Post on 18-Dec-2015
Professionalisation in Local GovernmentAn independent perspective on service orientation
Peter Allwright
DirectorHorizon Forensics 17 February 2014
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Sometimes an official is just a productof the system.
It’s important to understand how the system creates the environment for officials to
succeed or fail.
Overcoming the system necessitates a new framework for local government that is based on
professionalism …
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Overview
State of affairs1
Primary obstacle: conduct and misconduct2
Complicating challenges3
Roadmap to service orientation4
Managing misconduct5
Questions6
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State of affairs (2011-2012)
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2
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7
8HorizonForensics
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Health check of key indicators
Unauthorisedexpenditure
Fruitless andwasteful
expenditure
Non-compliancewith legislation
Irregularexpenditure
Health Check
94% R9,78bn
R9,82bn R568mn
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Management and Leadership Internal Independent Assurance & Oversight
External Independent Assurance & Oversight
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19% 22%13%
44% 42%
41%
37% 31%41%
0% 5% 5%
Provides assurance Provides some assurance Provides limited/no assurance Not established
Effectiveness of key role players
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Stumbling blocks to improvement
Leadership Financial and performance management Governance0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
24% 19%29%
34%32%
36%
42%49%
35%
Good Concerning Intervention required
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Key root causes not addressed
Root causes Impacting performance
and introducingnew challenges
Key positionsKey positions vacant or key officialslacking appropriate competencies
ConsequencesLack of consequences for poorperformance and transgressions
InterventionSlow response by political leadershipin addressing the root causes ofpoor audit outcomes
73%
71%
76%
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Key areas requiring intervention
Financial health
Quality of Financial Statements
Supply chain management
Human resource management
Information technology controls
Quality of performance reports
Intervention Concerning
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Regression in audit outcomes
2009-2010 2010-2011 2011-20120%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
5% 5% 5%
45% 47% 43%
50% 48% 52%
Unqualified with no findings Unqualified with findingsQualified/adverse/disclaimed with findings
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Primary obstacle: conduct and misconduct
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Actions constituting inappropriate behaviour and conduct
Conflict of interest Conducting business with the
municipality Unethical conduct Malicious damage to state property Unauthorised possession of state
property Driving an official vehicle whilst under
the influence of drugs /liquor Disobeying work-related orders Intimidation Incitement Sexual harassment
Revealing confidential information Racism Falsification of records/documents Flagrant disregard for safety standards Misuse of state property for private
purposes Not dressed in a clean, decent and
tidy manner Repeated unauthorised and / or
uncommunicated absenteeism Making false statements Abuse of sick leave Sleeping on duty
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Actions constituting misconduct
Unauthorised, irregular or fruitless and wasteful expenditure Deliberate or negligent failure to carry out a duty Provide incorrect or misleading information Mismanagement Misappropriation Waste or theft
Common offences
FraudTheftCorruption
Economic extortion
BriberyKickbacks
Bid rigging
Conflicts of interest
Gross negligence
Missappropriation/Abuse
Financial mismanagement
Cronyism/Nepotism
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Causes of misconduct
(Wol
fe, D
avid
T.,&
Her
man
son,
Dan
a R.
, 200
4, D
ecem
ber)
Rationalisation
Incentive
Opportunity
Capability
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Obligations to act upon misconduct
Action that must be taken against an official who wilfully or negligently makes or permits unauthorized, irregular or fruitless and wasteful expenditure
Obligation to report financial misconduct in terms of the Municipal Finance Management Act, Municipal Systems Act and supporting Treasury Regulations
Serious reporting obligation stipulated in the Prevention and Combating of Corrupt Activities Act which states that you need to report incidents of financial misconduct (theft, fraud, extortion, forgery or uttering of a forged document) involving amounts of R100,000 or more to the South African Police Service
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Sanctioning officials committing misconduct
Sanctioning: Disciplinary proceedings Must take effective and appropriate disciplinary steps against an official who
contravenes or fails to comply with the provisions of the legislative framework and/or who undermines the financial management and internal control system
Sanctioning: Criminal proceedings An official is liable on conviction of an offence to imprisonment for a period not
exceeding five years or to an appropriate fine determined in terms of applicable legislation
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It’s playground out there
Simple reality is that it’s easy to get away with it Misconduct is often not reported or acted upon Steps aren’t taken to deal with the problem There are almost no consequences Ramifications aren’t severe enough Situation has become rampant Officials continue with unlawful behaviour and illicit schemes
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You need to have your wits about you
Officials are generally content to remain at home on precautionary suspension Suspended for several months at exorbitant cost Employers often stumble and transgress their own procedures Complicating or terminating the sanctioning of officials Exacerbated by repeated postponements, delays and mystery illnesses Active lobbying of senior officials or politicians to intervene or resolve situation Intimidation and harassment of witnesses Abandonment of cases and sanctioning So
urce
: Rea
l sta
te o
f the
nati
on, A
llwrig
ht
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We are failing to overcome the situation
Junior Ranking Officials
Guilty Final Written Warning
No Criminal Action/Not Indicated
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
44% 77% 25% 68%
No reliable statistics of the situation
Comparable analysis with other public institutions
Same issues are repeating themselves year to year
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Non-Recovery of Financial Loss
34%
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Complicating challenges
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Perception: officials are moderately corrupt!
Perceptions Surveyed from ordinary
citizens on theirinteraction withpublic officials
Corruption Perception Index (2013)Scored 42/100. Ranked 72/177.Moderately corrupt.
OECD Anti-Bribery Convention (2011)Scored “No Enforcement”.
Global Corruption Barometer (2013)62 % of people that think corruptionhas increased in the past 3 years.Scored 3.5 on the perception ofcorruption in 6 public institutions(5 = extremely corrupt)
Sour
ce: T
rans
pare
ncy
Inte
rnati
onal
, Org
anis
ation
for E
cono
mic
Co-
oper
ation
and
Dev
elop
men
t
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Reality: factors hampering your developmental mandate
Ineffective leadership and management Political intervention and interference Scarce/diminishing/insufficient resources and capacity Irregular/inappropriate appointments High turnover and vacancy rates Competing priorities Ineffective performance management systems Dysfunctional management systems and processes Mismatched skills Ineffective oversight and control Disjointed strategies and plans
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Substantial progress has been made in overcoming some of the key obstacles hampering
your developmental mandate.
Overcoming the challenges necessitates the professionalisation of local government to
successfully operate in a complex environment …
The Professionalisation Framework is based upon ethics, conduct and behaviour.
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Roadmap to service orientation
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Service orientation
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Context
Local government turnaround strategy was adopted by Cabinet in 2009 Recommended administrative transformation and professionalisation Extensive consultation and research culminated in a concept paper Widespread consultation with key stakeholders SALGA and COGTA collaborated to formulate a framework Developed a Professionalisation Framework for Local Government
Sour
ce: S
outh
Afr
ican
Loc
al G
over
nmen
t Ass
ocia
tion
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Guiding principles
To strengthen the local government system To promote a high level of professional competence, experience, behaviour and
ethics on the part of local government officials, both appointed and elected, especially those at the senior level
To promote uniformity, standardisation and harmony To align existing constitutional, legislative and regulatory mandates and
requirements, and in particular to the broader initiatives and provisions for local government capacity building contained in the Revised National Capacity Building Framework for Local Government (2012 to 2016)
To promote equity To contribute to improved individual and institutional performance
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ce: S
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Loc
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nmen
t Ass
ocia
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Roadmap to service orientation
Constitutional Ideals
Batho Pele Principles
Service Charter Commitment
Professionalism
Values
Morals
Right and Wrong
Code of Conduct
Ethical Principalsand Values Characteristics
and Traits
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Ethical and moral workplace
EthicsManagement
Leadership commitment
Governance structures
Ethical risk assessment
Ethics strategy
Code and policies
Monitor and report
Institutionalisation
Independent assessment & external reporting
1
2
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s In
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Conscious programmes Awareness programmes
Values
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Managing misconduct
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Foundational principles
Commitment of leadership to combat misconduct Strict enforcement of the legislative framework Strengthening risk management practices and procedures Appoint independent experts to investigate serious misconduct Improve the investigative capacity of local government Consistent management of disciplinary hearings and sanctions Institute disciplinary, criminal and civil proceedings against guilty officials Blacklist guilty officials within the public service Active recovery of unauthorised, irregular, fruitless or wasteful expenditure Improve monitoring and reporting mechanisms
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Managing and overcoming misconduct
Tone at the top
Senior management must send out a strong message that
misconduct will not be tolerated
Training
There should be regular and consistent training to maintain
standards/expectations
Highlight blowing the whistle
Review misconduct risks
Conduct regular reviews of misconduct risks to ensure that
the organisation keeps abreast of emerging trends/risks
Clear policies / procedures
Policies and procedures should be formulated and written in
clear and concise language with possible sanctions for violations
Blowing the whistle
Promote and encourage blowing the whistle because it’s the key
source of misconduct
Strong enforcement
Maintain strong enforcement of transgressions to maintain a
consistent intolerance of misconduct
Misconduct risk champion
Nominate a dedicated misconduct risk champion so that
there is a dedicated role and responsibility
Anti-misconduct controls
Implement robust anti-misconduct controls and test
regularly to maintain high standards
Investigate isolated events
Investigate isolated events because employees usually start
small and grow their acts of misconduct
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Thank you for your attention!
Any Questions?
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Framework components
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Constitutional ideals
Promoting and maintaining high standards of professional ethics Providing service impartially, fairly, equitably and without bias Utilising resources efficiently and effectively Responding to people's needs Citizens are encouraged to participate in policy-making Rendering an accountable, transparent, and development-oriented public
administration
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ce: S
outh
Afr
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Con
stitu
tion
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Batho Pele Principles
Consultation
Increasing Access
Providing Information
Setting Service Standards
Ensuring Courtesy
Openness and Transparency
Redress Value for Money
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ce: S
outh
Afr
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Pol
itica
l Ini
tiativ
e
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Commitment to the Service Charter
Improve service delivery programmes Improve service delivery improvement for the benefit of all citizens Clarify the rights and obligations of each of the parties Acknowledge and reward excellent performance Professionalise and encourage excellence in the public service Enhance performance Facilitate a process to define service standards in various sectors Strengthen processes and initiatives that prevent and combat corruption Facilitate social dialogue among the partners Treat citizens with dignity and expectations Meeting their demands equitably and fairly Ensure an effective, efficient and responsive public service
Sour
ce: D
epar
tmen
t of P
ublic
Ser
vice
and
Adm
inist
ratio
n
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Ethical principles and values
Selflessness
Impartiality and Fairness
Confidentiality
Stewardship
Objectivity
Accountability and Openness
Integrity
Honesty
Political Neutrality
Respect for Others Constitutional and Legal Duty Leadership
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Professionalism versus unprofessionalism
An expectation of a specific style of behaviour and conduct in the workplace
Not conforming to the standards of a profession; contrary to the accepted code of conduct of a profession
Professionalism Unprofessionalism
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Values
The beliefs or ideals held and shared about what is good or bad and desirable or undesirable. Values have a major influence on a person’s behaviour and attitude and serve as a guideline for all situations.
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Morals
Relating to, dealing with, or capable of making the distinction between right or wrong conduct. – Principles– Standards– Beliefs with respect to right or wrong behaviour
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Right and Wrong
Right In accordance with fact, reason,
justice, law, and morality
Wrong Contrary to fact or reason, unlawful,
crooked, twisted, immoral, improper
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Code of conduct
A set of conventional principles and expectations that are considered binding on any person who is a member of a collective group.
The code of conduct will be based on the Municipal Systems Act.
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Personal characteristics and traits
Honest Skilled Courteous Reliable Considerate Dependable Cooperative Committed