Conflict of Interest Policy
Overview
This document
This document is intended to help with the identification, documentation and
management of employees” conflicts of interest.
Contents
This document contains the following topics
Topic
See Page
Policy ............................................................................................................... 2
Appendix 1 - Deciding if a Conflict of Interest Exists .......................................8
Appendix 2 - Conflict of Interest Examples and Recommended Actions ……… 9
Introduction Purpose
The purpose of this document is to help identify, document and manage
employees” conflicts of interest so that the decisions made on QLDC’s behalf
are fair and free of bias or perceived bias.
Note: Throughout this policy, the words “decision” and “decisions” should be
taken to include:
recommendations and advice that might significantly influence decisions that
will be made by other people
recommendations and advice on development of strategies and policies that
will guide future decision making on service provision, purchasing,
contracting or staff employment.
QLDC acknowledges that the professional and personal interests of employees
mean that conflicts of interest sometimes cannot be avoided and can arise without
anyone being at fault. With openness and forethought, conflicts need not cause
problems and can be managed so that the best interests of QLDC and its
ratepayers (or residents)/clients are served.
This document endeavours to:
Define “conflict of interest”
Raise staff awareness of the potential for conflicts of interest
Help staff decide whether they have any conflicts of interest
Give examples of situations where conflicts of interest arise
Set out the procedures for reporting conflicts of interest when they arise
Give options for dealing with conflicts of interest.
This document also gives guidance on:
Acceptance of gifts, benefits or hospitality from suppliers
Endorsement by QLDC employees of suppliers’ products or services.
Date Issued:
Issued by:
GM Legal & Regulatory
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 1 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy
Scope
This document applies to:
all employees of QLDC
any person seconded to QLDC
all students training in QLDC premises
any person engaged or contracted under a contract for services
to do work for QLDC
For the sake of brevity the terms “employee” and “employees” when
used in this document include students and persons contracted to QLDC.
This document does not apply to elected members of QLDC.
For the avoidance of doubt any person employed by a company
engaged by Council (e.g. Downers, Veolia) is not covered by this
policy.
Associated
Other documents that are relevant to the contents of this document are:
documents
Type
Title
QLDC Corporate
Media (Communications)
Additional Employment (Human Resources)
Delegated Authority
Discipline and Dismissal
Fraud – Monitoring and Management
Legislation
Employment Relations Act 2000
Crown Entities Act 2004
Note: Any legislation referred to should be interpreted
as meaning the Act and its amendments.
Other
Interests Register
Date Issued:
September 2013
Issued by:
GM Legal & Regulatory
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 2 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy, Continued
Definition of
A
Conflict of Interest exists when an employee could be affected or could
Conflict
of
be perceived as being affected by a
personal or private interest in any
Interest
transaction while carrying out their duties or responsibilities for QLDC.
A
personal or private interest is an interest that can bring benefit to an
employee as an individual, or to others associated with the employee or
whom the employee may wish to benefit.
Transaction means:
(a) the exercise or performance of a function, duty, or power of
QLDC; or
(b) an arrangement, agreement, or contract to which QLDC is a
party; or
(c) a proposal that QLDC enter into an arrangement, agreement, or
contract; or
(d) development of a strategy or policy that will guide future decision
making on service provision, purchasing, contracting or staff
employment.
A
Conflict of Interest may exist where the employee:
will derive benefit - financial, professional or personal - from the
transaction
has a financial interest in another party to a transaction
is a director, officer or trustee of another party to the transaction,
or is a person who will or may derive a financial benefit from the
transaction
is a shareholder of another party to the transaction
has an interest in another party tendering for work which QLDC is
contesting
is the parent, child, spouse, sibling, partner or close friend of
another party to the transaction, or a person who will or may derive
a benefit from the transaction.
Appendix 1 lists questions that employees can ask themselves to help
decide if a conflict of interest exists or could be perceived by any person
to exist.
Appendix 2 lists situations where conflicts of interest may potentially
occur and gives recommendations for dealing with the conflicts. Be aware
that these are examples only and that the list is not exhaustive.
Date Issued:
September 2013
Issued by:
GM Legal & Regulatory
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 3 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy, Continued
Actual,
Conflicts of interest can be actual, potential or perceived.
Potential and
An
actual conflict of interest involves a direct conflict between an
Perceived
employee’s current duties and responsibilities and existing private
Conflicts
of
interests.
Interest
A
potential conflict of interest arises where an employee has
private interests that could conflict with official Council duties in
the future.
For the purposes of this policy document, the term Conflict of Interest also
includes a
perceived conflict of interest.
A
perceived conflict of interest exist where it is likely to be
perceived by others within the Council, or by external parties, that
an employee’s private interests could improperly influence the
performance of their duties, whether or not this is the case.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 4 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy, Continued
Policy
All employees are expected to perform their duties for QLDC in a fair and
statement
unbiased way and not to make decisions that are affected by private
interests or the prospect of personal gain.
Where an employee has an interest in a transaction which conflicts, or
potentially conflicts, or may be perceived as conflicting with their
obligations to QLDC they must declare that interest to their Manager.
Employees must also ensure that any interest that gives rise or might give
rise to a conflict of interest is included in the Council’s Interests Register.
The employee’s Manager is to decide whether any change to the
employee’s activities is required to eliminate or otherwise manage any
conflict of interest.
Employees have an ongoing obligation to disclose actual, potential or
perceived conflicts of interest. They should err on the side of caution; if
they are unsure whether they have a conflict of interest in a particular
situation, they should discuss the matter with their Manager.
Once identified, it will be for the employee’s Manager, in consultation with
the General Manager, Legal and Regulatory and if necessary the Chief
Executive, to carefully consider what, if anything, needs to be done to
adequately avoid or mitigate the effects of the conflict of interest in the
best interest of QLDC.
Where an employee has a conflict of interest and knowingly withholds
this information and acts to his or her advantage, the employee may be
subject to disciplinary action including dismissal.
It is important for employees to understand that labelling a situation as a
“conflict of interest” does not mean that corruption or some other abuse of
public office has occurred. To say that a conflict of interest exists, and that it
needs to be managed, is not an indication of a lack of trust or faith in the
employee concerned. Usually, there is no suggestion that the employee has
taken advantage of the situation for their personal benefit or been influenced
by improper personal motives (nor that they are likely to do so).
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 5 of 15
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The employee and QLDC may sincerely believe that the employee will never
behave improperly. But the reasonable perception of an outside observer of
the possibility for improper conduct can be just as significant when
considering how to manage the situation.
QLDC will need to consider whether there is a reasonable risk that the situation
could undermine public trust and confidence in the employee or QLDC. Public
perceptions are important. It is not enough that QLDC and its employees are
honest and fair; they should also be clearly seen to be so.
Managing conflicts of interest well is not only good practice, but it also protects
QLDC and the employee involved. A conflict of interest that is hidden, or that is
poorly managed, creates a risk of allegations or perceptions of misconduct, or of
other adverse consequences such as litigation.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 6 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy, Continued
Interests
An Interests Register will be maintained by the GM, Legal & Regulatory.
Register
The Interests Register is to incorporate the following information:
name of the person declaring the interest
date of declaration
organisation or individual involved
brief description of matter
action taken/comments.
Employees have an ongoing obligation to declare interests that may give
rise to conflicts of interest, and have them recorded in the Interests
Register.
An employee who has a conflict of interest must ensure that the interest
is reported to the GM, Legal & Regulatory for recording in the Interests
Register
An annual reminder of this obligation will be sent to all General
Managers, Managers and other employees who are in a position to make
or influence significant decisions on purchasing, contracting or staff
employment.
When an employee has discussed a possible conflict of interest issue with
his or her Manager and the Manager has decided there is definitely no
conflict of interest, there is no need to record this matter in the Register
unless the employee wishes to have it recorded.
If an employee or their Manager is uncertain whether a particular situation
constitutes a conflict of interest, they should err on the side of caution and
arrange for the interest to be declared and recorded in the Interests
Register. If further advice is needed on whether a particular circumstance
constitutes a conflict of interest, or how an issue should be dealt with, the
matter can be referred to the GM, Legal & Regulatory for guidance.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 7 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Policy, Continued
Options
for Generally, if an interest is disclosed the individual with the interest should
Dealing with a not be involved in consideration or discussion of the matter in which he or
Conflict
of she has the interest and certainly should not vote on any question relating
Interest
to the matter.
In some situations this may not be possible or desirable. For example, an
employee with an interest may also have particular and unique expertise in
the matter under discussion. If that expertise is not readily available from
another source it may be to QLDC’s benefit to allow the employee to
contribute their expertise despite their interest in the matter. Such
situations should be handled with caution. There should be documentation
of the reasons for allowing the employee’s participation and the steps
taken to ensure the decision on the matter is unbiased.
A broad range of options exists for dealing with conflicts of interest.
Choosing the right option to deal with the situation will depend on the
circumstances and an objective assessment of it. Options include:
take no action because the conflict is assessed as being minor in
nature or is eliminated by disclosure or effective supervision
allow limited involvement (e.g. participate in discussion, but not
in decision making)
prohibit any involvement
request the individual concerned relinquish or divest the
personal interest which creates the conflict
appoint to the decision making group additional people who have
no conflict of interest
appoint an independent person or agency to manage or monitor
the process and provide assurances of fairness and equity in the
matter.
Any conflict of interest and the measures taken to deal with the situation
must be recorded in the Interests Register.
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 8 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 1 - Deciding if a Conflict of Interest Exists
The following questions relate to some of the situations where conflicts of
interest exist, or may be perceived to exist.
Answering “Yes” to any of the following questions should be a signal to
an employee to disclose their interest to their Manager:
Would a fair and reasonable person perceive that I was influenced
by personal interest in performing my public duty?
Do I, a relative, friend or associate stand to gain financially or in
any other way from QLDC’s decision or action on this matter?
Am I in a position to influence decision making about a matter
related to a potential personal financial interest?
Have I made any promises or commitments in relation to this matter?
Have I received a benefit or hospitality from someone who stands
to gain from QLDC’s decision/action?
Am I a member of an organisation or club, or do I have particular ties
or affiliations with organisations, clubs or individuals, who stand to
gain financially from QLDC’s consideration of the matter?
Could there be benefits for me in the future that could cast doubt
on my objectivity?
Might I be perceived as favouring a particular person or firm
because of a personal friendship or long-standing association?
Am I in a position to influence development of a particular strategy or
policy that will guide future decisions from which I may benefit
personally?
Answering “No” to any of the following questions should be a signal to an
employee to disclose their interest:
If I participate in assessment or decision-making on this particular
matter, would I be happy for my colleagues and the public to be
aware of any personal interest, association or connection that I
have in the matter?
When I am making a presentation or recommendation to the
Council or to another decision making group, are they aware of my
interests (including private practice commitments) which might be
perceived as influencing the advice I am giving?
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 9 of 15
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Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions
Listed below, under various classifications, are situations where conflicts of interest may
potentially occur and a recommended action to avoid or deal with the conflict.
Gifts / Benefits or Hospitality from Suppliers
Situation
Recommended Action
Accepting gifts / benefits from
An employee may accept a gift or benefit
suppliers of goods or services.
freely given by a supplier if:
Acceptance of a gift or other benefit from
The gift is an inexpensive
a supplier can be perceived as
Christmas gift or a token of
encouraging or obliging the employee to
appreciation or a minor industry
favour that supplier.
give-away e.g. a diary, a calendar
OR
Gifts and benefits can take many forms e.g.
the gift/benefit/hospitality is for
presents; travel; discounts on
the employee personally; and
goods or services; tickets to events;
the total value does not exceed
funding
to
attend
educational
$50; and
conferences or meetings. The term
the employee’s Manager agrees
“benefit” also includes a restaurant meal
that it is appropriate to accept.
or hospitality at sports events or other
entertainment.
It is acceptable for each staff member to
keep one (1) gift to the value of $50.00 p.a.
All other gifts given to staff members by
consultants, contractors, service providers
or through any other means, will be
handed in to the PA to the CEO.
These gifts will be held for distribution
amongst all staff at Christmas time or any
other time as per the discretion of the CEO.
Perishable items, which will be available to
staff for morning or afternoon tea on the
day.
All hospitality must be registered on the
Gifts & Hospitality Register on the intranet
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 10 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Purchasing of Goods and Services or Letting of Contracts
Selection of Tenders / Appointment of Where there is a family relationship or
contractors: A conflict of interest arises close friendship with any tenderer or
where an employee has a family contractor, the employee must declare
relationship or close friendship with a their conflict of interest and withdraw
tenderer or prospective contractor and from the selection or appointment
the
employee
is
making process.
recommendations or decisions on the
appointment of the tenderer /
contractor or a continuation of their
contract.
Presentations to the Board or other decision makers
Situation
Recommended Action
Making
a
written
or
oral
At the start of the written or oral
presentation to the Council (or to
presentation
the
presenter
is
another QLDC decision making
expected to explicitly declare their
body) about equipment, facilities or
private practice involvement. The
services when the presenter has, or is
Council or other decision making body
contemplating,
private
sector
then has an opportunity to ask
involvement in a similar service.
questions about this interest.
When arrangements are being made
for a staff member to make a
presentation to the Board, the staff
member will be reminded of the
expectation
to
declare
private
commitments.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 11 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions, Continued
Recruitment
Situation
Recommended Action
Sitting as a member on selection
The preferred option is to declare the
panels where applicants for the
interest and withdraw from any part of
position are known to the member
the recruitment process.
personally, as family, friend or close
associate, to an extent that could be
In situations where an applicant is well
considered to be a conflict of interest.
known to a person on the selection
panel solely through a professional
relationship or because they both work
in the same field, it may be necessary to
include the person with the “conflict”
on the panel because they have
expertise required to select the best
applicant. In these cases care must be
taken to ensure that the selection
process remains unbiased e.g. by
involving an additional independent
person in the selection process.
Being in a position to
influence the
Declare the interest. Other actions as
selection, or non-selection, of an
noted above.
applicant for a position where the
applicant is known personally and
involvement could be perceived to
be a conflict of interest.
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 12 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Staff Administration
Situation
Recommended Action
Having a
close personal and/or
All employees are to be treated
family relationship with another
equally and fairly and any relationships
employee over whom control is
that could be perceived to be of
exercised.
possible concern should be brought to
the attention of the appropriate senior
employee. If it appears that employees
are
being
given
preferential
treatment, these concerns should be
addressed through the disciplinary
process.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 13 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions, Continued
Improper
Promoting friends or relatives where other employees are more deserving.
actions
Preferentially rostering staff to the advantage of particular individuals
due to personal association with those persons. This can have financial
(penalty rates etc) advantage to the favoured individuals to the
disadvantage of other employees.
Allocation of overtime regularly to particular individuals to the
disadvantage of other persons equally entitled and equally efficient.
Assessment and/or inappropriate recommendation of particular
individuals over others because of personal associations, for such things
as:
o training courses;
o attending conferences;
o job or advancement opportunities.
Recommending incremental progression, or non-progression, of
particular officers due to personal interests, or attitudes, that are not
aligned to the work situation.
Giving preference for the taking of leave by individuals to the detriment
of others due to personal association.
Not applying the same rules equally to all employees because of personal
association e.g. failure to address issues of late attendance, non-
performance, etc.
Appointment or election to public office
Situation
Recommended Action
Employees may offer themselves for
Employees should notify the Chief
appointment or election to any public
Executive immediately they offer
office, but they should be aware that
themselves for appointment or election
the duties of the office may conflict
to public office (or, preferably, before
with the due and proper discharge of
they offer themselves). If in the opinion
their duties with QLDC.
of the Chief Executive the conflict of
interest cannot be accommodated, the
employee may be called upon to resign
from Queenstown Lakes District
Council if elected to the public office.
An employee holds office or position
within a professional group or
association
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 14 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions, Continued
Service on a professional body or employee organisation
Situation
Recommended Action
Employees may offer themselves for
Employees appointed or elected to
appointment or election to governance
professional bodies or employee
or executive positions on their
organisations should advise the
professional
or
employee
Human Resources Director of their
organisations. There may be occasions
appointment.
when they are called upon to speak on
behalf of their organisation.
A member of staff who speaks
publicly on behalf of a professional
body or employee organisation must
not associate QLDC with the views
expressed.
An employee is, in a personal capacity,
a member of (or about to become a
member of) or have a family
involvement in, a trust or community
organisation which is funded by or
otherwise linked to the Council
Participation in political activities
Situation
Recommended Action
Employees serving
in
executive Employees should advise the Chief
positions within any political party or Executive in writing, with a copy to
politically sensitive organisation are the Human Resources Director, upon
open to allegations of bias in favour of being appointed to executive positions
that organisation to the detriment of within any political party or politically
QLDC.
sensitive organisation.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 15 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions, Continued
Endorsement of products or services
Situation
Recommended Action
Publicly endorsing a product or
QLDC employees must not allow their
service
and
including
the
names and positions at QLDC to be
professional’s position at the Council,
used
in
product
or
service
is not to take place unless authorised
endorsements in material sent by
by the employee’s Manager.
suppliers to potential customers.
Employees may, subject to the
approval of their Manager, agree to
give advice about the adequacy of the
product or service to another
prospective purchaser e.g. another
Council.
Acting as a technical advisor to a supplier
Situation
Recommended Action
Appointment to a paid position as a
The employee should discuss the offer
technical advisor to a supplier (e.g. a
of appointment with his or her General
planning company or building supplies
Manager before accepting.
company) is likely to create a conflict
of interest.
Continued on next page
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 16 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
Conflict of Interest
Appendix 2 - Conflict of Interest Examples and Recommended Actions, Continued
Other activities that are likely to cause conflicts of interest
QLDC external auditors have drawn attention to the following
activities:
Activity
Recommended Action
Having a significant financial interest
Such interests must be disclosed
in an organisation that receives funding
from QLDC or is a supplier to QLDC
Receiving gifts, loans or other special
As a general rule such benefits should
privileges from an organisation that
not be accepted. The offer of them
receives funding from QLDC or is a
should be disclosed.
supplier to QLDC
(See section on Gifts/Benefits and
Hospitality above for limited
exceptions and further guidance)
Payment or receipt, by individual
Such activities are prohibited.
employees, of rebates or bribes or (Rebates for QLDC itself may be
other forms of compensation to induce negotiated in some instances as part of
funding or obtain favourable contract normal contractual arrangements)
terms
Use of QLDC’s funds to reimburse Such activities are prohibited.
employees or others in ways that would
violate QLDC’s policies.
Holding unrecorded cash funds.
This is prohibited. All funds due to
QLDC must be paid into a QLDC
bank account.
Holding outside employment.
Such activity must be disclosed and
approved by QLDC
An employee witnesses inappropriate Such activity must be disclosed to
behaviour or misconduct by another QLDC under the Whistleblower’s Policy
staff member
The private interests of an employee
could be seen to influence or
compromise the performance of
his/her duties
September 2013
GM Legal & Regulatory
Date Issued:
Issued by:
RP : 24 mths
Authorised by: CEO
Conflict of Interest
Page 17 of 15
This information is correct at date of issue. Always check in the relevant QLDC policy manual that this copy is the most recent version
