On 9 May 2017, Ross Waugh talked about "Ethics" to Selwyn District Council Young Professionals.
Ross discusses the IPENZ (Institute of Professional Engineers New Zealand) Code of Ethical Conduct. He also cited the IPWEA Code of Ethics, among others.
Ross presents case studies and provides some examples and insights on ethical issues surrounding professional engineering and district council practices.
2. What is Ethics? Oxford Dictionary
1[usually treated as plural] Moral principles that
govern a person's behaviour or the conducting
of an activity
‘medical ethics also enter into the question’
‘a code of ethics’
1.1 The moral correctness of specified conduct.
‘many scientists question the ethics of cruel
experiments’
2[usually treated as singular] The branch of
knowledge that deals with moral principles.
‘neither metaphysics nor ethics is the home of
religion’
3. What is Ethics? Wikipedia
Defining Ethics
Meta Ethics
Normative Ethics (10 headings)
Virtue ethics
Ethics of care
Applied Ethics (9 headings)
Business ethics
Public Sector ethics
Moral Psychology
Descriptive ethics
It is a huge subject area
4. Sources of Ethics Statements
IPENZ https://www.ipenz.nz/home/professional-
standards/ethical-conduct/code-of-ethical-conduct
IPWEA http://www.ipwea.org/about/national/corp_info
Law Society https://www.lawsociety.org.nz/for-
lawyers/regulatory-requirements/client-care
Chartered Accountants ANZ https://www.ifac.org/about-
ifac/membership/members/chartered-accountants-
australia-and-new-zealand-formerly-recognized-0
5. IPENZ Code of Ethical Conduct
Public Interest
Take reasonable steps to safeguard health and
safety
Have regard to effects on environment
Report adverse consequences
Personal Conduct
Act competently
Behave Appropriately
Inform others of consequences on not following
advice
Maintain confidentiality
Report breach of Code
7. How often to review / refresh
How often do you need to remind
yourself of Ethics requirements?
US Engineers have to take a CPD paper
on ethics every 2 years
Most professional societies offer ethics
papers and refreshers
Taking a paper every few years 2-5
sounds like good advice, but who does
this unless it is compulsory
8. Case Studies - Problems in LG over the past decade
Small Borough rates, 1950’s (as the story
goes)
Prior to financial delegations requirements
Borough Clerk collected the rates
Borough Clerk left for Australia with all the rates
Lead to the Financial Delegations requirements
for Councils
9. Case Studies - Problems in LG over the past decade
Otago District Health Board IT procurement
Two Otago businessmen are facing prison terms after being
convicted of one of New Zealand's biggest frauds
Otago District Health Board Chief Information Officer and
Queenstown Surveyor
Guilty of stealing $17 million from the Otago District Health Board
luxury boats, flash cars and expensive homes, mostly paid for
with millions of dollars of public health money dishonestly taken
Over six years, Board invoiced for computer support services and
risk mitigation insurance
"They've stolen health opportunities from the sick and the elderly
and they've stolen equipment opportunities and asset
management opportunities from our staff”
10. Case Studies - Problems in LG over the past decade
Dunedin CC Car Sale and Procurement
theft of more than 150 council vehicles and misused fuel
cards
Over an 11-year period, 152 vehicles were unaccounted for,
while more than $100,000 was misappropriated on a council
fuel card
Fleet Manager, who is suspected of committing suicide soon
after questions were raised
"A number of red flags, including Mr Bachop's lifestyle
exceeding his salary...were ignored”
Other effects – loss of Council trust in staff, 2 Group
Managers left or resigned, one other manager resigned
11. Case Studies - Problems in LG over the past decade
Rodney / Auckland Transport
A roading contractor and a senior council manager have been found guilty of
corruption
Council Manager (Noone) was found guilty on six charges of receiving $1.2
million in bribes from Roading Contractor (Borlase).
Borlase, in turn, was found guilty on eight charges of offering bribes to Noone
and other council staff.
They have each been sentenced to at least five years in prison after being found
guilty of corruption, bribery and fraud and convicted.
The corrupt relationship ran from 2006 until 2012, from Noone worked at
Rodney District Council, continuing when he joined Auckland Transport following
the supercity merger.
"The extensive provision of benefits to staff at all levels of their teams resulted
in a culture where corruption flourished and was normalised, with no questions
asked” – additional 6 staff resigned
"There was very little chance of disgruntled or principled employees speaking
out as everyone was being 'looked after' or was compromised.
12. Case Studies - Problems in LG over the past decade
Westland DC
Council assets manager Goel is being investigated by the Serious
Fraud Office (SFO) over allegations of financial impropriety.
Goel was in charge of organising tenders and supervising contracts for
council projects such as wastewater treatment.
The project was not put out to public tender. It is understood three
companies were approached for expressions of interest in the
project.
A new business, run by a cake decorator, which had no track record in
waste management won a Westland District Council project to build a
$7 million sewage plant in Franz Josef (being used as a ‘shell’
company for an Indian importer)
Other impacts – loss of Council Trust, CEO has resigned
13. How to …. sticky situations
You suspect your boss of fraud
A contractor or consultant approaches
you with a gift or offer (AT/MAD)
One of you colleagues seems to have a
‘what’s in it for me’ approach
You have an entrepreneurial / innovative
idea and want to use public money PNCC
Council wants you to change advice in a
report
You are asked to do something you
consider unethical
14. How to …. sticky situations (2)
You are asked to step outside contract
processes – by other staff or contractor
Tender evaluation ‘pressure’ (CCO)
Tender ‘irregularities’
Engineer to Contract evaluations
Getting ‘around’ Council purchasing
policy to expedite work
Preferred contractor/consultant
Over-running approved Contract sums
The ‘study tour’
15. How Councils manage ethics issues
Gifting Policy, Register, Declarations of Gifts, Interests
Procurement Policy
Use of Probity Auditors in procurement
Contract Administration Manual
Contract Variations Processes, SOP and Policies
Multiple Signatories to documents, processes
Purchase Orders
Delegations Register
16. Conclusion
Ethics is about moral principles
NZ has absolutely no tolerance of
unethical, dishonest or corrupt practice
Understand and review professional
society ethics statements / requirements
Good processes, policies, practices and
administration go a long way
Stay awake to potential problems
Sunlight/Transparency is a good antidote
17. Last Thoughts
Your professional reputation is vital to
your continued career in any industry
(Arthur Anderson)
If in doubt ask for guidance, checks
Be transparent and open
Show leadership in ethics
Behaviour, addictions, financial stress can
be triggers for ethics issues
Don’t compromise in ethics