DISCLOSURE OF FINANCIAL INTERESTS - PRESENTATION TO EDUCATION LABOUR RELATIONS COUNCIL 05 DECEMBER 2017 - SAOU
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DISCLOSURE OF FINANCIAL INTERESTS
DETERMINATION ON OTHER CATEGORIES OF EMPLOYEES TO DISCLOSE FINANCIAL
INTERESTS
PRESENTATION TO EDUCATION LABOUR RELATIONS COUNCIL
05 DECEMBER 2017PRESENTATION OUTLINE 2 • INTRODUCTION • INTRODUCTION OF THE DISCLOSURE OF FINANCIAL INTERESTS IN THE PUBLIC SERVICE • PRINCIPLES UNDERPINING THE DISCLOSURE OF FINANCIAL INTERESTS • PUBLIC SERVICE REGULATIONS, 2016 • DETERMINATION AND DIRECTIVE ON OTHER CATEGORIES OF EMPLOYEES TO DISCLOSE THEIR FINANCIAL INTERESTS • DETAILS OF INTERESTS TO BE DISCLOSED • CONFIDENTIALITY OF THE DISCLOSURES • TRANSGRESSIONS RELATED TO DISCLOSURE OF FINANCIAL INTERESTS
INTRODUCTION 3 • The objective of the Financial Disclosure Framework as introduced in 2001, was to assist EAs to identify and manage conflict of interest situations for members of the SMS. • However, the risks to good governance arising from conflict of interest situations do not face employees in senior management positions only. • The requirement for high level of ethical conduct applies to all employees in the public service.
INTRODUCTION CONT. 4 • Therefore, the tools used to promote integrity cannot be limited to senior managers. • In recognition of these factors, the Public Service Regulations, 2016 empowers the MPSA to determine other employees or categories of employees to disclose financial interests. • The determination of other categories is the first step in the roll-out of the financial disclosure to all public service employees.
INTRODUCTION OF THE DISCLOSURE OF 5 FINANCIAL INTERESTS IN THE PUBLIC SERVICE • Year 2000 – Disclosure of financial interests by HODs. • PSR, 2001 – DFI extended to members of the SMS. • PSR, 2016 – DFI extended to other categories of employees in the Public Service. • Roll-out – Categories of employees to be determined by the Minister for the Public Service and Administration. • The current determination is the first step in the roll-out of the financial disclosure to all public service employees.
PRINCIPLES UNDERPINING THE DISCLOSURE OF 6 FINANCIAL INTERESTS • Promotion of professional ethics in the public service • Promotion of transparency and accountability • Management of conflict of interest situations
PUBLIC SERVICE REGULATIONS, 2016 7 • Regulation 18(3) of the Public Service Regulations, 2016 empowers the MPSA to determine: a) other categories of employees to disclose financial interests; b) a date on which such designated employees will submit their financial disclosure forms; c) a form to be used; and d) a period to be covered by such a disclosure.
PUBLIC SERVICE REGULATIONS, 2016 CONT. 8 Public Service Regulations 2016 further provides for: • The Head of Department to keep a register of other designated employees’ interests (employees below SMS level): Regulation 17(2). • Compulsory use of the eDisclosure system to disclose financial interests: Regulation 18(5). • Verification of financial disclosure forms submitted by designated employees below SMS level by the Head of Department: Regulation 21(2)(a).
DETERMINATION AND DIRECTIVE ON OTHER CATEGORIES OF 9
EMPLOYEES TO DISCLOSE THEIR FINANCIAL INTERESTS
Other categories Period to disclose Period to be covered Period for verification Method of disclosure
Employees earning an equivalent of salary level 13 and 01 – 30 June of the year in 01 April of the previous financial By 31 July of the year in eDisclosure system
above through the OSD or personal notches question year to 31 March of the current question
financial year
Employees appointed at salary level 12 including those 01 – 30 June of the year in 01 April of the previous By 31 July of the year in eDisclosure system
employees earning the equivalent of salary level 12 question financial year to 31 March of question
through the OSD the current financial year
Employees who are designated for the purpose of 01 – 30 June of the year in 01 April of the previous financial By 31 July of the year in eDisclosure system
effective implementation of Part 2 of Chapter 2 of PSR, question year to 31 March of the current question
2016 financial year
Employees appointed at salary level 11 including those 01 – 31 July of the year in eDisclosure system
employees earning the equivalent of salary level 11 question 01 April of the previous financial By 30 August of the year
through the OSD year to 31 March of the current in question
financial year
Employees in Supply Chain and Finance Units, 01 – 31 July of the year in 01 April of the previous By 30 August of the year eDisclosure system
irrespective of their salary level question financial year to 31 March of in question
the current financial year
New employees appointed in the above categories Up to 30 days after 01 April of the previous Up to 30 days after eDisclosure system
assumption of duty financial year to 31 March of disclosure of financial10 DISCLOSURE FORM AND OTHER MATTERS • Disclosure form: eDisclosure. • Paper-based form will be used in extra-ordinary circumstances with the prior approval of the Minister. • Period to be covered: 01 April – 31 March (previous financial year). • Interests to be disclosed – Same as for SMS members. All the details on the eDisclosure system.
11 DETAILS OF INTERESTS TO BE DISCLOSED
SHARES, LOANS AND OTHER FORMS OF EQUITY 12 • A share is a unit of ownership in a public corporation (MTN, Vodacom… • Exclude financial interest arising from investment in a mutual, pension or other institutional investment fund e.g. insurance policies and unit trusts, stokvels or any other form of informal grouping where members contribute periodically for whatever purpose. • Dividends from shares are not financial interests (income). • If shares are stated as a % - convert them into a number. • Nominal value of shares – amount spent to buy the shares
SHARES, LOANS AND OTHER FORM OF EQUITY 13 • Equity: A stock or ownership representing ownership interest in a private company (a share in a private company). • Loans – Long-term personal loans (12 months) excluding vehicle finance and bonds, retail and credit card debt. • Other financial interests include royalties – a payment to an owner for the use of his/her assets (including property) e.g. published books, patents, franchises, rental income, and recorded music. • A beneficiary of a trust has other financial interests
DIRECTORSHIP / PARTNERSHIP 14 • Director: elected, appointed or elected member of the board • Partnership: a legal form of business operation between two or more individuals who contractually share mng and profits • Include consultancy companies, companies dealing with property development or rental, trucking or any other transport company. • Type of business – activities which the company is undertaking with its operations e.g. cleaning, security, construction, transport, etc
CONSULTANCY / RETAINERSHIP 15 • Consultancy refers to the provision of professional services or expert advise to an organisation and receiving remuneration for such e.g. an accountant or tax advisor • Retainership is a form of employment where a person is available for advise and / or providing services to an organisation on a retainer basis e.g. lawyers • Retainership services are somehow pre-booked and could be required within short notice. A monthly or annual fee is paid to secure such services • A consultant provides professional expertise or advice on a specified contractual period.
TRUST 16 • Trust: a contractual arrangement that allows a third party (trustee) to hold assets on behalf of a beneficiary • Participation in a trust: Trustee, founder, or beneficiary • Some trusts are registered as companies. Disclose it also under directorship / partnership. • Trusts are registered with Master of High Court given a reference number. That number and the region in which the trust is registered need to be disclosed.
OTHER REMUNERATIVE WORK 17 • Public service employees are not prevented from having business interests or doing other remunerative work. • The following conditions apply: (i) written permission to engage in other remunerative work - section 30 of the Public Service Act, 1994; (ii) an employee shall not conduct business with an organ of state - regulation 13(c); The work should not: (iii) interfere with or impede the employee’s performance; and (iii) contravene the Code of Conduct.
OTHER REMUNERATIVE WORK Cont. 18 • Activities include: Directorship, partnership, consultancy, retainership, trustee, members of audit committees or any other committee, lecturers, tutors, pastoral work, professionals doing work outside their departments, etc. • This list is not exhaustive. • Proof of approval should be uploaded on eDisclosure system. • A beneficiary of a trust has “other financial interests” – need not apply for other remunerative work.
OTHER CATEGORIES OF FINANCIAL INTERESTS 19 • Income-generating assets: Assets which provides income e.g. a property, vehicles, machinery, and sound systems • Sponsorship: receiving support (wholly or partly), in cash/kind from another individual, company or any other organisation (sponsor) for your own benefit or for benefit of immediate family members e.g. trips, school fee, conferences, etc • Gifts and hospitality: Gifts or hospitality received as a form of common courtesy while on duty
OTHER CATEGORIES OF FINANCIAL INTERESTS 20 • Gifts exclude loyalty points, conference packs or gifts / hospitality received from the employer (while attending functions organised by the employer) • Immovable property • Vehicles • If the property or vehicle is used for income-generation, it should be disclosed on both categories
21 CONFIDENTIALITY OF INFORMATION ON THE SYSTEM • All role players (ethics officers, PSC officials and Department Admin) sign confidentiality forms. • Respect for confidentiality is very important – Ethics Officers and PSC officials have exposure to personal information of other employees.
22
TRANSGRESSION RELATED TO DISCLOSURES
Transgression 1st offence 2nd offence 3rd offence
Less serious offence Serious offence Serious offence
Failure to disclose on time Final written warning – valid for 3 Formal Disciplinary enquiry Formal Disciplinary enquiry
occasions designated must disclose Sanctions that may be applied include: Sanctions that may be applied include:
A fine not exceeding three months’ demotion
pay
Serious offence Serious offence
Failure to disclose even after being Formal Disciplinary enquiry Formal Disciplinary enquiry
alerted to the fact Sanctions that may be applied include:
Sanctions that may be applied include:
Demotion as an alternative to
a fine not exceeding 3 months’ pay
dismissal or
dismissal
Serious offence
Provision of false, inaccurate or Formal Disciplinary enquiry
incomplete information Sanctions that may be applied include:
Suspension;
Demotion as an alternative to
dismissal; or DismissalDankie / Thank you / Ngiyathokoza
Enkosi / Ngiyabonga / Ke a leboga
Ke a leboha / Ndi a livhuwa
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