Anti corruption policy KNBS sept 2009.doc
Transcript of Anti corruption policy KNBS sept 2009.doc
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KENYA NATIONAL BUREAU
OF STATISTICS
ANTI-CORRUPTION POLICY
SEPTEMBER 2009
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TABLE OF CONTENTS
Pg No.
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FOREWARD
By the year 2030 it is envisaged that Kenya will have transparent,
accountable, ethical and results-oriented government institutions. KNBS
plays a key role in ensuring that Vision 2030 becomes a reality and has
therefore to lead as institution of best practice in corporate governance. As a
young institution KNBS is faced with various challenges. We as a Board
acknowledge that we are operating in an environment where risk of
corruption is real. It calls upon us to put in place strategies to prevent
corruption from slowing down the march towards achievement of our
objectives.
This policy hence guides the organization in its fight against corruption by
emphasizing ethical and value based behaviour which will ensure a
conducive environment for achievement of set priorities.
The Board will sign a code of conduct signifying their readiness to work in
an ethical way to move the organization forward. The Staff of KNBS are
expected to sign similar code of conduct as provided for in this policy.
I urge all staff to read and internalize the policy and Management to ensure
that all efforts are made to implement each aspect of the policy. This will
ensure that operations are consistent with best practices and uplifts efficient
and effective management of Government resources.
Thank you.
PETER N. MWITA
CHAIRMAN OF BOARD OF DIRECTORS
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PREFACE
KNBS became a state corporation in line with Statistics Act 2006 which was
officially operationalised through a legal notice in the year 2007. The
Bureau has been in operation for two financial years.
As a young institution which is semi-autonomous to central Government
operations, the Bureau must put in place and implement many systems. The
Bureau has hence put in place mechanisms to ensure that it operates
efficiently and effectively in order to account properly for resources
entrusted to it by the Government and Development partners.
Besides the Bureau has to comply with requirements of the Public Sector
Integrity Programme and ensure that staffs observe the public officers ethicsAct and prevents economic crimes from being committed.
Anti-corruption policy was developed to ensure transparency and integrity
and by its operationlisation the Bureau is able to meet requirements in the
enterprise wide risk management framework in the public service.
This policy document outlines KNBS policy on corruption and outlines
strategies to prevent corruption. It also provides for means to report and deal
with any incidence of real and suspected corruption.
The policy was developed by the Integrity Committee of the Bureau and
applies to all staff as well as the Board.
It is my sincere believe that accurate and timely implementation of this
policy will complement the efforts made in all directorates to ensure we
achieve the vision and mission of the Bureau.
A.K.M KILELE
DIRECTOR GENERAL
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1. POLICY STATEMENT
In order to ensure a transparent, accountable, ethical and results orientedinstitution KNBS will observe zero tolerance to corruption through developing,
implementing and institutionalizing necessary policies, legal and institutional
frameworks.
Management and staff have a primary responsibility of putting in place
operating, reporting, investigation and deterrent mechanisms aimed at
preventing corruption and punishing perpetrators and beneficiaries of corruption
in the institution.
2. LEGISLATIVE AND ADMINISTRATIVE REQUIREMENTS
In order to ensure a corruption free institution KNBS will work within the
provisions of the Acts of parliament and other instruments designed to prevent
corruption and ensure service delivery. These will include but not limited to
The Anti-Corruption and Economic Crimes Act, 2003
Public Officer Ethics Act, 2003
Public Procurement and Disposal Act 2005
Public Procurement & Disposals Regulations, 2006
Government Financial Management Act, 2004
Performance Contract
Witness Protection Act 2006
Statistics Act 2006
KNBS finance and other operational manuals
Code of Ethics and Conduct
State Corporations Act
Public Audit Act Official Secrets Act Cap 187
3. SCOPE/APPLICABILITY
This policy is applicable to KNBS Board, management, staff and
partners/stakeholders.
4. DEFINITION OF CORRUPTION
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Corruption in KNBS will entail misuse of office for personal gain or benefit by
the Board, Management, employees and stakeholders, act of commission and
omission in ones employment resulting in loss or disadvantage to KNBS and
private gain to the above mentioned.
It is also any conduct of any person (whether or not a public official) that
adversely affects or that could adversely affect, either directly or indirectly, the
exercise of official functions by any public official, any group or body of public
officials, foreign officials or any public authority and which could involve any
of the following matters.
Bribery
Secret Inducements
Deceiving a principal
Conflict of interest
Improper benefits for appointment
Bid rigging
Failure to protect public property
Abuse of office
Dealing with suspect property
Nepotism/Favoritism/Tribalism
Grabbing of public property
Breach of trust
Misappropriation/embezzlement of corporate funds
Blackmail
Extortion
Forgery
Tax evasion
Dealing with suspect property
Impact effects of corruption
Damage of image/reputation of the Bureau
Loss of jobs in the event the Service becomes bankrupt
Loss of revenue
Loss of key staff members as a result of intimidation
Reduction of staff morale
Loss of confidence in national statistics that can lead to wrong decisions
5. CORRUPTION RISK AREAS IN KNBS
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Kenya National Bureau of Statistics will conduct corruption risk assessment
from time to time to enable identify corruption loopholes and consequently put
in place prevention measures. All directorates have a responsibility to identify
the risk areas and inform the Integrity Committee appropriately.
In order to come up with Corruption prevention strategies, a corruption risk
assessment in KNBS was conducted and the results are summarized in appendix
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6. CORRUPTION PREVENTION STRATEGIES
Policy Statement
KNBS will implement preventive measures/strategies that ensure corruptionloopholes are sealed. These strategies will undergo review from time to time to
ensure no loopholes go unnoticed. The following will be done to address
corruption:-
i) Setting up Integrity Committees at HQs and Regional offices
In order to operationalise corruption prevention the Bureau has formed Integrity
Committees at Headquarter and will extend this to all regional offices. (See
Appendix II for composition and Terms of reference of these committees). The
committees will spearhead corruption prevention. Integrity Assurance Officers
will be appointed at the Head quarters and regions to assist Integrity Committee
members. However corruption prevention is a responsibility of all staff in the
organization.
ii) Internal Control Systems
Internal controls are forms of controls put in place by KNBS to ensure that the
Bureau safeguards its assets and functions effectively to achieve its goals in thestrategic plan and ensure that it delivers on the objectives of the Vision 2030.
Internal controls will include all laws, policies, procedures, rules, guidelines and
instructions given in various forms from within the organization and from the
Government. They will include but not limited to the Statistics Act 2006, Board
guidelines, code of Conduct, Finance Manuals, HR Manuals and guidelines,
Procurement and Disposals Act, Procurement Manual, Audit Charters,
Administration and Transport Guidelines, Communication strategies among
others.
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All Directorate and departmental heads will ensure that sufficient and effective
internal controls are developed, documented and adequately shared with all
staff.
All staff will be required to read, internalize and operate in line with the internalcontrols to ensure that corruption is prevented and detected when it occurs.
An Index of all internal controls will be maintained and a separate a package
containing all the internal control documents maintained at Human Resources
office. When new staff report they will be required to and sign to signify that
they have read, understood and will adhere to the controls.
Continuous corruption risk assessment will be carried out in order to isolate
areas in which the organization is prone to loss through corruption. This willinform design of anti-corruption strategies and strengthening of internal
controls.
After a period of three years an evaluation will be carried out on effectiveness
of controls in fighting corruption and the information used to update this policy
document.
iii) Employment Conditions
Pre-employment Screening
Many employees who commit fraud against their employer are found
subsequently to have had a history of dishonesty with previous employers. A
well-developed recruitment policy underpins fraud and corruption prevention.
All staff should support the human resource recruitment strategies, which may
include any or all of the following, depending on the requirements and
responsibility of the position.
Avoiding entering into recruitment of individuals that could potentiallylead to, or be perceived as involving, conflicts of interests.
Verifying identity via birth certificate or drivers licenses or passports.
Contacting referees
Reference check with their most recent employers
A consideration of gaps in employment and the reasons for those gaps
Verifying transcripts, qualifications, publications and other certification
or documentation
Criminal background checks on employees where the position warrants it.
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Annual Leave
One of the indicators in an organization that fraud or corruption may be
occurring is a reluctance to take regular and uninterrupted annual leave. Leave
policy of KNBS takes this into account and encourages staff to take regularannual leave.
iv) Internal Audit Reviews
Internal Audit Department will pay a crucial role in prevention and detection of
corruption in KNBS. It will provide an institutionalized mechanism for
objective, independent and systematic review of internal controls and
operational systems within KNBS. It will also play an important role in
assessing the nature and extent of any fraud and corruption risk. Investigationswill be carried out by Internal Audit as requested by Management and or the
Board. Special audits will be conducted where particular areas of concern have
been identified.
v) Procedures for Reporting cases of Corruption
Cases of suspected corruption in KNBS will be reported to the Chairman
Integrity Committee. The Chairman in conjunction with the Secretary to the
committee will review all cases and advice the Director General.
The following avenues will be used for reporting corrupt practices:
a) KNBS Website - click on the stop corruption now available on the
website
b) KNBS hotline
c) Corruption Reporting boxes at Herufi House, Nyayo house, Regional
and district offices
d) Fax
e) In person to appointed Integrity Assurance Officers
vi) Whistle blowing and protection of whistle blowers
Through research on frauds and corruption, it has been shown that whenever an
act of fraud or corruption takes place staff usually have information which if
shared can lead to prevention of losses. KNBS hence encourages and invites all
genuine information from staff and outsiders which can lead to averting
corruption or which can lead to speedy investigation and conclusion of acorruption case. Staff will be protected under the Witness Protection Act 2006.
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The whistle can be blown through telephone hotline, email, website and
suggestion boxes.
All information received from whistleblowers will be treated confidentially.Sources of information cannot be disclosed unless the person reporting so
requires his/her identity to be made public.
KNBS will do what is necessary to protect persons making corruption
disclosures against any reprisals or detrimental action in relation to the
disclosures.
Rewards will be considered for those who report cases that lead to successful
apprehension of perpetrators of corruption and recovery of losses which couldotherwise have been incurred.
Staff should be objective when reporting information and at all times disengage
from malice as well as avoid settling scores. Staff perpetrating this will have a
disciplinary action taken against them. Staff giving information in good faith
but found not to be true will have no action taken against them.
vii) Investigation of corruption cases
Corruption cases will be dealt with fairly, promptly, expeditiously and within
the law.
When information on suspected fraud is received by the Integrity Committee
investigations will be carried out within one week of receiving the information.
The investigations will be carried out in line with recommendations of the
committee.
Generally an investigation should advice KNBS on the following four areas.
Whether any criminal prosecution is likely or desired and how theinvestigation should proceed such that this end is not compromised
The recovery of losses incurred by KNBS and if taking action through the
courts will be the best alternative.
If and how to dismiss employees in order to ensure all regulations are
adhered to.
What action is to be taken to prevent reoccurrence of similar corruption
case.
viii) Code of conduct and ethics
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Employees of the organization will sign a code of conduct which will guide
them on ethical values and practices required of them. This code of conduct
will be enforced through Human Resources Manual provisions. Any deviation
or behaviour which is inconsistent with the code of ethics will be investigated
and disciplinary action taken by Human Resources office.
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ix) Disciplinary measures
Acts of fraud and corruption are considered gross misconduct. Acting on
advice of Integrity Committee and following the results of an investigation,
Human Resources Department will take relevant action through KNBS
disciplinary committees.
The organization can also request an employee to step aside in order to ensure
thorough investigations are carried out.
x) Awareness creation and training
In order to ensure that employees are aware of issues of ethics and integrity,
awareness training on integrity, corruption, what causes it and means of
detecting and preventing it will be shared with all staff.
Training
Trainings for the following will be carried out with assistance from KACC
Integrity Assurance Officers
Appointed Integrity committee members.
Integrity Assurance Officers will sensitize and train all members of staff
under their IC and spearhead Corruption Prevention activities in the
regions and headquarters
Awareness
KNBS will use the media to sensitize public about corruption and
encourage reporting of corruption.
Induction of new staff will include sharing information on integrity and
corruption prevention
Posters will be provided in offices to supplement a main poster to be
placed at the entrance.
Outcomes of investigations and disciplinary action against employees
who perpetrate fraud or corruption will be shared with staff in KNBSnewsletter
Reports on investigations conducted will also be shared with staff in
KNBS newsletter.
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7. ACCEPTANCE OF GIFTS/BENEFITS
Gift Policy Statement
Public officers working in KNBS shall not use the office to improperly enrich
themselves.
KNBs employees shall not accept or request gifts or favors from
i) Suppliers and potential suppliers to KNBS
ii) Organizations that are regulated by KNBS on statistics and survey as
outlined in Statistics Act 2006
iii) Contractors and consultants
iv) Potential employees
Employees shall not use information acquired in the course of employment forpersonal benefit.
A gift accepted by an employee in official capacity shall be deemed as gifts to
KNBS and such shall be declared to Director General.
An employee may however receive gifts from friends and relatives given on a
special occasion but this should not be received in KNBS offices.
8. CONFLICT OF INTEREST
A conflict of interest is a situation in which the impartiality of an officer in
discharging his/her duties could be called into question because of the potential,
perceived or actual influence of personal considerations, whether financial or
other. The conflict in question is between official duties and obligations, on the
one hand and private interests on the other.
The KNBS recognizes that potential conflicts of interest can arise from
personal, professional and social associations of staff both inside and outside theKNBS. These associations can create conflicts of interest in contracting for
services, the procurement process, engaging consultants, and recruitment.
Dealing with conflict of interest is an integral part of establishing an ethical
culture at the KNBS.
To this end KNBS staff should avoid any financial or other interest or
undertaking that could directly or indirectly compromise the performance of
their duties. Conflicts of interest should be assessed in terms of the likelihood
that staff members possessing a particular interest could be influenced, or might
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appear to be influenced, in the performance of their duties on a particular
matter.
The KNBS will not routinely involve itself in the private lives of its staff.
However, a conflict of interest may arise where a staff member engages inactivities or advances personal interests at the expense of the KNBSs interests
or the interests of other staff members or clients.
9. IMPLEMENTATION AUTHORIY
Implementation of the strategies on corruption prevention lies with all staff.
The management must sensitize staff under them to embrace internal controls
and ethics in their day to day operations and to continuously strive to improve
the available internal controls to ensure a corruption free organization.
The Integrity Committee will review and coordinate actions in this policy
10.REVIEW
This policy will be subjected to review every three years after an organization
wide fraud risk assessment.
11.EFFECTIVE DATE
Issued this day of 2009
Signed by the Director General KNBS
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APPENDIX 1
CORRUPTION RISK AREAS AND PRACTICES IN KNBS
i) Directorate of Finance, Administration and Human Resources
a) Finance
Misappropriation of funds
False accounting documents used to account
Manipulation of accounting documents to state less revenue
Unequal distribution of resources meant to induce others to bribery
Payments for goods not received
Embezzlement of funds
Double payments for one transaction Invoices processed more than once
Forged signatures to account for money
Organizational cheques cashed by individuals
Payment for persons who never worked
False financial statements
Unauthorized advances for personal benefit
Overstated expenses
Deliberate delay in making gratuity payments in pursuit of favours
Counterfeiting original documents
b) Human Resources
Ghost employees paid for example dead persons on payroll.
Favouritism in hiring of casuals
Misuse of compassionate and sick leave
Favouritism, nepotism and tribalism in recruitment, promotions and
transfers
Favouritism, nepotism and tribalism in distribution of opportunitiesincluding training & overseas trips
Illegal gratuities
Conflict of interest in hiring
Introducing unauthorized changes on the payroll system to favor self or
staff
Sexual harassment/Asking for sexual favours
Deployment of staff
Placing employees in inappropriate scale upon hiring
Tampering with the payroll
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False/ fictitious insurance claims
c) Administration
Approving payment for vehicle repairs which are not done
Disposal of old items to self
Assets used for personal gain for example cars for personal use
False mileage returns
Falsification of work ticket entries
ii) Directorate of Information, Communication and Technology (ICT)
Misuse of internet
Use of Computer for personal gain Vandalism of computer equipments
Use of fake software licences
Manipulation of software to steal for example payroll
Sabotage of the IT system for personal gain
Purchase of software not needed for purposes of commissions
Use of dormant and default accounts to perpetrate fraud.
Issuing a computer to officers who dont need
Vandalism of computer spares
Not following the specifications
iii) Director Generals Directorate
a) Procurement
Bid rigging to favour one supplier
Favouritism in selection of service providers
Conflict of interest in procurement of goods and consultancies
Accepting substandard goods
Theft of items in stores
Overpricing of goods
Allowing processing of payment for goods not received
Allowing full payment for less goods received
Collusion with suppliers to inflate (exaggerate) prices
Extortion of money and bribes from suppliers
Excessive delays in processing of procurement
Awarding contracts to non performing suppliers
Single sourcing Receiving of bribes, kickbacks/commissions
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Selling confidential/insider information to suppliers on tender/quotation
details
Specifications designed to favor a particular provider or vague
specification
Bids submitted and accepted after the deadline Frequent use of quotation method rather than open tendering
Restricted advertising or insufficient notice
Advance release of bid documentation or relevant information to
particular supplier
Failure to respond to requests from suppliers/ contractors for
clarifications in time
Unreasonable delays in evaluation
Bid evaluation committee members not having the technical expertise
necessary to properly evaluate bids.
Change of evaluation members during evaluation process
Unnecessary vendor intermediaries and Interference due to vested
interests
Award of tenders to companies set up by staff or relatives
b) Public relations
Bribing media for favourable coverage
Favouritism Unauthorized release of sensitive information
c) Legal Department
Collusion with external lawyers to defraud the corporation in legal fees
Deficient legal documentation in loans made
d) Internal Audit
Selective audit of some periods / past transactions Bribes
Selective auditing of some areas
iv) Donor Funded projects
Substandard goods accepted and paid for
Inflated and exaggerated prices
Double funding of items already accounted for under recurrent
expenditure Under delivery of items bought
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Non competitive selection of suppliers
Favouritism in tender and procurement arrangements
v) All technical Directorates including
Unauthorised release of data
Deliberate delay in responding to data requests
Influence of statistical results
Discriminatory award of international travel and training to staff
Staff engaging in personal work using organizational resources
Absenteeism
Use of office supplies/equipment for personal gain
Bribes, bias and conflict of interest in hiring of survey enumerators.
Gender discrimination and bias
vi) Directorate of strategy and Development
Giving data without approval
Approve substandard work from research
vii) General
Misuse of office equipment
Theft of office equipment
Use of organizational information for personal purposes
Lateness to work and misuse of office hours
Bribery
Blackmail, extortion/threats
Conflict of interest
Receiving personal benefits in exchange for assisting consultants or any
other service provider to get a job in KNBS
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APPENDIX II
COMPOSITION OF KNBS INTEGRITY COMMITTES
a) Membership Integrity Committee
Director General (Chair)
Director Production statistics (Deputy Chair)
Director Macroeconomics (Member)
Director population statistics ( Member)
Director Finance Admin and Human Resources (Member)
Director ICT (Member)
Manager Legal Services (Member)
Manager Internal Audit (Secretary)
b) Membership of Regional Integrity Committee
The Regional Manager (Chair)
The Integrity Assurance Officer (Secretary)
At least two District statistics Officers (Member)
In charge of Finance in the region (Member)
c) Mandate of IC and RIC
Setting priorities in the prevention of corruption within KNBS
Developing, planning and coordinating corruption prevention strategies.
Integrating all corruption prevention initiatives
Spearheading anti-corruption campaigns including integrity training at all
levels in KNBS
Receiving and reviewing reports on corruption prevention initiatives and
recommending appropriate action
Receiving and taking action on corruption reports made by staff and otherstakeholders.
Monitoring and evaluating the impact of corruption prevention initiatives
Preparing and submitting quarterly progress reports to the Director and
board and KACC
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