GIFT RULES 2017 Presenter: Kelzang Dema

Drafted in accordance to Sec. 133 of ACAB, 2006; BACKGROUND ON GIFT RULES What is gift? The Gift Rules 2009: Drafted in accordance to Sec. 133 of ACAB, 2006; Hard to understand; Some important topics not covered; The Gift Rules 2017: Revised the Gift Rules 2009; Clear provisions on management of gift.

All the public servants. APPLICATION Who is subject to the Gift Rules? All the public servants. All gift(s) or advantage(s) received/given irrespective of territorial boundary.

PURPOSE OF THE GIFT RULES 2017 Prohibit solicitation of gift; Restrict giving and acceptance of gift; Set procedures for gift management

GIFT PROHIBITION A Public servant shall not solicit or accept a gift directly or indirectly from a prohibited source. Indirectly Directly Spouse and/or dependent Public Servant Any other person Prohibited Source

Who are Prohibited Sources? 1. Seeks official action or business from the public servant’s agency Tender Committee Businessman

2. Who does business with the public servant’s agency PROHIBITED SOURCES Who are Prohibited Sources? 2. Who does business with the public servant’s agency Procurement Officer Prohibited Source Supplier

Prohibited Source (Contractors) PROHIBITED SOURCES Who are Prohibited Sources? 3. Conducts activities regulated by the public servant’s agency. Project Manager Prohibited Source (Contractors)

Who are Prohibited Sources? 4. Has Interest that may be affected by performances or non-performance of the public servants official duty BAFFRA Shop keeper

PROHIBITED SOURCES Who are Prohibited Sources? 5. Who are the member(s) of those prohibited sources, or 6. Any other source which the commission may declare from time to time.

GIFT GIVING PROHIBITIONS A Prohibited source shall not, directly or indirectly, give a gift to any public servant including his or her spouse and/or dependent. Indirectly Directly Public Servant (Person) Prohibited Source

Personal Relationship: Public Servant – Head of Agency (HoA); EXCEPTION TO PROHIBITIONS Personal Relationship: Public Servant – Head of Agency (HoA); Head of Agency (HoA) – Gift Administration Committee. Immediate Relatives. Common opportunities and benefits.

GIFT BETWEEN PUBLIC SERVANTS A public servant shall not directly or indirectly solicit, give to or accept a gift, from another public servant. EXCEPTIONS: Nominal value i.e. amount not more than 10 days’ national minimum wage: On infrequent occasions of personal significance; On occasions like retirement, resignation or transfer; Personal hospitality.

OTHER GIFT TRANSACTIONS Any source other than a prohibited source on behalf of ones agency. Not request or otherwise encourage the giving of gift or accept from Foreign Governments provided it is given as a: Souvenir; or Mark of courtesy , which shall be considered as State property.

OTHER GIFT TRANSACTIONS Accept a gift of nominal value from sources other than those mentioned above; Criteria for determining the permissibility of a gift by the Head of Agency See Whether; A public servant has solicited the gift or encouraged its solicitation; The giver has placed any condition on the agency’s acceptance of the gift; The acceptance of a gift is appropriate and advisable from the perspective of Conflict of Interest; or The gift is appropriate for use by the agency.

Roles and Responsibilities GIFT ADMINISTRATION Roles and Responsibilities Head of Agency (HoA) Designate a GDA; Determine retention or disposal of gift; Impose penalties; Constitute Gift Administration Committee; Incorporate provisions for disciplinary actions; Educate and advocate on the Rule; and Perform any other activity necessary for effective implementation of the rule. May ask any public servant to declare his or her gift.

Comprises of minimum 3 members: GDA (Member Secretary); Gift Administration Committee(Committee) Comprises of minimum 3 members: GDA (Member Secretary); Meet to review & take decision on gifts pertaining to HoA; Review the administration of gifts for the FY & report to HoA; Prepare report for auditing purpose. May ask any public servant to declare his or her gift.

Receive duly filled Gift Disclosure Form; Gift Disclosure Administrator(GDA) Receive duly filled Gift Disclosure Form; Enter particulars of the disclosure in the Gift Register; Report to the HoA; Dispose the deposited gift; Collect the fines; Maintain gift records; and Convene Committee meeting & serve as the Member Secretary. May ask any public servant to declare his or her gift.

24 hours after receiving the gift; or GIFT ADMINISTRATION (contd.) Gift Disclosure: A public servant shall disclose any gift received from any source in the prescribed form to the GDA within: 24 hours after receiving the gift; or 24 hours upon arrival at his/her work place.

Permissible gift – handed over to the public servant concerned; GIFT DISPOSAL Where the public servant has reported the receipt of a gift to the GDA, the gift shall be dealt with the following manner: Permissible gift – handed over to the public servant concerned; Prohibited/impermissible gift – return it to the giver within 5 working days after the receipt of the report.

Prohibited gift from a foreign source – disposed off in accordance with the procedure in force for the disposal of government properties; or Gift from foreign government – used for official purpose or disposed off in accordance with the procedures in force for the disposal of government properties.

A public servant shall, be levied a fine, if he/she: PENALTY FOR BREACH Public Servant: A public servant shall, be levied a fine, if he/she: Solicited or encouraged the solicitation of the gift directly or indirectly; Accepted directly or indirectly any impermissible gift; Refused or failed to disclose the gift without reasonable justification; or Breached any provision of this Rule.

At 1st instance – twice the estimated fair market value of the gift; PENALTY FOR BREACH (contd.) Fine: At 1st instance – twice the estimated fair market value of the gift; For 2nd time – 5 times the estimated fair market value of the gift; More than twice – 10 times the estimated fair market value of the gift.

Dealt as per the relevant provisions of the Anti- PENALTY FOR BREACH (contd.) Knowingly accepted, solicited or encouraged the acceptance or solicitation, directly or indirectly of any gift from a prohibited source. Dealt as per the relevant provisions of the Anti- Corruption Act, 2011.

Gift Disclosure Administrator PENALTY FOR BREACH (contd.) Head of Agency Penalty At First Instance 1 month’s Gross Salary. More than once Appropriate disciplinary action in addition to the fines levied. Non-salaried heads 1 month’s gross salary of the head of similar agencies Gift Disclosure Administrator Penalty At First Instance 1 month’s national minimum wage. More than once Appropriate disciplinary action in addition to the fines levied. Gift Administration Committee Penalty At First Instance 1 month’s national minimum wage. More than once Appropriate disciplinary action in addition to the fines levied.

Jurisdiction fines: issuance receipt. Gift Disclosure Record: 5 years. Compliance Auditing: RAA. Access to Disclosure: With application.