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Guidelines for identifying and managing conflicts of interest need to be considered within an overall legislative and policy framework encompassing the principles of accountability, transparency and integrity required of the public sector. Conflicts of interest need to be considered within an ethical framework that requires public officers to act with integrity, impartiality, in good faith, and in the best interests of the organisation they serve.
In some cases, organisations are required by law to manage conflicts of interest in a particular way. The ICG guidelines and scenarios on areas of organisational risk however are designed to be applicable across the public sector, irrespective of specific legislative provisions.
ICG has provided information on the most relevant Acts, regulations and Bills, as well as codes of ethics and conduct.
Acts, regulations and Bills
The key Western Australian legislation applicable to effective management of conflicts of interest includes:
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Public Sector Management Act 1994
The Public Sector Management Act 1994 (the Act) provides for the administration of the Western Australian public sector and the management of the public service. Under s.9 of the Act, all public sector bodies and employees must comply with public sector standards and the Western Australian Public Sector Code of Ethics and any applicable code of conduct.
Financial Administration and Audit Act 1985
The Financial Administration and Audit Act 1985 (the FAAA) provides for the administration and audit of the State's finances and for certain statutory authorities for the purpose of the FAAA. The FAAA also provides for annual reporting by departments and statutory authorities; authorisation and regulation of the investment of public moneys; and the office and functions of the Auditor General.
Auditor General Bill 2005
The Government proposes to introduce into Parliament a Bill to provide for the appointment of an Auditor General, to set out the Auditor General’s functions and for related purposes. The draft Auditor General Bill 2005 has been prepared for public comment.
Financial Management Bill 2005
The Government proposes to introduce into Parliament a Bill to provide for the management, administration and report of the public finances of the State, and for related purposes. A draft Financial Management Bill 2005 has been prepared for public comment.
State Supply Commission Act 1991
The State Supply Commission (Commission) is a statutory body established under the State Supply Commission Act 1991 to co-ordinate and oversee the purchase and disposal of goods and services across the Western Australian Government. The Commission has the broad policy role for Government procurement. Its role encompasses that of policy maker, regulator, and umpire in public sector purchasing, and involves promoting best practice through policies and guidelines.
The Commission’s policy on Integrity, Ethics and Probity is designed to ensure that all officers and employees of public authorities observe the highest standards of integrity, ethics and probity in undertaking procurement activity, and act in an honest and professional manner that does not compromise the standing of Government. The policy confirms the principle that conflicts of interest are not necessarily unethical unless their occurrence is hidden or not managed.
The commission has a number of other relevant policies covering conflict of interest risk areas, including Sponsorship in Government Guidelines: A Handbook to Assist Public Authorities.
Local Government Act 1995 and associated regulations
Local governments in Western Australia are bound by the Local Government Act 1995 (the Act) and various regulations. Sections 5.59-5.90 of the Act deal with disclosure of financial interests by elected members and employees. The Financial Interests Handbook: for Local Governments in Western Australia
prepared by the Department of Local Government and Regional Development provides guidance on the legislation’s provisions, including examples.
As well as disclosure of financial interests, local government elected members and employees are required to disclose their non-financial interests when making decisions. The Local Government (Administration) Regulations 1996 require local governments to include in their codes of conduct, certain provisions in relation to the disclosure of interests that are perceived to affect the impartiality of elected members or employees.
The Department of Local Government and Regional Development has produced guidelines on Disclosure of interests Affecting Impartiality to assist local governments with the development of policies and procedures to address matters arising out of the implementation of these impartiality provisions.
Local Government (Official Conduct) Amendment Bill 2005
The purpose of the Bill is to amend the Local Government Act 1995 to provide a disciplinary framework for individual misconduct by local government council members. This may occur where council members do not comply with a code of conduct or they contravene particular laws. The Bill contains provisions enabling regulations to be made prescribing uniform rules of conduct for council members.
Members of Parliament (Financial Interests) Act 1992
The purpose of the Members of Parliament (Financial Interests) Act 1992 is to require disclosure of certain financial interests by Members of Parliament, to establish a register of interests so disclosed, and for connected purposes.
Corruption and Crime Commission Act 2003
The Corruption and Crime Commission of Western Australia (CCC), operating under the Corruption and Crime Commission Act 2003 (the Act), has very broad functions. Its jurisdiction covers more than 115,000 Western Australian public officers in some 550 agencies encompassing government departments and boards, universities and local governments.
The general purpose of the CCC is to oversight the reporting and investigation of misconduct in the Western Australian public sector, to improve continuously the integrity of the public sector, and to reduce the incidence of misconduct and organised crime. It is a requirement under s.28 of the Act that all public sector agencies notify the CCC of suspected misconduct within their agencies. Information on responsibility to notify of misconduct is available in Notification Guidelines for Principal Officers of Public Authorities.
The CCC is accountable to the people of Western Australia through the Parliamentary Joint Standing Committee. The Parliamentary Inspector deals with complaints against the CCC and its officers.
Parliamentary Commissioner Act 1971
The Parliamentary Commissioner Act 1971 establishes the role and functions of the State Ombudsman. The Ombudsman is an independent and impartial person who investigates complaints relating to the administration of Western Australian government departments, statutory authorities and local governments.
The Ombudsman reports directly to the Parliament of Western Australia, not the government of the day.
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Codes of ethics and conduct
The ICG recognises and acknowledges that many, if not all, Western Australian public authorities have developed codes of ethics and conduct, some of which include sections on conflicts of interest. The ICG guidelines and scenarios on areas of organisational risk are designed to complement rather than replace these.
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Western Australian Public Sector Code of Ethics
The Western Australian Public Sector Code of Ethics (Code of Ethics) specifies the minimum standards of conduct and integrity required of public sector bodies and employees. Responsibility for compliance with the Code of Ethics rests with the Chief Executive Officer. The Commissioner for Public Sector Standards establishes and monitors compliance with the Code of Ethics.
All public sector agencies covered by the Public Sector Management Act 1994 (the Act) also have their own code of conduct. Under the Act, agency codes of conduct are to be consistent with the Code of Ethics.
Boards and committees created for a public purpose under Western Australian legislation are bound to observe and comply with the Code of Ethics. The Office of the Public Sector Standards Commissioner has developed a Template Code of Conduct for Government Boards and Committees.
The Code of Ethics does not apply to Members of Parliament or their electorate offices, elected local government representatives or employees, Parliamentary employees, police officers, universities, or the Governor's establishment. These officers are generally guided by specific codes and/or regulations.
Government of Western Australia Ministerial Code of Conduct
The Ministerial Code of Conduct (the Code) provides direction to Ministers about the conduct the public expects of them and to which they should aspire. The Code states:
Public duties must be carried out objectively and without consideration of personal or financial gain. Circumstances which could give rise to a serious conflict of interest are not necessarily restricted to those where an immediate advantage will be gained. They may instead take the form of a promise of future benefit, such as a promise of post-parliamentary employment. Any conflict between a Minister's private interest and their public duty which arises must be resolved promptly in favour of public interest.
There are sections of the Code specific to 'conflicts of interest'; 'declaration of pecuniary and other interests'; 'divestment of conflicting positions', and 'declaration of conflict of interest'.
Code of Conduct (Western Australia Police)
The Western Australia Police's (WAPOL) Code of Conduct 'encourages ethical awareness and personal commitment to appropriate behaviour and underpins a philosophy of self-discipline, transparency and accountability.' It complements the Western Australian Public Sector Code of Ethics.
WAPOL
's Code of Conduct stipulates that 'private interests cannot conflict, or be perceived to conflict with public duty'.and that 'apparent or actual conflict of interest must be reported immediately to your supervisor' .
In addition to the Code of Conduct, WAPOL
has a detailed Conflict of Interest Policy with a stated purpose to:
- Provide guidance to Service personnel in relation to some of their obligations as public officers.
- Establish protocols for the resolution of conflicts of interest.
- Assist managers maintain the integrity of their respective areas of accountability.
Codes of Ethics/Conduct (Universities)
Each of the Western Australian universities has its own code of ethics and/or conduct:
Curtin University of Technology has developed a set of Guiding Ethical Principles as well as a Conflict of Interest policy. The policy gives examples of conflict of interest relating to:
- Financial interests
- Personal and family relationships between staff members
- Personal and family relationships between staff members and students
- Acceptance of gifts or benefits
- Use of official facilities and equipment
- Use of official information
- Personal beliefs
- Public comment
- Multiple roles
- Outside employment
- Political participation
Edith Cowan University's Code of Conduct has a section on 'conflict of interest', as well as sections on 'financial interests'; 'acceptance of commissions, gifts or benefits'; 'personal relationships between family members'; 'personal and family relationships between staff members and students', and 'outside employment'.
Murdoch University's Codes of Ethics and Conduct provides guidance on the standards of conduct and integrity expected of staff. There is a small section on 'conflict of interest', as well sections on 'fiduciary responsibilities of senators'; 'acceptance of gifts or benefits'; 'private and consultative practice', and 'close personal relationships'.
The University of Notre Dame Australia operates under a number of codes of conduct and regulations.
The University of Western Australia operates under a Code of Ethics and Code of Conduct that defines guidelines on specific actions or procedures applicable to a range of specific ethical issues. A section on 'conflicts of interest' states that:
staff members should take suitable measures to avoid, or appropriately deal with, any situation in which they may have, or be seen to have, a conflict of interest that could, directly or indirectly, compromise the performance of their duties.
Examples of relationships that may cause conflicts of interest are stated as 'family relationships; emotional relationships; and financial relationships'. Guidelines have been developed on each aspect. The code also deals with 'outside employment and private practice', and 'acceptance of gifts or benefits', with reference to relevant University policies.
Codes of Conduct (Local Governments)
The Local Government Act 1995 and associated regulations currently provide autonomy for local governments to develop and administer their codes of conduct. The Local Government (Official Conduct) Amendment Bill 2005 contains provisions for regulations to be made prescribing the uniform rules of conduct for council members. The Bill provides a mechanism for action against individual council members who do not comply with a code of conduct, or where they contravene particular laws.
Some local governments codes of conduct can be viewed on their websites.
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