P ursuing R eforms thru I ntegrity DE velopment

1. thru Integrity Development Review Pursuing Reforms thru Integrity DEvelopment DR. DAVID J. LOZADA, JR Assistant Secretary of Health A project of the Office of the Ombudsman in collaboration with the Department of Budget and Management, Civil Service Commission, Commission on Audit, and the Development Academy of the Philippines

2. AGENCIES COVERED (1st cycle) • Office of the Ombudsman (Central Office including OSP) • Department of Education (Central Office, NCR, Region I, Region VIII) • Civil Service Commission (self-administered survey) • Department of Budget and Management (CVA Project of DAP-WB))

3. AGENCIES COVERED (2nd cycle) • Department of Public Works and Highways • Philippine National Police • Bureau of Internal Revenue • Bureau of Customs • Land Transportation Office

4. “Corruption is not primarily a problem of bad people, but of bad systems.” -- Robert Klitgaard

5. Fighting Corruption in Several Fronts • Prevention • Prosecution • Promotion of corruption intolerance • Partnerships “An ounce of prevention is worth a pound of cure.”

6. Integrity development review is a preventive measure against corruption. It entails a systematic assessment of the agency’s corruption resistance mechanisms and its vulnerabilities to corruption. WHAT IS IDR

7. OBJECTIVE OF IDR • Assist the management and leadership of the agency to: • Assess the level of integrity development within the agency • Identify the agency’s vulnerability to corruption • Assess the adequacy of agency’s controls to detect and prevent corruption • Prepare a more focused Corruption Prevention and Integrity Development Plan • Establish benchmarks by which performance and results of anti-corruption programs can be monitored

8. Concept of Integrity Review CVA of US-OMB/DAP CRR of ICAC NSW/HK Corruption Vulnerability Assessment Corruption Resistance Review Integrity Development Review

9. Integrity Development Review Framework Individual Performance Management Human Resource Development • Leadership • Code of Ethics • Gifts and • Benefits • Policy Organizational Financial Management Procurement Management Whistleblowing, Internal Reporting & Investigation Corruption Risk Management Environment Managing Interface with External Environment

10. Assessment areas Leadership Code of conduct Gifts and benefits Recruitment & promotion Performance management Procurement Financial management Integrity Development Assessment Internal reporting Corruption risk management Managing interface with stakeholders

11. IDA Levels of Achievement 5 –Evaluation of effectiveness 4 –Integration 3 –Enforcement 2 –Adaptation/deployment 1 –Minimum standards 0 –Anecdotal, no systematic approach

12. 1. Leadership • The role of senior leaders in promoting integrity in the organization is very important. Senior leaders and officials are key in setting values and directions, promoting, practicing, and rewarding performance, and using these to proactively address ethical and accountability requirements. Corruption prevention and integrity is primary responsibility of senior leaders and managers.

13. 1. Leadership • Objective: To assess how senior leaders lead the organization towards integrity building • Outcome: Increased management accountability for corruption prevention

14. Leadership Rating Levels of achievement • Senior leadership organization reviewed • Practices/performance of senior leaders evaluated • Senior leaders have specific responsibilities for prevention and detection of corruption • Senior leaders take proactive steps to discourage staff from engaging in corrupt practices 1 Senior leaders set values, directions and performance expectations; articulate importance of ethical conduct

15. 2. Code of Conduct A Code of Conduct sets out the standards of behavior expected of staff. It defines the desirable behavior for all types of work in the agency. An effective code relies not only on appropriate form and content but also on its continued promotion and enforcement.

16. 2. Code of Conduct • Objective: To determine the existence, employment, and enforcement of a Code of Conduct that will address potential unethical behavior & conflicts of interest in an agency’s operations and interaction with stakeholders. • Outcome: Strengthened commitment to public service and primacy of public interest

17. Code of Conduct Rating Levels of achievement • Code regularly reviewed for effectiveness • Agency’s code of conduct integrated in key agency systems/mission critical functions • There are sanctions/rewards for non-compliance/compliance • Code is adopted to agency’s operations 1 Has a general code of conduct based on RA 6713

18. 3. Gifts and Benefits Policy • Gifts and benefits are offered innocently or as bribes. The acceptance of gifts or benefits can create a sense of obligation that may compromise the receiver’s honesty and impartiality. • Hence, agencies must set policies to deal with gift giving.

19. 3. Gifts and Benefits Policy • Objective: To ensure accountability and enhance transparency of officials/staff by properly reporting the offer and receipt of gifts and benefits • Outcome: Increase transparency and accountability

20. Gifts and Benefits Rating Levels of achievement • Gifts and benefits and reported bribes regularly reviewed • Gifts received by agency or staff documented in register • Policies on acceptance of gifts consistently enforced with managers having clear tasks • Policies on acceptance of gifts made known to clients, suppliers 1 Agency has a written policy on acceptance of gifts and offer of bribes

21. 4. Human Resource Management • The recruitment process provides the agency an opportunity to screen incoming employees for likelihood of corrupt behavior and conflicts of interest. • The promotion system provides opportunity to sanction corrupt behavior and reward people who comply with agency’s integrity standards.

22. 4. Human Resource Management • Objective: To prevent entry of corrupt and unqualified applicants and ensure promotion based on merit and adherence to standards • Outcome: Increased proportion of new recruits and promotions based on merit.

23. Human Resource Management Rating Levels of achievement • Outcomes of personnel recruitment, selection and promotion regularly reviewed to enhance integrity of the process • PSB decisions are randomly checked; deviations documented • Meetings and decisions of PSB planned and documented • Guidelines communicated to all employees 1 Agency’s recruitment and selection process follows CSC guidelines

24. 5. Performance Management • Performance management aims to align agency and individual interests and ensures that agency goals are met. Performance monitoring can increase the likelihood of spotting unproductive activities of employees and providing incentives for ethical behavior. Efficient and effective units or agencies do not only save time and resources, but are more resistant to corruption.

25. 5. Performance Management • Objective: To increase monitoring and encourage employees to take personal responsibility for maintaining high standards of behavior and work targets • Outcome: More efficient service delivery; reduced corruption incidence

26. Performance Management Rating Levels of achievement • Performance management system regularly reviewed for effectiveness 4 Staff performance rating are consistent with the attainment of unit’s targets and level of performance 3Organizational and individual performance regularly accounted for • Agency has a performance management and evaluation system in place 1 Performance targets and work plans at the unit and individual level are based on agency goals

27. 6. Procurement Management • The procurement system covers the process of planning, bidding, selection, delivery and inspection of goods and services. • A poorly managed procurement system opens risks of corruption and wastage of resources due to poor quality of goods and overpricing.

28. 6. Procurement Management • Objective: To strengthen the procurement process and manage agency’s resources better • Outcome: Transparent and clean procurement process; enhanced value for money of procured items

29. Procurement Management Rating Levels of achievement • BAC decisions and other procurement outcomes are regularly audited. 4 Sanctions and penalties are applied for non-performing suppliers • BAC meetings and decisions documented; performance of suppliers and contractors against obligations monitored 2 Guidelines are disseminated to every unit and relevant personnel are trained 1Agency’s procurement system has adopted R.A. 9184

30. 7. Financial Management • Financial transactions are generally vulnerable to corruption. Issuing and receiving payments represent significant temptation for opportunistic and potentially corrupt individuals. Profligate use of financial resources can happen due to loose controls, arbitrary setting of budgets and misallocation.

31. 7. Financial Management • Objective: To determine the existence and effectiveness of controls to prevent fraud and misuse of agency’s finances • Outcome: Enhanced financial accountability

32. Financial Management Rating Levels of achievement • Financial controls are reviewed for effectiveness in preventing fraud. 4Financial reports made public • Budgeting and accounting guidelines strictly enforced 2Guidelines on financial management disseminated to every unit; training for relevant personnel conducted. 1Agency has adopted the New Government Accounting System.

33. 8. Whistleblowing, Internal Reporting and Investigation • Whistleblowing should be encouraged in every agency because it is the fastest way of detecting corruption yet the most difficult to do. • An effective protected disclosure and a good witness protection should be established within the agencies.

34. 8. Whistleblowing, Internal Reporting and Investigation • Objective: To foster a conducive environment for internal reporting & investigation of suspected corruption in the agency. • Outcome: High motivation of employees to report corrupt behavior that they observe.

35. Whistleblowing, Internal Reporting and Investigation Rating Levels of achievement • System for internal reporting and investigation is reviewed for effectiveness in preventing corruption. 4Sanctions imposed one erring personnel • Investigations are conducted and complaints are resolved completely • Employees are oriented on the procedures; relevant personnel receive training 1Agency has a written policy on internal reporting and investigation

36. 9. Corruption Risk Management • Corruption is often deeply embedded in an agency’s systems & procedures, making it difficult to fully define the dynamics contributing to corruption. Thus, strategy for curbing corruption should be well defined and targeted. • Risk assessment is an important management tool in detecting and preventing corruption.

37. 9. Corruption Risk Management • Objective: To directly address and eliminate corruption risks • Outcome: Reduced corruption cases within the agency

38. Corruption Risk Management Rating Levels of achievement • Corruption risk management plan is regularly reviewed to enhance integrity measures. • Corruption prevention plan supported in the corporate/management plans 3 Agency has a plan/strategy to address identified risks 2 Agency proactively undertakes risk assessment 1 Agency recognizes the role of internal audit in preventing/detecting corruption

39. 10. Interface with External Environment • Several corruption incidences with an agency involves an external party. • Agencies should effectively manage their external environment to contain corruption.

40. 10. Interface with External Environment • Objective: To establish effective parameters for external relations and foster good client relations. • Outcome: Improved public perception on performance of the agency

41. Interface with External Environment Rating Levels of achievement • System of managing interface with external environment reviewed 4 Complaints analyzed to identify possible incidence of corruption • Agency has mechanism to check published rules, procedures, standards are followed 2 Agency proactively disseminates information to the public 1 Agency has a policy on disclosure of information

42. Survey of Employees

43. Leadership Code of conduct Gifts and benefits Recruitment & promotion Performance management Procurement Financial management Internal reporting & investigation Survey of Employees: Agenda Corruption risk management Managing interface with stakeholders Organizational culture Types of corruption Perceptions/ Attitudes on corruption incidence

44. Net Satisfaction Rating from Likert Scale = % Strongly Agree + % Somewhat Agree – % Somewhat Disagree - % Strongly Disagree

45. Corruption Vulnerability Assessment • Examine high risk functions, programs and activities • Assess probability that corruption could occur • Assess adequacy of existing controls and if controls are operating • Identify measures to address residual risks

46. Project Components • Training of Assessors • Guided Assessment of 5 agencies • Presentation of Findings to the Advisory Group • Development of Agency-Specific Corruption Prevention Plan

47. Composition of Assessment Teams Note: CSO assessors may be included

48. General Set of Activities Step 1. Program Communication and Assessor Preparation Step 2. Guided IDA Self-Assessment Step 3. Survey of Employees Step 4. Indicators Research Step 5. Corruption Vulnerability Assessment Step 6. Analysis and Validation Project Duration: 8 months Step 7. Management Presentation Step 8. Development of Corruption Prevention Plan

49. INTEGRITY DEVELOPMENT ASSESMENT DAP - CfG

50. Maraming Salamat! Notes: You may use this presentation. Just acknowledge source. Some pictures were downloaded from the internet. For additional information, contact DAP at cfg@dap.edu.ph