree/2013/jul/18/lobbying-buying-influence-taints-politics

GSK ethics exposed in Chinese marketing scheme

18 July 2013

Pharmaceutical companies, whether American or European, are very keen on protecting their intellectual property. The integrity of their products is important to them. But as trading entities, market share is crucial. Marketing medicines has a checkered history. The industry now dresses itself in social responsibility and ethical respectability. The sector even purports to rigorously enforce codes of conduct. Its vast commitment to marketing, as high as US$90 billion annually, is twice what is spent on research and development. That funding enables novel initiatives to promote sales. It spends massively on lobbying and medical training. But it spends even more on capturing the hearts and minds of doctors – “whenever two or three doctors are gathered there in their midst is also a pharmaceutical salesman”.

GlaxoSmithKline, the second largest in the industry, has been uncovered corrupting the Chinese market. Earlier this year Chinese authorities began looking into a Shanghai travel agency that was rumored to have huge revenue but few bookings. This week the Public Security Ministry disclosed finding a conspiracy involving tens of millions of dollars, directed by senior executives at the British drug giant GlaxoSmithKline.

Investigators said that “…for years, high-ranking executives at the company’s China operations used travel agencies as money-laundering shops to funnel bribes to doctors, hospitals, medical associations, foundations and government officials. The payoffs, investigators said, helped bolster drug sales and allowed … GSK to sell its products for higher prices in China.”

The Public Security Ministry indicated that bribery, illustrated by GSK’s marketing strategy, is one of the main reasons why drug prices are at a falsely high level in China.

“That’s the way business works” a GSK manager reportedly confessed to the Chinese authorities.

The GSK corporate response was that allegations are “shameful” and would be a breach of internal systems and values.

www.nytimes.com/2013/07/16/business/global/glaxo-used-travel-firms-in-bribery-china-says.html?_r=0

www.bloomberg.com/news/2013-07-17/glaxo-probe-shows-china-corruption-endemic-since-czar-execution.html

www.youtube.com/watch?v=kOW8LNU2hFE

http://blog.transparency.org/2013/07/16/sexual-favours-are-not-considered-corruption-in-china/

http://www.pharmafile.com/news/180132/gsk-exec-admits-bribery-live-tv

 

Will transparent accountability mean Ministers keep sharpened knives?

17 July 2013

The theory behind the Westminster model is of parliamentary democracy, with the Executive led by parliamentarians who have collective responsibility to Parliament. It is supported by a permanent non political civil service. But it appears that the British Government is finding that traditional civil service values do not deliver the effectiveness of government that it wants. It needs less tradition, fewer political neutrality principles, and more commitment to delivering the Government’s policies.

Last week proposals were announced  to change the structure of Ministers’ offices.  A political chief of staff selected by the Minister will appoint special advisers and civil servants, contracted to deliver the Minister’s programme. But that doesn’t resolve what Ministers see as a failure of senior civil servants to respond to their Minister and to drive change through their departments. That requires the more dramatic change that the Prime Minister was about to initiate last week.

In what would be a departure from Westminster conventions the Prime Minister intended removing the Head of the Civil Service. The Independent reported that the Prime Minister was about to dismiss Sir Bob Kerslake. He wants greater competence in running the complex civil service machine than has been shown by the incumbent.  The civil service has achieved fewer than 45% of the targets set for it. It has lost the confidence of the Prime Minister. Its needs to be led by an experienced corporate leader from the private sector.

That of course shouldn’t happen in what has been projected as the Rolls Royce among national public services.  Premature media awareness of the proposal allegedly embarrassed Downing Street. Such direct intervention would be too evident a politicising of the civil service. The Independent reported that the plan had to be denied.

“This story is untrue. The Prime Minister fully supports the work Bob Kerslake is doing as Head of the Civil Service,” they said. So we decided to hold back from publishing the story to check it again. But we were right. The Prime Minister had decided he wanted to remove Sir Bob and told others he was going. But it was far from clear that anyone had spoken to Sir Bob…”

The enactment last week of the State Sector Amendment Bill has the effect of  distinguishing the New Zealand situation from Britain in some aspects, and conversely, making some accountabilities more similar.  The State Services Commissioner now holds the statutory position of Head of the State Services – concurrent with the appointment as Commissioner. But with the new legislation geared to effectiveness, and explicit references to “cohesive delivery” and “transparent accountability”, the Head of the State Services has responsibility for satisfying Government’s expectations.  Chief executives will be accountable if the State Services prove unable to achieve the majority of the Better Public Services goals.  The old tradition of falling on swords may become the new norm.

www.independent.co.uk/news/uk/politics/oliver-wright-the-dismissal-downing-st-was-forced-to-dismiss-8710053.html

www.parliament.nz/mi-nz/pb/debates/debates/50HansD_20130712_00000004/state-sector-amendment-bill-public-finance-amendment-bill

www.capitalbay.com/uk/362500-knives-out-for-head-of-the-civil-service-sir-bob-kerslake-as-rumours-that-he-will-be-sacked-by-cameron-grow.html

http://www.guardian.co.uk/commentisfree/2013/jul/15/civil-service-monster-whitehall