The Code of Ethics and Conduct for NSW government sector employees (The Code) requires each senior executive to make a written declaration of private financial, business, personal and other interests or relationships that have the potential to influence, or could be perceived to influence, decisions made or advice given by the senior executive.

This Circular provides supplementary information to assist Department Secretaries, agency heads and senior executives with this requirement. The Circular should be read in conjunction with The Code and Section 4.4 of Behaving Ethically – Declaration of private interests template.

What are private interests?

Private interests are those interests that can bring benefits or disadvantages to public officials as individuals, or to others whom public officials may wish to benefit or disadvantage. Private interests are not limited to pecuniary interests or to interests that can bring direct personal gain or help avoid personal loss. They also include many social and professional activities and interests.⁽¹⁾

They can involve the interests of the public official, members of the official’s immediate family or relatives (where these interests are known), business partners or associates, or friends. Enmity as well as friendship can give rise to an actual or perceived conflict of interests.⁽²⁾

Private interests may make it difficult for an employee to perform her or his duties impartially in the public interest. This may happen when:

• there is a direct conflict between current duties and responsibilities and private interests (an ‘actual’ conflict of interests);
• a person could reasonably perceive that an employee’s private interests are likely to improperly influence the performance of official duties, whether or not this is in fact the case (a ‘reasonably perceived’ conflict of interests); or
• a private interest could conflict with the employee’s official duties in the future (a ‘potential’ conflict of interests).

 

RESPONSIBILITIES OF SECRETARIES AND AGENCY HEADS

A Secretary or agency head is responsible for the general conduct and management of the functions and activities of her or his organisation in accordance with the government sector core values under Part 2 of the Government Sector Employment Act 2013. This includes responsibility for the effective management of conflicts of interest in her or his organisation.

Secretaries and agency heads should ensure that:

• their senior executives are aware of their responsibility to declare private interests and relationships, and of the arrangements applicable in the organisation, including any mandatory interests or relationships that they must declare
• declaration arrangements are established which are consistent with The Code
• the template in section 4.4 of Behaving Ethically is used as the declaration form for their senior executives, or augmented to reflect the operating environment and/or business risks which are specific to their organisation
• they are appropriately aware of the contents of the completed declarations and any conflict of interest identified is avoided or effectively managed consistent with The Code
• information and advice is available to assist senior executives to complete their declarations which may include advice on:
  • which interests and relationships should be declared
  • what to do if a conflict of interest arises
  • the nominated person(s) that senior executives may consult in their organisation regarding their declarations and the management of conflicts of interest
• the organisation has effective systems and processes for the management of declarations which:
  • readily identify real, perceived or potential conflicts of interest and failures to complete or update the declarations as required
  • properly maintain confidentiality
  • facilitate access by the senior executive concerned to maintain and provide fresh declarations
• comply with legislative requirements such as the Privacy and Personal Information Protection Act 1998 and the Government Information (Public Access) Act 2009. Further advice on these Acts is available from the Information and Privacy Commission http://www.ipc.nsw.gov.au/.

 

RESPONSIBILITIES OF SENIOR EXECUTIVES

Senior executives must demonstrate high levels of personal conduct consistent with the core values of integrity, trust, service and accountability. In particular, the Ethical Framework for the government sector includes the following principles:

• act professionally with honesty, consistency and impartiality
• place the public interest over personal interest
• uphold the law, institutions of government and democratic principles
• provide services fairly with a focus on customer needs
• provide transparency to enable public scrutiny.

Generally the interests to be declared by a senior executive will vary from individual to individual and there is no standard or ‘one size fits all’ list of items to be included in a declaration. Rather, a senior executive should consider their role and responsibilities in their organisation and the functions and responsibilities of that organisation, and identify and declare the private interests or relationships which have the potential to influence, or could be perceived to influence, their decisions or advice. These interests and relationships may represent an actual, reasonably perceived or potential conflict of interest for the senior executive.

A senior executive should always immediately disclose a conflict of interest to a more senior, or designated, official in the organisation, as well as ensuring that her or his declaration of private interests is up to date.

Failure to complete the declaration appropriately may constitute a breach by the senior executive of The Code.

Suggested process for a senior executive to complete a declaration

1. Identify all your private interests and relationships
2. Consider all your private interests and relationships in relation to the functions and responsibilities of your Department or agency and to your role and responsibilities in the organisation
3. Identify which of your private interests or relationships have the potential to influence, or could be perceived to influence your decisions or advice. This may require the listing of the names and activities of family and other personal relationships that may represent an actual, reasonably perceived or potential conflict of interest
4. Identify any mandatory private interests or relationships required to be declared by your organisation
5. Seek advice from a senior executive, or nominated official, of your organisation if you are uncertain whether to declare a private interest or relationship
6. Declare all your private interests and relationships identified in steps 3 to 5 on your organisation’s declaration form
7. Submit the completed declaration form to the designated official on or before 30 November 2015.
8. Make a fresh declaration:

• As soon as practicable, following any relevant change in your private interests or relationships
• As soon as practicable, following your assignment to a new role or responsibility
• At least annually.

Further information

Please refer to the attached Frequently Asked Questions.

 

Graeme Head

Public Service Commissioner
 

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⁽¹⁾Independent Commission Against Corruption - Managing Conflicts of Interest in the Public Sector
⁽²⁾NSW Ombudsman - Fact Sheet Conflicts of Interests

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Attachments:
Frequently Asked Questions
Public Service Commissioner Direction No 1 of 2015 - the Code of Ethics and Conduct for the NSW government sector employees
Behaving Ethically – Section 4.4 - Declaration of private interests template

Authorities:
Government Sector Employment Act 2013