1. MINIMUM MUNICIPAL COMPETENCY PROGRAMME Dr Zwelinzima Ndevu

2. Unit Standard 116343 Apply the Principles of Ethics in a Municipal Environment Module 1 Stakeholder Consultation and Ethics in Municipal Finance Group 3 Governance and Legislation

3. The full programme GroupModules 1.Strategic Management; Budgeting Implementation & Performance Management 3. Strategic Planning & Multi Year Income & Expenditure Management 6. Budgeting Principles & Cycles 7. Financial Reports & Performance Management 2. Municipal Accounting & Risk Management 8. Cash, Investment, Asset, Liability Management 4. Risk Management; Internal Control Framework Design and Audit Planning and Implementation 3. Governance & Legislation 1. Stakeholder Consultation & Ethics in Municipal Finance 2. Intergovernmental Fiscal Relations, Legislation & Policies affecting Municipal Financial Mngmt 4. & 5. Costing & Capital Planning; Municipal IT Support & Project Management 9. Capital Planning & Financing & Costing Principles 5. Managing Information Technology Resources in Municipal Finance 6. Supply Chain Management & Public Private Partnerships 10. Municipal Supply Chain Management 11. Public Private Partnerships

4. The content 26 US - ID’s: 116339116340116341116342116343116344116345116346116347116348116351116353116357116358116360116361116362116363116364119331119334119341119343119348119350119352 NQF Le 66666666666666666665555555 Credits 1011121510 151015812 8158811128 15 121512 CMFM 48965 CCECFCCCCFECECEECCC Not applicable for CMFM KeyCertificate SAQA ID - 48965 - 166 credits; F = Fundamental; C = Core; E = Elective (1) AccOffXXXXXXXXXXXXXXXXXX CFOXXXXXXXXXXXXXXXXXXXX SnrMXXXXXXXXXXXXXXX MidFinXXXXXXXXXXXXXXX SCMHXXXXXXXXXXXXXXXX SCMMXXXXXXXXXX

5. 1 Individual assessment Open book case study based controlled class test 13 June 2016 24 October 2016 3-hour paper consisting of a case study with insight questions relating to all outcomes: It will be expected of the learner to apply the theoretical models/tools to the questions. OUTCOME 1: Demonstrate knowledge and insight into existing legislation, regulations and codes affecting activities of municipalities in South Africa OUTCOME 2: Apply the principles of ethics and professionalism to a municipal code of conduct Assessment Criteria OUTCOME 3: Develop an implementation plan to achieve compliance with an established code of ethics 2Individual work-based assignment 31 October 2016 It is expected of public institutions to properly implement legislation, regulations and codes relating to governance and ethics by applying the principles that underpin professional code of ethics for officials. It is necessary for all officials to initiate or improve commitment and compliance in the implementation of a code of ethics and governance regulations in the public sector including entities. OUTCOME 1: Demonstrate knowledge and insight into existing legislation, regulations and codes affecting activities of municipalities in South Africa OUTCOME 2: Apply the principles of ethics and professionalism to a municipal code of conduct Assessment Criteria OUTCOME 3: Develop an implementation plan to achieve compliance with an established code of ethics US116343- Assessment Plan

6. Module 1 Stakeholder Consultation and Ethics in Municipal Finance

7. SAQA 116343 Apply the Principles of Ethics in a Municipal Environment

8. Specific Outcomes 1.Demonstrate knowledge and insight into existing legislation, regulations and codes affecting activities of municipalities in South Africa … 2.Apply the principles of ethics and professionalism to a municipal code of conduct … 3.Develop an implementation plan to achieve compliance with an established code of ethics … Orientation

9. Ethics and Ethical Behaviour in a Municipal Government 22

10.  The principles (values) … what is right, what is good and what is proper  The standards which guide us in achieving what is right, good and proper  The sustained efforts … to employ those sound principles and standards - which best serve the public and their interests Ethics – a definition 23

11. Behaviour – lack of diligence and probity 24

12. Laziness Carelessness Waste of the organisation’s resources Abuse of the organisation’s assets Disrespect for the public and their interests 24

13. Behaviour – dishonesty for purposes of self interest 24

14. Corruption, theft, graft and fraud Using insider knowledge and influence Self-dealing Making personal use of government property Unauthorised outside employment 24

15. Professionalism and ethics in the workplace Criteria Characteristics Competencies Expectations 24

16. Relationship between ethical individuals and ethical organisations 27

17. UNETHICAL BEHAVIOUR IN THE PUBLIC ORGANISATION 28

18. “Public Service is public trust. Citizens expect public servants to serve the public interest with fairness and to manage public resources properly on a daily basis. Fair and reliable public services inspire public trust and create a favourable environment. Public service ethics are a prerequisite to, and underpin public trust and are a keystone of good governance.” OECD “ … trustworthiness, responsibility, respect, compassion, fairness and citizenship … ” IGE 28

19. LEGISLATION, REGULATION AND CODES APPLICABLE TO MUNICIPALITIES IN SOUTH AFRICA 31

20. “The ultimate answer to ethical problems in government is honest people in a good ethical environment. No web of statute or regulation, however intricately conceived, can hope to deal with the myriad of possible challenges to a person’s integrity or his devotion to the public interest.” President John F. Kennedy - 1961 33

21. The Bill of Rights Rights & Obligations The Chapters and the Sections …… The Constitution Act 108 of 1996 34

22. And all the legislation … 36

23. And Codes of Conduct … 43

24.  Disclosure …  Recusal … Conflict of Interest 45 ?

25. King II – Triple Bottom Line Economic Environmental Social Governance

26. King Reports  1994 – King I “ … integrated approach to the good governance in the interests of a wide range of stakeholders …”  2002 – King II “ … a move to the triple bottom line, embracing the economic, environmental and social aspects …”  2009 – King III “ … core philosophy revolving around leadership, sustainability and corporate citizenship …” 46

27. Concepts Accountability Responsibility Stakeholders Role-players Corporate Governance Vision

28.  Consultation  Service standards  Access  Courtesy  Information  Openness and transparency  Redress  Value for money Batho Pele 49

29. Codes of conduct and ethics in the workplace Learning activity (see next slide) 56

30. Codes of conduct and ethics in the workplace Enron Group exercise 57

31. Codes of conduct and ethics in the workplace Learning activity 58

32. Applying principles of ethics and professionalism in the municipal environment 61

33.  Public Sector Code of Conduct (66)  Code of Conduct for Municipal Staff Members (68) Codes of Conduct … 63

34.  Principles of personal ethics  Principles of professional ethics  Principles of global ethics International principles … 63

35. Application of principles to Codes of Conduct in the South African public sector 66

36. 68+ Dilemmas … relationship with councillors relationship with the public relationship among employees performance of duties personal conduct - private interests

37. Ten-step method for resolving ethical dilemmas (adapted from Wallace & Pekel) 1.What are the known facts in the situation? 2.Who are the key stakeholders, what do they value and what are their desired outcomes? 3.What are the underlying drivers causing the situation? 4.In priority order what ethical principles or operating values do you think should be upheld in this situation? 5.Who should have input to, or be involved in, making this decision? Ethical Dilemmas: steps 1 - 5 78

38. 6.List any alternative and action plans that would: a)prevent or minimise harm to stakeholders b)uphold the priority values for this situation c)be a good solution to the situation 7.Build a worse-case scenario for your preferred alternative to see how it affects the stakeholders. Rethink and revise your preferred alternative if necessary. 8.Add a preventative ethics component to your action plan that deals with the underlying drivers causing the situation listed in Step 3. 9.Evaluate your chosen decision and action plan against any relevant checklist or code of conduct. 10.Decide and build an action plan, and implement and monitor it. Ethical Dilemmas: steps 6 - 10

39. 1.Have you defined the problem accurately? 2.How would you define the problem if you stood on the other side of the fence? 3.How did this situation occur in the first place? 4.To whom and what do you give your loyalties as a person and as a member of the municipality? 5.What is your intention in making this decision? 6.How does this intention compare with the likely results? 7.Whom could your decision or action injure? 8.Can you engage the affected parties in a discussion of the problem before you make your decision? 9.Are you confident that your position will be as valid over a long period of time as it seems now? 10.Could you disclose without qualm your decision or action to your boss, your municipal manager, the council, your family, or society as a whole? 11.What is the symbolic potential of your action if understood? If misunderstood? 12.Under what circumstances would you allow exceptions to your stand? Ethical Dilemmas – the 12 questions 79

40. Ethical dilemmas Three examples – individual assignment 76

41. Dealing with ethical misconduct in the workplace 80

42. Verbal warning Written warning Reprimand Suspension Termination – Disciplinary steps (82) – Dealing with fraud, theft or corruption in the workplace (82) Forms of warning 81

43. Resolving ethical dilemmas in the workplace Learning activity 87

44. Compliance with an established code of ethics 90

45. Municipal Manager support An Ethics Committee within council? Ethics Officer? Ombudsman? One person responsible! – The guidelines … (96) Roles and responsibilities in an ethics management programme 95

46. Hoffman’s Ethical Pyramid 99

47. Purpose … Guidelines … – Identify and review values – Review which values support the ideal – Identify behaviours – Identify core values - the top five to ten – Compose a code of ethics – Include wording - all employees are expected to conform – Obtain review from key members of the municipality. – Announce and distribute the new code of ethics – Update the code at least once a year. Initial tasks of an ethics management programme 100

48. 107 Implementing the code of ethics … Internal initiatives Communicating internally External initiatives External communication

49. Whistleblowers’ Charter 112

50. A - Code of Conduct for Councillors B – Code of Conduct for Municipal Staff Members C – South African Public Service Code of Conduct D – Prevention and Combatting of Corrupt Activities Act, 2003 E – Sample Ethics Programme for a municipality 125+ Appendices

51. SCHOOL OF PUBLIC LEADERSHIP Thank you ……