Officials know where they stand in Singapore

18 January 2011

The six elements necessary for a trustworthy organisation involve not only active leadership to develop, promote and integrate standards, but also decisive action where breaches occur, so that staff know where they stand.

Singapore media suggest that a corrupt senior official may receive  what is, in effect, a life sentence when his case is finalised soon. He has been charged with 372 offences, each carrying a ten year penalty. The expectation is of a very long sentence. It will be clear to Singapore’s public servants that the Government is determined to preserve its place as the least corrupt public administration (equal with New Zealand) as assessed by Transparency International.

The offences, involving more than $12.5 million are said to have severely shaken public confidence in government control systems.

http://www.bloomberg.com/news/2011-01-18/singapore-official-faces-life-in-prison-as-city-state-protects-clean-image.html 

     

www.ssc.govt.nz/2010-survey-report

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January 19, 2011

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“The way we do things around here…”

17 January 2011

To maintain integrity-rich behaviour in agencies, it is important, not only that there is leadership about standards, but that everybody knows what is expected of them – “the way we do things around here”. Standards must be integrated into the ordinary course of business. If trust elements are weak, opportunities arise that some people will inevitably exploit.

A major fraud ring organised by a senior customs officer has been uncovered in Turkey. It exploited that country’s poor focus within government agencies, on the trust elements.

In Turkey, 1 in 3 people smoke – the highest rate anywhere. Tax on cigarettes is high. Government revenue is unusually dependent on the cigarette tax. Smuggling cigarettes has better rewards than trafficking drugs. It corrupts customs officers.

High import taxes heighten the relevance of customs officers acting lawfully. In some countries special disclosure regimes have been put in place to support custom officer integrity. The OECD will publish data relating to these disclosures in mid 2011.

An interesting development late last year was that Fiji put a massive tax increase on bottled water – from 0.65 cents to 15 cents a litre, a 45 fold increase). That meant one manufacturer – of Fiji Water – threatened to withdraw from the market, although its US owners soon relented. But it means that the smuggling of bottled water may become an issue!

http://www.hurriyetdailynews.com/n.php?n=the-intelligence-report-burned-the-custom-chief-manager-2011-01-09

http://blogs.wsj.com/corruption-currents/2011/01/10/turkish-customs-officials-arrested-in-suspected-bribery-scheme/

http://www.suite101.com/content/fiji-water-closes-then-reopens-following-water-tax-disagreement-a315291

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January 19, 2011

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Politicians – great and small

14 January 2011

Today’s news includes an astonishing reversal of roles.

The new Governor of New York, a state where many politicians have shown their democratic commitment is subordinated to self interest, is being applauded for a call for decorum, professionalism, respect and collegiality from that State’s  politicians. This in a jurisdiction described by the New York Times as a contender for the title of most dysfunctional state, where in the last three years, 2/3rds of the state-wide, elected, officials left office under a cloud.

As one of his  first acts, the Governor has ordered senior members of his administration to undergo ethics training. What is astonishing is that politicians can come to office without being imbued with the ideals explicit in a state with more than 225 years of constitutional democracy. But the pursuit of good government is heartening.

At the other end of the scale, tiny Tuvalu, isolated in mid Pacific from all the troubles of the world, save the erosive effects of rising sea level, has declared a state of emergency. The country’s (only) fisheries patrol boat sits in the Funafuti lagoon adjacent to the homes of the Governor General and the Prime Minister. Police (an unarmed force) are on alert.  There is no military.    This pantomime is the response to a group of voters from a Minister’s constituency placarding the capital and demanding his resignation.

Tuvalu once exemplified the Pacific way – consensus, lawfulness, respectfulness, and Christian values – albeit instilled by an overbearing national church. There is no history of tribal warfare in the nine islands comprising the country, and almost no serious criminal violence since its colonisation.  But now, after almost 33 years of self government, politicians all wanting Ministerial positions and unable to show confidence in an administration formed by others, have created disaffected electorates. The World’s least likely candidate for civil disorder has now banned public meetings of more than ten people.

http://www.nytimes.com/2011/01/04/nyregion/04nyc.html

http://www.philly.com/philly/wires/ap/news/world/20110114_ap_tinytuvaluimposesemergencyafterpublicprotest.html

http://triballink.org/2011/01/on-the-ground-day-2/

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January 14, 2011

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Do politicians see things differently?

13 January 2011

The pillars  good government are respect for the rule of law, support for the democratic process and officials selflessly serving their community. We expect everyone working in government to be committed to reinforcing these foundations.

Politicians should be public exemplars of standards. However, in most societies there are low levels of public confidence in the political process because too few politicians are seen as ethical leaders.

An incident in Washington last week provides an unfortunate illustration of self interest overriding any commitment to the democratic process and the rule of law. Two newly elected members of the House of Representatives, rather than taking part in the swearing-in ceremony for the House – which conveys the lawful powers to a representative and entitles them to participate in the work of Congress –  chose to attend a fund raising gathering.

Meanwhile fellow representatives elected to the 112th Congress were emphasising the importance of democracy and the law by formally reading the Constitution. As in New Zealand, until being sworn in, Congressmen (and women) are not empowered to exercise the powers and privileges of office.  But that tradition didn’t stop these two representatives who have since voted on business debated in the House.  Special remedial procedures have now been necessary to legitimise matters.

Influential groups in the US are appalled.  Complaints have been laid with the House ethics committee because of these breaches of Congressional rules, federal law and the Constitutional.

The December 2010 UMR Mood of the Nation survey reports that public confidence in the New Zealand Parliament declined 6% between 2009 and 2010.  This was the largest confidence change in any of the institutions covered by the survey.

http://www.citizensforethics.org/crew-files-ethics-complaint-against-reps-sessions-fitzpatrick

http://www.umr.co.nz/Reports/UMR%20Mood%20of%20the%20Nation_2010.pdf

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January 14, 2011

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Is it deceitful to deceive?

12 January 2011

The unmasking of a British police officer working undercover among environmental activists raises ethical issues.  People working for government agencies are required to conduct themselves with integrity – and display the values of public service.  The deception inherent in infiltrating protest organisations using a false identity with the intention of engendering close personal relationships, cannot conform to those values.

This type of behaviour cannot meet the specification in the New Zealand Cabinet Manual – that “all employees in the State sector  must act with a spirit of service to the community and meet high standards of integrity and conduct in everything they do. In particular, employees must be fair, impartial, responsible, and trustworthy.”

The State Services Commissioner recognised the challenge to notions of being honest that can arise with some enforcement activities.  This is addressed specifically in “Understanding the code of conduct – Guidance for State servants”.

“Honesty does not necessarily mean continuous, full disclosure. In some circumstances, full disclosure is a requirement. Other circumstances may require care. For example, the courts have recognised that organisations that enforce legislation cannot be required to openly disclose their evidence-gathering activities. It is sometimes necessary to disguise the way these activities are carried out. But these circumstances are rare.”

Does this mean that standards of integrity can vary depending  on the situation?

http://www.guardian.co.uk/environment/2011/jan/11/activist-undercover-officer-violated-relationship

http://www.ssc.govt.nz/display/document.asp?docid=7902&pageno=5#P283_25647

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January 13, 2011

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Integrity matters!

12 January 2011

Three issues reported this week indicate the pervasiveness of corruption. 

In the US, the Securities and Exchange Commission is proposing to structure regulations in a way which shields oil companies from actions brought by shareholders, if companies make false or misleading statements about illicit payments to foreign officials and their governments. 
Plans by the president of FIFA to set up a corruption committee, following allegations of “votes for sale” in the run up to allocation of the World Cup, have been upstaged.   A respected German lawyer has resigned from an ethics enforcement role with FIFA claiming “there is no interest in resolving, punishing and avoiding ethics violations against the rues of FIFA”. 
In Turkey, a corrupt network has been unwound.  Police have detained the country’s top customs official and dozens of others in a wide-ranging bribery and smuggling investigation. 
 Officials demanded payments before processing imports, the bribes were pooled and then distributed each week among customs officers, based on rank and seniority. Police said that more the $NZ 150m was involved.
In 2010 Turkey was placed 56th on the Transparency International Corruption Perceptions Index, equal with Malaysia and Latvia.
These practices within government, the commercial sector and in the NGO sector illustrate why there is a need for all agencies to have comprehensive systems to promote trustworthy conduct.  
In New Zealand, the State Services Commission advocates the importance of “6 trust elements”:
    having standards, 
    promoting the standards, 
    integrating the standards into workplace processes, 
    managers modelling the standards, 
    staff knowing the consequences for breaching the standards, 
    agencies taking decisive action when breaches occur. 

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January 12, 2011

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Disregarding integrity expectations an ubiquitous risk?

10  January 2011

The potential for corruption is  ever present.  It is not deterred by the size of the state nor the homogeneity, connectedness or religiosity of its community.   Unless all officials are imbued with the spirit of service, have respect for the rule of law and are committed to the democratic process, self interest will inevitably be manifested in  misuse of power and public resources.

This is illustrated by the conviction of an American Samoan official this week.  In a small society, with a strong sense of community and tradition, where the influence of the church community is pervasive and everyone is known and connected, a calculated and continuing scheme to cheat the State became entrenched.  Over a three period, public servants ordered “phantom” parts for the territory’s school bus service. The parts, charged at inflated prices, were never delivered.  Bribes of more than $300,000  were paid to the complicit officials.

It is probable that others not benefiting from the fraud were aware of the scheme.  An ethical culture would oblige these people to report what they knew.  This is where protected disclosure processes should be available to overcome the constraints created by  cultural solidarity, and a reluctance to report malfeasance by colleagues.

NZ State Services employees are not only bound by their agency policies to behave with integrity and to report conduct that breaches that duty, but also by both Cabinet Manual and State Services Commissioner directions that their actions  must reflect the principles  public service – of being fair, impartial, responsible and trustworthy.

Singapore, which in November 2010 joined New Zealand as the least corrupt public administration as assessed by Transparency International in its corruption perceptions index, is now troubled by its most serious  corruption case.  Although involving less than half the sum disclosed in a prosecution involving an Otago DHB senior manager in 2008, the media reports that the Singaporean prosecutor is seeking an exemplary punishment.

http://www.justice.gov/opa/pr/2011/January/11-crm-008.html

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

http://www.docstoc.com/docs/68270347/SINGAPORE–AN-EXEMPLARY-CASE-OF-WATER-MANAGEMENT

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January 10, 2011

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Is there integrity within a spending culture?

 

 

7 January 2011

A core tenet of public service is the responsible use of public money. Agencies are also required to serve their Minister and give effect to government policy. How does an official maintain integrity when Ministries, with oversight of them, indicate that an irresponsible use of funding is expected?

Today’s Telegraph reports on circumstances in Britain which bring this conundrum into sharp focus.

In late 2010, the chief executive of UKTI, the trade and investment agency, asked his senior managers to find ways to spend money. The Foreign and Commonwealth Office, which funds and monitors the Foreign Minister’s interests in the agency, was  “heading for an underspend” and asked officials to help find ways to “get money out of the door”.  The government had recently announced the most rigorous austerity programme for 65 years. This included scrapping 192 quangos – and substantial other cuts, identified in a Spending Review. The Treasury had asked agencies to reign in their spending.

The Telegraph reports on enthusiast offers to spend from within UKTI.  This now, is an embarrassment for the Foreign and Commonwealth Office.  There is no indication that officials responded with frank and fearless advice about the inappropriateness of unplanned expenditure.

The British Prime Minister has questioned whether the Civil Service has developed a mindset of trying to save money. “I think it is a cultural problem in Whitehall. …that needs to change…”

http://www.telegraph.co.uk/news/newstopics/politics/8242630/Quango-boss-ordered-staff-to-invent-ways-to-spend-1m.html

http://www.telegraph.co.uk/news/newstopics/politics/8243845/David-Cameron-attacks-Whitehall-culture-of-spending.html

 

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January 7, 2011

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Conflicts of interest corrupt

6 January 2011

Self interest can always defeat integrity.  That is why transparency is essential whenever there is a possibility of a conflict of interest.  Breaches of integrity standards can have a devastating social effect. UK media today provide details of the “elaborate fraud” behind  an MMP vaccine study published in the Lancet in 1998.  That research, purporting to establish the vaccine was  a cause of autism, led to significant numbers of parents refusing vaccinations for their children.  That has exposed many to disease and caused increased incidence of measles worldwide.

Although the Lancet has retracted its publication of the study, the profile given to the research means that many remain convinced about the claims.

Andrew Wakefield, the medical researcher who led the study team, was struck off the UK register of medical practitioners in May 2010. The followed confirmation that data for the study had been falsified.

What has come to light now is that at the time of the study, Wakefield was retained by lawyers representing parties taking action against vaccine manufacturers. Wakefield did not see that as a conflict. But his research colleagues were not aware of the association. The circumstances speak for themselves.

This case illustrates the need for openness. It is important that public sector agencies have well publicised processes for disclosing personal interests, and that all officials exercising discretions, readily disclose matters which have the potential to influence their decision making.

There is nothing new in an ethics memo sent by the US Deputy Secretary of Defence to very senior Pentagon leaders just before Christmas.  The content echoes much of the State Service Commissioner’s guidance for State servants in Understanding the code of conduct. But what is pertinent for those running the Pentagon will be equally pertinent for leaders everywhere.

The memo emphasises that integrity must be a high priority, as even the slightest lapses erode public confidence. Actions must be driven by fundamental values of integrity, impartiality, fairness and respect which must be reinforced by holding each other accountable. Leaders must be aware of, and comply with, the law  – and in particular, conflicts of interest provisions. There is a need to vigilantly avoid any action that gives rise to public concern about the integrity of departmental processes and decisions. “Honorable intentions or personal ethos cannot justify conduct that creates public doubt about propriety and fairness….”

Wakefield’s bogus science shows what can happen when these expectations are disregarded. If government agencies are to be trusted by the public, people working in those agencies must behave in a trustworthy way.

telegraph.co.uk/health/healthnews/8240998/The-MMR-scare-was-deliberate-fraud-the-British-Medical-Journal-has-said.html

en.wikipedia.org/wiki/Andrew_Wakefield

scribd.com/doc/46222150/LynnEthics1

http://www.ssc.govt.nz/display/document.asp?docid=7902&pagetype=content&pageno=5

 

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January 6, 2011

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Keeping up standards

5 January 2011

Human nature is such that ethical breaches within organisations are inevitable.  Cognisant of that, the State Services standards of integrity and conduct have been framed as an “aspirational” code. (Although the Concise Oxford dictionary does not yet recognise aspirational as a word, its inclusion in the Wiktionary indicates that this blending of aspiration and inspirational has traction as an expression for being ambitious and desiring success.)

The standards of integrity express what the New Zealand Cabinet Manual describes as the principles of public service – of being fair, impartial, responsible and trustworthy. Agencies are expected to have processes to ensure standards are maintained. But not all State servants are going to behave always as they should.

Corruption Currents, a Wall Street Journal blog has predicted developments during 2011, with a United States focus, that reflect ethical concerns . These are;

More anti-corruption enforcement internationally

An end to facilitation payments currently permissible under US law

More asset seizures

Big business employing compliance staff to reduce prosecution risks

Investors paying greater attention to corruption risks in businesses

More challenges to the Foreign Corrupt Payments Act

More cross-border cooperation

An expansion of anti money laundering enforcement and further crackdowns on non-traditional financial channels

More scrutiny of foreign banks

Similar developments are likely in New Zealand. We can expect that anti money laundering legislation will be enforced, and additional legislation will be prepared to give effect to the UN Convention Against Corruption. Ironically, within the State sector we can anticipate that increased transparency will stimulate media interest attention on influences on public trust and confidence.  Procurement practices, conflicts of interest, and the disclosure of officials’ expenses and hospitality spending are likely to get attention. There is likely to be a general concern about openness of government, including influences on party policies and their funding arrangements in the lead up to the general election.  This attention may well affect perceptions about corruption in New Zealand and influence New Zealand’s rating on the 2011 Transparency International Corruption Perceptions Index.

en.wiktionary.org/wiki/aspirational

blogs.wsj.com/corruption-currents/2010/12/30/corruption-currents-trends-to-look-for-in-2011/

cabinetmanual.cabinetoffice.govt.nz/3.50

transparency.org/policy_research/surveys_indices/cpi/2010/in_detail#1

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January 5, 2011

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