link to page 1 link to page 1 link to page 1 link to page 1 link to page 2
www.fndc.govt.nz
Far North District Council |
Fraud, Corruption and Whi
M
st
e
l
m
e
o
b
r
lowi
ial Av
n
e
g
,
P
Ka
o
i
licy
kohe
0
1
4
4
0
Private Bag 752, Kaikohe 0440
[email address]
Phone 0800 920 029
PC043 - Fraud, Corruption and Whistleblowing Policy
Adopted: June 2021
Next review: May 2024
Table of Contents
1.
Background ..................................................................................................................................................... 1
2.
Objectives ........................................................................................................................................................ 1
3.
Scope............................................................................................................................................................... 1
4.
Relevant Legislation, Policies and Procedures ............................................................................................... 1
5.
Definitions ........................................................................................................................................................ 2
1. Background
This Policy is in place to meet FNDC's requirement under th
e Protected Disclosures Act 2000 (the Act) as well as
set out guidelines and procedures for the prevention, detection and investigation of suspected or attempted fraud.
The purpose of th
e Protected Disclosures Act is to encourage people to report serious wrongdoing in their
workplace by providing protection for employees who want to ‘blow the whistle’. This applies to both public and
private sector workplaces.
2. Objectives
The purpose of this policy is to:
• set out the requirements of the Protected Disclosures Act 2000
• instil responsibility and awareness amongst FNDC staff of the correct fraud, corruption, and whistleblowing
procedures, including names of persons internally to whom they can disclose a serious wrongdoing as well
as details of FNDC’s external whistleblowing service provider
• highlight how incidents of fraud and corruption will be treated at FNDC including the investigation process
and referral to authorities
• describe how FNDC will provide protection for disclosures, in accordance with the provisions of the Act.
3. Scope
This Policy relates to ‘
serious wrongdoing’ as defined in the Act and applies to all people, property, funds and
services provided by FNDC.
4. Relevant Legislation, Policies and Procedures
•
Code of Conduct – Elected Members
FNDC Policies and •
Code of Conduct – Employees
Procedures
•
Internal Audit Charter
•
Gifts and Inducements Policy
•
Dealing with Complaints Policy
•
Disciplinary Matters Policy
•
Disciplinary and Dismissal Guidelines for Managers
•
Delegations Manual
•
Disclosing serious wrongdoing process
•
Whistleblowing process
Document number A1936867
Page 1 of 3
Far North District Council |
Fraud, Corruption and Whistleblowing Policy 2
Legislation
Protected Disclosures Act 2000
Local Government Act 2002
Local Electoral Act 2001
Local Authorities (Members’ Interests) Act 1968
Local Government Official Information and Meetings Act 1987
The Secret Commissions Act 1910
The Crimes Act 1961
Human Rights Act 1993
Public Records Act 2005
Other
Employment agreements
When is a disclosure
To make a protected disclosure, you must be an 'employee' of the organization
protected?
you are making the disclosure about.
Under the Act, ‘employee’ includes:
• former employees
• homeworkers
• contractors
• people seconded to organizations
• volunteers.
Your disclosure will be protected if:
• the information is abou
t serious wrongdoing in or by FNDC; and
• you reasonably believe the information is true or likely to be true; and
• you want the serious wrongdoing to be investigated.
Your disclosure won’t be protected if:
• you know the allegations are false
• you act in bad faith
Also note, you are not allowed under the Act to disclose any information
protected by legal professional privilege. This includes legal advice given to
FNDC or reports commissioned by FNDC for the purpose of litigation.
How will you be
If you make a protected disclosure, information which identifies you will be kept
protected?
confidential, unless one of the exceptions in the Act applies.
The exceptions are if you consent to the disclosure, or if disclosure is essential:
• to the effective investigation of the allegations
• to prevent serious risk to public health or safety, or the environment
• to comply with the principles of natural justice
5. Definitions
Term
Definition
Appropriate
An employee may choose the authority or authorities most relevant to the nature of the
Authority
serious wrongdoing he or she is disclosing. The Act says, ‘appropriate authority’, without
limiting the meaning of that
term. The following provides Ombudsman guidance on
Appropriate Authorities.
Document number A1936867
Page 2 of 3
Far North District Council |
Fraud, Corruption and Whistleblowing Policy 3
Term
Definition
Corruption
Dishonest or fraudulent conduct by those in power, typically involving bribery.
Conflict of
A
conflict of interest is a situation in which a person or organization is involved in
Interest
multiple interests, financial or otherwise, one of which could possibly corrupt the
motivation or decision-making of that individual or organization.
Employee
For the purposes of this policy, ‘employee’ includes:
• former employees
• homeworkers
• contractors
• people seconded to organizations
• volunteers
Fraud
Wrongful or criminal deception intended to result in financial or personal gain.
Immunity
The employee may not be immune from civil or criminal or disciplinary proceedings if
they were personally involved in the serious wrongdoing they disclose.
However, their cooperation in reporting the wrongdoing will be taken into account in
decisions on any action that may be taken against them.
Internal Audit
Regular reviews of transactions, activities or locations that may be susceptible to fraud
Review
will be included as part of the internal audit programme.
Investigation
The action of investigating something or someone; formal or systematic examination or
research.
Principles of
The rights of both parties to a formal complaint should be protected by the principles of
Natural
natural justice. These are:
Justice
•
Freedom from bias on the part of the person making the decision/judgement; and
•
Transparency and fairness of the procedure.
Protected
A
disclosure of alleged serious wrongdoing made by an employee whose identifying
Disclosure
information is kept confidential as per the Protected Disclosures Act 2000.
Whistle-
A person who exposes any kind of information or activity that is deemed illegal,
blower
unethical, or not correct within an organization.
Serious
Serious wrongdoing includes:
Wrongdoing
• unlawful, corrupt or irregular use of public money or resources
• conduct that poses a serious risk to public health, safety, the environment or the
maintenance of the law
• any criminal offence
gross negligence or mismanagement by public officials.
Document number A1936867
Page 3 of 3
