Appearance of longevity helped by dishonesty

27 September 2011

People in Japan are reported to live to a considerable age.  Japanese are also considered to be a very ethical race.  But research last year suggested that all is not as it seems.  After endeavouring to verify their circumstances, the Government found that more than 230,000 Japanese listed as 100 years old could not be located and many may have died decades ago.  An example is Tokyo’s oldest resident.  A pension has been paid to a woman who would be 113 years old.  But an investigation found the last sighting of her was in 1986. So a diet of rice and seaweed may not be the ingredient for apparent long life, just a reluctance of family to disclose the deaths of their older generations. 

Research in the United States has found similar results.  Federal Civil Service superannuitants seem to have a Japanese-like propensity for long life, but more than US$120 million each year is being paid to former officials who have died. And Social Security pensions of more than US$40 miilion a year are being paid to claimants who are dead. Pension records indicate that there are about 125,000 people aged over 90 years in the United States.  But in a survey to find 1000 of them, 144 were unable to be located and the deaths of another 6 had not been reported. One “egregious loss”  involved benefits paid for 37 years after a pensioner’s death, coming to light only when the receiving child died.


Perhaps the end does justify the means?

26 September 2011

A BBC interview on Friday with Alexander Lebedev gives new oxygen to consideration of the acceptability of UK tabloid journalists’ news gathering activities. A former KGB officer, who became a billionaire  of course may not be the ideal source of ethical guidance…

The enthusiasm of British politicians to pursue malfeasance at the News of the World, equally enthusiastically supported by media owned by News International’s competitors, is at one level, admirable.  All corrupt practices need to be investigated and the instigators exposed. Any involvement by officials is reprehensible. In the NOTW case, there is strong evidence that Metropolitan Police officers were paid for providing confidential information to reporters. This is a breach of trust which ultimately undermines public confidence on which good government depends. But what is the investigative function of the media when government agencies are inactive?

Lebedev – who owns the Independent and the London Evening Standard – was commenting on this function. He concluded that corruption by NOTW was of little significance.  Any corruption in Britain is “beyond comparison” with the situation in his native Russia.  Governments are not going to overcome serious corruption. “Nobody can do that but journalists”.  He said that he had acquired newspapers to “take on” global corruption.  Lebedev suggested that the NOTW activities had a place in the greater picture.  He implied that intercepts of cell phones would not be considered unacceptable if they formed part of exposure by the media, and the undoing, of a corrupt official who had moved to Britain with ill gotten billions.

That may mean that the Independent and the Evening Standard are not constrained by their proprietor in the ways they seek out information that will establish and expose corruption.  Lebedev appears sure that in some cases the end justifies the means.

The recent decision of the New Zealand Supreme Court in the Harmed case,  regarding surveillance in the Urewera ranges seems to have a similar rationale. Do suspected paramilitaries, believed to be engaged in weapon training on private land, have rights to privacy? The Court decided that unlawfully obtained evidence is inadmissible except in the most serious of crimes. But how serious must the threat to public interest be, to justify  State intrusion on the privacy rights of the individual?  And despite the irony, do we condone unlawful activity in those circumstances by the police because of their statutory role to maintain the law, but not by the media because their is not a formal role?

http://news.bbc.co.uk/2/hi/programmes/newsnight/9598528.stm

www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10752214

www.medialawjournal.co.nz/

 

 

Corruption seldom sleeps

23 September 2011

The Wall Street Journal, which for the last 12 months has published “Corruption Currents”, a blog about fraud and money laundering, celebrated the anniversary this week with an article about its “top 5” convicted during the year for corrupt acts “so profound, brazen or weird they merit special recognition”.

They are:

  • Mark Ciavarella, known as the “cash-for-kids judge,” convicted of money laundering and conspiracy for sending large numbers of children to detention centres in exchange for kickbacks from the builder of the detention facilities.
  • Rod Blagojevich, the former Illinois governor whose corruption included the sale of the U.S. Senate seat vacated by Barack Obama.
  • Jeffrey Tesler, who admitted paying more than $180 million in bribes to Nigerian government officials in order to get $6 billion of contracts for Kellogg Root Brown to build liquefied natural gas facilities.
  • Former President Rodriguez of Costa Rica who took $800,000 in bribes from Alcatel-Lucent in return for helping the company secure a $149 million telecom contract.
  • Ousted Tunisian President Zine al Abidine Ben Ali, sentenced in absentia to 35 years in prison and a fine of about $66 million for embezzlement and misuse of public funds.

 

This puts New Zealand frauds into perspective.

The report earlier this month of the KPMG (NZ) annual Fraud Barometer suggests that the value of ‘super-fraud’ charges is expected to exceed $300 million by the end of 2011. This more than doubles the 2010 value of $143.9 million.  Super-fraud involves cases over $3 million. KPMG reports that accounting fraud by staff was the most common type.

The list of offenders published on the Verify website has one heartening characteristic; “only” two of the recorded employee-fraud convictions in 2011 involve people who worked for State sector agencies.

 

http://blogs.wsj.com/corruption-currents/2011/09/20/corruption-currents-anniversary-extra-top-five-corruption-convictions/

www.kpmg.com/nz/en/issuesandinsights/articlespublications/press-releases/pages/super-fraud.aspx

https://integritytalkingpoints.com/2011/06/13/kpmg-finds-gaping-hole-in-anti-corruption-compliance/

www.verify.co.nz/news-theftnz.php#20110127

NZ not part of open government partnership

22 September 2011

The Open Government Partnership was launched in New York on Tuesday by President Obama and numerous Heads of State and Heads of  Government from the 46 participating countries.  At the United Nations, this time last year, President Obama challenged the international community …”to come back this year with specific commitments to promote transparency, to fight corruption, to energize civic engagement and to leverage new technologies so we can strengthen the foundations of freedom in our own countries.”

The action plans include

  • effective management of natural resources revenues eg US joining the Extractive Industries Transparency Initiative
  • delivering public information eg Brazil’s  Open Data Portal
  • gender equality eg Norway’s  promotion of gender equality and women’s full participation in civic life, the private sector, public administration and political processes
  • open data eg Britain’s promotion of a culture of transparency among public authorities.

Britain may well make aid dependent on beneficiary states committing to the OGP. The Minister of the Cabinet said that before UK gives budget support, countries will need to show they are working on plans to release government data,implement freedom of information laws and disclose details of how foreign aid is spent.

Membership of the OGP requires a commitment to the Open Government Declaration.  This involves developing a national plan after public consultation and regular reporting on its implementation .

Despite the assurances of New Zealand ministers and their Australian counterparts about their enthusiasm for transparency and open government, neither New Zealand nor Australia has joined the OGP.

 

www.upi.com/Top_News/US/2011/09/20/Obama-seeks-to-improve-UN-group-to-promote-transparency/UPI-21861316548030/#ixzz1YZj9NWCF

 

www.dfid.gov.uk/Media-Room/News-Stories/2011/Britain-to-lead-on-open-government-and-aid-transparency/

http://wiki.open.org.nz/Declaration_on_Open_and_Transparent_Government

http://opensource.com/government/11/9/australia-and-new-zealand-government-launch-open-technology-initiative

www.opengovpartnership.org/countries

 

OGE ethics guidance now more accessible

21 September 2011 

The Office of Government Ethics is the United States agency responsible for setting and monitoring standards across the Federal civil service.  It uses a tagline of  “preventing conflicts of interest in the Executive Branch”. Its jurisdiction covers more than 4 million officials in 130 agencies. OGE has always had extensive and expansive material on its website, but last week refreshed  the site, improving accessibility and encouraging greater reference to its guidance.  Much of the material has direct relevance to New Zealand agencies seeking to promote integrity.  

The refreshed website was launched in conjunction with the OGE biennial conference.  In another move to promote access and the reuse of ethics resources, the OGE conference, attended by approximately 600 delegates, published proceedings on a dedicated conference website.  There are almost 100  links from the site to presentations and relevant guidance, which in turn contain many more links to useful material. There are the inevitable You Tube clips of conference activities. The intention is that the conference website remains “live”.   

The IEC Journal reports on the conference as having… “excellent overall organization, with many thoughtful touches to enhance the learning experience. OGE deserves credit for being willing to experiment with something as innovative as the smartphone app, though there were a few glitches. Some felt that the related website was a less than optimal solution for those without smartphones, while not everyone with a smartphone was enamoured with the app.”  

“There are a lot of smart people throughout the government doing a lot of smart things. The conference provides a great start on improving efficiency through inter-agency sharing, but resource limitations and institutional constraints put a limit on what OGE can do. There is more that the IEC, and this website in particular could do to fill the gaps.” 

 http://www.oge.gov/

http://ethicsconf18.crowdcompass.com/

www.youtube.com/watch?v=HDXxOuc8YdE 

www.iecjournal.org/iec/ 

Whither the APEC conduct principles?

20  September 2011

Fighting corruption attracts international media. This work of angels earns the endorsement of journalists everywhere.  The reality of course  is that rigorous and consistent efforts to combat corruption are flawed in all jurisdictions.  A quintessential illustration is  the commitment of China’s Government to protect intellectual property rights. Ministers make supportive comments but the commitment to relevant convention obligations is flawed.

(Declaring an interest: I was  duped when buying a Kingston 64 mb memory stick in a Shanghai shop over the weekend.  The stick was not merely a “knock-off” but was was not even capable of serving as a memory stick. Yet the vendor and all adjoining shops had boxes-full of this bogus stock.)

The Economist reports this week on the commitment of the club of the World’s rich states – the OECD –  to fighting corruption.  OECD members are bound by the Convention Against the Bribery of Foreign Officials.  Unlike many international instruments – and  UN conventions are among the worst – there is a compliance obligation.  “Members must pass laws making it an offence for their citizens or firms to pay, to offer or to promise money or any other reward in exchange for favours from officials in other countries. And governments must be seen to enforce these laws;  OECD bureaucrats and fellow members scrutinise each signatory to see how rigorously they investigate and punish foreign corrupt practices.”

The Economist comments that “the United States, which along with Germany is the keenest enforcer of the bribery accord, has had to undergo scrutiny at the hands of its peers and listen meekly to ideas for better enforcement. That contrasts sharply with the rejectionist American approach to many other forms of international legal scrutiny.”

Although New Zealand rates well in the Transparency International CPI, the World Bank Worldwide Governance Indicators, the Ease of Doing Business Index and the Sustainable Governance Indicators, it is among the states with a minimal focus on enforcing the OECD Anti Corruption Convention obligations. It is one of the “usually virtuous” states that do little to meet obligations.

The APEC Anti Corruption working group in San Francisco last week had a focus on tools to strengthen public integrity.  These include disclosure systems and processes for  conducting investigations and prosecutions.  Strengthening the APEC Conduct Principles for Public Officials, adopted by APEC when meeting in Australia in 2007, was identified as a way of  combating corruption and illicit enrichment. But despite committing to the Conduct Principles, the extent of the New Zealand response is a report back on the APEC discussions.  No agency “owns” the Conduct Principles or has responsibility for promoting compliance.

http://en.wikipedia.org/wiki/Intellectual_property_in_the_People’s_Republic_of_China

www.economist.com/node/21529020

www.stuff.co.nz/sunday-star-times/business/4519423/Corruption-rears-head-in-NZ-business

 

 

www.apec.org/en/Groups/SOM-Steering-Committee-on-Economic-and-Technical-Cooperation/Working-Groups/Anti-Corruption-and-Transparency-Experts-Task-Force.aspx

www.scoop.co.nz/stories/WO1109/S00286/apec-anti-corruption-transparency-experts-working-group.htm

 

 

Crime fighting

15 September 2011

This week’s anniversary of aerial combat in 1940 over London and southern England, marking what Churchill had termed as the Battle of Britain, provides an interesting coincidence for the declaration by the new Metropolitan Police Commissioner that his force will wage “total war” against crime, and that crime fighting will be a priority for the Met.  Perhaps this reflects a refocus on the terms of the constable’s oath which is …”to cause the peace to be kept and preserved and prevent all offences against people and property”.   Is the police commitment to maintaining the peace during recent unrest now seen as improper?

The constable’s oath in England is interesting in that officers swear to serve “with fairness, integrity, diligence and impartiality, upholding fundamental human rights and according equal respect to all people”.  A New Zealand constable commits to performing “to the best of my skill and knowledge”, while a Scottish constable’s oath is to “faithfully discharge” duties.  An interesting conjecture is whether the different expressions involve a different obligation, or just that the Scots are less wordy?

A crime fight  of a different kind featured in Chinese newspapers yesterday. Police have closed a network across 14 provinces that has been returning “swill oil” to the food chain.  Swill oil, old cooking oil gathered from drains and intended for recycling as bio fuel, has been refined by a bioenergy company and sold back to restaurants. Apparently hard to distinguish from the original product, more than 100 tons, falsely rebanded, has been seized by police.

Chinese authorities are sensitive to the adulteration of food following widespread chemical “fixing” of pork meat and the melamine contamination of infant formula. A China Daily editorial has criticised the availability of swill oil calling for heavy penalties to prevent waste being reused as food. But it recognises as long as there is a market there will be an “incentive to sell the recycled swill to restaurants”.

www.guardian.co.uk/uk/2011/sep/12/new-met-chief-hailed-by-may?intcmp=239

www.chinadaily.com.cn/china/2011-09/14/content_13689138.htm

www.chinadaily.com.cn/bizchina/2011-09/06/content_13630859.htm

China tackles “unethical” teachers

14 September 2011

Governments in the UK, Australia and New Zealand are not alone in proposing different accountability standards for teachers as a tool to support improved educational standards. The China Daily reported yesterday that there is a crisis of ethics in China’s education sector, indicating that the Ministry of Education will require teachers’ ethics to form part of performance evaluations, appointments, promotions and rewards.

“Teachers whose behaviours run counter to social customs or established norms should not be allowed to go unpunished. In other words professional ethics should be given priority above everything else and teachers found lacking in it should be disqualified.”

China has adopted a system of test scoring children structured around the OECD Programme for International Student Assessment.  The programme was piloted in Shanghai.  In a 2009 survey, Shanghai was the world leader in Maths (NZ was 13th), Sciences (NZ was 7th) and Reading (NZ was 7th).   Shanghai processes, described by the OECD as “a pioneer of educational reform” , are being rolled out elsewhere in China.

The Chinese approach is that professional ethics are a primary requirement for a teacher’s qualification. This statement has some juxtaposition with the results of a Fudan University survey of teachers published before “Teachers’ Day” last week.  A finding was that more than 94% of Shanghai’s teachers were feeling pressured by the test score process,  heavy workloads,  preparatory work and perfomance assessments that were closely linked to their pay.

Initial consideration which the New Zealand State Services Commissioner gave in 2010 to extending the State Services standards of integrity and conduct to teachers met with opposition from teaching unions. They saw integrity standards as a method of constraining the freedom of teachers to criticise government policy. The unions wanted teachers to be distinguished from other State servants covered by the code of conduct and the obligations of loyalty and fidelity to their employer of every other NZ employee (who is prevented by law from undermining their employer’s business).

Regardless of the Commissioner’s standards, teachers, as employees in the State sector, are required by the Cabinet Manual to be “fair, impartial, responsible and trustworthy”.  Being impartial is the challenge. What are the political neutrality duties of teachers who are motivated to oppose education law and policy?

http://www.chinadaily.com.cn/opinion/2011-09/13/content_13670838.htm

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

http://www.ndu.org.nz/files/NDU-Express-Dec09-to-Feb10-web.pdf

http://cabinetmanual.cabinetoffice.govt.nz/3.50

Not copping a lot?

13 September 2011

London’s new Metropolitan Police Commissioner was named yesterday.  The appointment of Bernard Hogan-Howe will be made by the Queen on the joint  recommendation of the Home Secretary and the Mayor of London.  Although not regarded as the best candidate by two panels involved in the selection process,  Hogan-Howe apparently had the confidence of the Government.  He is the former Commissioner of Merseyside Police and has been an acting Deputy Commissioner at the Met since Sir Paul Stephenson resigned in July .  His attractiveness for the appointment flows from policing successes in Merseyside, where in his five years as the force commander, crime fell by 29% and antisocial behaviour by 25%.

Knowledgeable commentators report that the current President of the Association of Police Officers is better qualified. However  he recently irritated Ministers with public comments about the Government’s proposed police reforms and aggravated matters by debunking Ministerial criticism of the way police responded to rioting in a number of cities last month. There was no female candidate.

The Met has almost 50,000 sworn and civilian staff and more than 5,000 volunteer special constables, making it one of the largest police forces in the World. The Commissioner is paid the equivalent of NZ$400,000.  The Commissioner of the New York Police Department, with approximately 43,000 staff, earns the equivalent of NZ$330,000.  As an indication of how the job sizing of senior positions in New Zealand agencies has become misaligned with reality, the New Zealand Police Commissioner in 2009-2010 was reported in the State Services Commission annual report as receiving between $500,000 and $509,000. New Zealand Police has fewer than 11,599 employees.

 

http://www.ssc.govt.nz/sites/all/files/ar2010-remuneration-pages.pdf

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

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

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

China rail-roads more anti-corruption measures

12 September 2011

China’s Government has new measures to prevent corrupt officials leaving the country with stolen assets.

The Ministry of Supervision has introduced a programme in 10 regions including Shanghai and Guangdong that requires officials to report when they or their families intend overseas travel. Local governments are to closely monitor the transfer abroad by officials of any assets.

These anti corruption measures follow a central bank report in June 2011 indicating that thousands of officials had stolen more than $120 billion and that many had fled overseas since the mid-1990s. For example the deputy director of Guangdong’s anti-corruption office, is this week being investigated for fraud despite previous recognition as being one of China’s ten outstanding prosecutors, “a real hero who could bring down ‘tigers’ .”

The Minister of Railways was removed from his role earlier this year, accused of corruptly receiving more than $30m relating to the Shanghai – Beijing High Speed Rail project, and Shanghai’s Party Chairman has been sentenced to 18 years in another corruption scandal.

(Ironically, the Shanghai metro has an undeniable appearance of efficiency, evident during the numerous trips I have made on it over the last week. It moves unbelievable numbers across a very wide network, with trains not only running frequently, but on
time. )

The Ministry of Supervision as part of the State Council (an equivalent of the Department of Prime Minister and Cabinet in New Zealand), supervises the work of State agencies and investigates misconduct by people working in them.

http://www.guardian.co.uk/world/feedarticle/9838076

www.eeo.com.cn/ens/2011/0909/210920.shtml