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www.transparency.org.nz


NATIONAL INTEGRITY SYSTEM ASSESSMENT

INTEGRITY PLUS

The Assessment Approach

Public Sector Conference 6/9/13


Liz Brown, Research
T
eam Manager and former Banking Ombudsman

Murray Petrie, Co
-
Director, NIS

Suzanne Snively, Co
-
Director, NIS

Helen
Sutch
, Chair IPRAG

Sir
Anand

Satyanand
, TINZ Patron, Chair NIS External Advisory Group



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INTEGRITY PLUS

National Integrity System Assessment

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New Zealand’s Public Service tops the rankings
as the least corrupt



Our key competitive advantage


It influences
everything

we do and
say


Public servants should take pride in this


Respect the legacy of those who came before


Don’t take it for granted


Harder to maintain



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INTEGRITY PLUS

National Integrity System Assessment

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INTEGRITY BRINGS:



Efficiency


Effectiveness


Fairness


Good

systems


Good

outcomes


Good

branding


Resilience


And

hope



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INTEGRITY PLUS

National Integrity System Assessment

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For the public sector and New Zealand:



Promoting strong integrity systems


What is corruption in our context


How do we prove ourselves
?


Carry out an Integrity Plus National Integrity System
assessment



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INTEGRITY PLUS

National Integrity System Assessment

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INTEGRITY PLUS

National Integrity System Assessment

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A CONSULTATIVE PROCESS


Project launch

-

13 November 2012

First wave of findings
-

8 May 2013

First papers on website
-

8 May 2013

Second set of papers on website
-

late
August

Public
forum Auckland
-

14 August 2013

Expert workshop Wellington


Sept 2013

Report
launch
-


October 2013


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National Integrity System Assessment

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THE REVIEW PROCESS


-
Training with TI
-
Berlin based around NIS framework

-
Researchers reviewed approach and each others’ work

-
IPRAG reviewed first drafts of Pillar Report

-
Co
-
directors reviewed drafts and TINZ Board ratified process for
reports to go the TI
-
Berlin for review

-
Pillar reports to the External Advisory Group for Review

-

Following this, Pillar’s scored by Role, Governance and Capacity

-
IPRAG Reviewed Score

-
Full report with scores reviewed by TINZ Board

-
Full report to workshop with representatives from all over New
Zealand (and a couple from overseas) for recommendations to be
discussed


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INTEGRITY PLUS

National Integrity System Assessment

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PILLAR ASSESSMENTS


1.

Capacity

2.

Governance

3.

Role

4.
Treaty of Waitangi

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INTEGRITY PLUS

National Integrity System Assessment

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FOUNDATIONS

FOUNDATIONS



Political


Societal


Economic


Cultural


Environmental


Treaty of Waitangi

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INTEGRITY PLUS

National Integrity System Assessment

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CROSS
-
CUTTING THEMES

EMERGENT CROSS
-
CUTTING THEMES BEING
ADDRESSED



The nature of the culture
of
integrity?


The informality of the legal
framework?


Where are the gaps
in
transparency?


Is there sufficient
focus on
prevention?


Are conflicts
of
interest managed?

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INTEGRITY PLUS

National Integrity System Assessment

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NATIONAL INTEGRITY SYSTEM ASSESSMENT

INTEGRITY PLUS

Public Sector Pillar

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Public Sector Pillar

The Public Sector Pillar covers
“state services”

the
public service and crown entities associated with the
Executive
-

and Regional and Local Government


Author: Alex Matheson:

Governance and Development Consultant

(formerly Governance and Management Advisor to the
Commonwealth Secretariat and OECD)


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Levels of Corruption and Integrity of Officials



Institutional analysis showed NZ deserves its high CPI ranking


The New Zealand Public Sector is rule abiding , and
transparent & accountable for use of powers and resources (
though public procurement needs some tightening)


Because?

-
a connected, law abiding egalitarian society

-
a history of open government

-
a world class public sector financial management and
accounting system


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Public Sector Pillar

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But some wider good governance
concerns



No systematic evaluation and feedback on the effectiveness of
policies has contributed to:


Persistence with inadequate public management policies
(especially lack of cohesion)


Some major regulatory failures


Insufficient transparency/accountability for policies of inter
-
generational impacts
vs

importance


e
.g. lack of regular national environmental monitoring


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Public Sector Pillar

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Some areas of “constitutional” friction between
Ministers and Public Sector


Policy advisory capacity/role of public service


Relations between central and local government. Legitimacy
of local democracy?


Crown entity board appointments and respect for statutory
arm’s

length principle




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Public Sector Pillar

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Challenging Plans Afoot


Better
Public Services reforms is aiming at more coherent PS
management and action


Changes to Public Finance Act make CEs more accountable for
policy effectiveness. (Stewardship)


Success will require
-

Ministers to work more closely, cross
-
government
matrix management by officials, & more
evidence
-
based policy culture

Long
-
term benefits from our public sector adaptability depend
on the quality of the national conversation on our constitutional
health.



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Public Sector Pillar

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Integrity Plus NZ National Integrity Systems
Assessment:

Business Pillar


Pattrick
Smellie
, Business Journalist

Business Pillar

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“Pike River” moments




Leaky homes


Finance company collapses


Pike River


Ross Asset management


Fonterra food scare

Business Pillar

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Brands and Trust



Trust is hard
-
won, easily lost, and very difficult to rebuild


Brands are above all based on trust


NZ’s brand is as much about trust as it is about purity


Defending that brand is important

Business Pillar

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Do NZ businesses realise this?


Complacency, naivety, or lack of knowledge?


Or a bit of all three?


Transparency and integrity
vs

corruption


Key risks


Lack of formal processes/policies


Third party representatives in export markets


Small exporters and importers’ institutional capacity




Business Pillar

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JUDICIARY


Margaret Wilson

OMBUDSMAN


Liz Brown

MEDIA


Dr Bryce Edwards




Judiciary Ombudsman Media Pillars

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JUDICIARY


meets high standards of
independence and integrity.


in
particular operates independently of the
Executive and provides
effective oversight of it through judicial review.


has a constitutional relationship of mutual respect with the
Legislature


is accountable through the appeals process and the Judicial Conduct
Commissioner


needs a more transparent process of appointment for High Court
judges


needs to be fully accountable by reporting independently on their
activities


h
as some concerns about

MoJ

focus on administration
of justice from
the perspective of value for money and customer satisfaction



Judiciary

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OMBUDSMAN


meets
high standards of
independence, accountability and integrity


is
an important check on the exercise of administrative power and on
the proper use of the official information
legislation


funding
has not kept up with an increase in
complaints and there
are
unacceptable
delays. New functions may not be adequately funded.


a

recent announcement of increased funding for 2013
-
4 will
help


i
s otherwise
effective in
the
handling and resolution of citizens’
complaints


has
a limited role in raising public and governmental awareness about
standards of ethical behaviour


could usefully undertake further educational and awareness
programmes




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Ombudsman

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MEDIA


A free and independent media operates


A strong focus on corruption in the media



But
:


A lack of diversity (ownership and content)


Limited public and community broadcasting


Limited (in depth) investigative journalism


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Media

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www.transparency.org.nz


Since the 2003 National Integrity System assessment,
there have been some welcome areas of
strengthening of transparency systems and
accountability in New Zealand.


It is clear that New Zealand remains highly rated
against a broad range of indicators of transparency
and the quality of governance.


A number of areas of concern, weakness and risk
highlighted by the 2003 NIS remain in the face of on
-
going and new challenges to integrity systems


The core message of the assessment is that it is
beyond time to take the protection and promotion of
integrity more seriously and to act now.

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Why Strong Integrity Systems Matter

www.transparency.org.nz


Fosters
public trust


legitimacy


the sustainability of our institutions


citizens’ respect for our institutions


Supports tax system / tax base


Trust
is
an economic as well as a constitutional
and social value


Strong integrity systems support
social cohesion


in an increasingly diverse
country

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Why Strong Integrity Systems Matter

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Why Strong Integrity Systems Matter

Because of the public sector’s good CPI, there are 7 key potential benefits to New Zealand
organisations who follow the precepts of good governance. These benefits provide the basis
for growing GDP. These have the potential to increase returns through:


1.
Good Reputation
:


The business returns because of a strong reputation and brand from
adopting non
-
corrupt business practices combined, by association, with the current
international perception that the New Zealand public sector is amongst the three least
corrupt in the world, is the essence of what makes any exporting company achieve
quality revenues;

2.
Lower cost to doing business
(research shows corrupt practices add an average of 35%
to the cost of doing business in Malaysia, for example);

3.
Lower cost of capital;

4.
Easier

(e.g. less expensive, more open and quicker) overseas market access;

5.
Ethical businesses achieve a higher return on investment
(for example, the top 110
Ethisphere Global Companies traded above the Standards & Poor’s top 500 Share market
average between 2007 and 2011);

6.
Staff prefer to work for ethical organisations
;

7.
Ethical organisations achieve greater customer satisfaction.




SFO Training


SFO Training will provide a tool for all, public, private
NGOs, large or small
, Enterprises to Become as Good as
the Public Sector is Perceived


Based on UK Training programme adapted for New
Zealand


Freely available


Will be continuously improved to reflect increased
knowledge of ways to strengthen integrity systems


The Integrity Plus NIS Assessment provides basis to
continuously improve integrity systems

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Why Strong Integrity Systems Matter



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Objective:

Keep New Zealand as Good as it’s Perceived

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Why Strong Integrity Systems Matter


Appreciate the strengths of our public sector.


Take action now to strengthen integrity.


IOD support the development of more robust
governance by leading the conversation about the 4
Pillars of good governance.


Build stronger relationships between public, private and
NGO sectors.


Organisations develop plans to
realise

the returns from
the 7 benefits of a high integrity society.



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Objective:

Keep New Zealand as Good as it’s Perceived

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Why Strong Integrity Systems Matter


Questions


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Thank You

DISCLAIMER

This presentation is for information and discussion purposes.

Neither the presenter or Transparency International accept any liability
whatsoever for the consequences from the use of this presentation

by any party in any circumstances.

Comment, including reference to others knowledge, is actively sought and
will be considered in future discussion papers and presentations.


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