CONFLICTS OF INTEREST IN THE PUBLIC SECTOR

1. KWAZULU-NATAL OFFICE OF THE PREMIER CONFLICTS OF INTEREST IN THE PUBLIC SECTOR 6 October 2009 Ms Louise Janse van Rensburg, Manager: Human Resource Policy & Practices, HRM 1

2. CONTENTS • Definition • Examples of Conflicts of Interest • Conflicts of Interest Draft Framework • Professional Ethics • Current Situation • Draft Framework Proposals • Conclusion 2 2

3. Definition A conflict of interest is a conflict between the public duties and private interests of a public official in which the public official has private-capacity interests which could improperly influence the performance of his/her official duties and responsibilities.

4. Types of Conflict of Interest There are at least three types of conflict of interest, namely: • Apparent or perceived conflict of interest • Potential conflict of interest • Actual conflict of interest

5. Examples of Conflicts of Interest • Business interests, eg partnerships, shareholdings, board membership, investments in private entities. • Post public-employment with a private entity that has done business with his/her department. • Receiving of gifts or hospitality from a private entity doing business with dept.

6. Examples continued • Public servant represents the department in a decision-making process in which the business entity under discussion is associated with him/her • Former public servant uses information obtained from past positions to benefit a private entity to the disadvantage of the employer or potential competitors

7. Conflict of Interest Draft Framework • Establishes measures and standards for managing conflicts of interest in the p s. • Proposes measures and mechanisms for managing conflicts of interest in the public service. • Provides guidelines on the management of potential conflicts vis-à-vis financial interests, gifts, hospitality & other benefits, post-public employment, remunerative work outside the public service. 7 7

8. Draft Framework cont. • Constitutional values – human dignity, equality, advancement of human rights & freedoms, supreme law. • Constitutional principles – high standard of professional ethics, impartiality, accountability, transparency. 8

9. Professional Ethics • Public servants serve the public • Must not misuse/abuse public office for private gain • Public good must be placed above private gain • Public duties must be carried out without prejudice to any individual or group

10. Current Situation • 1997 – Code of Conduct for the public service • 2001 – Declaration of financial interests by senior management services • 2002 – Public Service Anti-Corruption Strategy • Legislation supporting the ethics infrastructure – PSA, PS Regulations, PFMA, PAIA, PAJA, PDA, POCA 10

11. Current Situation cont. International instruments • SADC Protocol against Corruption • African Union Convention on Preventing & Combating Corruption • UN Convention against Corruption • Organisation for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions 11

12. Current Situation cont. • Batho Pele White Paper for Transforming Public Service Delivery • Remunerative Work outside the Public Service • Public Service Commission Report • Draft Framework on Conflicts of Interest 12 12

13. Draft Framework Proposals • Declaration of financial interests & assets To be extended to all middle managers, responsibility managers, supply chain management employees. Details of spouses assets & interests in certain categories of employees.

14. Draft Proposals cont. • Gifts, hospitality and other benefits Prohibition on solicitation or acceptance of gifts, hospitality or private benefits of any value from private entities contracted to the department. This excludes tokens offered or accepted within the normal standards of courtesy or protocol by any entity.

15. Draft Proposals cont. • Post-Public Service Employment Restrictions on post-employment activities of former public servants. Prohibition on use of insider information. Proposed 12 month cooling-off period.

16. Draft Proposals cont. • Restrictions on Remunerative Work outside the Public Service Written permission required. Public servants will be prohibited from doing any work or serving on any board of any private entity where this may lead to a conflict of interest.

17. Draft Proposals cont. • Ethics Officers & Ethics Committees Ethics officers appointed to ensure organisational integrity and to manage the conflicts of interest policy in a department. Ethics committee to oversee the implementation of ethics and anti-corruption initiatives.

18. Draft Proposals cont. • Enforcement Contravention of any provisions of the framework constitutes a misconduct. Criminal sanctions may be applicable for contraventions of any law governing conflicts of interest.

19. Conclusion A Conflicts of Interest Framework will promote ethical conduct by providing firm guidelines for departments to ensure there are no conflicts of interest in the conduct of employees. Ethical conduct is required if service delivery is to be improved.

20. KWAZULU-NATAL OFFICE OF THE PREMIER Thank you. 20