PUBLIC SERVICE INTEGRITY TRAINING PROGRAM

PSITP/Iteratioal Goverace Istitute INTERNATIONAL GOVERNANCE INSTITUTE PUBLIC SERVICE INTEGRITY TRAINING PROGRAM A SOURCEBOOK FOR FOCAL INTEGRITY TEAMS IGI 2007

PSITP/Iteratioal Goverace Istitute

PSITP/Iteratioal Goverace Istitute TABLE OF CONTENTS Page INTRODUCTION MODULE ONE : THE CONCEPT OF CORRUPTION........... 1 Itroductio................................................................... 3 Geeral Objective............................................................. 3 Specific Objectives............................................................ 3 What Is Corruptio?............................................................ 3 Causes of Corruptio........................... 5 Effects of Corruptio......................................................... 7 Beefits of Prevetig Corruptio................................................. 10 Idicators of Successful Corruptio Prevetio Efforts.................................. 11 Summary................................................................ 12 Module Two : CORRUPTION RISK ASSESSMENT AND MANAGEMENT........ 13 Itroductio................................................................. 15 Geeral Objective............................................................. 15 Specific Objectives............................................................ 15 Role of Risk Assessmet ad Risk Maagemet... 15 Potetial Risk Areas......................................................... 16 Guidelies For Corruptio Risk Assessmet..... 22 Guidelies for Corruptio Risk Maagemet.............................................. 24 Checklist For Risk Assessmet Ad Maagemet 26 MODULE THREE : DEVELOPMENT OF A CORRUPTION PREVENTION PLAN...... 29 Itroductio.................................................................... 31 Geeral Objective....................................................................... 31 Specific Objectives.............................................................. 31 Defiitio of a Corruptio Prevetio Pla...... 31 Importace of Corruptio Prevetio.................................................. 32 Factors to Be Cosidered i the Developmet ad Implemetatio of a Corruptio Prevetio Pla 32 Guidelies For Developig a Corruptio Prevetio Pla.................................. 35 Strategies for Developig a Corruptio Prevetio Pla... \................................ 35 Review of the Corruptio Prevetio Pla................................................ 44 Checklist For Corruptio Prevetio Plas................................................ 44

PSITP/Iteratioal Goverace Istitute MODULE FOUR : ORGANISATIONAL CULTURE AND ETHICAL BEHAVIOUR.................................................. 47 Itroductio............................................................. 49 Geeral Objective........................................................ 49 Specific Objectives........................................................ 49 Defiitio of Operatioal Terms............ 49 How a Orgaisatioal Culture Evolves......... 50 How to Idetify Orgaisatioal Culture............................................. 51 Factors Affectig a Orgaisatio's Culture....... 52 How Orgaisatioal Culture ad Behaviour Affect Performace........................ 52 Maagig Orgaisatioal Culture ad Behaviour. 53 Positively Ifluecig Orgaisatioal Culture ad Behaviour.......................... 54 What Costitutes Ethical Behaviour i a Orgaisatio.................. 55 Checklist for Aalysig ad Maagig Orgaisatioal Culture ad Behaviour............. 56 MODULE FIVE : CODE OF CONDUCT - DEVELOPMENT AND IMPLEMENTATION.. 59 Itroductio............................................................. 61 Geeral Objective......................................................... 61 Defiitio of a Code of Coduct............................................... 61 Fuctios of a Code of Coduct.............................................. 62 Guidelies for Developig a Code of Coduct... 62 Implemetatio of a Code of Coduct............................................... 66 Methods of Promotig the Code of Coduct...... 66 Reviewig ad Updatig the Code of Coduct... 67 Checklist o the Code of Coduct.............................................. 67 MODULE SIX : PERSONNEL MANAGEMENT.................................. 71 Itroductio................................................................................. 73 Geeral Objective........................................................ 73 Specific Objectives........................................................ 73 Huma Resource Plaig................................................... 74 Recruitmet ad Selectio.................................................. 75 Staff Developmet........................................................ 77 Performace Maagemet................................................. 78 Compesatio.......................................................... 79 Staff Motivatio......................................................... 82

PSITP/Iteratioal Goverace Istitute Discretio ad Waivers................................................... 82 Checklist for Persoel Maagemet............................................. 84 MODULE SEVEN : FINANCIAL AND MATERIALS MANAGEMENT......................................................... 89 Itroductio.............................................................. 91 Geeral Objective....................................................... 91 Specific Objectives....................................................... 91 Cash Hadlig............................................................ 92 Travel Paymets......................................................... 94 Procuremet of Goods ad Services............................................ 95 Stores Maagemet...................................................... 97 Disposal ad Sale of Assets................................................. 100 Iteral Audit............................................................. 101 Checklist for Fiacial ad Materials Maagemet 102 MODULE EIGHT : PROJECT PLANNING AND MANAGEMENT............................................................. 109 Itroductio......................................................................... Ill Geeral Objective........................................................ Ill Specific Objectives....................................................... Ill Defiitio of Operatioal Terms............................................... Ill Plaig a Project....................................................... 113 Project Maagemet........................................................... 116 Checklist For Project Plaig Ad Maagemet.. 122

PSITP/Iteratioal Goverace Istitute INTRODUCTION The Iteratioal Goverace Istitute recogizes the importace of a efficiet public sector as a major factor i ehacig the ecoomic growth ad prosperity of a atio, ad to meet the challeges of improvig the well-beig of its people. To this ed, IGI has desiged this traiig tool, i additio to other sets of measures aimed at creatig a trasparet ad accoutable public service i partership with the respective govermets. The Public Service Itegrity Traiig Program (PSITP) has bee developed to highlight the saliet issues that eed to be addressed i creatig a public service with zero tolerace for corruptio. It is a essetial guide for each govermet departmet or agecy i the idetificatio of opportuities that give rise to corruptio. Furthermore, it suggests how to seal these loopholes ad trasform the culture, attitudes ad behaviour of public servats. Govermet miistries, departmets, parastatals ad local authorities have a paramout obligatio to play i makig the programme's iitiatives effective. They will be expected to idetify loopholes i the orgaisatios' operatios ad procedures to detect ad deflect opportuities for corruptio. I additio, they will be expected to sesitize their members of staff o the importace ad meas of corruptio prevetio. The Programme will be implemeted through several compoets, which are set out i this Sourcebook. The Sourcebook gives guidelies for the implemetatio of each compoet, which all take together should lead to restoratio of itegrity ad good goverace i the public service. For these efforts to be successful throughout the orgaisatio, plas should be made to esure that all members of staff are aware of, traied i ad idetify with the corruptio prevetio plas put i place. The sourcebook familiarises the user with the causes ad cosequeces of corruptio. It also helps to create positive attitudes ad the itellectual ad moral capacity to serve as a effective chage aget. The Sourcebook will further guide the orgaisatio o how to carry out corruptio risk assessmet, to develop or refie ad implemet codes of coduct; review ad improve the orgaisatioal culture ad ethical behaviour; dissemiate ati-corruptio ad itegrity messages; develop ad implemet corruptio prevetio plas; icorporate best practices i fiacial ad huma resource maagemet; ad moitor ad evaluate their projects. Module Oe defies corruptio, highlights its causes ad the effects of corrupt practices o society. The module further idetifies the beefits of prevetig corruptio ad corruptio prevetio efforts.

PSITP/Iteratioal Goverace Istitute Module Two discusses areas proe to corruptio i the workplace ad defies the meas to assess ad maage risks for corruptio. Module Three defies measures for promotig itegrity ad ethical behaviour at the workplace through the use of a corruptio prevetio pla. Uder Module Four, the meaig of orgaizatioal culture ad behaviour is defied. It further defies ethics ad itegrity ad how a orgaizatioal culture evolves ad how it ca be maaged to eable staff to create positive culture ad behaviour. Module Five provides strategies for developig ad adoptig istitutioal ad departmetal codes of coduct for guidig public servats to deal with ethical problems. The codes of coduct complemet other professioal codes of ethics or broader codes of ethics or rules ad regulatios such as the civil service code of regulatios ad or the Public Service Code of coduct i promulgatio. Module Six explores aveues ad opportuities for corruptio i various persoel maagemet areas ad provide strategies for sealig the loopholes i order to prevet corruptio. Module Seve idetifies areas that provide opportuities for corruptio practices i fiacial maagemet ad how to promote itegrity i fiacial maagemet. Module Eight discusses methods for promotig itegrity ad prevetig corruptio by improvig project plaig, maagemet, moitorig ad evaluatio. The module demostrates that iadequate plaig ad lack of accoutability lead to ieffective ad iefficiet use of project resources. Failure to deliver expected results leads to perceptios of ufairess ad raises suspicios of corrupt practices. I, o behalf of the IGI members express my gratitudes to the support give by staff from the World Bak Keya, Keya Istitute of Admiistratio, Keya Ati-Corruptio Commissio ad Directorate of Persoel Maagemet i the developmet of this traiig maual. Your advise, provisio of material ad guidace through the process is highly appreciated. I am sure this importat tool will go alog way i trasformig the work ethic of public servats i may parts of the world, which will i tur yield great beefits to the sufferig poor. Thak you so much! Sakwa Buliba IGI Secretary, Nairobi 2007

PSITP/Iteratioal Goverace Istitute Module Oe The Cocept Of Corruptio

PSITP/Iteratioal Goverace Istitute 1.1. Itroductio Welcome to the first module of this Sourcebook. I this Module we are goig to defie the term "corruptio". We will the try to poit out what causes corruptio ad the effects of corrupt practices o society. Fially we will highlight the beefits of prevetig corruptio ad outlie some idicators of successful corruptio prevetio efforts. 1.2. Geeral Objective The geeral objective of this Module is to sesitise the participat/user o the cocept of corruptio ad the importace of its prevetio. 1.3. Specific Objectives By the ed of the Module, the participat should be able to: (a) defie the term "corruptio", (b) state the causes of corruptio, (c) explai the effects of corruptio, (d) idetify ad describe the beefits of prevetig corruptio, ad (e) state the idicators of successful corruptio prevetio. 1.4. What Is Corruptio? There is o uiversal defiitio of corruptio. This is because it maifests itself i differet ways ad forms i differet eviromets ad cotexts. Accordigly, the defiitio of corruptio is iflueced by the backgroud, opiio ad experieces of the idividual examiig the pheomeo. The followig are a few examples of defiitios of corruptio obtaied from differet sources: Abuse of socially accepted orms. Evil, immoral or wicked behaviour. Ulawful acquisitio of property at the expese of the public. Misuse of office or authority for the beefit of a idividual or a group through coercio, udue ifluece, misrepresetatio, falsificatio, dishoesty or ay other improper acts or meas i breach of laws, regulatios ad the rules i force. Geeral Olusegu Obasajo, Presidet of Nigeria, defies corruptio as: "the misuse of public office for private profit or advatage, acts of commissio ad omissio i your employmet resultig i loss or disadvatage to your employer ad private gai to you or ay other perso associated with you" (Obasajo, 1994). The World Bak defies corruptio as: " the abuse of power, most ofte for persoal gai or for the beefit of a group to which oe owes allegiace. It ca be motivated by greed, by the desire to retai or icrease oe's power or, perversely eough, by the belief i a

PSITP/Iteratioal Goverace Istitute supposed greater good... While the term 'corruptio'is most ofte applied to abuse of public power by politicias or civil servats, it describes a patter of behaviour that ca be foud i every sphere of life" (Stapehurst ad Sedigh, 1999). For operatioal purposes, corruptio is defied as: The abuse of authority for persoal advatage or for the advatage of aother perso or group.ad icludes; bribery, theft, embezzlemet, fraud ad evasio of paymet of Govermet reveue ad taxes 1.5. Causes of Corruptio There are may factors that may cause corruptio. We shall idetify ad discuss oly a few major oes: 1.5.1. Political Patroage, Ifluece ad Favouritism Uder this category, we ca iclude: (a) appoitmets to public offices made o political cosideratio rather tha merit; (b) practice of tribalism ad epotism; ad (c) political iterferece with the maagemet of public service ad istitutios, ad allocatio of resources. 1.5.2. Weak Civil Society ad Social Empowermet Some examples of this are: (a) passive public- citizes who do ot complai about corruptio ad corrupt practices; ad (b) lack of idepedet civil associatios (e.g. Taxpayers' Associatios) to fight corruptio. 1.5.3. Lack of Professioal Itegrity There may be lack of professioal itegrity amogst the professioals themselves or i relatio to the public they serve, for example: (a) failure to adhere to professioal ethics ad stadards; ad (b) lack of professioal itegrity amog peers. 1.5.4. Lack of Trasparecy ad Accoutability This icludes lack of trasparecy ad accoutability i: (a) public ivestmets decisios; (b) public procuremet ad disposal of public property; (c) persoel maagemet; ad (d) fiacial maagemet systems ad reportig. All these factors, i tur, result i moopoly of decisio makig.

PSITP/Iteratioal Goverace Istitute 1.5.5. Iefficiet Public Sector Some factors cotributig to iefficiet public services iclude: (a) poor remueratio i geeral, which teds to tempt employees to egage i corrupt practices; (b) outdated techology, which creates loopholes for corruptio; (c) coflicts of iterest due to egagemet i private busiess by public servats; (d) lack of codes of coduct for the public service; (e) complex ad complicated govermet structures ad procedures; ad (f) iversio of the roles of master/servat betwee the public ad the public servats so that the public servat becomes the master istead of the servat. 1.5.6. Failure to fully implemet proposals ad recommedatios of watchdog istitutios such as: (a) (b) (c) (d) Cotroller ad Auditor-Geerals, Parliametary Ivestigative Committees, Public Accouts Committees, ad Efficiecy Moitorig Agecies. 1.6. Effects of Corruptio Corruptio affects both the atio ad the idividual. Let us first ote how corruptio affects us at the atioal level. 1.6.1. Natioal level At the atioal level corruptio may lead to serious ecoomic problems, erosio of the law ad lowerig of professioal stadards. 1.6.1.1. Poor Ecoomic Performace Corruptio at the ecoomic level will maifest itself i: i) slowig dow the growth of the ecoomy, leadig to uemploymet ad a icrease i poverty ii) uplaed, misdirected expediture o projects, resultig i huge losses; iii) currecy fluctuatio ad icreased iflatio ad iterest rates; iv) icreased taxatio burdes o Keyas; v) icreased prices for goods ad services. 1.6.1.2. Disregard for Stadards ad the Pillars of Itegrity This will lead to: lack of respect for the rule of law, ad sub-stadard work, services ad products.

PSITP/Iteratioal Goverace Istitute 1.6.1.3. Loss or Withdrawal of Iteratioal Aid Rampat corruptio practices i a recipiet coutry may egatively ifluece decisios take by door coutries which will result i: i. iteratioal developmet parters ad doors becomig uwillig to maitai aid programmes, ad ii. stalled projects. 1.6.1.4. Lootig of Public Resources Lootig of public resources will affect all services ad will lead to: i. huge losses through fraud, theft ad embezzlemet, ii. reduced resources available for public services resultig i: collapsed ifrastructure, poor saitatio ad housig, lack of quality educatio, ad lack of quality healthcare. 1.6.2. Idividual Level At the idividual level, corruptio will boil dow to: (a) loss of cofidece i the ability of the public service to provide adequate services; (b) icreased isecurity i the commuity; (c) low purchasig power; (d) havig to pay higher or exorbitat prices for goods ad services; (e) geeral moral decay i the society due to the erosio of values ad stadards; (f) receivig sub-stadard services ad products; ad (g) egagemet i illegal activities such as givig bribes to get liceces, or for telephoe or electricity coectio..7. Beefits of Prevetig Corruptio Some beefits of corruptio prevetio are: 1.7.1. Ecoomic growth If corruptio is eradicated, there will be: (a) a coducive eviromet for busiess ad job-creatio, ad (b) improved ecoomic performace. 1.7.2. Icrease i domestic ad foreig ivestmet The immediate beefit of icreased ivestmet is: (a) reductio of poverty, maily through creatio of employmet opportuities, ad (b) improved busiess performace.

PSITP/Iteratioal Goverace Istitute 1.7.3. Improved social behaviour/moral stadards This will be the result of strict adherece to laws, rules ad codes that esure civil coduct. 1.7.4. Developmet assistace parters regaiig cofidece This will lead to icreased aid which will boost the ecoomy of the coutry. 1.7.5. Effective, resposive, resposible, fair ad efficiet public service This will raise the morale of the geeral public. 1.8. Idicators of Successful Corruptio Prevetio Efforts The followig are idicators that corruptio prevetio efforts have bee successful. 1.8.1. Improved private sector activities i: (a) (b) (c) (d) maufacturig, commerce/trade, costructio, ad agriculture. 1.8.2. Improved ifrastructure leadig to: (a) better roads, railways, waterways, airways, ad (b) more efficiet commuicatio etwork. 1.8.3. Efficiecy i the delivery of public services, for example i: (a) (b) (c) (d) licesig ad regulatory services, healthcare, educatio, ad all extesio services. 1.8.4. Efficiet ad effective admiistratio of justice. 1.8.5. Respect for the rule of law. 1.8.6. Better persoal ad public safety ad security. 1.8.7. Reduced public complaits. 1.8.8. Reduced umber of corruptio cases for ivestigatio ad prosecutio. 1.8.9. Stable, predictable ecoomic policies ad patters (e.g. reliable

PSITP/Iteratioal Goverace Istitute iflatio rates, iterest rate forecasts ad treds). 1.9. Summary There is o comprehesive defiitio of corruptio. However, it is importat to recogise that corruptio ca be foud i all spheres of life ad that all forms of corruptio are evil ad harmful. There are various factors, which have created loopholes, aveues ad opportuities for corruptio. Its effects are always egative. Prevetio has beeficial results, which ca be idetified. Urget attetio ad priority eed to be give to prevetio efforts if these beefits are to be realised.

PSITP/Iteratioal Goverace Istitute Module Two Corruptio Risk Assessmet ad Maagemet

PSITP/Iteratioal Goverace Istitute 2.1. Itroductio Corruptio risk assessmet ad maagemet is a essetial part of a orgaisatio's corruptio maagemet pla. 2.2. Geeral Objective The geeral objective of this Module is to eable the participat to idetify areas proe to corruptio i the workplace, ad to assess ad maage risks. 2.3. Specific Objectives By the ed of the Module, the participat will be able to: (a) explai what corruptio risk assessmet ad maagemet etails; (b) explai the importace of risk assessmet ad risk maagemet at the workplace; (c) idetify orgaisatioal systems, procedures, ad operatios that are most vulerable to corruptio; (d) outlie ad discuss guidelies for corruptio risk assessmet i the orgaisatioal systems, procedures ad operatios; ad (e) outlie ad discuss guidelies for corruptio risk maagemet. 2.4. Role of Risk Assessmet ad Risk Maagemet Risk assessmet ad risk maagemet play a very importat role i the corruptio prevetio pla. They ivolve: (a) idetifyig what may go wrog i a orgaizatio whe corruptio occurs; (b) idetifyig the areas of the orgaizatio that are most vulerable to corruptio; ad (c) puttig together procedures ad systems to seal ay loopholes that may allow corruptio to take place. 2.4.1. Risk assessmet Risk assessmet is importat i a orgaizatio because it will assist the maagemet to idetify: (a) the areas where corruptio might occur i the orgaisatio, (b) the degree of likelihood of it happeig, (c) the likely cosequeces of corruptio if it occurs i the orgaizatio. These may iclude: i. fiacial risks, ii. public embarrassmet, ad iii. waste of time ad resources i dealig with corrupt coduct. 2.4.2. Risk Maagemet Risk maagemet ivolves comig up with policies ad procedures to seal off the corruptio loopholes i order to prevet or elimiate corruptio.

PSITP/Iteratioal Goverace Istitute 2.5. Potetial Risk Areas The followig are examples of potetial risk areas i may orgaisatios/departmets. 2.5.1. Persoel Ofte, persoel preset the highest risk factor of a orgaisatio. 2.5.1.1. Selectio, Recruitmet, Promotio ad Career Developmet Some orgaisatios do ot have proper laid dow procedures, rules ad regulatios o the selectio, recruitmet, promotio ad career developmet of their staff. Where they exist, they are at times igored deliberately. This may result i: i. wrog selectio of persoel, ii. choices made because of favouritism, iii. epotism, iv. tribalism, v. discrimiatio agaist deservig staff, vi. political patroage ifluecig choice of staff to be recruited or promoted, vii. wrog attitude towards work (by those wrogly recruited or promoted), viii. over-employmet, ix. iefficiecy at all levels, x. haphazard promotio i disregard of acceptable criteria, ad xi. usatisfactory career developmet for deservig staff. 2.5.1.2. Traiig ad Reward System If cosideratio for traiig is ot based o ay laid dow procedures this may result i: ieffective traiig programmes, favouritism i selectio of cadidates for traiig, ad rewardig udeservig cases. 2.5.1.3. Disciplie ad Discipliary Actio This is a high risk area ad proe to corruptio. For example, discipliary actio meted out selectively leaves workers i doubt as to its effectiveess ad usefuless. 2.5.1.4. Irregular paymets Irregular paymets may occur as a result of: i. poorly maitaied records, ii. lack of supervisory checks i the payroll, iii. flawed systems, ad iv. overpaymet of salaries ad allowaces.

PSITP/Iteratioal Goverace Istitute 2.5.2. Iformatio System Today, most orgaizatios have computerized their systems ad operatios. For that reaso there is eed to devise ways ad meas of restrictig u-authorized access to classified iformatio i order to prevet: (a) uauthorized access to stored iformatio, (b) deletio of sesitive materials, ad (c) u-authorized use of the iformatio system (this could further remove the risk of uauthorized users itroducig elemets that may destroy the system, for example with a computer virus). 2.5.3. Registry The registry holds very importat records of ay orgaizatio. As such, it is a area proe to corruptio. There is eed to protect registries agaist: (a) uauthorized access, (b) theft of files, (c) deliberate misplacemet of files, (d) destructio of files by such thigs as fire ad water, (e) ulawful destructio of classified iformatio, ad (f) tamperig with records. 2.5.4. Supplies ad Procuremet This is a high risk area ad proe to corruptio. Therefore, i every orgaizatio there should be clear ad adequate procedures to esure trasparet ad impartial hadlig of: (a) (b) (c) (d) teders ad teder documets, cotracts ad cotract processes, acquisitio ad disposal of assets, ad hire of public resources for private use. I additio to the above, there should be guidelies o how to hadle gifts ad beefits. The orgaisatio should declare to suppliers ad cliets that gifts are prohibited. The staff should adhere to the orgaisatio's rules ad regulatios which prohibit receivig gifts ad other beefits. 2.5.5. Licesig Procedures The followig are potetially high risk areas for corruptio activities i a orgaizatio or departmet. This is because of the provisios allowig the use of discretio. Discretio ofte leads to corruptio ad abuse of office especially i areas such as: (a) registratio of motor vehicles,

PSITP/Iteratioal Goverace Istitute (b) registratio of societies ad compaies, (c) issuace of passports, (d) registratio of persos, (e) registratio of births ad deaths, (f) issuace of lad title deeds, (g) issuace of trade liceses, ad (h) issuace of firearm certificates. I order to miimize risks i ay oe of the above areas, the orgaisatio requires a effective code of coduct or policy to guide its employees. 2.5.6. Fiacial Systems Fiacial risk areas ad operatios i ay orgaizatio may iclude: (a) paymet for goods ad services, (b) imprest allocatio, (c) petty cash, (d) travellig ad accommodatio, (e) trasfer allowaces, (f) subsistece allowaces, (g) cash doatios, sposorship ad harambee cotributios, ad (h) direct theft from the cash office or reveue received. The orgaisatio should, therefore, put i place clear measures of hadlig each of the above issues to miimize the risks. Where possible, all paymets should be by cheque. 2.5.7. Sposorship by Private Sector Private sector sposorship to the public sector is a way of buyig goodwill ad forms part of the private sector's marketig strategy. Sposorship is likely to be abused ad may lead to corruptio. It is importat for orgaisatios to have sposorship policies ad procedures, which make sure that hoesty ad itegrity are built ito the decisiomakig process. The sposorship policies should clearly spell out: (a) the aims ad objectives of sposorship, (b) ethical issues to be cosidered before sposorship is accepted, (c) moitorig ad reportig procedures, (d) accoutability mechaisms, ad (e) evaluatio methodology. 2.5.8. Use of Equipmet ad Resources Orgaisatios should develop guidelies o the use of public equipmet for private use i the followig corruptio risk areas:

PSITP/Iteratioal Goverace Istitute (a) office statioery & equipmet (b) motor vehicles, (c) telephoes, ad (d) private hire of orgaisatioal resources ad persoel. I ackowledgig that the above are high corruptio risk areas that are easily exploited, orgaisatios must put i place effective policies to seal corruptio loopholes/ opportuities ad to hadle ay malpractices. 2.5.9. Uwritte/Ambiguous Policy ad Authority Orgaisatioal performace ad effectiveess have bee adversely affected by the applicatio of uwritte/ambiguous policies ad authority such as: (a) Orders from "above", (b) Verbal istructios ot based o orgaizatioal policy, (c) Political iterferece i appoitmets, promotios, trasfers, puishmets, awards, dismissal of members of staff, (d) "Natioal outlook regioal balace" requiremet, (e) Egagemet of public servats i private busiess, ad (f) Lack of role model(s). Orgaisatios should have a clear writte policy to address all the areas above ad ay others that relate to work. The policy should be kow by all staff, irrespective of positio. 2.6. Guidelies For Corruptio Risk Assessmet There are several major elemets or steps you eed to follow while udertakig a corruptio risk assessmet, which we shall discuss ow. 2.6.1. Idetifyig the Major Fuctioal Areas Classify the mai busiess areas of the orgaisatio such as: (a) Registry, (b) Typig pool, (c) Telephoe exchage, (d) Computer room, (e) Supplies, (f) Accouts, (g) Cash office, ad (h) Trasport ad maiteace office. The corruptio risks will differ depedig o the fuctios performed i ay particular area of the orgaizatio.

PSITP/Iteratioal Goverace Istitute 2.6.2. Idetifyig risks for each fuctioal area ad assessig the extet of the risks Havig idetified the fuctioal areas of your orgaizatio, your ext step will be to look at each oe of them ad ote what possible risks they may carry. The aim here is to geerate a list of all possible risks i the orgaisatio ad clearly documet what each oe ivolves. The staff should uderstad exposure ad risk factors relevat to the systems, fuctios ad operatios i their area of work. Compare what other orgaisatios with similar fuctios have doe successfully ad use the fidigs as examples to help develop your ow list. Alteratively, coduct a physical security survey ad attempt to aswer the followig questios: (a) What could go wrog? (b) Why could it go wrog? (c) What cosequeces could there be if it wet wrog? (d) What areas of the orgaizatio may be vulerable? 2.6.3. Idetifyig resposes to risk areas There are three (3) broad strategies of dealig with risks ad their cosequeces: (a) Risk prevetio ad detectio: Try to elimiate sources ad aveues of corruptio, ad (b) Impact mitigatio: Aim at miimizig cosequeces of the risk. (c) Risk acceptace. Accept the risk, either because it caot be avoided or the costs of doig so would ot be worthwhile. 2.6.4. Selectig the best respose Cosider the relative effectiveess ad costs of differet optios for maagig specific risk areas..7. Guidelies for Corruptio Risk Maagemet I formulatig guidelies, the followig steps eed to be observed: 2.7.1. Developig risk actio schedules Develop risk actio schedules for each area of risk. I the schedule specify: (a) who is resposible for implemetig ad moitorig the chages or improvemet, (b) the time frame to be followed, ad (c) what maagers should do to esure that the pla is feasible.

PSITP/Iteratioal Goverace Istitute 2.7.2. Documetig a risk maagemet pla The risk maagemet pla should be clearly documeted ad should iclude the followig: (a) the risk maagemet process, (b) methods to be used i coductig the risk assessmet, (c) strategies to be used to reduce ad cotrol risk ad how these strategies will be implemeted, (d) time frames, (e) reportig requiremets, (f) traiig programmes to be provided to staff, ad (g) how the orgaizatio plas to implemet its ati-corruptio programmes. 2.7.3. Implemetig the risk maagemet pla I order for the pla to be workable: (a) all staff should be ivolved i the risk maagemet process, (b) the pla should be clearly explaied to the staff, cotractors ad suppliers, (c) a iteral reportig system should be put i place, ad (d) a database for storage of corruptio reports ad statistics should be provided. 2.7.4. Reviewig ad Evaluatig The risk maagemet pla ad its implemetatio have to be regularly reviewed to reflect ay chages. Moitor the effectiveess of your risk maagemet strategies. State clearly who is resposible for moitorig the pla ad how ofte the review will be carried out. 2.8. Checklist For Risk Assessmet Ad Maagemet The followig checklist will help you to determie the progress you have made i coductig corruptio risk assessmet ad maagemet, ad highlight areas that eed attetio: is there up-to-date iformatio about the risks of corruptio i each area of your orgaisatio? Have the risks i each area bee assessed ad raked? Have you evaluated existig system cotrol(s)? Have you cosidered the relative effectiveess ad cost of differet optios for maagig specific risk areas? Have you developed risk actio schedules to maage priority risks?

PSITP/Iteratioal Goverace Istitute Is there a clearly documeted risk maagemet pla? Does the pla iclude details of how the risk assessmet was doe ad the strategies to be used to reduce ad cotrol corruptio risks i the orgaisatio? Has the risk maagemet pla bee preseted to ad edorsed by seior maagemet? Has your orgaisatio established a database to store corruptio reports ad statistics? Are resources available to implemet fully the risk maagemet pla? Is the effectiveess of the risk maagemet strategies regularly moitored? Are risk assessmet strategies reviewed every 3 to 5 years? Do members of the public have quick ad easy access to iformatio that they are etitled to? Is access to cofidetial iformatio strictly limited? Has the orgaizatio developed ad implemeted policies ad procedures for protectig cofidetial iformatio? Do the staff uderstad ad follow correct procedure for usig passwords? Do your computer systems provide full audit trails? Are all staff aware of the eed for ethical coduct i the hadlig of persoal ad cofidetial iformatio?

PSITP/Iteratioal Goverace Istitute Module Three: Developmet of a Corruptio Prevetio Pla Module Three Developmet of a Corruptio Prevetio Pla

PSITP/Iteratioal Goverace Istitute 3.1. Itroductio So far, we have oted that corruptio is a scourge which has eate ito the fabric of our society. Just as is the case with ay other disease, prevetio is always better ad cheaper tha cure. To stop further spread of corruptio, we should put i place prevetive measures to miimise ad to evetually elimiate it. 3.2. Geeral Objective The geeral objective of this Module is to sesitise participats ad to promote itegrity ad ethical behaviour i their departmets through a corruptio prevetio pla. 3.3. Specific Objectives By the ed of the Module, the participats should be able to: (a) defie the term "corruptio prevetio pla", (b) discuss the importace of a corruptio prevetio pla, (c) explai the factors to be cosidered i the developmet ad implemetatio of a corruptio prevetio pla, (d) outlie guidelies ad strategies for corruptio prevetio pla developmet, ad (e) outlie the poits to cosider whe reviewig ad evaluatig corruptio prevetio. 3.4. Defiitio of a Corruptio Prevetio Pla We ca defie a corruptio prevetio pla as efforts ad resources directed towards sealig loopholes that iduce corruptio. This also icludes devisig strategies to chage orgaisatioal features that allow corruptio to occur, ad remai uoticed or ureported. The pla focuses o existig roles, resposibilities ad policies, ad sets priorities for ay ecessary improvemets ad chages. 3.5. Importace of Corruptio Prevetio It is importat that each orgaisatio ad govermet departmet develops their ow corruptio prevetio pla. This pla will esure that persistet ad cosistet corruptio prevetio iitiatives are maitaied i the orgaisatio. This will, i tur result i: (a) (b) (c) (d) (e) (f) better provisio of services, better ifrastructure, improved health ad educatio services, improved security, icreased employmet, better remueratio, reduced poverty,

PSITP/Iteratioal Goverace Istitute (g) (h) (i) (j) improved profitability i agriculture, idustry, reduced taxatio, better reveue collectio, overall ecoomic improvemet, ad higher stadards of livig. 3.6. Factors to Be Cosidered i the Developmet ad Implemetatio of a Corruptio Prevetio Pla Factors to be cosidered whe developig ad implemetig a corruptio prevetio pla iclude the followig: (a) role of maagemet (b) role of staff (c) resources required (d) etworkig. We shall ow discuss each oe of these factors i some detail. 3.6.1. Role of Maagemet The maagemet should be aware of the importace of the corruptio prevetio pla ad the eed to commit resources ad efforts i order to develop ad sustai it. Maagers with particular resposibilities for the developmet ad implemetatio of a corruptio prevetio pla eed to kow: (a) what their specific resposibilities are, ad (b) the time frame for implemetig the resposibilities. 3.6.2. Role of Staff Staff ivolvemet whe developig the pla is importat because: (a) members of staff are i a better positio to idetify where corruptio opportuities exist ad how they ca be miimized (b) they ca ow the pla ad make sure that the documet is realistic ad effective. (c) the corruptio prevetio pla is more likely to work effectively if staff: process, ii. i. have bee part of the formulatio ca see the beefits of the pla for iii. ca clearly tell that maagemet is serious about prevetig corruptio. 3.6.3. Resources The allocatio of sufficiet resources is essetial to the success of a corruptio prevetio pla. The maagemet should make time, provide the ecessary support for all corruptio prevetio iitiatives, make good use of their ifluece i the orgaizatio ad be able to ecourage the rest of the staff to fulfil their resposibilities.

PSITP/Iteratioal Goverace Istitute To be able to develop ad implemet a cost-effective pla: (a) there must be total commitmet from the top, ad (b) sufficiet resources must be allocated. 3.6.4. Networkig There should be etworkig i areas or uits withi the orgaisatio ad also with other orgaisatios for the purpose of: (a) (b) (c) sharig expertise, discussig issues, ad poolig ideas. 3.7. Guidelies For Developig a Corruptio Prevetio Pla The guidelies should be tailored to the orgaisatio's ow iteral ad exteral eviromets ad the level, ature ad forms of corruptio risks it may be exposed to. They must be eeds-based, cost-effective ad itegrated ito the wider comprehesive policy of the orgaisatio. The guidelies should iclude: (a) improvig systems, cotrols, practices ad procedures so that corruptio loopholes are sealed, (b) chagig the attitudes ad behaviour of staff, for example, through strict adherece to the Code(s) of Coduct, (c) icorporatig a corruptio prevetio focus i the existig cultures, policies ad procedures, (d) icreasig accoutability of staff, (e) ecouragig ad promotig more effective admiistratio, (f) tighteig security arragemets/measures i various operatioal areas or procedures, ad (g) settig a timetable for developig ad implemetig corruptio prevetio strategies. 3.8. Strategies for Developig a Corruptio Prevetio Pla The followig strategies are ecessary i the developmet of a corruptio prevetio pla. 3.8.1. Comprehesive ad itegrated policy Develop ad distribute a comprehesive ad itegrated policy o corruptio prevetio. The policy should: (a) outlie the orgaisatio's positio o corruptio, (b) set aims ad objectives, (c) draw together existig policies ad procedures that relate to corruptio

PSITP/Iteratioal Goverace Istitute prevetio, ad (d) outlie where further work eeds to be doe to miimise corruptio risks. 3.8.2. Resposibilities Clearly defie who is resposible for prevetig ad detectig corruptio i your orgaisatio ad for implemetig differet aspects of the corruptio prevetio pla. The iteral audit or fraud prevetio uits of the orgaisatio have a sigificat role to play i corruptio prevetio, but this does ot reduce i ay way the resposibilities of other maagers ad staff. The roles of the maagemet, the corruptio prevetio committee ad the Ati-Corruptio Programme Coordiator are outlied below. 3.8.2.1. Maagemet The maagemet should ackowledge that corruptio does exist ad may occur withi their areas of resposibility. They should also appreciate the beefits of corruptio prevetio strategies ad esure their implemetatio as a way of improvig orgaisatioal performace. The resposibilities of maagemet should iclude: i. corruptio prevetio ad detectio, ii. iii. settig ethical stadards ad providig staff with guidace ad support, ad settig up a corruptio prevetio committee made up of key persoel from differet areas of the orgaisatio. 3.8.2.2. Corruptio Prevetio Committee The Accoutig/Authorized Officer/Chief Executive will head the Committee. Membership ad compositio will be as follows: Chairma - Accoutig /Authorized Officer/Chief Executive Members - Heads of Departmets Secretary - Itegrity Assurace Officer The Committee mayl have the followig resposibilities amog others: i. settig priorities i the prevetio of corruptio; ii. esurig all corruptio prevetio iitiatives are itegrated withi the orgaisatio; iii. receivig ad reviewig reports o corruptio prevetio iitiatives ad recommedig appropriate actio, iv. co-ordiatig corruptio prevetio strategies; v. cosiderig ad approvig iteral traiig o the Public Service Itegrity Programme for staff withi the orgaisatio so that they are able to

PSITP/Iteratioal Goverace Istitute vi. fulfil their corruptio prevetio resposibilities; ad esurig that all decisios ad policies o corruptio prevetio are commuicated effectively to all levels of staff. 3.8.2.3. Itegrity Assurace Officer A officer i the orgaisatio shall be selected traied ad assiged duties of offerig techical expertise to the orgaisatio o implemetig corruptio prevetio activities. This officer should be well iformed o curret issues o corruptio prevetio. The officer will have the resposibility of assistig the Chief Executive ad the Corruptio Prevetio Committee to: i. carry out corruptio risk assessmet ad iitiate actio i respose to corruptio risk assessmets, ii. establish a timetable for implemetig corruptio prevetio strategies ad moitorig progress, ad iii. coordiate ad facilitate the implemetatio of corruptio prevetio programmes. 3.8.3. Corruptio Risks Review all fuctios ad operatios ad assess the ature ad level of corruptio risks i each area. I order to prepare a proper corruptio prevetio pla, a review of all fuctios ad operatios should be carried out to assess the ature ad level of corruptio risks. 3.8.4. Staff Awareess Programme Develop a awareess raisig programme, focusig o the staff uderstadig of ad commitmet to corruptio prevetio. Whe formulatig the programme, the followig should be cosidered: (a) staff should kow the stadard of behaviour expected of them, the cosequeces if they do ot comply with the stadards, their resposibilities to report corrupt coduct ad the procedure for doig this; ad (b) staff at all levels eed to play a part i cotiually tryig to improve the practices, procedures ad systems of the orgaisatio ad i promotig a ethical culture at the workplace.. 3.8.5. Customer Awareess Programme Promote awareess amog customers, cliets, collaboratig istitutios, ad parters o corruptio prevetio. The commuity should be made aware: (a) that corruptio withi the orgaisatio is ot acceptable, (b) that complaits made will be dealt with appropriately, (c) of the services or goods it offers, at what time ad place, costs, coditios,

PSITP/Iteratioal Goverace Istitute ad (d) of the achievemets realized as a result of corruptio prevetio. 3.8.6. Reportig Systems Develop effective iteral ad exteral reportig systems. Oce set up, these systems will esure articulatio of the reportig procedures ad guaratee protectio. 3.8.7. Policies ad Procedures for Suspected Corruptio Develop expertise ad appropriate policies ad procedures for hadlig ad ivestigatig suspected corruptio. The purpose of these policies ad procedures is to: (a) detect, ivestigate ad hadle suspected corruptio competetly, (b) establish a secure database to store corruptio reports ad statistics, ad (c) idetify patters which could idicate systems weakesses. 3.8.8. Likig the Corruptio Prevetio Pla Formalise ad documet a corruptio prevetio pla ad explicitly lik it to other orgaisatioal plas. The pla should iclude details such as: (a) the orgaisatio's policy o corruptio prevetio, (b) the methods used to assess the risks of corruptio withi the orgaisatio, (c) the corruptio prevetio strategies to be used to reduce ad cotrol the idetified risks, (d) the resposibilities that various members of staff have i the implemetatio of these strategies, (e) the policies that eed to be developed or ameded, (f) time frames ad resources eeded, (g) reportig requiremets, (h) traiig ad awareess raisig programmes to be provided for staff, ad (a) moitorig ad evaluatio strategies. The corruptio prevetio pla must be supported ad edorsed by the maagemet as it belogs to them. 3.9. Review of the Corruptio Prevetio Pla Policies ad procedures of the corruptio prevetio pla should be regularly reviewed ad updated to esure that they: (a) (b) (c) are clear, iclude adequate accoutability mechaisms, ad are sufficietly corruptio resistat. 3.10. Checklist For Corruptio Prevetio Plas The followig is a checklist that will help you assess the curret situatio i your orgaisatio ad assist you i successful developmet ad/or implemetatio of corruptio prevetio plas.

PSITP/Iteratioal Goverace Istitute Does your orgaisatio have a comprehesive ad itegrated policy o corruptio prevetio? Does the policy clearly defie the level at which each staff member is resposible for corruptio prevetio? Have you ivolved executive, operatioal maagers ad staff i the developmet of the corruptio prevetio pla? Has a rage of appropriate corruptio prevetio strategies bee developed ad implemeted i respose to idetified eeds? Has the orgaisatio implemeted a corruptio awareess ad culture chage programme? Have you assessed the effectiveess ad impact of this programme? Does the orgaisatio have a corruptio prevetio pla which has bee approved ad supported by seior maagemet? Do you have clear procedures for reportig corrupt coduct to exteral authorities? Are there procedures for hadlig the iitial ivestigatio of suspected corruptio? Do the orgaisatio's policies ad stadards o disciplie complemet ad support the corruptio prevetio pla? Does the orgaisatio have a secure database for corruptio reports? Do you iclude iformatio about corruptio prevetio i the orgaisatio's reports? Are all corruptio prevetio strategies regularly reviewed, evaluated ad ay ecessary improvemets or amedmets made?

PSITP/Iteratioal Goverace Istitute MODULE FOUR Orgaizatioal Culture ad Ethical Behaviour

PSITP/Iteratioal Goverace Istitute 4.1. Itroductio This Module looks at the meaig of orgaisatioal culture ad behaviour, the meaig of ethics ad itegrity, how a orgaisatioal culture evolves ad how it ca be maaged. 4.2. Geeral Objective The geeral objective of this Module is to eable staff to create positive orgaisatioal culture ad behaviour. 4.3. Specific Objectives By the ed of this Module the participat will be able to: (a) defie the terms: i. orgaizatioal culture, ad ii. ethics, (b) describe how orgaisatioal culture evolves, (c) list dow factors that affect orgaisatioal culture, (d) explai the effects of orgaisatioal culture ad behaviour o performace, (e) poit out what costitutes ethical behaviour i a orgaisatio, ad (f) list dow the guidelies i maagig orgaisatioal culture ad behaviour. 4.4. Defiitio of Operatioal Terms I this Module we are goig to discuss the terms "orgaisatioal culture" ad "ethical behaviour". We eed to be able to iterpret these terms i a similar way to avoid misuderstadig. Therefore/we shall begi by defiig these terms. 4.4.1. Orgaisatioal Culture A orgaisatioal culture ca be described as a set of uderstadigs, values, beliefs, assumptios, attitudes or meaigs shared by a group of people, to produce behavioural orms i that orgaisatio. 4.4.2. Ethics Ethics ca be said to be a set of stadards of what is right or wrog agaist which we base our decisios. I the work place, there are certai behaviours, which could be termed ethical or uethical. The ethical culture of a orgaisatio, that is, its shared uderstadigs, values, beliefs, assumptios, attitudes ad meaigs, operate i a variety of levels, ad are used by idividuals or groups to make decisios, to justify these decisios, ad to evaluate outcomes. 4.5. How a Orgaisatioal Culture Evolves The process of creatig, shapig, ad embeddig a culture is simultaeously a teachig ad a learig process.

PSITP/Iteratioal Goverace Istitute The fouders of a orgaisatio, or the top-level maagers typically form a core group that shares a commo visio. They the become the prime movers i creatig the orgaisatio's culture. As ew members joi the orgaisatio, they pick up the attitudes ad practices that have bee already established, that is, they follow the sayig, "Whe i Rome, do as the Romas do". Thus, a orgaisatio's culture is the direct or idirect result of actios take by the fouders or top-level maagers. It may be positive or egative i character. Some of the egative orgaisatioal practices that exist i the public service ad which have developed ito a recogisable culture are: (a) usig of public offices for persoal gai, (b) lack of commitmet to work, (c) givig ad receivig bribes, (d) lateess ad uauthorized abseteeism, (e) epotism ad tribalism, (f) appoitmets based o other cosideratios, rather tha merit, (g) disregard or dowplayig of formal structures, rules, ad regulatios, (h) emergece of powerful iformal "kow - who" ad "Godfather" etworks, ad (i) myths of losig oe's job if oe does ot succumb to requests which violate rules ad regulatios. 4.6. How to Idetify Orgaisatioal Culture The followig are some guidelies which ca be used to idetify a orgaisatio's culture: (a) examie the orgaisatio's visio, missio ad core values, (b) review all orgaisatio's documets such as aual reports, ewsletters ad policy papers, (c) look at iterview records ad correspodeces, (d) hold discussios with a rage of staff to give them opportuities to raise ad discuss irregularities, (e) use writte questioaires to fid out about geeral attitudes towards corruptio, ad (f) observe ad ote how staff feel, thik, ad act about various orgaisatioal issues such as promotio, procuremet ad so o. 4.7. Factors Affectig a Orgaisatio's Culture We eed to istitute best practices i our work place i order to positively ifluece the culture of our orgaisatios. Some of the factors that should be addressed i order to ehace a positive orgaisatioal culture are: (a) the ature of work performed by the idividual i the orgaisatios workig coditios, (b) remueratio packages,

PSITP/Iteratioal Goverace Istitute (c) job satisfactio/dissatisfactio, (d) idividual persoality, (e) peer ifluece, (f) leadership styles, (g) maagemet practices, (h) commuicatio, (i) policy o ethical stadards, (j) missio statemets, objectives, ad (k) orgaisatioal structures. 4.8. How Orgaisatioal Culture ad Behaviour Affect Performace The ethical stadards of a orgaisatio's culture have a impact o staff i various ways, for example i: job satisfactio, commitmet, stress ad turover. The ature of the orgaisatioal culture may also help or obstruct the implemetatio of policies ad procedures. This is because the culture of the orgaisatio: (a) iflueces employees' behaviour through eforcig already existig patters, whether positive or egative; (b) iflueces the employees' behaviour through the stadards that have bee set, whether high or low; (c) iflueces orgaisatioal strategies, itegratio of techologies, itergroup coflicts, commuicatio, ad socialisatio; (d) iflueces the degree of aalysis ad uderstadig of orgaisatioal dyamics; (e) determies how orgaisatios solve their problems of iteral itegratio; ad (f) determies how orgaisatios solve their problems of exteral adaptatio. The combiatio of all these factors will have either positive or egative ifluece o the overall performace of the employees. 4.9. Maagig Orgaisatioal Culture ad Behaviour Oce a orgaisatioal culture begis to develop, a umber of practices help to solidify the acceptace of core values ad maiteace of the culture. These practices ca be described i terms of socialisatio steps as follows: (a) selectio at etry - careful selectio of ew employees ito the orgaisatio; (b) placemet o the job - careful deploymet of staff to esure ew persoel acquire the right values ad behaviour; (c) measurig ad rewardig performace - appraisal of staff should be tied to performace;

PSITP/Iteratioal Goverace Istitute (d) adherece to importat values - employees should adhere to ad idetify with core values of the orgaisatio; (e) reiforcig traditios that promote the values of the orgaisatio; ad (f) recogitio ad promotio - recogitio of idividuals who do well i their jobs ad promotig them. 4.10. Positively Ifluecig Orgaisatioal Culture ad Behaviour Where there is eed to chage or ifluece orgaisatioal culture ad behaviour, the followig guidelies may be cosidered: (a) assess the curret culture, (b) provide a clear picture of what you wat to "prue", ad what you wat to "grow", that is, the ew culture, (c) capture, build ad maitai a loyal core group of adherets to the ew culture, that is, those with a shared midset o aspects of the curret culture that must chage ad those who hold similar perceptios about the ew culture, (d) recruit persoel with values ad attitudes that would ehace the ew culture, (e) make chages from the top dow - obtai a commitmet of key top maagers, (f) iclude all employees i the culture chage process, (g) remove those thigs that remid persoel of the previous egative culture, (h) (i) (j) (k) (I) expect to have some problems - ecourage those people who would rather leave tha chage with the ew culture to move out, quickly defuse resistace to the ew culture, visibly reward the pioeers who embrace the ew culture, remai firm ad persistet, ad allow expressios of ostalgia ad grief for the past; the create excitemet about the ew culture - that is, zero tolerace for corruptio. 4.11. What Costitutes Ethical Behaviour i a Orgaisatio The followig are examples of ethical behaviour whe orgaisatioal culture has bee chaged positively. (a) hoesty, for example, whe makig fiacial claims (b) puctuality ad commitmet to work (c) readiess to declare coflict of iterest (d) readiess to strictly follow laid dow procedures (e) moral uprightess - o idulgece i immoral behaviour (f) selflessess (g) objectivity (h) accoutability (i) willigess to declare assets

PSITP/Iteratioal Goverace Istitute (j) adherece to Codes of Coduct (k) trasparecy/opeess (I) refusal to participate i ay form of corruptio (m) readiess to report istaces of corruptio () Respect for authority ad idividuals. 4.12. Checklist for Aalysig ad Maagig Orgaisatioal Culture ad Behaviour The followig ca be used as a checklist whe determiig the orgaisatioal culture ad behaviour i your departmet, ad comig up with itervetio measures. a a a a a Ca you describe the culture of your departmet? Does your departmet have idetifiable values ad attitudes? Are there differet subcultures i the departmet with differet ideas about ethical behaviour? Does the culture of the departmet support the corruptio prevetio goals you are tryig to achieve? Have you reviewed all existig policies which may have a impact o ethical behaviour? Does your departmet have a Code of Ethical Coduct? Have you documeted your objectives for a culture chage i your orgaisatio? Have you thought how these objectives apply to various groups withi the departmet? Do you have ay methods of gettig your key messages across to your staff, other stakeholders ad customers/cliets? Have you developed ay traiig sessios or held ay groups discussios o orgaisatioal culture ad ethical behaviour? Have you evaluated how effective your strategies have bee i developig ad promotig a ethical culture?

PSITP/Iteratioal Goverace Istitute MODULE FIVE Code of Coduct - Developmet ad Implemetatio

PSITP/Iteratioal Goverace Istitute 5.1. Itroductio Public servats are expected to perform their duties efficietly, effectively, fairly ad with itegrity. Ufortuately, there is a lot of evidece of uethical behaviour i the public service which has led to a public outcry i may places i the world. It is, therefore, ecessary to develop ad adopt istitutioal ad departmetal Codes of Coduct to guide public servats i dealig with ethical problems. This will ultimately prevet corruptio or miimize it. A istitutioal ad departmetal Code of Coduct should complemet other professioal codes of ethics, or broader Codes of ethics or rules ad regulatios such as the Civil Service Code of Regulatios. 5.2. Geeral Objective The geeral objective of this Module is to trai the participats o how to develop ad implemet a Code of Coduct for their orgaisatio. 5.3. Specific Objectives By the ed of this Module the participats will be able to: (a) defie the term Code of Coduct, (b) explai the fuctios of a Code of Coduct, (c) outlie the guidelies for developig a Code, (d) come up with steps o how to implemet a Code of Coduct, (e) outlie methods for promotig the Code, ad (f) state the eed for a regular review of the Code. 5.4. Defiitio of a Code of Coduct A Code of Coduct is a set of rules ad guidelies that gover the behaviour of members of staff i a orgaisatio. It is a framework withi which members of staff bid themselves i regard to their work coduct ad behaviour. While a Code of Regulatios spells out the procedure, rules ad guidelies o how employees should carry out their duties ad resposibilities, their rights, limitatios ad remedies, a Code of Coduct deals with the behaviour of a idividual.

PSITP/Iteratioal Goverace Istitute 5.5. Fuctios of a Code of Coduct The fuctios of a Code of Coduct iclude: (a) providig a commo uderstadig of the orgaisatio's expectatios i regard to ethical coduct, (b) settig guidelies o expected behaviour, (c) reiforcig stadards of expected behaviour, (d) creatig awareess o shared values ad priciples that should gover attitude ad behaviour, ad (e) guidig members of staff o how to hadle coflicts of iterest. 5.6. Guidelies for Developig a Code of Coduct The followig are the steps i developig a Code of Coduct: 5.6.1. Idetifyig ethical problems The first step i the developmet of a Code of Coduct is to idetify all ethical problems withi the orgaisatio. These may iclude: (a) misuse of public property, (b) coflict of iterest, (c) epotism i recruitig, traiig ad promotig staff, (d) solicitig ad acceptig bribes, (e) receivig gifts, (f) makig false claims, (g) lack of professioalism, (h) failure to observe laid dow procedures ad regulatios i procuremet ad disposal of public goods ad assets, (i) misappropriatio of public fuds, ad (j) leakig cofidetial iformatio. 5.6.2. Determiig sources of iformatio Some of these sources are: (a) (b) (c) members of staff withi the orgaisatio through formal ad iformal discussios with each other; cliets ad members of the public through questioaires ad iformal discussios; Codes of Coduct from other orgaisatios for

PSITP/Iteratioal Goverace Istitute (d) compariso purposes; ad relevat literature i documets such as statutes ad regulatios already i existece. 5.6.3. Usig Appropriate Laguage ad Style Whe writig the Code of Coduct, esure that: (a) the laguage is simple, uderstadable ad positive. I particular, egative statemets such as "Discrimiatio will ot be tolerated" should be avoided. Istead, we should ecourage statemets such as "Hoesty will be supported". (b) the laguage brigs out the feelig of togetheress, of beig oe i a team, for example, i the use of "we", "us" ad "our" as show i the statemet "Our Code of Coduct applies equally to all of us i the orgaisatio". 5.7. Implemetatio of a Code of Coduct Havig developed a Code of Coduct, a orgaisatio requires a procedure for implemetig the Code. This will iclude: (a) (b) (c) (d) sesitisatio of staff through iteral circulars, meetigs ad posters. This is importat because it creates awareess; familiarizig seior maagers with the Code of Coduct to eable them deal with ethical problems ad discuss these with staff; makig seior maagers aware of the rage of sactios applicable i case of violatio of the Code. This will eable them eforce the Code; ad all members of staff sigig a statemet idicatig that they have read ad uderstood the cotets of the Code ad udertake to follow it. 5.8. Methods of Promotig the Code of Coduct Some possible promotio strategies are: (a) costat referece to the Code of Coduct by all staff to esure the Code is kept alive ad it cotiuously cotributes to the ethical culture of the orgaisatio; (b) seior maagers advocatig the values of the Code

PSITP/Iteratioal Goverace Istitute ad guidig the lower cadre by example. For example, puctuality would be take seriously by the juior staff if the seior maagers practise it themselves; (c) attachig a copy of the Code of Coduct to the Letters of Appoitmet to ew employees; (d) itroducig topics o the Code of Coduct durig iductio courses for ew employees. (e) (f) iformig cliets ad customers o the ethical stadards of the orgaisatio by puttig up posters ad otices i cospicuous places; availig the Code of Coduct to cotractors ad askig them to coduct busiess with staff of the orgaizatio i accordace with it; (g) sesitisig customers, cliets ad cotractors through posters ad otices o how ad where to make complaits whe eed arises; (h) (i) referrig to the Code of Coduct i staff ewsletters ad circulars; ad havig the Code of Coduct i both Eglish ad Kiswahili. 5.9. Reviewig ad Updatig the Code of Coduct There is eed to regularly review the Code of Coduct to esure it: (a) remais relevat to the eeds of the orgaisatio, (b) is well uderstood by all staff, (c) is practised by all staff, (d) has edurig ifluece o the ethical culture of the orgaisatio, ad (e) has achieved the desired effect withi the orgaisatio. The review should be udertake by all members of staff. 5.10. Checklist o the Code of Coduct The followig is a checklist that will help you assess the curret situatio i the developmet ad implemetatio of a Code of Coduct i your orgaisatio. Does your orgaisatio have a Code of Coduct?

PSITP/Iteratioal Goverace Istitute a a a Were all members of staff i your orgaisatio ivolved i developig your orgaisatio's Code of Coduct? Does your Code of Coduct cotradict other official statutes of the Civil Service? Does your Code of Coduct iclude relevat topics to meet the particular eeds of your orgaisatio? Does your Code give various examples ad guidace for dealig with ethical Is the Code writte i clear, simple ad uderstadable laguage? Is your Code writte i a persoalized ad positive style? Are the cotets of your Code clearly commuicated to all staff ad stakeholders o a regular basis? Are seior maagers actively ivolved i promotig the Code ad leadig by example with regard to ethical coduct? Is your Code actively reiforced throughout the orgaizatio? is your Code regularly reviewed as eed arises? Has the Code affected the ethical culture of your orgaisatio?

PSITP/Iteratioal Goverace Istitute MODULE SIX Persoel Maagemet

PSITP/Iteratioal Goverace Istitute 6.1. Itroductio Persoel maagemet is the optimum utilizatio of huma resources i order to attai orgaisatioal goals ad objectives. The complex ature of persoel fuctios, coupled with the geeral lack of checks ad balaces, have created aveues ad opportuities for corruptio i the public sector. This has impacted egatively o staff morale ad productivity. I this Module, the aveues ad opportuities for corruptio i the various persoel maagemet areas have bee discussed ad suggestios give o ways ad meas of sealig these loopholes i order to prevet corruptio. 6.2. Geeral Objective The geeral objective of this Module is to create awareess ad icrease resposiveess i addressig areas i persoel maagemet proe to corruptio. 6.3. Specific Objectives By the ed of the Module the participats will be able to idetify factors ad procedures that promote itegrity i the followig persoel maagemet areas: (a) huma resource plaig, (b) recruitmet ad selectio, (c) staff developmet, (d) performace maagemet, (e) compesatio, (f) staff motivatio, ad (g) discretio ad waivers. 6.4. Huma Resource Plaig Huma resource plaig is a forecast of quatity ad quality of huma resources required by a orgaisatio for a specified time. Lack of proper mapower plaig has give rise to overemploymet ad bloatig of the civil service. To correct this situatio, we eed to esure that the process of mapower plaig i the orgaisatio strictly takes ito accout the followig.

PSITP/Iteratioal Goverace Istitute 6.4.1. Needs Aalysis Needs aalysis should be carried out to determie the quality ad quatity of the required skills ad talets. Available expertise ad cosultats should be utilised. 6.4.2. Employmet Guidelies Employmet guidelies should be developed, which should have the followig characteristics: (a) the guidelies should be clear o the quality ad quatity of persoel eeded, (b) the differet types of skills required by the orgaisatio from time to time should be specified ad clearly explaied, ad (c) short-term, itermediate ad logterm plas should be put i place i order to safeguard agaist adhocwva uwarrated employmet. 6.4.3. Successio To esure smooth successio, the followig procedures must be strictly adhered to: (a) moitor staff due for retiremet to esure that people do ot go beyod the retiremet age, (b) (c) appoit officers to uderstudy servig officers who are about to retire to esure smooth successio, pay attetio to high turover areas to avoid creatig vacuums that attract corrupt practices, ad (d) all vacacies should be filled or froze. 6.5. Recruitmet ad Selectio Recruitmet ad selectio is comparable to a procuremet process ad must demostrate

PSITP/Iteratioal Goverace Istitute processes that are fair ad ope. Ay idicatio of bias costitutes corrupt coduct. The followig are suggestios of what should happe i various selectio procedures. 6.5.1. Job Specificatio ad Descriptio Esure that: (a) the job descriptio is objective, specific ad focused. It should ot be tailor-made to suit selfish iterests, ad (b) i the schemes of service, stadards should be ubiased ad cosistet. 6.5.2. Draftig ad Placemet of Advertisemets Whe draftig a advertisemet, esure that: (a) iterested parties do ot take part i the exercise to esure fairess, (b) the advertisemet coforms strictly to the job descriptio ad specificatio as stated i the relevat scheme of service, ad (c) a effort has bee made to attract the widest potetial field of applicats to allow for competitio ad impartiality. 6.5.3. Short listig Whe the applicatios have bee received, esure that: (a) the short listig criteria has bee predetermied ad is as trasparet as possible, (b) the short listig pael cosists of people of itegrity who hold relevat qualificatios i that field, ad (c) paellists with vested iterests declare those iterests ad disqualify themselves.

PSITP/Iteratioal Goverace Istitute 6.5.4. Iterviewig ad Selectio To esure impartial iterviews: (a) develop cosistet ad systematic procedures, ad (b) ivolve paellists who did the short-listig i the iterviewig process to esure that oly the short-listed cadidates atted. The iterviewig ad selectio coducted objectively. process must be 6.5.5. Placemet ad Deploymet Esure that each of the followig is doe: (a) placemet should esure that the right perso is placed o the right job. Improper placemet leads to low morale, hece creatig grouds for corruptio, Module Six : Persoel Maagemet (b) (c) (d) trasfers should ot be used to promote selfish iterest, but for improvig orgaisatioal performace, placemet should ot be used as a puishmet as this creates mistrust ad disillusiomet, ad trasfers should be maaged by a committee cosistig of officers of high itegrity. 6.6. Staff Developmet Traiig is a importat tool for the developmet of skills, kowledge ad attitudes. However, the process of allocatio of traiig ad developmet opportuities i the public service is ofte arbitrary ad proe to abuse. 6.6.1. Traiig Needs Assessmet Before embarkig o a traiig programme you eed to: (a) udertake proper eeds assessmet

PSITP/Iteratioal Goverace Istitute (b) to esure that existig performace gaps are addressed, ad there should be a traiig projectio to guide the exercise. 6.6.2. Iductio ad Orietatio Iductio ad orietatio are very importat i esurig that the ew members of staff uderstad the orgaisatioal culture. For this purpose you eed to: (a) (b) develop a comprehesive pla for iductig the ewly recruited employees ad orietatig the servig officers, ad remember that best practices are acquired through effective iductio ad orietatio. 6.6.3. Traiig Traiig should be: (a) coducted i the most ope ad accoutable maer to avoid ay misuse ad bias, (b) udertake i a ecoomical ad cost effective way for example local traiig versus overseas traiig, ad (c) geared to the realizatio of orgaisatioal goals ad objectives. Traiig, whether local or overseas, should ot be a moopoly of a select few e.g. where all overseas semiars, workshops ad meetigs are atteded by oly a few people. 6.6.4. Attachmet ad Exposure Here you eed to observe the followig: (a) exposure should be used to help the traiee acquire best practices ad to ifluece his/her attitudial chage, ad

PSITP/Iteratioal Goverace Istitute (b) precautio must be take ot to expose employees to udesirable iflueces. 6.7. Performace Maagemet Performace should have direct bearig o promotio, pay beefits, traiig ad disciplie. I most cases, performace moitorig i the public service teds to be arbitrary, thereby creatig opportuities for corruptio. The followig are suggestios o meas of prevetig corruptio i job evaluatio, stadards ad targets as well as i disciplie. 6.7.1. Job Evaluatio ad Appraisal Esure that: (a) (b) the istrumets for evaluatio are free from subjectivity ad ecourage participatory approach, ad targets are kow to both the appraisee ad appraiser before a evaluatio is carried out. 6.7.2. Stadards ad Targets For performace maagemet to be effective: (a) the orgaisatio must have prescribed stadards to gover performace ad behaviour ad promote best practices, ad (b) specific targets should be set for each level i the service, to avoid overlaps ad uderemploymet. 6.7.3. Disciplie I order to promote disciplie, you eed to remember that: (a) (b) disciplie is a tool for correctio ad rehabilitatio ad should ot be used arbitrarily, ad there should be a discipliary machiery which is ot cumbersome ad which does ot allow for

PSITP/Iteratioal Goverace Istitute maipulatio ad abuse. 6.8. Compesatio It is importat that istitutios take cogisace of duties ad resposibilities i each area ad compesate performace impartially. Here are some suggestios of how this ca be doe i the followig key areas. 6.8.1. Job Aalysis Before creatig a job vacacy, remember that: (a) (b) all job creatios must be preceded by thorough job aalysis to esure parity at all levels withi the orgaisatio/departmet, ad job descriptio should avoid overlaps to weed out idlers ad fix accoutability thus elimiatig opportuities for corruptio.

PSITP/Iteratioal Goverace Istitute 6.8.2. Salary Structures ad Salary Admiistratio I this respect, you eed to esure that: (a) the salary structures are desiged so as to address performace compesatio. However, the curret arragemet does ot address this problem ad has resulted i stagatio i some job groups causig dissatisfactio ad disaffectio i the service, (b) there are striget measures i salary ad payroll admiistratio i order to elimiate the icidece of "ghost workers", ad (c) all dormat persoal umbers are deleted to avoid misuse. 6.8.3. Pesios ad Retiremet Esure that: (a) pesio processig is prompt. This will elimiate delays ad discourage corruptio, (b) (c) there are ways of detectig "ghost" pesioers, ad retirees are accorded due respect ad recogitio for the service they redered to the atio durig their workig period. This should motivate the servig officers ad miimize temptatios for corruptio. 6.8.4. Other Beefits I additio to their mothly salary, public servats should receive some compesatio for housig ad medical expeses icurred. 6.8.4.1. Housig For the housig ad estates departmet you eed to: i. articulate the importace of merit ad opeess i the allocatio of govermet istitutioal housig to safeguard agaist corrupt practices ii. esure that disposal of govermet

PSITP/Iteratioal Goverace Istitute istitutioal houses is trasparet ad priority give to the officers already occupyig the property. 6.8.4.2. Medical Outpatiet medical allowace should be adequate to weed out bogus claims e.g. fakig admissios to qualify for ex-gratia paymets. 6.9. Staff Motivatio Best practices are sustaied i a eviromet where the workforce is highly motivated. The followig are suggestios of how staff ca be motivated. 6.9.1. Reward System A effective reward system recogises ad compesates best practices ad performace. Rewards should be fair to avoid suspicio ad mistrust. 6.9.2. Welfare Persoel Maagemet must give priority to the welfare of the employees. Failure to do this provides a justificatio for corruptio i the public service. Cosideratio for welfare beefits should be for all cadres. This will keep the staff motivated ad less proe to corruptio. 6.10. Discretio ad Waivers Applicatio of discretioary power has ecouraged partiality ad created opportuities for corrupt practices i the public service. The followig are examples of abuse of discretio ad waivers. 6.10.1. Schemes of Service I the scheme of service waivers should be defied objectively to avoid discrimiatio ad suppressio i employmet ad promotio. 6.10.2. Retetio i the Service There is o specific criteria goverig retetio i the service beyod the madatory retiremet age. As a result, arbitrary ad uethical decisios are made i disregard of best

PSITP/Iteratioal Goverace Istitute practices. Arbitrary discretio i retetio deies the upcomig officers the opportuity to rightfully succeed, thereby creatig a crisis i the service. 6.10.3 Appoitmet o Cotract ad Cosultacy Basis Cotract ad cosultacy appoitmets should be ope ad trasparet to avoid malpractices. 6.10.4 Leave Corruptio proe types of leave i the public service iclude the followig: (a) (b) (c) upaid leave, aual leave commutatio for cash, ad study leave. There is o proper criteria to determie, for example, whe aual leave commutatio is applicable, which leaves the officers at the mercy of the boss ad creates fertile grouds for corruptio to take place. 6.10.4. Allowaces Allowaces i the public service iclude the followig: (a) special duty allowace, ad (b) actig allowace The above allowaces have bee used to block ad frustrate substative appoitmets, thereby creatig opportuities for selfish gais, for example cotiuatio of actig allowaces istead of fillig the posts. Actig appoitmets have bee used to give udue advatage to udeservig cases givig rise to supersessio. For example, there are cases where two promotios have bee give to oe perso withi oe year.

PSITP/Iteratioal Goverace Istitute 6.11. Checklist for Persoel Maagemet The followig checklist will help you assess the curret situatio at your work place, ad come up with itervetio measures. 6.11.1. Huma Resource Plaig Is there a huma resource pla i your orgaisatio ad is it fuctioal? Is eeds aalysis carried out before employmet? Are the employmet guidelies adhered to? a Is there a successio maagemet pla? a Is there a effective mechaism to moitor retiremet? 6.11.2. Recruitmet ad Selectio Are job specificatios ad descriptios i your orgaisatio focused ad specific? D Are there areas where there are o job specificatios ad descriptios? Are there cases where advertisemets have bee drafted by iterested parties? Is there a itegrity-based criteria for the selectio of paellists? Is there a short listig criteria, ad is it free from bias? Are there cases where trasfers have bee used puitively? Are iterviews coducted objectively?

PSITP/Iteratioal Goverace Istitute Are the right people i the right job? 6.11.3. Staff Developmet D Is there a traiig eeds assessmet report before traiig takes place? Is there a eeds based criteria for selectio of officers for traiig? Is there a effective iductio pla i the orgaizatio? Is there favouritism i the selectio for traiig? Is traiig carried out i a cost effective way? Does the orgaizatio have a attachmet pla ad has this pla assisted i the promotio of best practices? Performace Maagemet a Has persoel audit bee udertake o cotiuous basis to check o malpractices ad esure capacity buildig? Are the istrumets for job evaluatio objectively focused? Does the orgaisatio have stadards ad targets set for each level? Are there persoel audit mechaisms i the orgaisatio? Is the discipliary machiery free from abuse ad maipulatio? Is disciplie used as a tool for rehabilitatio or puishmet?

PSITP/Iteratioal Goverace Istitute Compesatio Does the job descriptio esure that there are o overlaps? Is job aalysis coducted before vacacy creatio? D a a Are there iteral checks ad balaces to detect ghost workers? Are salary structures performace based? Does the pay compesatio relate to performace? Are there adequate checks ad balaces for salary admiistratio? Has retiremet beefit processig period bee miimized? Has the orgaisatio addressed malpractices i the admiistratio of pesios? Is the criteria for allocatio of houses ad other beefits impartial? Staff Motivatio Does the reward system recogize performace? D Does the reward system favour oe group i the orgaizatio? Is staff welfare a major priority i the departmet/ orgaisatio?

PSITP/Iteratioal Goverace Istitute 6.11.7. Discretio ad Waivers D a Has the applicatio of waivers had egative effects o the schemes of service? Is the criteria for retetio i the service specific? Is the discretio of leave admiistered fairly i your departmet/ orgaisatio? Have special ad actig allowaces bee used to block ad frustrate deservig promotio?

PSITP/Iteratioal Goverace Istitute Module Seve Fiacial ad Materials Maagemet

PSITP/Iteratioal Goverace Istitute 7.1. Itroductio I all orgaisatios, the fiace departmet is perhaps oe of the departmets that are at high risk for corruptio. The risks may stem from loopholes i the orgaizatioal structure or the departmet. The loopholes may leave the door ope to corrupt hadlig of cash, iappropriate travel paymets or payig for goods ad services that are o existet or at iflated rates. I this Module we will idetify areas that provide opportuities for corrupt practices. Furthermore, we will make some suggestios o how we ca promote itegrity i fiacial maagemet. 7.2. Geeral Objective The geeral objective of this Module is to eable the user idetify areas of fiacial maagemet vulerable to corrupt practices ad loss of fuds ad iitiate corrective measures to promote itegrity ad thus assist the orgaisatio to obtai maximum value for moey. 7.3. Specific Objectives By the ed of the Module, the Itegrity Assurace Officer should be able to: (a) describe a effective system for cash hadlig procedures; (b) idetify abuse i the travel paymet system; (c) idetify weakesses i the orgaisatio's procuremet systems; (d) idetify areas of weakess i stores maagemet; (e) discuss areas of weakess i the disposal of assets i the orgaizatio; ad (f) demostrate a uderstadig of the role of the Iteral Audit i prevetig corruptio practices. 7.4. Cash Hadlig May public sector orgaisatios collect cash either as direct reveue for services redered or as a result of the user-pays priciple such as cost-sharig i hospitals. Cash takigs provide both the temptatio ad the opportuity to carry out a fraud or outright cash theft.

PSITP/Iteratioal Goverace Istitute The followig key areas are the weak poits i the cash hadlig process. The officers i charge of these areas should be aware of possible malpractices ad be o the look out for them. 7.4.1. Receiptig The particular problems i this area iclude: (a) failure to maitai a accoutable receipt books register, (b) lack of clearly idetified collectio poits with a list of charges for services ad/or goods provided, (c) cashiers ot properly idetifiable, (d) partly used receipt books ot surredered, (e) failure of fiacial officers to keep track of daily collectio, ad (f) failure to limit the amout of moey permissible for collectio. 7.4.2. Depositig Whe depositig cash, it is possible that oe or several of the followig may occur: Module Seve : Fiacial Ad Materials Maagemet (a) uderbakig of cash reveue, (b) lack of proper security for cash i trasit, (c) urecociled cash records, (d) keepig joit fiacial records by more tha oe cashier, ad (e) varied procedures for receiptig, servicig ad trasferrig cash. 7.4.3. Paymets The followig may provide opportuities for malpractice whe makig paymets: (a) makig cash paymets from reveue collected, (b) u-authorized ledig, (c) o-reportig of cash losses, (d) failure to keep cash float for paymets,

PSITP/Iteratioal Goverace Istitute (e) lack of limits for cash paymets, ad (f) u-authorized paymets. 7.4.4. Huma Resource Maagemet Areas of huma resource maagemet that may provide loopholes are: (a) o-separatio of duties, (b) o-rotatio of duties, (c) refusal/reluctace by cashiers to take leave, (d) lack of supervisio, ad (e) lack of traiig. 7.4.5. Rules ad procedures i cash office No-compliace with the rules ad procedures i the cash office such as o-availability of relevat istructio documets to staff. 7.5. Travel Paymets Expediture o travellig ad accommodatio is a sigificat expediture item i the public sector budget. The cotrol of this expediture is ofte difficult because of the large umber of idividual trasactios ivolved. The potetial losses through fraud ad misuse are high. Opportuities for corruptio ad abuse of a travel paymet system ca arise at ay stage i the process - before, durig or after travel. The opportuities of corruptio usually come about due to lack of: (a) a clearly documeted policy o travel paymet, (b) commuicatio of policies o travel paymet, (c) a commo system of etitlemets ad beefits, (d) writte approvals of travel plas, (e) adherece to budgetary limits, (f) clearly defied guidelies o who is resposible for approvig travel, (g) observace to key approval questios such as: i. Is there a work pla? ii. Who should travel? iii. Is the stay duratio ecessary? iv. How much will the trip cost?

PSITP/Iteratioal Goverace Istitute (h) authority/applicatio to travel documet, (i) after travel reports/products verificatio. Other abuses of travel paymets procedures iclude: (j) u-approved variatio to origial travel authority, (k) issuace of travel imprest before approval, (I) spedig of imprest before actual travel, (m) false accoutig by usig fake receipts, ad () lack of regular verificatio ad evaluatio by Iteral Audit. 7.6. Procuremet of Goods ad Services Procuremet of goods ad services ivolves public moey beig spet ad it is importat that value for moey is maximized. While price is importat, other o-price factors such as quality, quatity, reliability, delivery time, o-goig service ad support are also equally importat. The ideal set of circumstaces may be compromised if areas of weakesses i plaig ad supervisio, specificatios, marketig, teder proposals assessmet ad moitorig ad evaluatio are ot addressed. The specific details are outlied below. 7.6.1. Plaig ad supervisio Specific weakesses i this area may iclude: (a) absece of a approved work-pla ad/or budget, (b) absece of detailed requisitio from users, (c) adherece to set limits for tederig, (d) teder assessmet committees without relevat skills, (e) coflicts of iterest, (f) poor specificatio of goods ad services, (g) departure from established procuremet procedures, (h) assessmet of bids by o-users or sigle perso, ad (i) lack of sufficiet preparatio for teder board meetigs.

PSITP/Iteratioal Goverace Istitute 7.6.2. Specificatios Problems i this category iclude: (a) uder or over-specificatio, (b) acceptace of o-coformig teders, (c) selective access to pre-determied assessmet criteria, ad (d) failure to commuicate ay chages to all bidders. 7.6.3. Market Testig Possible problems i this area are: (a) Failure to use relevat market testig techiques i the form of: i. expressios of iterest, ii. quotatios, ad iii. bids. (b) o-availability of up-to-date Treasury circulars, (c) advertisemets that do ot match the value, importace ad ature of the cotract, (d) lack of cofidetiality i the hadlig offeder bids, ad (e) partiality i providig basic teder bid iformatio to potetial suppliers. 7.6.4. Assessmet of Teder Proposals This area is proe to abuse due to: (a) acceptace of late bids which offer udue advatage to some bidders, (b) o-provisio of samples by bidder, (c) failure to record fial selectio list, (d) failure to advise usuccessful tederers o the outcome of the assessmet process i good time, ad (e) ifluece through acceptace of gifts ad beefits. 7.6.5. Moitorig ad evaluatio Loopholes here are due to:

PSITP/Iteratioal Goverace Istitute (a) lack of a early reportig system, ad (b) o-existece of performace idicators. (c) Lack of eforcemet mechaism for malpractices 7.7. Stores Maagemet A effective ad efficiet stores maagemet system is a crucial aspect of a orgaizatio's operatios. Value ca be added by miimizig losses i all the procedures of the stores fuctio. The proper maagemet of this fuctio as part of the overall fiacial maagemet i the public sector will provide a vital lik with the other areas discussed i this Module. 7.7.1. Stock Policy The areas of weakess are: (a) (b) (c) absece of a clear policy o stores maagemet, failure to commuicate the policy to staff if it is available, ad failure for policy to satisfactorily cover the followig:. items to be stocked, ii. stock levels, Hi. re-order/ecoomic order levels, ad iv. ivetory cotrol system used. 7.7.2. Stock Records Possible weak areas i stock records could be: (a) lack of proper records of items i stock such as i. referece ad descriptio of each item, ii. quatity ad locatio i the store, iii. expiry date (if ay) of each item, iv. date ad quatity of each trasactio, ad v. curret stock balace of all items. (b) failure to hold the stock records securely, ad (c) urestricted access to the computer system used i stores maagemet (where applicable).

PSITP/Iteratioal Goverace Istitute 7.7.3. Cotrol ad supervisio It is importat to be aware of the followig possible problems: (a) lack of separatio of the followig duties: i. issue of goods, ii. receipt of goods, iii. updatig of the stores ivetory record, ad iv. updatig of accoutig records, (b) poor descriptio of duties, (c) absece of hadig/takig over otes, ad (d) failure to rotate staff. 7.7.4. Receipt of stores Problems may arise due to: (a) lack of separatio betwee the physical receipt sectio ad the issue of stores sectio, ad (b) failure to properly documet ad accout for the goods receipt otes. 7.7.5. Issue of stores Loopholes could be created by: (a) failure to documet ad accout for delivery otes, ad (b) improper authorizatio of issues. 7.7.6. Stock checks Here problems may arise due to: (a) lack of regular supplies stock check, ad (b) failure to explai stock discrepacies. 7.7.7. Disposal of stores Opportuities for corruptio may arise due to: (a) (b) failure to clearly defie items that eed to be discarded, the presece of redudat ad obsolete items for log periods, ad

PSITP/Iteratioal Goverace Istitute (c) lack of policy for disposig of items. 7.8. Disposal ad Sale of Assets Public sector orgaisatios every so ofte have surplus ol ew or used assets, which eed to be disposed of. The disposal systems ad procedures may be proe to abuse if the processes of doig so are ot udertake o time, or if they are igored completely. 7.8.1. Timeliess The areas of weakess may have to do with: (a) utimely or late disposal of assets, ad (b) lack of objectivity i the determiatio of disposal criteria. 7.8.2. Coflict of Iterest This is whe committee members/staff do ot declare their vested iterest. 7.8.3. Valuatio Poor valuatio methods may provide opportuities for corruptio. 7.8.4. Processes The followig are possible weakesses eed to be looked ito: (a) lack of istitutio of competitive biddig, (b) lack of appropriate advertisemet, (c) selective iformatio to potetial bidders, (d) failure to commuicate the orgaisatio's disposal of assets policies to staff, ad (e) out-dated disposal policies ad procedures. 7.9. Iteral Audit The Iteral Audit fuctio is charged with the duty of advisig maagemet o the proper operatios of the iteral cotrol systems. As the eyes of the maagemet, the uit has a role i esurig that loopholes i systems are ot oly reported but corrected ad areas of

PSITP/Iteratioal Goverace Istitute weakesses elimiated. Similarly, the uit has the resposibility of esurig that the orgaisatio has regular reviews of out-dated procedures that create opportuities for fraud ad corruptio. Some questios that ca be of great assistace i examiatio of key areas ad systems are as follows: (a) (b) (c) (d) (e) (f) Has the Iteral Audit verified cash book balaces, bak recociliatio ad adherece to set limits for cash paymets? Has the Iteral Audit coducted ad-hoc examiatio of travel paymets, to establish observace of the laid dow travel procedures? Is the Iteral Audit carryig out regular checks o procuremet of goods ad services to esure compliace with the set out rules ad regulatios? Is the Iteral Audit Uit verifyig the assets to be disposed of ad the criteria used i determiig what, how ad whe to dispose of assets, ad to ascertai whe the maximum value is obtaied from the disposed assets? Is the Iteral Audit Uit carryig out regular reviews of all the above procedures ad advisig maagemet o areas of weakesses? Is the Iteral Audit Uit reviewig policies with a view to updatig them? 7.10. Checklist for Fiacial ad Materials Maagemet Assess fiacial ad materials maagemet i your orgaisatio usig the followig checklist. This checklist will also assist you to come up with recommedatios for improvemet. 7.10.1. Cash Hadlig a Is there a up-to-date register of all cash collectio poits i the orgaisatio with a member of staff resposible for maitaiig it? Do the staff who hadle cash have the

PSITP/Iteratioal Goverace Istitute appropriate fiacial traiig or experiece? Is there proper separatio of duties? Are there clearly documeted procedures for receiptig, securig ad bakig all cash collected? is all cash collected i the orgaisatio processed through a cetralized uit such as a cashier's office? If ot, is there adequate cotrol for safety, whe collectig ad storig cash? Are there suitable secure storage facilities at all cash collectio poits ad at the cetral cashier's office? Are there safe procedures, ad secure cotaiers for trasportig cash? a a Are the cash paymets subject to the limits approved by the maagemet? Has the cash paymet bee duly authorized by desigated officers? Are there ay istaces of u-authorized ledig by the cashier? Is there a limit to the amout of reveue that is received i cash? 7.10.2. Travel Paymet D Does the orgaizatio have a clearly documeted travel policy? Do the staff uderstad ad comply with the policy? Are all travel procedures up-to-date ad easily accessible to staff? Is there a commo method for calculatig travel

PSITP/Iteratioal Goverace Istitute etitlemets, which applies to everyoe i the orgaizatio? Are there procedures to esure that all travel is approved i advace? D a a a a a D Do staff kow that they must receive writte approval for their jourey? Are the resposibilities of staff that approve travel clearly defied ad documeted? is there a documet used as a master record for all travel arragemets ad paymets? Is the documet clear ad desiged well eough to provide sufficiet iformatio? Are key approval questios addressed? Are imprests paid oly after joureys are approved ad refuded if the same are varied or cacelled? Are details of the joureys verified before paymets are approved? Do Iteral Auditors regularly evaluate the performace of the travel paymet system? 10.3. Procuremet of Goods ad Services a a Are govermet/orgaisatioal procuremet procedures up-to-date ad available to the relevat staff? Do the procuremet staff regularly test the market to obtai value for moey? Does the orgaisatio have a project or a actio pla befrp m *. ---

PSITP/Iteratioal Goverace Istitute there a official requisitio for purchases? a a Does the pla iclude assessmet criteria, expected outcomes ad a moitorig ad evaluatio provisio? Are all stages of the purchasig process documeted? Do the staff kow that they must disclose all potetial ad existig coflicts of iterest? How are beefits ad gifts to officers declared ad cosequetly dealt with i the orgaizatio? Do the selectio paels iclude idepedet members? Do potetial suppliers have equal access to relevat project iformatio icludig specificatio ad assessmet criteria? Are all bids ad resposes received, recorded as per regulatios i force ad treated cofidetially? Are usuccessful bidders promptly advised of the outcome of the selectio process? Is the performace of cotractors regularly moitored agaist pre-determied performace criteria? Are products ad services evaluated ad reports submitted to seior maagemet? a Are there systems i place to esure that products or cosultats who perform poorly are blacklisted? 7.10.4. Stores Maagemet Does your orgaisatio have a established stock policy?

PSITP/Iteratioal Goverace Istitute a o a D Is the stock policy clearly commuicated to staff? Is there complete ad proper record of items i stock? Are stock records held securely? Is access to the stores computer restricted ad properly cotrolled? is there adequate separatio of duties? Are the duties of the officers clearly defied? Are there established procedures of hadig/takig over of stores? Are there adequate physical safeguards i goods receipt procedure? Is each goods receipt ote properly documeted ad accouted for? a Are delivery otes properly documeted ad accouted for? Are issues properly authorized? Are there both regular ad surprise stock checks? Are there policy ad cotrol procedures to cater for stock discrepacies? Has the orgaizatio clearly defied the items to be disposed of? Are members of staff regularly rotated? Does the orgaizatio regularly review the physical security of stores? 7.10.5. Disposal ad Sale of Assets Is there a well-documeted policy ad procedure for decidig whe ad how to dispose of surplus assets ad are all staff aware of the same?

PSITP/Iteratioal Goverace Istitute Is there a procedure of valuig the surplus assets at the begiig of the disposal process? a Are competitive disposal methods used i the orgaizatio? Is the disposal criteria effectively commuicated to all potetial bidders? Are coflicts of iterest amogst staff ad tederers ivolved i the disposal process effectively disclosed? Are the disposal methods fair ad equitable ad do they give the public the opportuity to bid wheever appropriate? Are there periodic reviews ad reportig to seior maagemet o the orgaisatio's disposal policies? is there a desigated officer resposible for disposal of assets? Are there mothly returs prepared ad submitted o assets to be disposed of ad o additioal assets for disposal?

PSITP/Iteratioal Goverace Istitute MODULE EIGHT Project Plaig ad Maagemet

PSITP/Iteratioal Goverace Istitute 8.1. Itroductio The success of ay project depeds o how adequately its plaig, maagemet, moitorig ad evaluatio are carried out. Iadequate plaig ad lack of accoutability lead to ieffective ad iefficiet use of project resources. This results i failure to achieve targeted project results. Failure to deliver expected results leads to perceptios of ufairess ad raises suspicios of corrupt practices. 8.2. Geeral Objective The geeral objective of this Module is to promote itegrity ad prevet corruptio by improvig project plaig, maagemet, moitorig ad evaluatio. 8.3. Specific Objectives By the ed of the Module, the participat should be able to: (a) defie the relevat operatioal terms, (b) detect loopholes, opportuities ad weakesses likely to facilitate corruptio withi a project cycle, ad (c) explai various ways of elimiatig corruptio i a project cycle. 8.4. Defiitio of Operatioal Terms I this Module, we are goig to use the followig operatioal terms: (a) (b) (c) (d) (e) Project, Project cycle, Plaig, Maagemet, Moitorig, ad

PSITP/Iteratioal Goverace Istitute Evaluatio. We feel it is ecessary for us to defie these terms ad limit their meaig so that we have the same uderstadig of the termiology used. 8.4.1. Project A project is a o-routie activity that requires the use of resources to achieve give objectives withi a specified period. 8.4.2. Project cycle The project cycle starts with the project idetificatio ad lasts through the feasibility study, project proposal ad appraisal, implemetatio, moitorig ad evaluatio. 8.4.3. Plaig This ivolves idetificatio of resources eeded for the project, specificatio of time frame(s) ad desigig mechaisms ad procedures for moitorig ad evaluatio. 8.4.4. Maagemet Maagemet icludes the orgaisatio ad cotrol of resources ad implemetatio of plaed project activities. This is ecessary so as to ascertai that project goals are accomplished. 8.4.5. Moitorig Moitorig ivolves cotiuous assessmet of progress o project activities ad outcome/output as compared agaist performace idicators. 8.4.6. Evaluatio Evaluatio is a systematic, objective aalysis of a project's performace, efficiecy ad impact i relatio to its objectives. 8.5. Plaig a Project Poor plaig, iadequate fiacial cotrol ad some issues related to huma resources may ope loopholes, opportuities ad weakesses that promote corruptio. The followig areas are proe to corruptio.

PSITP/Iteratioal Goverace Istitute 8.5.1. Project Idetificatio ad Prioritisatio Project idetificatio is the process of selectig a project based o the eeds of the beeficiaries. Prioritisatio is rakig of projects accordig to the felt eeds of beeficiaries. The followig are some of the loopholes that facilitate corruptio i project idetificatio ad prioritisatio: (a) icosistecy of project objectives with the orgaisatio's goals, (b) fudig projects that are ot eed-based, (c) omittig to carry out feasibility studies, resultig i project failure, (d) falsified prioritisatio of projects, (e) maipulatio by iterested groups ad idividuals such as politicias, plaers, admiistrators, (f) persoal iterest ad lobbyig at the poit of resource cotrol, ad (g) lack of trasparecy, resultig i udisclosed co-fiacig, i.e. several orgaisatios fudig the same project. I order to miimize the loopholes for corruptio as specified, it is importat to esure that: project idetificatio relates to the felt eeds project is cosistet with the orgaisatio's goals all phases of the project cycle are adequately plaed ad implemeted. 8.5.2. Project Schedulig Project schedulig is the specificatio of the time required to complete key project activities. The followig are some of the areas that could ope opportuities ad loopholes for corruptio i project schedulig. 8.5.2.1. Project staff recruitmet Problems i this area iclude: i. epotism, ad ii. idle capacity due to o-adherece to

PSITP/Iteratioal Goverace Istitute recruitmet schedule. 8.5.2.2 Procuremet of goods ad services The followig are examples of forms of abuse i the procuremet process: i. maipulatio of specificatios durig the tederig, ii. ufair competitio due to leakage of iformatio o tederig, iii. maipulatio of project documets durig site meetigs, iv. procuremet of iferior quality goods ad services, ad v. o-fulfilmet of specified project stadards. 8.5.2.3. Moitorig ad evaluatio Omissio of plaig for moitorig ad evaluatio leads to corruptio through falsified reports. The followig ca help i miimizig or elimiatig the loopholes cited above: i. persoel recruitmet should be doe by a committee comprisig stakeholders but ot just oe idividual, ii. stakeholders should be ivolved i the procuremet process ad i the ispectio of project plas ad documets ad iii. there should be participatory approach to moitorig ad evaluatio i.e. ivolvemet of all stakeholders.

PSITP/Iteratioal Goverace Istitute 8.5.3. Costig ad Project Budget Costig is the pricig of project resources ad activities. Project budget is the summary of the costs of the project durig plaig, implemetatio ad evaluatio. Examples of corrupt practices i costig ad project budget iclude: (a) overpricig of iputs, (b) iflated allowaces to project persoel, ad (c) falsified budgetig through iclusio of uecessary items. To deal with the corrupt practices cited above, it should be ascertaied that: there is competitive biddig, remueratio is based o curret labour laws, ad the budget is couter-checked by stakeholders. 8.6. Project Maagemet The aspects of project maagemet proe to corruptio iclude huma resources, fiacial performace ad implemetatio of project activities. 8.6.1. Huma Resources The followig are some loopholes related to huma resources: (a) recruitmet of uqualified persoel, (b) epotism, (c) remueratio which is ot commesurate with performace, (d) abuse of traiig opportuities, for example, omiatig uqualified persoel for traiig or traiig which is ot related to project activities, (e) salaries paid to o-existet project persoel, (f) iterferece i recruitmet of project persoel e.g. by politicias ad admiistrators, ad (g) iadequate supervisio of project persoel leadig to loss of productive project time.

PSITP/Iteratioal Goverace Istitute 8.6.2. Project assets ad fiacial resources The followig are some of the loopholes: (a) fraudulet use of resources, (b) paymet for goods ad services which have ot bee supplied to the project, (c) use of project vehicles for purposes ot related to the project, (d) procuremet of uecessarily expesive materials as a result of bribery, (e) cash paymet for false or iflated travellig ad accommodatio claims, (f) use of project equipmet, statioery, telephoe, computers ad other assets for persoal purposes without authority based o the laid dow procedures, (g) ucotrolled etertaimet, ad (h) escalated costs due to deliberate delays. 8.6.3. Implemetatio of project activities The followig are the loopholes: (a) (b) (c) materials may be diverted to activities which are ot related to the project, diversio of labour to activities which are ot related to the project, ad falsificatio of records of iputs, e.g. delivery of low quality materials resultig i poor outputs or project results. To miimize wastage ad loss through mismaagemet of project resources, ad to ehace effectiveess ad efficiecy of the project, it is ecessary to esure that: a committee cosistig of all project stakeholders is established. The committee oversees all matters relatig to recruitmet, traiig, promotios ad terms ad coditios of service for project persoel, competitive tederig is udertake i accordace with appropriate procedures as set out i Module 7 o Fiacial ad Materials Maagemet there is regular audit of project persoel, equipmet ad stores.

PSITP/Iteratioal Goverace Istitute moitorig ad evaluatio of project activities is udertake i accordace with the plaed implemetatio schedules. 8.6.4. Maagemet Iformatio System (MIS) A Maagemet Iformatio System is a process whereby iformatio is collected, processed, stored ad commuicated to users. The followig are practices that may facilitate corruptio uder MIS: leakage of project iformatio, hidig project documets ad solicitig bribes, ad destructio of iformatio. To elimiate these practices, the followig measures should be udertake: (a) have a clear classificatio of iformatio (secret, cofidetial, ope), (b) idetify ad commuicate to project persoel the iformatio which is available to the public, (c) restrict etry to areas with cofidetial iformatio, (d) improve security of computerized systems, ad (e) esure computer audit trail is i place. 8.6.5. Moitorig ad Evaluatio Iformatio obtaied through project moitorig ad evaluatio facilitates decisio makig to ehace project efficiecy ad effectiveess. 8.6.5.1. Purpose of Project Moitorig ad Evaluatio Project moitorig ad evaluatio helps i: i. drawig lessos from experiece i order to adjust the itervetio strategy of the existig project, ii. adjustig other o-goig projects, iii. iv. improvig the desig of future projects, critically re-examiig, i the light of subsequet developmets, the project

PSITP/Iteratioal Goverace Istitute ratioale stated i the preparatio ad appraisal documet, v. determiig the adequacy of the project to overcome the idetified costraits, vi. comparig the actual outcome with project targets ad idetifyig the reasos for shortfalls or overachievemets, vii. assessig the efficiecy of project implemetatio procedures ad the quality of maagerial performace, viii. determiig the ecoomic efficiecy of the project, ad ix. presetig the lessos leared ad the recommedatios that follow from them. 8.6.5.2. Focus of Project Moitorig ad Evaluatio While moitorig focuses o implemetatio activities, evaluatio assesses all stages of the project cycle. Moitorig ad evaluatio of the project should focus o: (i) the resposes of the project beeficiaries to the iput, services, or other forms of beefits provided by the project, (ii) whether the project has cosequeces which were ot iteded or aticipated i its desig, ad (iii) whether the itervetio model o which the project is based is still valid i a chagig eviromet. 8.6.5.3. Advatages of coductig project moitorig ad evaluatio If properly carried out, moitorig ad evaluatio will: (i) (ii) provide a systematic feedback o project maagemet ad thus facilitate the itegratio of the evaluatio process ito the maagemet system itself, provide iformatio o the project's stregth,

PSITP/Iteratioal Goverace Istitute (iii) assess commitmet ad capability of the sposorig agecies, ad (iv) provide iformatio o the preparatio ad appraisal reports ad the resources spet o them. 8.6.5.4. Disadvatages of moitorig ad evaluatio Moitorig ad evaluatio could be used as a tool of facilitatig corruptio i the followig ways: (i) evaluatio is doe sigle-hadedly by the project maagemet, (ii) evaluatio is ot udertake systematically, that is, there is lack of measurable or quatifiable criteria, (iii) if it is ot doe i accordace with plaed schedule, ad (iv) if iappropriate methods ad/or evaluatio tools are applied. The above shortcomigs ca be addressed through appropriate itervetio by esurig that: participatory moitorig ad evaluatio is carried out, the orgaisatio has developed ad utilized moitorig ad evaluatio methods ad tools, ad all stakeholders are icluded i the participatory team to udertake moitorig ad evaluatio of projects. 8.7. Checklist For Project Plaig Ad Maagemet The followig checklists should help you to assess the curret situatio ad come up with recommedatios: 8.7.1. Plaig Are project objectives clear? Do project objectives relate to clearly idetified eeds?

PSITP/Iteratioal Goverace Istitute a a Is there a pla for a feasibility study before the project is implemeted? Are project outputs adequately idetified ad specified? Are delivery dates for project iputs specified? Is there a existig moitorig ad evaluatio system for the project? Are time frames for moitorig ad evaluatio specified? Are there guidelies to maage variatio ad time extesio relatig to the project? is there a idepedet committee to maage the project? Does the committee icorporate all project stakeholders? Are beeficiaries ad users of the project results idetified? 8.7.2. Project Maagemet/ Implemetatio a a a Have all project persoel bee recruited as plaed? Does your orgaisatio have writte fiacial regulatios ad procedures for tederig, procuremet, storage of materials ad discharge of related services? (Refer to Module 7). Were the project iputs procured o schedule? Has a committee of stakeholders for overseeig project maagemet bee established? Are records of the committee meetigs available? Were the project iputs supplied to the project user poits as plaed?

PSITP/Iteratioal Goverace Istitute a Does your orgaizatio have a Code of Coduct applicable to project Does your orgaisatio have a effective maagemet iformatio system? Moitorig ad Evaluatio D a a a a a Does the project have objectives, which clearly state its purpose ad desired outcomes? Is there a writte project documet? Does your orgaisatio moitor progress of project expediture, especially before makig further commitmets? Have you developed performace idicators ad evaluatio procedures to review projects ad assess their fial outcomes? Is there a programme to review the project ad esure that it is still relevat ad meets its objectives? Are all evaluatios ad their outcomes documeted ad used to assist with ecessary project adjustmets? Does the project have ay cosequeces which were ot iteded or aticipated i its desig? What were the resposes of the project beeficiaries to the iputs, services, or other forms of beefits provided by the project?