Anti-Corruption Commission Focus Newsletter

In this issue ………….

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What is Corruption?

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Understanding Corruption

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ISSUE 2

VOLUME 1

2012

Anti-Corruption Commission Integrity is non-negotiable

Emerging Trends Gifts, Benefits, Bribery

INFORMING THE COMMUNITY ON THE EMERGING TRENDS AND BEST PRACTICES IN THE FIELD OF ANTICORRUPTION TO PLANT THE SEEDS FOR ANTI-CORRUPTION AWARENESS IN THE CAYMAN ISLANDS.

Wh at is Co r rupt ion?

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Bribery of public officers and members of the Legislative Assembly (1) A public officer or a member of the Legislative Assembly who directly or indirectly(a) solicits; (b) accepts or obtains; or (c) agrees to accept or obtain, for himself or any other person, any loan, reward, advantage or other benefit with intent- (d) to interfere with the administration of justice; (e) to procure or facilitate the commission of an offence; or (f) to protect from detection or punishment a person who has committed or who intends to commit an offence, commits an offence.

(2) Any person who gives or offers to a public officer or to a member of the Legislative Assembly any loan, reward, advantage or other benefit, with intent that the public officer should do anything mentioned in subsection (1)(d),(e), or (f) commits an offence.

(3) A person who commits an offence under this section is liable on conviction on indictment to imprisonment for a term of fourteen years.

Helping you to better understand corruption While offering or receiving a gift or benefit may not involve corrupt conduct, public officials and public authorities need to have clear, effective and appropriate policies and procedures in place to deal with this, often problematic, area – and need to be aware that bribery is a serious criminal offence in the Cayman Islands.

Generally, a gift or benefit is anything of value that is offered to you in the course of your work, apart from your normal employment entitlements. It can be either tangible or intangible:

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Tangible gifts — cash, goods, hospitality (e.g. meals or drinks), promotional materials (e.g. free pens, diaries), samples, scholarships, discounts on goods and services (including discounted interest rates)

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Intangible gifts — personal services, free or subsidised travel or accommodation, entertainment, preferential treatment, privileged access, promise of a special favour or advantage (e.g. a special type of loan).

Policies on gifts and benefits do not relate to an organisation’s internal rewards system or to personal and private gifts from friends and relatives — provided there is no expectation that you will favour any member of the public as a result of receiving the gift.

As a public sector employee, you are required to behave with the highest integrity, and ensure that your conduct is beyond reproach. As such the Public Servant’s Code of Conduct states – A public servant must disclose, and take reasonable steps to avoid, any conflict of interest (real or apparent) with his duties as a

public servant, and must not use his official position for personal or familial gain.

Rationalisations such as ‘everyone’s doing it’, ‘it’s only fair’, ‘it’s just this once’ or ‘I didn’t want to offend’ will not protect you from sanctions. However, if you have attempted to comply with the rules and law but have genuinely made a mistake (e.g. about the value of an asset), the ACC will take such facts into consideration as a part of conducting official investigations.

In reality, the destructive results of corruption are obvious; although, in practice it is a difficult and complex task to identify corruption in every circumstance. Ultimately, while some people will be susceptible to temptation during the course of their public service, it is our hope that the vast majority will remain unmoved with respect to their integrity, morals, and ethics.

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EMERGING

TRENDS

Managing External Relationships: Gifts, Benefits, Bribery

Taking a look at emerging trends and sharing best practices The improper acceptance of gifts or benefits by public officers or MLAs may constitute corrupt conduct as defined by the AntiCorruption Law (2008).

Bribery of Public Officers & MLAs The intention behind the giving of a gift — and what the community may perceive as the intention — should always be considered in determining whether accepting the gift is appropriate.

Public officials need to have a very clear understanding of what to do when they are offered a gift or benefit and the implications of accepting a gift or benefit. The offer of gifts or benefits can present a corruption risk because it has the potential to affect the impartiality and integrity of the agency in carrying out its functions.

Gifts and benefits may be offered out of gratitude and goodwill for a job well done. However, gifts and benefits can also be offered as a subtle form of influence – to create a favourable impression or to gain preferential treatment. Acceptance of a gift or benefit can create a sense of obligation that may compromise impartial and honest decision making.

Corruption risks A risk assessment of conflicts of interest in an agency, unit, department, etc. may identify some or all of the following corruption risks:  A public official being influenced by gifts to provide favourable treatment or turn a blind eye to regulatory breaches. 

 The acceptance by employees of gifts or benefits leading to a perception that their official decisions are open to influence and bribery.  A perception that the only way to win procurement tenders with an agency is to offer additional gifts or benefits discouraging reputable suppliers and contractors.  A public official who accepts gifts (even if the gift had no influence) being accused of accepting bribes.

Managing corruption risks As a minimum your agency, unit, department, etc. should aim to:  Introduce policy and procedures for the management of gifts and benefits.  Include sanctions in the policy for any breach of the policy and procedures.  Record all gifts and benefits offered / received and the justification for why they were received.  Train all relevant employees in the policy and procedures so they are aware of their accountabilities.  Review the policy every two years.  Refer to the management of gifts and benefits in related corporate documents such as codes of conduct.  Include the management of gifts and benefits in the agency's internal audit process and corruption risk management process.

Email: info@anticorruptioncommission.ky

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 Encourage employees to take reasonable steps to ensure their family members are not the recipients of gifts or benefits that could be perceived as an attempt to influence the public official.  Prohibit employees from accepting cash and gifts under any circumstances.  Prohibit employees from soliciting personal gifts or benefits under any circumstances.

Risk management strategies Following your corruption risk assessment of conflicts of interest in your agency you should also consider these risk management strategies:  Introducing more restrictive rules for employees who work in more senior positions or functions that are more exposed to potential bribes such as inspectors, enforcement officers or key decision makers.  Introducing a rule that if the refusal of a gift is ignored the gift is regarded as the property of the organisation and the incident is documented.  Ensuring transparency in the disposal of gifts to avoid any perception that individual employees or community members are benefiting either inadvertently or improperly from this process.  Giving employees, who carry out high risk functions, additional support and training in the management of gifts and benefits.

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