1 Identifying Conflict of Interest in the Public Service Rabat, 25 May 2007 János Bertók Public...

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1 Identifying Conflict of Identifying Conflict of Interest Interest in the Public Service in the Public Service Rabat, 25 May 2007 Rabat, 25 May 2007 János Bertók Public Governance and Territorial Development Directorate OECD [email protected]

Transcript of 1 Identifying Conflict of Interest in the Public Service Rabat, 25 May 2007 János Bertók Public...

Page 1: 1 Identifying Conflict of Interest in the Public Service Rabat, 25 May 2007 János Bertók Public Governance and Territorial Development Directorate OECD.

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Identifying Conflict of InterestIdentifying Conflict of Interest in the Public Service in the Public Service

Rabat, 25 May 2007Rabat, 25 May 2007

János BertókPublic Governance and Territorial Development Directorate

OECD

[email protected]

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Conflict of interest:

A major challenge

What is conflict of interest?What is conflict of interest?OriginOrigin

SourcesSources

Why conflict of interest is an issue?Why conflict of interest is an issue?

How to manage conflict of interest?How to manage conflict of interest?

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What is conflict of interest?

OriginOrigin Personal bias -- “no one may Personal bias -- “no one may

judge his/her own case” judge his/her own case” Code of HammurabiCode of Hammurabi 1760 BC

Sources = Private InterestsSources = Private Interests Relationships Relationships (family, friendship)(family, friendship)

Activities Activities (positions)(positions)

Business interestBusiness interest

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Defining ‘Private Interests’

‘Interests’ not defined exhaustively; the include: Personal assets and family interests

Debts and other obligations Religious, community or ethnic associations Professional, party-political, etc, alignments Personal affiliations or relationships, etc.

Any specific private (i.e non-public) interest could be

relevant if it could reasonably be considered as likely to

influence improperly the official’s performance of their duties

in relevant circumstances.

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Sources of Conflict of InterestSources of Conflict of Interest

0

5

10

15

20

25

30

Gifts, benefitsand hospitality

Businessinterest

Externalactivities and

positions

Familyrelationships

Personalrelationships

Assets Liabilities, debts

Number of countries

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Business interests,Business interests, external activities and positions external activities and positions

10 15 20 25 30

Secondary employment in the private sector

Partnerships

Shareholdings

In an entity with a contractual or regulatory relationship with gov.

Investments

In a political party

In trade unions

In elected public entity

Number of countries

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What is CoI? Definition

A reasonable person, knowing the relevant facts, would

conclude that the official’s specific private-capacity

interest was such that it could improperly influence the

official’s conduct or decision-making.

The key terms - “private interests” “public official” and

“official duty” have been defined specifically, to remove

the possibility of doubt in application, and what is relevant

“improper” conduct is codified.

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Is CoI situation corruption? Compare -- placing the King ‘in check’ in Chess:

– being ‘in check’ must be resolved, but

– it is not of itself fatal unless the conflict cannot be resolved

Conflicts of interest are not necessarily Corruption, but are damaging/dangerous; it MUST be managed.

A CoI situation which is not identified, managed and resolved appropriately can lead to corruption.

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Why conflict of interest is an issue?

Conflict of interest was identified as a major Conflict of interest was identified as a major challenge in the private sectorchallenge in the private sector

Heart of the mission of public serviceHeart of the mission of public service Rapidly changing socio/eco environmentRapidly changing socio/eco environment

public/private interfacepublic/private interface - new forms of co-operation, - new forms of co-operation, emerging and grey areasemerging and grey areas

Changing society - Changing society - educated, multi-culturaleducated, multi-cultural

Demand for information - Demand for information - critical media

Declining confidence in public institutionsDeclining confidence in public institutions

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Toolkit

AIM: HELP officials put conflict of interest regulations into practice

Understanding

Skills to recognise and resolve

Collection of explanations, checklists, model codes, procedures, self-test, training materials, case studies

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Tool No. 1: defining CoI situationsan objective test

1. Is Joe / Joanna a public official of a relevant kind ?

2. Does he / she have private interests of a relevant kind ?

If the answer to both is ‘Yes’, then Joe / Joanna has a [real/ actual] conflict of interest.

What is ‘relevant’ is context-dependent - determined by the circumstances, (“conflict”) - determined by relevant law (“incompatibility”)

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Tool No. 8: Gifts checklist

Genuine Is this gift genuine, in appreciation for something I have done in my role as a public official, and not sought or encouraged by me?

Independent If I accepted this gift, would a reasonable person have any doubt that I would be independent in doing my job in the future, when the person responsible for this gift is involved or affected?

Free If I accepted this gift, would I feel free of any obligation to do something in return for the person responsible for the gift , or for his/her family or friends/associates?Transparent Am I prepared to declare this gift and its source, transparently, to my organisation and its clients, to my professional colleagues, and to the media and the public generally?

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Who is covered by Conflict of Interest policy?Who is covered by Conflict of Interest policy?

0 5 10 15 20 25

Ministers

Customs officers

Senior public servants

Contract managers

Prosecutors

Tax officials

Judges

Procurement officials

Ministerial cabinet staff

Auditors

Number of countries

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Why “managing” conflict of interest?Why “managing” conflict of interest?

Two major approachesTwo major approaches• description -- principle-based description -- principle-based • prescription -- rule-basedprescription -- rule-based

• enforceableenforceable

• enacted standards -- formal proceduresenacted standards -- formal procedures

Reflect the social-political-administrative context

Evolution -- seek to strike a balance

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CONCLUSIONS

Conflict of interest is a Reality

Needs identification, prevention,

resolution & proper management

OECD Guidelines & Toolkit provide

reference

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OECD work on managing conflict of interest

http://www.oecd.org/gov/ethics