1. MINIMUM MUNICIPAL COMPETENCY PROGRAMME
Dr Zwelinzima Ndevu

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

3. The full programme
Group
Modules
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. Not applicable for CMFM
The content
26 US -ID’s:
116339
116340
116341
116342
116343
116344
116345
116346
116347
116348
116351
116353
116357
116358
116360
116361
116362
116363
116364
119331
119334
119341
119343
119348
119350
119352
NQF Le 6 5
Credits 10 11 12 15 8
CMFM 48965 C E F
Not applicable for CMFM
Key
Certificate SAQA ID credits; F = Fundamental; C = Core; E = Elective (1)
AccOff X
CFO
SnrM
MidFin
SCMH
SCMM

5. US116343- Assessment Plan 1 Individual assessment
Open book case study based controlled class test
29 May 2017
2-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 2
Individual work-based assignment
17 March 2017
Research the factors that undermine ethics in your municipality and recommend solutions. In doing your assignment reflect on what you have learned and respond to the following questions: 1. What are the values and ethical standards? 2. What conditions would cause the compromise of the abovementioned values and standards? 3. What should be the approach of the municipality in dealing with ethical dilemmas? Is the code of conduct important in regulating the behaviour of stakeholders in a municipal financial environment? Briefly explain your response.

6. Ethics in Municipal Finance– setting the context and challenge
Round-table interactive workshop:
Individually reflect upon your (1) personal (in your community) and (2) professional experience (at your office/department) with regards to Ethics in municipal environment
In a round-table discussion, share your views with the group

7. Stakeholder Consultation and Ethics in Municipal Finance
Module 1
Stakeholder Consultation and Ethics in Municipal Finance

8. Apply the Principles of Ethics in a Municipal Environment
SAQA
Apply the Principles of Ethics in a Municipal Environment

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

10. Ethics and Ethical Behaviour in a Municipal Government22

11. Ethics – a definition
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 23

12. Behaviour – lack of diligence and probity24

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

14. Behaviour – dishonesty for purposes of self interest24

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

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

17. Relationship between ethical individuals and ethical organisations27

18. UNETHICAL BEHAVIOUR IN THE PUBLIC ORGANISATION28

19. “Public Service is public trust
“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

20. LEGISLATION, REGULATION AND CODES APPLICABLE TO MUNICIPALITIES IN SOUTH AFRICA31

21. “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 33

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

23. And all the legislation …36

24. And Codes of Conduct … 43

25. Class exercise
Identify a professional field within municipal environment
Identify three ethical concerns (are the issues becoming more of a problem or getting worse)
Identify relevant stakeholders in the conflict (what values are in the conflict for each stakeholder)
How to handle the issue and why?

26. Conflict of Interest
Disclosure …
Recusal … ? 45

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

28. 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

29. Concepts Accountability Responsibility Stakeholders Role-players
Corporate Governance
Vision
Banking Charter – increased focus on sustainability issues, such as access to finance, empowerment and social responsibility.
Marketing- sustainability is also a corporate identity issue – can improve reputation.
Social responsibility – such as foundation activities and good treatment of employees improves reputation, gives back to community, and makes firm an employer of choice.
Good Business sense- improved risk assessment eliminates debt risks, can save costs on facilities by employing environmentally beneficial technologies.

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

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

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

33. Good governance includes ten principles as requisites of ethical local governance:
These principles are:
• Participation;
• Rule of Law;
• Transparency;
• Equality;
• Responsiveness;
• Vision;
• Accountability;
• Oversight;
• Efficiency and Effectiveness; and
• Professionalism.

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

35. State forced to reconsider review of parastatals

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

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

38. International principles …
Principles of personal ethics
Principles of professional ethics
Principles of global ethics 63

39. Application of principles to Codes of Conduct in the South African public sector66

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

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

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

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

44. Three examples – individual assignment
Ethical dilemmas
Three examples – individual assignment 76

45. Dealing with ethical misconduct in the workplace80

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

47. Resolving ethical dilemmas in the workplace
Learning activity 87

48. Compliance with an established code of ethics90

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

50. Hoffman’s Ethical Pyramid99

51. Initial tasks of an ethics management programme
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.
100

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

53. Whistleblowers’ Charter
112

54. Appendices 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+

55. SCHOOL OF PUBLIC LEADERSHIP
Thank you ……