Conflict of Interest Policy

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Conflict of Interest Policy

Department of Industry, Tourism and Trade

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Document title Conflict of Interest Policy

Contact details

Department of Industry, Tourism and Trade Governance

Email: [email protected] Phone: 08 8999 2350

Approved by Board of Management Date approved 27 March 2023

Document review Annually

TRM number DTBI2020/05779-0003

Versio

n Date Author Changes made

1.0 14 March 2023 Director Governance

Substantial update to Policy to ensure:

i. Reflects legislative requirements

ii. Simply explain obligations iii. Reflects current practice

Acronyms Full form

RMAC Risk Management and Audit Committee CEO Chief Executive Officer

DCEO Deputy Chief Executive Officer

DITT Department of Industry, Tourism and Trade ECO Executive Contract Officer

EDGF Executive Director Governance and Finance

BOM Board of Management

ICAC Independent Commissioner Against Corruption NTPS Northern Territory Public Service

PSEMA Public Sector Employment Management Act SAO2 Senior Administration Officer Level 2

SP2 Senior Professional Level 2

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1. Purpose

This policy outlines the obligations and responsibilities of Department of Industry, Tourism and Trade (DITT) employees regarding disclosure and appropriate management of any conflicts of interests.

The aim is to implement a policy environment that helps and encourages effective decision- making when a conflict of interest arises and encourages communication so that employees are comfortable to disclose and discuss conflicts of interest. The overarching objectives of the policy are to:

- serve the public interest by encouraging employees to make decisions on merit without regard to private interest, personal attributes or opinions;

- support transparency and scrutiny by providing mechanisms to disclose and manage interests and conflicts as they arise;

- promote individual responsibility and personal example; and

- provide protection to employees and DITT from perceptions or allegations of improper or unprofessional conduct.

This policy should be read in conjunction with legislation detailed under section 10.

2. Principles

- A conflict of interest occurs when the private interests of a public officer interferes with or is perceived to interfere with their obligations to the public.

- A conflict of interest may be improper if it is not adequately managed.

- Each employee must declare an actual, potential or perceived conflict as soon as they become aware of it.

- Employees are to take reasonable steps to prevent or avoid conflicts of interest.

- Each employee is responsible for managing actual, potential or perceived conflicts with their official duties.

3. Scope

This policy applies to all ongoing, fixed period and casual employees of DITT. It encompasses the personal, professional and business interests of employees, as well as their relatives, close friends and associates.

This policy covers situations where conflicts of interest may arise across DITT operations, including (but not limited to) procurement activities, contract management, grant

administration, recruitment, governance committee considerations and projects.

4. Approach

DITT must be seen as being open, accountable and its actions defendable when dealing with conflicts of interests. It is therefore vital that any conflicts of interest are identified,

assessed, documented and declared to the Chief Executive Officer (CEO), through the Delegate, at the earliest opportunity.

Department of INDUSTRY, TOURISM AND TRADE 27 March 2023 | Version 1.0

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5. Roles and responsibilities

5.1. Chief Executive Officer

The CEO will consider Conflicts of Interest Declaration Forms from employees on a quarterly basis via a report prepared by Governance. The CEO will also review and approve Board of Management (BOM) members Conflicts of Interest Declaration Forms.

The CEO is required to complete a Declaration of Financial and Other Interests Form on commencement, annually and when a potential conflict arises or becomes apparent. The Declaration of Financial and Other Interests Form is provided to the Commissioner for Public Employment in accordance with the guidelines.

The CEO should also discuss the management of an actual, potential or perceived conflicts of interests with the relevant Minister and, if appropriate, the Chief Executive of the

Department of the Chief Minister and Cabinet.

In situations where the CEO has an actual, potential or perceived conflict of interest, the CEO will declare the conflict, excuse themselves from the matter and refer any considerations and decisions to a Deputy Chief Executive Officer (DCEO) or another delegate.

5.2. Governance

Governance will:

- receive conflicts of interest declaration forms from DITT employees;

- review the proposed actions to resolve or manage the conflicts of interest for adequacy in addressing the declared interest;

- provide advice to employees on this policy and its application;

- provide quarterly reporting to BOM (collectively or individually) as the Delegates on declarations received by DITT employees;

- maintain the DITT conflicts of interest register;

- provide education and information to prompt staff to identify and declare conflicts and review existing disclosures;

- provide reminders to senior departmental staff (staff at the SAO2/SP2 designation or above) to submit an annual conflict of interest disclosure (which may include the employee disclosing that they have nil conflicts);

- conduct an annual review of this policy; and

- receive and review complaints of breaches of this policy and where deemed necessary undertake to investigate such matters.

5.3. Employees

Employees should avoid conflicts between their own private interests and the public interest, where reasonably possible. The responsibility for identifying, declaring and managing

conflicts of interest is with the individual employee. If unsure whether a conflict of interest

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Conflict of Interest Policy exists, employees should discuss the actual, potential or perceived conflict with their

manager, Division Head or Governance.

Employees should consider whether they have any conflicts to declare upon their

commencement, including employees new to NTPS or those transferring to the Department from another agency. Employees are required to declare any conflicts of interest as they arise using the Conflicts of Interest Declaration Form, which can be found on the DITT

intranet. Once a declaration has been made, the employee should ensure that when there is a change in the line management (including acting arrangements), the new manager/s are made aware of and kept informed of all conflicts.

Employees are individually responsible for raising conflicts of interest that arise through official meetings they attend. If an employee identifies during a meeting that they may be faced with a conflict of interest, the relevant employee must verbally declare the interest and withdraw from all related discussions and decisions.

Any employee of DITT who suspects that a conflict of interest has not been declared or adequately managed should report the matter to the Director Governance as soon as possible. This includes conflicts of interests related to third parties such as contractors, consultants, suppliers or board/committee members.

5.4. Supervisor/Manager (Assess)

Supervisors and Managers should ensure that on commencement, new employees are advised of this policy. When an employee identifies and declares a conflict of interest, a manager is required to discuss with the employee and propose suitable action to resolve or manage the conflict of interest. Managers are responsible for ensuring that the conflict is managed in accordance with the action as outlined in the declaration.

Managers should, at a minimum, remind employees once annually during their performance review of their obligations in regards to identifying and declaring conflicts of interest.

Managers are encouraged to have candid discussions with their direct reports should they be aware that a conflict may exist.

5.5. Executive Director or equivalent (Endorse)

Direct reports of delegates, including, Executive Directors or Senior Executive Directors, should have full oversight of conflicts of interest in their respective business unit.

It is important that these roles are familiar with the conflicts of interest process and are satisfied with the supervisor/manager assessment. They are responsible for endorsing the declaration and supporting the delegates to provide business unit context.

5.6. Delegates (Approve)

The delegates for all conflicts of interest are:

- Chief Executive Officer;

- Deputy Chief Executive Officer Mining and Energy;

- Deputy Chief Executive Officer Tourism, Services and Hospitality;

- Deputy Chief Executive Officer Agriculture, Fisheries and Biosecurity;

- General Manager Strategy and Policy

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- General Manager Business and Workforce; and - Executive Director Governance and Finance;

The delegate has final authority in deciding actions to manage conflicts. The delegate may consult with the Supervisor/Manager/Senior Director/Executive Director, Governance and/or the employee concerned before making a decision regarding the management plan of the conflict of interest. The delegate should satisfy themselves that sufficient review has been conducted by their direct reports to support approval. The delegate may also transfer their delegation when an employee is acting in their position.

5.7. SAO2/SP2 and above

Determination 13 of 2011 under Public Sector Employment and Management Act 1993 states that an executive contract officer (ECO) must disclose in writing to the department where a potential conflict between their personal interest and official duty, whether real or apparent, has arisen or is likely to arise.

Additionally, the Board of Management determined all senior departmental staff (staff at the SAO2/SP2 designation and above) are required to submit an annual conflict of interest

disclosure (which may include the employee disclosing that they have nil conflicts).

This is regardless of any previous declarations. In June each year, Governance will contact all employees at SAO2/SP2 level and above with a link to the form to be completed and a

nominated due date for completed forms.

6. Identifying conflicts of interest

A personal interest outside or inside of work does not automatically mean that there is going to be conflicts of interest. If something arises at work that is associated with those interests, then you may have conflicts of interests. Note private interest can extend to the interests of immediate family members and close friends of the employee. Factors to consider when determining whether public duty and private interests may be/are in conflict include, but are not limited to:

- shareholdings or other interests in a company or business;

- family or other relationships with co-workers, clients or contractors;

- interests in property or land;

- significant liabilities to organisations or individuals excluding indebtedness for home mortgages

- outside employment, appointments or directorships whether remunerated or not;

- affiliations with for profit or non-profit organisations (including sporting bodies, clubs and associations);

- obligations to professional, community, ethnic family or religious groups in a personal or professional capacity;

- holding Local Government office;

- enmity towards or competition with another individual or group; and - future employment prospects or plans (i.e. post separation employment).

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Conflict of Interest Policy

7. Disclosing conflicts of interest

It is not always possible to avoid having conflicts of interest, particularly in small

communities or specialist industries. The importance is what employees do, or do not do, once aware of the conflict. Conflicts of interest must be reported on a Conflict of Interest Declaration Form.

Failure or refusal to complete a Conflict of Interest Declaration Form may be considered a breach of discipline (or a breach of contract in the case of an ECO) under section 49 of the Public Sector Employment and Management Act 1993.

8. Managing conflicts of interest

The Conflicts of Interest Declaration Form requires employees and managers to discuss and propose arrangements for managing declared conflicts. One or more of the following actions may be recommended to address the declared conflicts:

- abstain from the conflicted process;

- remove the employee from the decision-making process associated with the conflict;

- find another employee to undertake the function;

- refer to a more senior officer/delegate;

- have an independent person check/review actions undertaken by the employee;

- restrict or cease involvement in the private interest or association;

- remove the employee from the conflict, for example transferring the employee to another business unit within the Department or to another agency; and

- in more serious cases, the employee can resign from their position.

In the event of conflicts of interest, the delegate must decide whether:

- the employee can continue his or her duties;

- the employee should be requested to divest themselves of the interest; or - a rearrangement of duties amongst staff, or transfer is required to perform

duties that remove the conflict.

The delegate may consult with the supervisor/Senior Director/Executive Director, Governance and/or the employee concerned before making a decision regarding the management of the conflict of interest. The employee and manager will be notified of the delegate’s decision in writing.

8.1. Changes to an employee’s interests

If an employee’s interests change to the extent that the conflict of interest is altered, a new Conflict of Interest Declaration Form must be submitted immediately when known.

Changes in interests may include acquisition or divestment, an altered relationship or a significant change in the official responsibilities of the employee.

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8.2. Grievances

Should the employee and the delegate fail to agree on a management plan, the matter should be reported to the Director Governance.

If the issue is not resolved after involvement of the Director Governance or the Executive Director Governance and Finance or, as appropriate the CEO, the employee may lodge a request for a grievance review with the Commissioner for Public Employment under section 59 of the Public Sector Employment and Management Act 1993.

To ensure that the objectives of this policy are not jeopardised, the employee must cease involvement in the matters involving the conflict of interest until the grievance is resolved.

8.3. Corrupt conduct

Under section 10 of the Independent Commissioner Against Corruption Act 2017 (see below extract) it states that conduct is corrupt conduct if it is conduct engaged in by a public officer, that involves or results in failure to manage adequately an actual or perceived conflict of interest.

For subsection (2)(C)(ii), conflict of interest includes the obtaining of a benefit by, or the causing of a detriment to, a person or body, including:

(a) any benefit or detriment, whether pecuniary or otherwise; and

(b) placing the person or body in a stronger or weaker position in relation to a reasonably foreseeable future benefit or detriment

(Subsection (2) Conduct is also corrupt conduct if it is conduct engaged in by a public officer (whether or not the identity of the public officer is known):

(C) that involves or results in any of the following:

(ii) failure to manage adequately an actual or perceived conflict

8.4. Investigation of breaches and/or corrupt conduct

The Director Governance will investigate the claims and make a recommendation to the relevant delegate or CEO on the appropriate action to be taken.

Where claims of failure to declare or manage conflicts of interests is substantiated, the matter will be referred to:

- The delegate;

- Director HR Services in the case of a breach of discipline (or a breach of contract in the case of an ECO); and/ or

- ICAC in the case of corrupt conduct.

9. Definitions

Conflicts of interest: where an employee is in a position to exploit their official capacity in some way for their own, or someone else’s, personal gain or benefit. Generally exists where an employee has multiple interests (personal and professional) that are in conflict.

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Conflict of Interest Policy Actual conflicts of interest: where the private interests of an employee interfere with the employee’s official duties/responsibilities.

Potential conflicts of interest: where an employee has private interests that could interfere with the official duties at some point in the future.

Perceived conflicts of interest: where a third party could form a view that an employee’s private interests could improperly influence the performance of their official duties.

Private interests: those personal, professional or business interests that can benefit or disadvantage individuals, or that may disadvantage another. They also include the personal, professional or business interests of individuals or groups we associate with (e.g. friends, family, rivals or enemies).

Public duty: the responsibility of employees to put the public interest above their own personal or private interests when carrying out their official duties.

Indirect non pecuniary interests: where the employee acts to benefit another e.g.

providing confidential information to friends or organisations that an employee is a member of to assist in a project or submission.

Relevant person/s: means any other person with whom an employee has a close personal relationship, including persons who are substantially or wholly reliant for support, financial or otherwise.

Delegate: person who has authority to make a decision regarding a disclosure of interest’s declaration.

Classes of conflict may include, but are not limited to:

 Relationships with companies, professional or non-profit organisations: direct or distant family connection, close acquaintance, third party relationship through clubs or associations.

 Pecuniary interests in companies: employee or family member is a shareholder.

 Non pecuniary interests (non-financial): kinship, friendship, membership of an association, society or trade union, political party or involvement in an activity.

10. Accountability and legislative obligations

Public Sector Employment and Management Act 1993 Employment Instruction No. 12 - Code of Conduct Information Act 2002

Procurement Act 1995 Contracts Act 1978

Independent Commissioner Against Corruption Act 2017

11. Reporting and monitoring

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A register for conflicts of interest declarations and associated documentation will be held securely by the Governance team.

Governance will prepare a report of Conflicts of Interest Declaration Forms on a quarterly basis for CEO consideration.

The reporting will also be provided to the BOM on a quarterly basis to review and note declarations reported for the period.

The register will be provided to the Risk Management and Audit Committee (RMAC) upon request from the Committee. Unless required by law, access to declarations will be limited to the employee concerned, their supervisor, the relevant Director/Regional Director /Executive Director/Delegate, the CEO and the RMAC.

Disclosures specific to the business of a governance committee, grants administration, recruitment, procurement activity, or project/s are to be provided to the relevant committee chair, panel chair, Division Head or Project Director for consideration and record keeping.

This policy will be reviewed at minimum annually.

12. Communication

This policy will be published on the DITT intranet and links to the information will be included in the new starter induction. Employees will be reminded via email and a news story on the DITT intranet of their responsibilities and obligations under the policy.

The policy will also be available on the DITT website for third party access.

Regular updates of trends or compliance check reporting will be provided to delegates in face-to-face meetings.

13. Interpretation, feedback and further information

For further information or any feedback, contact Governance by phone on 8999 2350 or by email [email protected]

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Conflict of Interest Policy