Anti corruption policy KNBS sept 2009.doc

7/28/2019 Anti corruption policy KNBS sept 2009.doc

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KENYA NATIONAL BUREAU

OF STATISTICS

ANTI-CORRUPTION POLICY

SEPTEMBER 2009


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TABLE OF CONTENTS

Pg No.

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FOREWARD

By the year 2030 it is envisaged that Kenya will have transparent,

accountable, ethical and results-oriented government institutions. KNBS

plays a key role in ensuring that Vision 2030 becomes a reality and has

therefore to lead as institution of best practice in corporate governance. As a

young institution KNBS is faced with various challenges. We as a Board

acknowledge that we are operating in an environment where risk of

corruption is real. It calls upon us to put in place strategies to prevent

corruption from slowing down the march towards achievement of our

objectives.

This policy hence guides the organization in its fight against corruption by

emphasizing ethical and value based behaviour which will ensure a

conducive environment for achievement of set priorities.

The Board will sign a code of conduct signifying their readiness to work in

an ethical way to move the organization forward. The Staff of KNBS are

expected to sign similar code of conduct as provided for in this policy.

I urge all staff to read and internalize the policy and Management to ensure

that all efforts are made to implement each aspect of the policy. This will

ensure that operations are consistent with best practices and uplifts efficient

and effective management of Government resources.

Thank you.

PETER N. MWITA

CHAIRMAN OF BOARD OF DIRECTORS

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PREFACE

KNBS became a state corporation in line with Statistics Act 2006 which was

officially operationalised through a legal notice in the year 2007. The

Bureau has been in operation for two financial years.

As a young institution which is semi-autonomous to central Government

operations, the Bureau must put in place and implement many systems. The

Bureau has hence put in place mechanisms to ensure that it operates

efficiently and effectively in order to account properly for resources

entrusted to it by the Government and Development partners.

Besides the Bureau has to comply with requirements of the Public Sector

Integrity Programme and ensure that staffs observe the public officers ethicsAct and prevents economic crimes from being committed.

Anti-corruption policy was developed to ensure transparency and integrity

and by its operationlisation the Bureau is able to meet requirements in the

enterprise wide risk management framework in the public service.

This policy document outlines KNBS policy on corruption and outlines

strategies to prevent corruption. It also provides for means to report and deal

with any incidence of real and suspected corruption.

The policy was developed by the Integrity Committee of the Bureau and

applies to all staff as well as the Board.

It is my sincere believe that accurate and timely implementation of this

policy will complement the efforts made in all directorates to ensure we

achieve the vision and mission of the Bureau.

A.K.M KILELE

DIRECTOR GENERAL

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1. POLICY STATEMENT

In order to ensure a transparent, accountable, ethical and results orientedinstitution KNBS will observe zero tolerance to corruption through developing,

implementing and institutionalizing necessary policies, legal and institutional

frameworks.

Management and staff have a primary responsibility of putting in place

operating, reporting, investigation and deterrent mechanisms aimed at

preventing corruption and punishing perpetrators and beneficiaries of corruption

in the institution.

2. LEGISLATIVE AND ADMINISTRATIVE REQUIREMENTS

In order to ensure a corruption free institution KNBS will work within the

provisions of the Acts of parliament and other instruments designed to prevent

corruption and ensure service delivery. These will include but not limited to

The Anti-Corruption and Economic Crimes Act, 2003

Public Officer Ethics Act, 2003

Public Procurement and Disposal Act 2005

Public Procurement & Disposals Regulations, 2006

Government Financial Management Act, 2004

Performance Contract

Witness Protection Act 2006

Statistics Act 2006

KNBS finance and other operational manuals

Code of Ethics and Conduct

State Corporations Act

Public Audit Act Official Secrets Act Cap 187

3. SCOPE/APPLICABILITY

This policy is applicable to KNBS Board, management, staff and

partners/stakeholders.

4. DEFINITION OF CORRUPTION


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Corruption in KNBS will entail misuse of office for personal gain or benefit by

the Board, Management, employees and stakeholders, act of commission and

omission in ones employment resulting in loss or disadvantage to KNBS and

private gain to the above mentioned.

It is also any conduct of any person (whether or not a public official) that

adversely affects or that could adversely affect, either directly or indirectly, the

exercise of official functions by any public official, any group or body of public

officials, foreign officials or any public authority and which could involve any

of the following matters.

Bribery

Secret Inducements

Deceiving a principal

Conflict of interest

Improper benefits for appointment

Bid rigging

Failure to protect public property

Abuse of office

Dealing with suspect property

Nepotism/Favoritism/Tribalism

Grabbing of public property

Breach of trust

Misappropriation/embezzlement of corporate funds

Blackmail

Extortion

Forgery

Tax evasion

Dealing with suspect property

Impact effects of corruption

Damage of image/reputation of the Bureau

Loss of jobs in the event the Service becomes bankrupt

Loss of revenue

Loss of key staff members as a result of intimidation

Reduction of staff morale

Loss of confidence in national statistics that can lead to wrong decisions

5. CORRUPTION RISK AREAS IN KNBS

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Kenya National Bureau of Statistics will conduct corruption risk assessment

from time to time to enable identify corruption loopholes and consequently put

in place prevention measures. All directorates have a responsibility to identify

the risk areas and inform the Integrity Committee appropriately.

In order to come up with Corruption prevention strategies, a corruption risk

assessment in KNBS was conducted and the results are summarized in appendix

I

6. CORRUPTION PREVENTION STRATEGIES

Policy Statement

KNBS will implement preventive measures/strategies that ensure corruptionloopholes are sealed. These strategies will undergo review from time to time to

ensure no loopholes go unnoticed. The following will be done to address

corruption:-

i) Setting up Integrity Committees at HQs and Regional offices

In order to operationalise corruption prevention the Bureau has formed Integrity

Committees at Headquarter and will extend this to all regional offices. (See

Appendix II for composition and Terms of reference of these committees). The

committees will spearhead corruption prevention. Integrity Assurance Officers

will be appointed at the Head quarters and regions to assist Integrity Committee

members. However corruption prevention is a responsibility of all staff in the

organization.

ii) Internal Control Systems

Internal controls are forms of controls put in place by KNBS to ensure that the

Bureau safeguards its assets and functions effectively to achieve its goals in thestrategic plan and ensure that it delivers on the objectives of the Vision 2030.

Internal controls will include all laws, policies, procedures, rules, guidelines and

instructions given in various forms from within the organization and from the

Government. They will include but not limited to the Statistics Act 2006, Board

guidelines, code of Conduct, Finance Manuals, HR Manuals and guidelines,

Procurement and Disposals Act, Procurement Manual, Audit Charters,

Administration and Transport Guidelines, Communication strategies among

others.

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All Directorate and departmental heads will ensure that sufficient and effective

internal controls are developed, documented and adequately shared with all

staff.

All staff will be required to read, internalize and operate in line with the internalcontrols to ensure that corruption is prevented and detected when it occurs.

An Index of all internal controls will be maintained and a separate a package

containing all the internal control documents maintained at Human Resources

office. When new staff report they will be required to and sign to signify that

they have read, understood and will adhere to the controls.

Continuous corruption risk assessment will be carried out in order to isolate

areas in which the organization is prone to loss through corruption. This willinform design of anti-corruption strategies and strengthening of internal

controls.

After a period of three years an evaluation will be carried out on effectiveness

of controls in fighting corruption and the information used to update this policy

document.

iii) Employment Conditions

Pre-employment Screening

Many employees who commit fraud against their employer are found

subsequently to have had a history of dishonesty with previous employers. A

well-developed recruitment policy underpins fraud and corruption prevention.

All staff should support the human resource recruitment strategies, which may

include any or all of the following, depending on the requirements and

responsibility of the position.

Avoiding entering into recruitment of individuals that could potentiallylead to, or be perceived as involving, conflicts of interests.

Verifying identity via birth certificate or drivers licenses or passports.

Contacting referees

Reference check with their most recent employers

A consideration of gaps in employment and the reasons for those gaps

Verifying transcripts, qualifications, publications and other certification

or documentation

Criminal background checks on employees where the position warrants it.

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Annual Leave

One of the indicators in an organization that fraud or corruption may be

occurring is a reluctance to take regular and uninterrupted annual leave. Leave

policy of KNBS takes this into account and encourages staff to take regularannual leave.

iv) Internal Audit Reviews

Internal Audit Department will pay a crucial role in prevention and detection of

corruption in KNBS. It will provide an institutionalized mechanism for

objective, independent and systematic review of internal controls and

operational systems within KNBS. It will also play an important role in

assessing the nature and extent of any fraud and corruption risk. Investigationswill be carried out by Internal Audit as requested by Management and or the

Board. Special audits will be conducted where particular areas of concern have

been identified.

v) Procedures for Reporting cases of Corruption

Cases of suspected corruption in KNBS will be reported to the Chairman

Integrity Committee. The Chairman in conjunction with the Secretary to the

committee will review all cases and advice the Director General.

The following avenues will be used for reporting corrupt practices:

a) KNBS Website - click on the stop corruption now available on the

website

b) KNBS hotline

c) Corruption Reporting boxes at Herufi House, Nyayo house, Regional

and district offices

d) Fax

e) In person to appointed Integrity Assurance Officers

vi) Whistle blowing and protection of whistle blowers

Through research on frauds and corruption, it has been shown that whenever an

act of fraud or corruption takes place staff usually have information which if

shared can lead to prevention of losses. KNBS hence encourages and invites all

genuine information from staff and outsiders which can lead to averting

corruption or which can lead to speedy investigation and conclusion of acorruption case. Staff will be protected under the Witness Protection Act 2006.

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The whistle can be blown through telephone hotline, email, website and

suggestion boxes.

All information received from whistleblowers will be treated confidentially.Sources of information cannot be disclosed unless the person reporting so

requires his/her identity to be made public.

KNBS will do what is necessary to protect persons making corruption

disclosures against any reprisals or detrimental action in relation to the

disclosures.

Rewards will be considered for those who report cases that lead to successful

apprehension of perpetrators of corruption and recovery of losses which couldotherwise have been incurred.

Staff should be objective when reporting information and at all times disengage

from malice as well as avoid settling scores. Staff perpetrating this will have a

disciplinary action taken against them. Staff giving information in good faith

but found not to be true will have no action taken against them.

vii) Investigation of corruption cases

Corruption cases will be dealt with fairly, promptly, expeditiously and within

the law.

When information on suspected fraud is received by the Integrity Committee

investigations will be carried out within one week of receiving the information.

The investigations will be carried out in line with recommendations of the

committee.

Generally an investigation should advice KNBS on the following four areas.

Whether any criminal prosecution is likely or desired and how theinvestigation should proceed such that this end is not compromised

The recovery of losses incurred by KNBS and if taking action through the

courts will be the best alternative.

If and how to dismiss employees in order to ensure all regulations are

adhered to.

What action is to be taken to prevent reoccurrence of similar corruption

case.

viii) Code of conduct and ethics

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Employees of the organization will sign a code of conduct which will guide

them on ethical values and practices required of them. This code of conduct

will be enforced through Human Resources Manual provisions. Any deviation

or behaviour which is inconsistent with the code of ethics will be investigated

and disciplinary action taken by Human Resources office.

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ix) Disciplinary measures

Acts of fraud and corruption are considered gross misconduct. Acting on

advice of Integrity Committee and following the results of an investigation,

Human Resources Department will take relevant action through KNBS

disciplinary committees.

The organization can also request an employee to step aside in order to ensure

thorough investigations are carried out.

x) Awareness creation and training

In order to ensure that employees are aware of issues of ethics and integrity,

awareness training on integrity, corruption, what causes it and means of

detecting and preventing it will be shared with all staff.

Training

Trainings for the following will be carried out with assistance from KACC

Integrity Assurance Officers

Appointed Integrity committee members.

Integrity Assurance Officers will sensitize and train all members of staff

under their IC and spearhead Corruption Prevention activities in the

regions and headquarters

Awareness

KNBS will use the media to sensitize public about corruption and

encourage reporting of corruption.

Induction of new staff will include sharing information on integrity and

corruption prevention

Posters will be provided in offices to supplement a main poster to be

placed at the entrance.

Outcomes of investigations and disciplinary action against employees

who perpetrate fraud or corruption will be shared with staff in KNBSnewsletter

Reports on investigations conducted will also be shared with staff in

KNBS newsletter.

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7. ACCEPTANCE OF GIFTS/BENEFITS

Gift Policy Statement

Public officers working in KNBS shall not use the office to improperly enrich

themselves.

KNBs employees shall not accept or request gifts or favors from

i) Suppliers and potential suppliers to KNBS

ii) Organizations that are regulated by KNBS on statistics and survey as

outlined in Statistics Act 2006

iii) Contractors and consultants

iv) Potential employees

Employees shall not use information acquired in the course of employment forpersonal benefit.

A gift accepted by an employee in official capacity shall be deemed as gifts to

KNBS and such shall be declared to Director General.

An employee may however receive gifts from friends and relatives given on a

special occasion but this should not be received in KNBS offices.

8. CONFLICT OF INTEREST

A conflict of interest is a situation in which the impartiality of an officer in

discharging his/her duties could be called into question because of the potential,

perceived or actual influence of personal considerations, whether financial or

other. The conflict in question is between official duties and obligations, on the

one hand and private interests on the other.

The KNBS recognizes that potential conflicts of interest can arise from

personal, professional and social associations of staff both inside and outside theKNBS. These associations can create conflicts of interest in contracting for

services, the procurement process, engaging consultants, and recruitment.

Dealing with conflict of interest is an integral part of establishing an ethical

culture at the KNBS.

To this end KNBS staff should avoid any financial or other interest or

undertaking that could directly or indirectly compromise the performance of

their duties. Conflicts of interest should be assessed in terms of the likelihood

that staff members possessing a particular interest could be influenced, or might

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appear to be influenced, in the performance of their duties on a particular

matter.

The KNBS will not routinely involve itself in the private lives of its staff.

However, a conflict of interest may arise where a staff member engages inactivities or advances personal interests at the expense of the KNBSs interests

or the interests of other staff members or clients.

9. IMPLEMENTATION AUTHORIY

Implementation of the strategies on corruption prevention lies with all staff.

The management must sensitize staff under them to embrace internal controls

and ethics in their day to day operations and to continuously strive to improve

the available internal controls to ensure a corruption free organization.

The Integrity Committee will review and coordinate actions in this policy

10.REVIEW

This policy will be subjected to review every three years after an organization

wide fraud risk assessment.

11.EFFECTIVE DATE

Issued this day of 2009

Signed by the Director General KNBS

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APPENDIX 1

CORRUPTION RISK AREAS AND PRACTICES IN KNBS

i) Directorate of Finance, Administration and Human Resources

a) Finance

Misappropriation of funds

False accounting documents used to account

Manipulation of accounting documents to state less revenue

Unequal distribution of resources meant to induce others to bribery

Payments for goods not received

Embezzlement of funds

Double payments for one transaction Invoices processed more than once

Forged signatures to account for money

Organizational cheques cashed by individuals

Payment for persons who never worked

False financial statements

Unauthorized advances for personal benefit

Overstated expenses

Deliberate delay in making gratuity payments in pursuit of favours

Counterfeiting original documents

b) Human Resources

Ghost employees paid for example dead persons on payroll.

Favouritism in hiring of casuals

Misuse of compassionate and sick leave

Favouritism, nepotism and tribalism in recruitment, promotions and

transfers

Favouritism, nepotism and tribalism in distribution of opportunitiesincluding training & overseas trips

Illegal gratuities

Conflict of interest in hiring

Introducing unauthorized changes on the payroll system to favor self or

staff

Sexual harassment/Asking for sexual favours

Deployment of staff

Placing employees in inappropriate scale upon hiring

Tampering with the payroll

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False/ fictitious insurance claims

c) Administration

Approving payment for vehicle repairs which are not done

Disposal of old items to self

Assets used for personal gain for example cars for personal use

False mileage returns

Falsification of work ticket entries

ii) Directorate of Information, Communication and Technology (ICT)

Misuse of internet

Use of Computer for personal gain Vandalism of computer equipments

Use of fake software licences

Manipulation of software to steal for example payroll

Sabotage of the IT system for personal gain

Purchase of software not needed for purposes of commissions

Use of dormant and default accounts to perpetrate fraud.

Issuing a computer to officers who dont need

Vandalism of computer spares

Not following the specifications

iii) Director Generals Directorate

a) Procurement

Bid rigging to favour one supplier

Favouritism in selection of service providers

Conflict of interest in procurement of goods and consultancies

Accepting substandard goods

Theft of items in stores

Overpricing of goods

Allowing processing of payment for goods not received

Allowing full payment for less goods received

Collusion with suppliers to inflate (exaggerate) prices

Extortion of money and bribes from suppliers

Excessive delays in processing of procurement

Awarding contracts to non performing suppliers

Single sourcing Receiving of bribes, kickbacks/commissions

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Selling confidential/insider information to suppliers on tender/quotation

details

Specifications designed to favor a particular provider or vague

specification

Bids submitted and accepted after the deadline Frequent use of quotation method rather than open tendering

Restricted advertising or insufficient notice

Advance release of bid documentation or relevant information to

particular supplier

Failure to respond to requests from suppliers/ contractors for

clarifications in time

Unreasonable delays in evaluation

Bid evaluation committee members not having the technical expertise

necessary to properly evaluate bids.

Change of evaluation members during evaluation process

Unnecessary vendor intermediaries and Interference due to vested

interests

Award of tenders to companies set up by staff or relatives

b) Public relations

Bribing media for favourable coverage

Favouritism Unauthorized release of sensitive information

c) Legal Department

Collusion with external lawyers to defraud the corporation in legal fees

Deficient legal documentation in loans made

d) Internal Audit

Selective audit of some periods / past transactions Bribes

Selective auditing of some areas

iv) Donor Funded projects

Substandard goods accepted and paid for

Inflated and exaggerated prices

Double funding of items already accounted for under recurrent

expenditure Under delivery of items bought

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Non competitive selection of suppliers

Favouritism in tender and procurement arrangements

v) All technical Directorates including

Unauthorised release of data

Deliberate delay in responding to data requests

Influence of statistical results

Discriminatory award of international travel and training to staff

Staff engaging in personal work using organizational resources

Absenteeism

Use of office supplies/equipment for personal gain

Bribes, bias and conflict of interest in hiring of survey enumerators.

Gender discrimination and bias

vi) Directorate of strategy and Development

Giving data without approval

Approve substandard work from research

vii) General

Misuse of office equipment

Theft of office equipment

Use of organizational information for personal purposes

Lateness to work and misuse of office hours

Bribery

Blackmail, extortion/threats

Conflict of interest

Receiving personal benefits in exchange for assisting consultants or any

other service provider to get a job in KNBS

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APPENDIX II

COMPOSITION OF KNBS INTEGRITY COMMITTES

a) Membership Integrity Committee

Director General (Chair)

Director Production statistics (Deputy Chair)

Director Macroeconomics (Member)

Director population statistics ( Member)

Director Finance Admin and Human Resources (Member)

Director ICT (Member)

Manager Legal Services (Member)

Manager Internal Audit (Secretary)

b) Membership of Regional Integrity Committee

The Regional Manager (Chair)

The Integrity Assurance Officer (Secretary)

At least two District statistics Officers (Member)

In charge of Finance in the region (Member)

c) Mandate of IC and RIC

Setting priorities in the prevention of corruption within KNBS

Developing, planning and coordinating corruption prevention strategies.

Integrating all corruption prevention initiatives

Spearheading anti-corruption campaigns including integrity training at all

levels in KNBS

Receiving and reviewing reports on corruption prevention initiatives and

recommending appropriate action

Receiving and taking action on corruption reports made by staff and otherstakeholders.

Monitoring and evaluating the impact of corruption prevention initiatives

Preparing and submitting quarterly progress reports to the Director and

board and KACC

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