Conflict of Interest Policy - oag.gov.fj · Conflict of Interest Policy 1.0 Introduction 1.1 A conflict of interest is defined as a conflict between the duties and responsibilities

Office of the Auditor-General, Republic of Fiji 1 Conflict of Interest Policy

Conflict of Interest Policy POL 1/2017


Contents 1.0 Introduction .....................................................................................................................3

2.0 Purpose...........................................................................................................................3

3.0 Scope ..............................................................................................................................3

4.0 Policy Statement .............................................................................................................3

5.0 Policy Content .................................................................................................................4

5.1 Responsibilities……………………………………………………………………………..4

5.1.1 Management……………………………………………………………………...4

5.1.2 Audit Managers…………………………………………………………………..4

5.1.3 Staff………………………………………………………………………………..5

5.1.4 Senior Secretary………………………………………………………………....5

5.2 Prohibition and Restriction…………………………………………………………………5

5.2.1 Employment Restriction………………………………………………………....5

5.2.2 Restriction on Procurement Activities………………………………………..5-6

5.2.3 Solicitation and Acceptance of Gifts, Travel and Other Benefits……………6

5.2.4 Restriction on Release of Information…………………………………………6

5.2.5 Sponsorship……………………………………………………………………...6

6.0 Declaration of Interest Forms ..........................................................................................6

7.0 Management of Declaration of Interest ............................................................................7

8.0 Record Keeping ..............................................................................................................7

9.0 Audits ..............................................................................................................................7

10.0 Awareness ......................................................................................................................7

11.0 Dealing with Non-Compliance .........................................................................................7

12.0 Relating Laws, Decrees and Policies ..............................................................................8

13.0 Approval ..........................................................................................................................8

14.0 Revision/Change Log ......................................................................................................8

ANNEX 1- DECLARATION OF INTEREST FORM FOR BOARD, MANAGEMENT AND STAFF…….9-10

ANNEX 2- DECLARATION OF INTEREST FORM FOR ON-GOING DISCLOSURE………….11

ANNEX 3- DECLARATION OF INTEREST FORM FOR CONSULTANTS/THIRD PARTY……12


1.0 Introduction 1.1 A conflict of interest is defined as a conflict between the duties and responsibilities

of an individual holding office and his/her private interest1.

1.2 The type of Conflict that may arise in practice can be classified under one of the

following:

i) Actual– involves a direct conflict between the duties and responsibilities

of an individual holding an office and existing private interest;

ii) Perceived– appears that an individual’s private interest could improperly

influence the performance of his/her duties – whether or not this is in fact

the case; and

iii) Potential– whereby an individual has a personal interest that could conflict

with the official duties in future.

1.3 Interests that may result into a conflict can be categorized in either of the two

types as follows:

i) Pecuniary interest– also termed as ‘material personal interest’ which

involves an actual or potential financial gain or loss; and

ii) Non-pecuniary interest– this does not have a financial component but

may arise from personal or family relationships, or through involvement in

sporting, social, cultural or other interest group activities.

2.0 Purpose The purpose of this policy is to ensure good governance through effective management

of conflict of interest in the Office of the Auditor-General (OAG) and proper disclosure of

interest and management of conflict of interest.

3.0 Scope This policy applies to OAG Management and staffs and consultants and third parties

engaged by the OAG. The intention is to ensure that there is no material perceived

interest by staff and Management in carrying out their duties.

4.0 Policy Statement 4.1 OAG must ensure that all staff (including Management), should be free of any

conflict of interest that could adversely influence their judgment, objectivity,

independence or loyalty in carrying out their as defined in the Constitution, Audit

Act and relevant legislation.

4.2 All decisions made by staff and Management must be for the best interest of OAG

and its stakeholders.

4.3 OAG recognizes that staff may take part in legitimate financial, business,

charitable and other activities outside their job requirements; however any

potential conflict of interest arising from these activities must be disclosed to the

Auditor-General. In case of the Auditor-General, necessary disclosures should be

made to the Secretary, Constitutional Offices Commission.

1 Managing Conflict of Interest in the Public Sector, November 2001 – Independent Commission Against Corruption


5.0 Policy Content Management must ensure that all conflict of interest are managed transparently and

effectively in the OAG.

5.1 Responsibilities

The responsibilities of each of the key players in the management of the Conflict

of Interest are as follows:

5.1.1 Management

Management must:

i) Protect public interest, support transparency and accountability

and promote individual responsibility and personal example;

ii) Declare interest on an yearly basis and where applicable as

required by this policy;

iii) Not be present for deliberation on the subject and should not vote

on any related Management resolution;

iv) Declare how the conflict is related to the subject matter being

discussed;

v) Consider any further appropriate process to address the conflict of

interest where it is seen to have material impact on the

Management team;

vi) Ensure that all conflict of interest are recorded in the minutes and

updated in the Conflict of Interest Register by the Senior Secretary;

and

vii) Maintain consistency in dealing with conflict of interest.

5.1.2 Audit Managers

Audit Managers must:

i) Take a lead role in effective management of conflict of interest in

the OAG;

ii) Ensure that there is proper monitoring of work of staff and the risks

they are exposed to that may give rise to conflict of interest;

iii) Provide information to staff on managing conflicts of interest;

iv) Prepare management strategies for areas where conflict of interest

may arise; and

v) Ensure declaration of interest from members of committees

identified for a specific function. These committees include but not

limited to:

a. Team Leader Forums;

b. Recruitment panels;

c. Disciplinary panels;

d. Investigations committee;

e. Audit teams; and

vi) Report any actual, perceived or potential conflict of interest to

Auditor-General Manager.

vii) Ensure that all third parties or consultants engaged to provide

service to the OAG complete the Declaration of Interest Form for

consultants/third party.


5.1.3 Staff

Staff must:

i) Disclose all conflict of interest and also to declare that they have

no conflicting interest in relation to a particular official decision,

process or activity;

ii) Report any perceived or actual conflict of interest noticeable to the

Auditor-General;

iii) Maintain independence and objectivity with auditee and auditee

staffs and other stakeholders;

iv) Not to accept gifts, benefits or services offered in return for any

business transaction which may impact their independence and

decision; and

v) Declare conflict of interest to the Auditor-General as necessary.

5.1.4 Senior Secretary

The Senior Secretary must ensure that:

i) All declaration of interest forms are completed by staff and the

details are updated on the Declaration of Interest Register on an

yearly basis;

ii) Review of policies and management mechanisms on conflict of

interest is carried regularly to ensure effectiveness;

iii) Assist in investigation of complaints and grievances relating to

conflict of interest;

iv) The breaches are identified and reported to the Auditor-General;

and

v) Reports are generated and provided to the AG on an annual basis.

5.2 Prohibition and Restriction

The OAG through this policy has identified areas that give rise to potential conflict

of interest, therefore, prohibits any involvement in these areas. If any member of

the Management or staff finds him or herself in such a situation, the individual

must immediately declare his/her interest. These prohibition and restrictions apply

to the following:

5.2.1 Employment Restrictions

The conflict of interest policy provides that no Director or staff shall serve

as the supervisor or exercise any control over the employment or

employment activities of a person related by family or marriage2.

No existing employee shall sit in as a panelist during recruitment for a

position which has his/her family member as a candidate nor shall they

play a part in the shortlisting of a candidate.

5.2.2 Restrictions on Procurement Activities

No member of the Management team or staff having official responsibility

for a procurement transaction should participate in the procurement when

they are aware that:

i) He/she is also employed by the bidder or the contractor;

ii) His/her partner or any member of his/her immediate family is

employed by the bidder or contractor;

2 Family refers to any person of the same household or related through birth.


iii) Owns or controls any interest in the business of the bidder or the

contractor; or

iv) Has a pecuniary interest in the bidder or the contactor.

5.2.3 Solicitation and acceptance of Gifts, Travel and Other Benefits

No member of the Management team or staff must:

i) Solicit or accept money or other things of value, for services

performed within the scope of his/her official duties except for

compensation, expenses, or other remuneration paid directly to

him/her by the OAG;

ii) Accept any money, gift, loan, advance, favor, special discount, or

service of material value that might reasonably tend to influence

him/her in the discharge of his/her duties;

iii) Offer or accept money or anything of value for or in payment of

employment, an appointment, a promotion, or a privilege with the

OAG;

iv) Accept a business or professional opportunity for financial benefit,

if he/she knows or should know that the opportunity is offered to

influence the discharge of his/her official duties;

v) Accept a business or personal trip paid by an auditee who is either

directly or indirectly in relations with the OAG; and

vi) Act as an agent of the OAG;

vii) Solicit cash or gifts from members in lieu of assistance provided.

viii) Obtain money or request for benefits from members in the form of

a favor and in agreement to payback.

5.2.4 Restriction on Release of Information

No member of the Management or staff must use confidential information

not classified as “Public Information” for his/her personal use or for the use

of any other individual.

5.2.5 Sponsorship

No Member of the Management or Staff must accept any form of corporate

sponsorship from Corporate Organizations.

6.0 Declaration of Interest Forms 6.1 Staff and Management are required to complete the Declaration of Interest Form

at the beginning of every calendar year. A sample Declaration of Interest Form is

attached as Annexure 1.

6.2 For any new appointments during the year, the Human Resources Officer will

assist staff to fill in the Declaration of Interest Form and submit it to the Senior

Secretary.

6.3 Declaration of Interest for On-going Disclosure must be completed by staff or

members of a respective Committee which is mentioned in Annexure 2.

6.4 All consultants or third parties engaged by the OAG must complete the

Consultants/Third Party disclosure form which is attached in Annexure 3.


7.0 Management of Declaration of Interest 7.1 Management will ensure that confidential disclosures are protected from misuse.

Conflict of Interest disclosures will be treated as confidentially as possible, within

the requirements of the law.

7.2 Any Director in receipt of a disclosed conflict of interest will exercise his or her

judgment about the level of confidentiality necessary to manage the conflict or if

in doubt, he/she should seek advice from Auditor-General.

7.3 The Director will inform the person disclosing the conflict of their decision on

further disclosure, where this arises. If this is not agreed between the parties, the

matter will be referred to the Auditor-General.

7.4 The declaration of interest by Staff and Management and Board will be analyzed

by Senior Secretary and forwarded to the respective stakeholders for their

information and necessary action.

7.5 The assessment of the information will determine whether there is any conflict of

interest or not.

7.6 All material conflict of interest will be reported to the Auditor immediately after it is

identified.

7.7 The Auditor-General will endorse for further action to be taken in finalizing the

matter.

7.8 The report on conflict of interest carried out by the Senior Secretary will be

provided to the Management Committee on an annual basis.

8.0 Record Keeping All declaration of interest and disclosure of conflict of interest must be updated on the

data base and filed by the Senior Secretary.

9.0 Audits This policy will be the basis of internal audits relating to conflict of interest in the OAG.

10.0 Awareness Management will create awareness on the Conflict of Interest Policy on a six-monthly

basis to ensure its compliance. The policy will also be available in the OAG Intranet

(shared folder) for the information of staff and Management.

11.0 Dealing with Non-Compliance 11.1 Staff and Management are required to ensure that internal control mechanisms

exist to monitor and measure compliance.

11.2 Failure to comply with this policy will result in disciplinary action under the existing

disciplinary procedures and may include termination of employment depending

on the degree of the breach.


12.0 Relating Laws, Decrees and Policies This policy is governed by the following:

i) Audit Act Cap. 70 and subsequent amendments;

ii) Crimes Decree 2009; and

iii) Public Service Code of Conduct and Values.

13.0 Approval The Conflict of Interest policy becomes effective on the date approved by the Auditor-

General.

14.0 Revision/Change Log

Version 1.0

Policy endorsed by: Executive Management Committee

Policy approved by: Auditor-General

Policy effective from: 27 April 2017

Policy to be reviewed by: 27 April 2018

Manager responsible for policy: Manager Corporate Services


Annex 1 –

TO: AUDITOR-GENERAL

I………………………………………………………………………………………….(Name)

………………………………………………………………………………….(Position Held)

Phone: …………………………………Email:.………………………………………………

Citizen of: ………………………………………and also holding Permanent Residence

for.…………………………………………………(Any other country that you hold PR)

Provided below are my interest which may be either actual or perceived in relation to my duties carried out

in the OAG as a Staff/Management

Category Please give details of the interest and whether it applies to yourself or, where appropriate, a member of your immediate family or some other close personal connection

RELATIONSHIP OR ACTIVITY

FAMILY INTERESTS

Do you have any family relationship with another employee within the OAG Indicate name, type of relationship and the group.

Do you or an immediate family member have been personally subject to Audit, Investigation, or similar activities?

Do you have any Criminal or Civil action pending?

FINANCIAL INTEREST

Indicate the name of the organization in which you have a Financial Interest. (Also indicate the Details of Financial interest e.g. Directorship, consultancy, shareholding Etc.)

DECLARATION OF INTEREST FORM FOR OFFICE OF AUDITOR-

GENERAL (OAG) MANAGEMENT AND STAFF


Are you a member of any professional bodies, special interest group or mutual support organization?

Do you have an interest in properties, the holding of which might directly or indirectly, create duties or interests in conflict with your duties or interests as a Staff/Management of the OAG

PROCUREMENT INTERESTS

Do you hold any interest – material or perceived with the current or potential bidders, offerors or contractors of the OAG

List your current involvement in the major projects of the OAG and the Contractors involved.

DECLARE ANY OTHER INTERESTS PERSONAL INTERESTS Are you aware of any other interests that are not covered by the above?

Declaration

I hereby declare that all the information I have provided to recruitment for appointment purposes is correct

and I understand that the OAG reserves the right to terminate this employment agreement without any

notice if at any time it is brought to the knowledge of the OAG that I have provided false and misleading

information.

Disciplinary Action

As per the OAG Conflict of Interest Policy approved by the Auditor-General, I am aware that the OAG will

take disciplinary action against me for any conflict of interest which I have not declared and which comes

subsequently to notice after this date of declaration. I must also complete and return the form on time.

On-Going Disclosure

I will also inform the OAG immediately of any conflict of interest which may arise in future in the process

of carrying out my roles and responsibilities.

DATED THIS ……………………….…….DAY OF ……………………………………………

SIGNATURE: ………………………………. NAME: …………………………………………


Annex 2 –

*This Form is applicable to the Management Committee, Tender Committee Evaluation

Committees, Interview Panel, Disciplinary Panel and Assessment Committees

TO: AUDITOR-GENERAL

I……………………………………………………………………………..……………………(Name)

……………………………………………………………………………………………(Position Held)

hereby give you notice that I have/don’t have an interest which directly or indirectly create conflict

with my duties as a member of the

……………………………………………………………………….…..(Name of Committee/Panel) of OAG

in relation to that stated above.

I hereby declare: (Please place a tick in the box where applicable)

that I have no close relation or interest with the employee, applicant, member, supplier, business

or organization whose relationship or interest might create conflict with my duty or interests as

stated above.

that I have not received any gift or entertainment from an employee. Member, supplier or

organization which might create conflict with my duty or interests as stated above.

that where the nature character and extent of any conflict of the kind referred to above is known to

me, I have declared such nature, character and extent in the said list as provided below.

Names of employee, applicant, member, supplier, business or organization

Name and extent of interest and other relevant details

Declaration (To be filled by the person to whom disclosure is made to)

I am aware that OAG may take disciplinary action against me for any conflict of interest which I have not

declared above and which comes subsequently to notice after this date of declaration.

DATED THIS ……………………….…….DAY OF ……………………………………………

SIGNATURE: ………………………………. NAME: …………………………………………

*Copy of this form to be maintained in the respective records file. Original to be forwarded to the Senior Secretary for

record and updating the conflict of interest database.

DECLARATION OF INTEREST FORM FOR ON-GOING DISCLOSURE


Annex 3 –

*This Form is applicable to the Consultants, Public Service Officers and any other third party which

the Auditor-General appoints to carry out duties in the interest of the OAG required services.

TO: AUDITOR-GENERAL

I……………………………………………………………………………..……………………(Name)

……………………………………………………………………………………………(Position Held)

hereby give you notice that I have/don’t have an interest which directly or indirectly create conflict

with my duties as the provider of the

……………………………………………………………………….…..(Name of Committee/Panel) of OAG

in relation to that stated above.

I hereby declare: (Please place a tick in the box where applicable)

that I have no close relation or interest with the Staff, Management or any other third party engaged

by OAG whose relationship or interest might create conflict with my duty or interests as stated.

that I have not received any sponsorship gift or entertainment from any staff, Management. Or any

third party engaged by OAG which might create conflict with my duty or interests as stated above.

that where the nature character and extent of any conflict of the kind referred to above is known to

me, I have declared such nature, character and extent in the said list as provided below.

Names of Staff, Management, or any third party engaged by OAG

Name and extent of interest and other relevant details

Declaration (To be filled by the person to whom disclosure is made to)

I will be subject to legal proceedings against me by the OAG for any conflict of interest which I have not

declared above and which comes subsequently to notice after this date of declaration.

DATED THIS ……………………….…….DAY OF ……………………………………………

SIGNATURE: ………………………………. NAME: …………………………………………

*Copy of this form to be maintained in the respective records file. Original to be forwarded to the Senior Secretary for

record and updating the conflict of interest database.

DECLARATION OF INTEREST FORM FOR CONSULTANTS/THIRD PARTY

Documents

Conflict of Interest Policy - oag.gov.fj · Conflict of Interest Policy 1.0 Introduction 1.1 A conflict of interest is defined as a conflict between the duties and responsibilities