Blagojevich convicted of corruption

29 June 2011
Former Illinois Democratic Governor Rod Blagojevich was convicted this week on a wide range of corruption charges, including eight “wire frauds” relating to attempts “sell” President Barack Obama’s Senate seat.

Despite campaigning about his innocence on reality TV shows since being charged two years ago, and having deadlocked the jury in his first trial, he was convicted in the second trial on 17 of 20 charges. Sentencing guidelines indicate that he is likely to be imprisoned for ten years when he returns to court on 1 August.

Blagojevich is the second successive Illinois governor to be convicted of corruption. His predecessor is currently in prison.

Officials in Illinois now seem united in criticising the former Governor’s conduct.  The current governor has commented that Blagojevich “deceived everyone. … he committed crimes, according to a jury, a good 12 men and woman, good and true, and so did George Ryan. And they’re going to both be in jail. I think it should be an alarm bell to all of us in Illinois, in government and outside of government, to work together to strengthen our democracy.”

The Attorney General said that Blagojevich “grossly violated the public’s trust by pursuing his own interests over those of the state. The jury’s decision has reaffirmed that public servants work for the people and must pay a serious price if they fail to uphold the solemn duties of their office.”

The Cook Country Board President commented that “Our country is founded on the rule of law, and ( the conviction of )  Blagojevich  … will send a clear message to the … nation:  Corruption no longer has a place in our political system…. We need to put our energies into demanding more accountable and responsible government…”

www.reuters.com/article/2011/06/27/us-blagojevich-trial-idUSTRE75Q41Q20110627

http://northbrook.suntimes.com/6206844-417/blagojevich-called-a-pox-on-illinois-politics-his-conduct-reprehensible.html

 

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June 29, 2011

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Get them young….

28 June 2011

The World Bank wants every child in the world’s poorest countries to be taught at school about the effects of corruption. The intention is to make materials available to support teaching an anti corruption curriculum. The Bank’s president considers that “development is the rule of law”. The World Bank’s development mission must involve raising awareness of the importance of the rule of law. “You need to find a way to work on the DNA, the psyche of people – you need to reach them at a very early stage. You learn all sorts of other stuff before you get to university.

A comment in response to criticism of the World Bank’s ineffectiveness to date of its attempts to tackle corruption in numerous countries and to ensure offenders are prosecuted, is that “It’s about the courts, the courts, the courts.”
The World Justice Project evaluates the extent of corruption as one of the 8 factors in its rule of law index. New Zealand had the best overall score on the index published earlier this month.
Limited government powers 2nd
Absence of corruption 1st
Order and security 11th
Fundamental rights 3rd
Open government 2nd
Regulatory enforcement 3rd
Access to civil justice 4th
Effective criminal justice 3rd

www.globalissues.org/news/2011/06/14/10076

www.guardian.co.uk/business/2011/jun/26/world-bank-corruption-education

 

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June 28, 2011

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Government for the people….

27 June 2011

Governance arrangements in Canberra are to become more transparent, according to the ACT chief minister.  She said on Friday that public access to information will be the default position of her Government.  Changes being introduced… “ will make the ACT Cabinet the most open of any government in Australia.”

The Australian Capital Territory website will promote open government by publishing government background reports, reviews, and submissions made during public consultation, and will give access to material released under the Freedom of Information Act.  This will follow the precedent of Commonwealth agencies which, since May, have been required to publish on a web log the details Freedom of Information requests (within 10 working days of release). Non personal information, after release to the applicant, is now available to everybody.

The website is planned to be operational within 3 months. An earlier development will be the release of a weekly summary of key issues and decisions considered by Cabinet.   The Minister was not clear whether this will relate to all key Cabinet business on the Scandinavian model, or  selectively, as with the New Zealand Prime Minister’s post-Cabinet media conference.

Next month, Ministers  will hold a virtual Cabinet meeting where public queries will be answered on Twitter. This use of technology is seen as symbolic of the government’s commitment to openness..

“Open Government refers to a way of working, and rests on three principles;

  • transparency in process and information
  • participation by citizens in the governing process
  • public collaboration in finding solutions to problems”.

A legislative proposal is to structure a Freedom of Information Act for the ACT more like the New Zealand Official Information Act provisions and not to have a specific exemption for Cabinet papers, as happens in Australian jurisdictions.  Nicola White in her book,  “Free and Frank – Making the Official Information Act 1982 Work Better” has less confidence in the adequacy of the New Zealand approach. She commented that the Official Information Act ” as it works now  is eroding trust in the state sector rather than building it”.

www.chiefminister.act.gov.au/media.php?v=10789

http://ips.ac.nz/events/downloads/2008/Review%20Law%20Talk%20Free%20and%20Frank.pdf

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June 27, 2011

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Wrong tone at the top?

24 June 2011

KPMG’s  latest international fraud survey indicates that finance directors, chief executives and other senior management are far more likely to be involved in fraud – including theft and expense abuse – than junior staff. Trends suggests that the typical fraudster is a senior male manager, aged 36 to 45, who has worked for his company for more than a decade. Most likely motivated greed, he will exploit poor internal controls and a weak corporate concern for ethical behaviour.

Most have a finance role (32%), where there is opportunity to commit and conceal fraud. Although the number of chief executives acting fraudulently has dropped since 2007, people working in a chief executive’s or managing director’s office represent 26% of frauds and 25% is committed by staff in operations and sales.

The economic downturn has also made it a lot easier to commit fraud, according to KPMG. It now takes longer to detect fraud – up from an average 2.9 years from inception to detection in 2007, to 3.4 years in the 2011 analysis. In western Europe or north America, “just” 3% of fraud goes undetected for 10 years or more.

The research is based on investigations conducted by KPMG member firms in 69 countries.

Compared with the 2007 survey, more fraud (13%) is now discovered by chance, although there are more anonymous tip-offs which led to uncovering 14% of cases.  Formal whistleblower systems contribute to 10% of fraud detections.

The most effective remedy is for organisations to actively promote standards of integrity.  The New South Wales ICAC this week  reported on the corrupt behaviour of a local authority planning officer who gave favours to business owners in return for cash, gifts, free meals, and free massages and sexual services. This reflected poor systems and little focus on ethical expectations- and a policy of allowing staff to accepts gifts, benefits and hospitality.  There are echoes of this situation in a media report this week of hospitality given to ACC  officials with responsibility for managing relationships with providers.

In the New Zealand State Services, agencies are expected to give effect to the “6 trust elements”

  • Having standards
  • Promoting those standards –“talking the talk”
  • Integrating those standards into operations – “the way we do things around here”
  • Managers modelling those standards -“walking the talk”
  • Staff knowing there are consequences for misconduct
  • Agencies taking decisive action if breaches occur

www.guardian.co.uk/uk/2011/jun/20/fraud-senior-management-kpmg-report

www.icac.nsw.gov.au/investigations/past-investigations/article/3883

www.stuff.co.nz/timaru-herald/news/5165012/ACC-staff-broke-rules-over-perks

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June 24, 2011

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Public Service Day

23  June 2011

Today is the UN Public Service Day.  It is an occasion to mark the commitment of public servants around the world to providing professional advice and support to their governments without manipulating circumstances to their personal advantage. The day celebrates people working for governments who perform their duty, do the right thing,  make a difference and do not expect or receive any benefits for doing so, except the rewards provided to them by their employer.

This week GOVIS (the New Zealand Government information specialists organisation) held its annual  conference,  and explored systems to improve the delivery of  government services.  Part of day one was a consideration of how technology can assist disaster recovery with participants reporting their experiences of the Christchurch earthquakes.

Last night IPANZ (Institute of Public Administration NZ) hosted a function to make awards for excellence and innovation in the State Services.  Awards were for seven categories, with the ultimate, Prime Minster’s Award made to the NZ Fire Service for development of its rapid emergency response capacity.

An interesting accolade during the awards ceremony was the recognition that the Deputy Prime Minister gave to the back offices of agencies.  He acknowledged the admirable part they played in facilitating earthquake remedial actions in Christchurch.

Good government is all about the spirit of service and providing trustworthy assistance to the community.

Enjoy Public Service Day.

www.timeanddate.com/holidays/un/public-service-day

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June 23, 2011

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NSW Premier aims to “restore integrity” in government

22 June 2011

Last year, as the New South Wales opposition leader,  Barry O’Farrell was very critical of misconduct by the State Government. Now, as Premier, he has announced measures he claims will restore integrity in government by “strengthening the powers of the Independent Commission Against Corruption (ICAC), restoring integrity to government advertising, and introducing new protections for whistleblower.”

These measures will build on legislation that was passed late last year by the previous Government and which comes into force on 1 July.  The whistleblower proposals will require agencies to

  • notify whistleblowers of progress within 45 days
  • designate an officer as point of contact for whistleblowers  and
  • report the number of whistleblower disclosures made each quarter

These will make it easier to make complaints not only about incidents of corruption, maladministration, and serious and substantial waste , but any “conduct of a kind that constitutes a failure to exercise functions in accordance with any provision of the Government Information (Public Access) Act 2009”.

The New Zealand Protected Disclosures Act already has the characteristics proposed by NSW, except for the requirement to report each quarter about disclosures. This is the information that in Canada is published on each agency’s website alongside the expenses and gift disclosures of senior officials.

One of the recommendations made following the New Zealand State Services integrity survey in 2010 was that agencies should pay greater attention to the statutory requirement to periodically republish information about their protected disclosures policy.  There is very little evidence of any agency complying.

www.nsw.liberal.org.au/news/premier-of-nsw/premier-outlines-measures-to-restore-integrity-to-government.html

www.ssc.govt.nz/survey-report-summary

 

 

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June 22, 2011

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Politicians fall off list of trusted occupations

21 June 2011

Public trust and confidence in politicians seems to be universally low.  In the Readers Digest somewhat unscientific annual survey of occupations most trusted by New Zealanders, published yesterday, politicians have slipped even lower than in 2010. Last year they rated in 38th place, below sex workers.  This year, they don’t make the top 39 occupational groups, probably because  new caring professions – rescue workers and para medics – have joined the list, influenced by the disasters at Pike River and Christchurch.  Firemen, again, are the most trusted according to the survey.

A more considered report about misbehaving politicians was tabled in the Canadian Parliament last week by the Conflicts of Interest and Ethics Commissioner. She indicated that MPs should be made subject to a code of conduct.  Her Commission investigates abuse of conflicts of interest regulations, but has no role in managing the distasteful personal attacks, misleading statements and inappropriate behaviour by MPs, which cause many public complaints.

Ross Robertson MP has been attempting since 2003 to get the New Zealand Parliament to enact an Ethics Bill that will impose a code of conduct  on its Members. He has not yet been able to marshal sufficient support from among his colleagues, who feel they are adequately policed by Standing Orders and Speaker’s Rules. Ministers are also subject to the requirements of the Cabinet Manual.

www.readersdigest.co.nz/New-Zealand-Most-Trusted-Professions-2011

www.citytv.com/toronto/citynews/news/national/article/137589–ethics-watchdog-lacks-bite-says-it-might-be-time-for-mp-code-of-conduct

www.newsy.co.nz/progressive-move-as-cpa-develops-benchmarks/

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June 21, 2011

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Corrupt officials flee China with their loot

20 June 2011

More than 18,000 Chinese officials migrated over the last 15 years taking more than US$120 bn of corruptly acquired  assets with them. The People’s Bank of China reports that this smuggled money is often masked by business transactions. Despite continuing campaigns over recent years to minimise corruption, the level of fraud by officials, who by definition are Party members, threatens China’s economic and political stability.

Over the last five years more than 240,000 fraud investigations have taken place. Numerous officials on conviction have received death sentences, although many are commuted.  Recent high profile cases include the Minister of Railways who diverted $30 million from the Beijing-Shanghai high speed rail project, and the party leader in Shanghai, who is serving an 18 year sentence for defrauding the region’s pension fund.

The report is that fraudulent assets were transferred in the main to the United States but substantial sums have also gone with migrants to Canada, the Netherlands and Australia. New Zealand is not mentioned.  The issue arises about immigration policies of countries that have a special category for high wealth individuals.  In the case of Chinese migrants, how is the lawfulness of that wealth verified, where the averred motivation for migration is to avoid government oppression – and that Chinese authorities would provide false information about the migrant.

www.smh.com.au/business/report-chinese-officials-stole-120-bn-20110618-1g9c4.html

www.bbc.co.uk/news/world-asia-12088147pacific-/

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June 20, 2011

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What should you believe?

17 June 2011

Britain is much more corrupt than generally recognised, and the agencies intended to counter this trend are being weakened by the government. That is the view of Transparency International published yesterday.  TI claims that there is a complacency about this threat of corruption.  Problems in prisons, parliament, political parties and sport are made worse by a culture of impunity. The prison service has a “significant problem” with staff smuggling contraband for inmates. Unethical conduct by politicians is illustrated by scandals about MP expenses and lobbying at a “worrying” level.  “Some of (Britain’s) most trusted institutions are vulnerable, and there are inadequate procedures to detect and prevent corruption”.

In marked contrast, the World Justice Project survey also published this week reports that UK is among the European leaders.  It finds corruption is minimal, rates the openness of its government as 4th best in the world, considers the UK to be the 5th most effective in regulatory enforcement, and assesses government accountability as 7th best.  So has something gone wrong with TI’s methodology?

TI has always rated New Zealand in the top 5 places on the Corruption Perceptions Index.  But its 2010 interviews with nearly 1300 New Zealanders had some surprising findings. It found that 3.6% of New Zealanders reported that they, or a member of their household, had paid a bribe in the previous 12 months.  This seems far off the mark.  Is this also the case in the British assessment?

www.transparency.org.uk/publications

www.worldjusticeproject.org/rule-of-law-index/

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June 17, 2011

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CEs reminded to disclose expenses

15 June 2011

The State Services Commissioner has written to agency chief executives reminding them to publish, by the end of July,  travel and hospitality expenses and gifts they have received, during the last six months.  This will be the second set of disclosures.  Last year the Commissioner adopted bits of disclosure processes in jurisdictions with which New Zealand likes to be compared.

Interestingly, New Zealand only requires publication of chief executive expenses.  By comparison, Canada, US and the UK  require disclosures by all senior officials.  The Canadian proactive disclosure regime  appears to be the most transparent.  Their Treasury Board website contains the quarterly disclosures of more than 120 agencies; not only the travel and hospitality expenses of senior officials but also contracts exceeding $10,000, grants and contributions of more than $25,000 and any “whistleblower” investigations.  Cumulative records of these disclosures remain on the website – long after officials have moved elsewhere. This process, put in place in 2004, gives rise to very little media attention, possibly because of the cautious spending evidenced by the disclosures.

Since 2009, the British Cabinet Office has published the business expenses that their senior officials must disclose every 3 months.  The US Office of Government Ethics also publishes the disclosure returns of officials from hundreds of agencies although that data is not as readily found as the British and Canadian compilations.

New Zealand agencies are expected to maintain accessible registers of gifts and hospitality. All staff receiving benefits  derived from sources other their employer should ensure they disclose those benefits and record them in their agency registers. The guidance in Understanding the Code of Conduct is;

“…There will usually be perceptions of influence or personal benefit if we accept gifts, hospitality or ‘quid pro quo’ exchanges of favours. We must not seek or accept favours from anyone, or on behalf of anyone, who could benefit from influencing us or our organisation. Organisations’ policies on accepting gifts and hospitality vary, depending on their business. In all cases, it is expected that gifts will only be accepted following a transparent process of declaration and registration. To avoid misperceptions, it is essential that the process is public. ..”

http://ssc.govt.nz/ce-expenses-disclosure

www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp

www.cabinetoffice.gov.uk/resource-library/business-expenses-senior-officials

ssc.govt.nz/node/1914

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June 16, 2011

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