Conflicts of Interest in the Public Service
6 March 2007
The Public Service Commission (PSC) is pleased to release a report on
Managing Conflicts of Interest in the Public Service. The report makes
recommendations on a framework for managing conflicts of interest in the public
service.
In terms of Section 196 of the Constitution of the Republic of South Africa
1996, the PSC is mandated to promote the values and principles governing public
administration. One of these values is to promote and maintain a high standard
of professional ethics in the public service. The work of the PSC in this area
has allowed it to develop an appreciation for the debate on conflicts of
interest and has informed the need to conduct research into the management of
conflicts of interest in the public service.
The development and implementation of a conflict of interest policy is a new
and important initiative in the South African public service. By initiating a
conflict of interest system, the PSC does not only seek to promote and
implement conflicts of interest standards but essentially, it (the PSC) seeks
to promote the perception of integrity in government by preventing conflicts of
interest before they occur. In so doing it is hoped that the citizens' trust in
public institutions would be strengthened. It also brings a new dimension in
the fight against corruption as the conflicts of interest system is premised on
the notion of keeping honest public servants honest and protecting such
officials against corrupt practices.
A conflicts of interest framework rests upon three pillars namely a clear
and comprehensive code of conduct, a financial disclosure framework and finally
a structured conflicts of interest system. A code of conduct has been
implemented in the South African public service in 1997 and the financial
disclosure framework for senior managers in 1999. The PSC believes that the
time is right for the introduction of the third pillar, namely a structured
framework for the management of conflicts of interest.
In developing a conflicts of interest framework a number of key
considerations are applicable namely:
* Should the approach be compliance based, values based or a combination of
both?
* Should provision be made for post employment compliance measures (cooling off
periods) and to what extent?
* How should remunerated work outside the public service be regulated?
* How should the acceptance of gifts be managed?
* Where should responsibility for managing conflicts of interest be
located?
The PSC in conducting its research and formulating its findings and
recommendations took these considerations into account.
In taking the findings of its research forward the PSC believes that there
should be thorough consultation with all stakeholders. As such it has hosted a
roundtable today where prominent public servants, academia as well as members
of business and civil society discussed the report and specifically the key
considerations as highlighted.
The initiative by the PSC was applauded by all participants. Mr Dennis
George, the General-Secretary of the Federation of Unions of South Africa
(FEDUSA), who attended the roundtable welcomed the report and reiterated the
importance of giving clear and concise guidelines with regard to the management
of conflicts of interest in the public service.
During the ensuing discussions the complexities of managing conflicts of
interest were unpacked and debated at length. Participants identified grey
areas in the identification of what constitutes conflicts of interest. The
general feeling was that structured frameworks should be introduced to manage
remunerated work outside the public service and the acceptance of gifts by
public servants. However, there were concerns about the practical implications
of implementing "cooling off periods" for public servants through the
introduction of post employment restrictions.
In conclusion
The South African public service is in an advanced position in that two
aspects of an effective conflicts of interest system, i.e. the code of conduct
for public officials and the financial disclosure framework for senior managers
are in place. These are known to all public officials and have become
institutionalised. Regardless, however, of the existing provisions in place
there is a need to ensure a comprehensive and structured approach to managing
conflicts of interest. The PSC trusts that through this report, the necessary
debate will be ignited to facilitate the implementation of an effective
conflicts of interest system for the public service. The PSC believes that it
is incumbent on all role players to take this process forward in the interest
of a transparent public service functioning on a sound integrity framework.
The report on managing conflicts of interest in the public service can be
accessed on the PSC website at http://www.psc.gov.za.
For more information please contact:
Humphrey Ramafoko
Tel: (012) 352 1196
Cell: 082 782 1730
Issued by: Public Service Commission
6 March 2007
