Chapter 7: Personal behaviour

Conflict of interest

The Code of Conduct sets out a number of requirements that are relevant to the need for agencies to avoid and manage conflict of interest. In particular, it requires that an APS employee must disclose, and take reasonable steps to avoid, any conflict of interest (real or apparent) in connection with APS employment (s. 13(7) of the PS Act) and that an APS employee must not make improper use of: (a) inside information or (b) the employee’s duties, status, power or authority, in order to gain, or seek to gain, a benefit or advantage for the employee or for any other person (s. 13(10) of the PS Act). APS employees need to be aware that their private interests, both financial and personal, could conflict with their official duties. Agencies should have procedures in place for managing real and apparent conflicts of interest, and should ensure that employees are aware of these procedures.

In order to explore the measures used by agencies to avoid and manage conflicts of interest, the agency survey asked a number of questions about the measures agencies have taken to help raise awareness of staff obligations in relation to this issue. One area of particular interest, given the increased use of outsourcing arrangements in recent years, is whether agencies use contractual provisions to restrict successful tenderers from employing people who were key decision makers in the tendering process. Just over half of all agencies reported having such a restriction. Conflict of interest as it bears on outsourcing is handled in Chapter 10, which deals with developments in outsourcing services in the APS.

In relation to the general issue of avoiding conflict of interest when an employee takes up employment after leaving the APS, it was reported that relevant policies are in place in only 30% of all agencies. Results vary greatly by agency size, with 15% of small agencies, 23% of medium agencies and 68% of large agencies reporting that they have such policies in place.

As a result of a government decision in 1983, agency heads, members of the SES and those acting in SES jobs for longer than three months are required to make written statements of their private interests. The agency survey indicated that 75% of all agencies currently require SES employees to make a written statement of their interests, and six per cent of agencies are developing relevant measures. Sixty-eight per cent of small agencies, 73% of medium agencies and 91% of large agencies currently have such a requirement.

Most agencies either have (84%) or are developing (8%) policies or procedures on the acceptance of gifts and benefits including hospitality. Just less than half of all agencies (49%) have procedures for alerting employees who sit on boards or committees of the need to declare and manage any conflict of interest. Learning and development activities relating to conflict of interest are provided to particular groups of employees in 38% of agencies. As might be expected, a higher percentage of large agencies have each of these measures in place.

Thirty-three per cent of agencies reported having measures in place in relation to conflict of interest other than the ones discussed above. These included procedures in relation to engaging in concurrent outside employment (seven agencies), induction procedures which cover conflict of interest (seven agencies), and a requirement for all staff to complete a conflict of interest declaration or self-assessment form (four agencies).