Enhancing Corporate Governance in the Public and … Man-shing_ppt.pdf · Enhancing Corporate Governance in the Public and Private Sectors ... Prevention Group (CPG) ... Best Practice

Enhancing Corporate Governance

in the Public and Private Sectors

Enhancing Corporate Governance

in the Public and Private Sectors

By Mr. TSE Man-shingDirector of Corruption Prevention

Independent Commission Against Corruption, Hong Kong SAR12 May 2015

By Mr. TSE Man-shingDirector of Corruption Prevention

Independent Commission Against Corruption, Hong Kong SAR12 May 2015

Enhancing Corporate Governance in the Public and Private Sectors

Figh

ting

Cor

rupt

ion

2

The Bad Old Days ….

Public Outcry !

Rampant CorruptionPoor GovernanceCorruption Culture


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ting

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rupt

ion

Answering the Call- The Independent Commission Against Corruption- February 1974- An independent agency - The ICAC Commissioner

directly responsible to the Chief Executive (i.e. the then Governor)


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ting

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rupt

ion

Answering the Call- The Independent Commission Against Corruption

Independent Committees • Responsible citizens from different

sectors of the community

• Appointed by the Chief Executive

• The Corruption Prevention Advisory Committee oversees CPD’s work


Figh

ting

Cor

rupt

ionICAC OrdinanceICAC Ordinance

Section 12: Duties of the Commissioner

•Examine the procedures of public organizations and advise them on ways to prevent corruption.

•Advise any person, on his request, on ways to prevent corruption.

Statutory Powers


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ting

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rupt

ion

Corruption Complaints

0

500

1000

1500

2000

2500

3000

3500

1974 2014

Public sectorPrivate sector70%

No. of complaints dropped in total, and remarkably in public sector


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ting

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ion

Corruption Prevention - The Hong Kong Experience

What we did in the public sector …



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ion

EnhancingSystemControls

FosteringEthicalCulture

Partnering withStakeholders

Partnering withStakeholders

Partnership PreventionPartnership Prevention


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ting

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rupt

ion

9

The Public

Government Contractors, Suppliers and Service Providers

Government Departments,

Public Bodies / Regulatory Bodies

Our Partners – Public SectorOur Partners – Public Sector


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ting

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rupt

ion

10

Meet with senior management regularly

Identify high corruption risk areas for study

Map out corruption prevention strategies and workplan

Corruption Prevention Group (CPG)Corruption Prevention Group (CPG)

1st CPG Meeting with the Police (1981)


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ting

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rupt

ion

11

Enhancing System ControlsEnhancing System Controls

Detailed review of systems and procedures

Over 3,600 studies

Management buy-in and staff participation

Acceptance Rate over 94%


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ting

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rupt

ion

12

Fostering Ethical CultureFostering Ethical Culture

Role Model Provide Integrity Training for Staff Stay Vigilant & Adopt Zero Tolerance

to Corruption Ethical Leadership Programme


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ting

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rupt

ion

13

Our Current ChallengesOur Current Challenges

Public Sector Upholding a culture of clean

governance

Private Sector Re-deploying resources to combat

corruption


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ting

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rupt

ion

How we tackle the public sector

challenge …



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ting

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rupt

ion

15

Targets to Achieve –Clean Governance in…


Government Public Bodies NGOs

Best Practice Manuals

Reduced bureaucracy & simplified procedures

Corruption resistant

systems & procedures


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ting

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rupt

ion

16




Sample Codes of Conduct

Open & transparent

Supervisory accountability

Effective mechanism to

manage conflict of interest


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ting

Cor

rupt

ion Sample Codes of

Conduct –

Multi-year Programme



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ting

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rupt

ion

18

Multi-Year Programme –2013



Government Departments –Sample Guide on Conduct

& Discipline

Review their codes of conduct

On-going monitoring &

education


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ting

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rupt

ion

19




Public Bodies –Sample Codes of

Conduct

Super-visory

account-ability

Misconduct in public

office

Post-service

employ-ment, etc.

Conflict of interest

Acceptance of advantage


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ting

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rupt

ion

20




NGO –Sample Codes of Conduct

Tailored-advice

Seminars, workshops

Raise awareness of directors & staff on good governance


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ting

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rupt

ion

How we tackle the private sector

challenge …



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rupt

ion

ICAC Advisory Services


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rupt

ion

Free advice

Strictly confidential

Tailor-made

Hotline service

Respond within 2 working days

25 266 363



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ting

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rupt

ion Seminars for Specific Trades

TourismSecurities

Banking Insurance

Private Hospitals


ConstructionHotel


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ting

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rupt

ion

ICAC Advisory ServicesBest Practice Modules &Training Packages

2015: Guidelines in Dealing with Public Officials


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rupt

ion

Best Practice Manuals & Training Packages

Types of Organizations Public organizations,

NGOs, social enterprises, private sector companies,

etc.

Good Internal Controls

Guidelines & procedures, checks

& balances, documentation, etc.

OperationsProcurement,

administration of funds, staff

administration, etc.

Comprehensive control measures for various corruption prone operations of different organizations


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ting

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rupt

ion

Best Practice Manuals & Training Packages

Best Practice Manuals

• Corporate governance & internal control• Administration of government funds• Food assistance service operations, etc.

Training Packages

• Procurement• Legal & ethical requirements


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ting

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rupt

ion

Best Practice Manuals –Enlist Support is Key

Buy-in & implementation

of recommendations

Promulgation

Compilation

Engage stakeholders in the process to enlist support


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ting

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rupt

ion

Proactive Approach –Challenges

Ahead



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ting

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rupt

ion

Providing synchronicprevention advice in areas of great public concern/interest to government departments

Providing synchronicprevention advice in areas of great public concern/interest to government departments

International AirportInternational AirportCruise TerminalCruise Terminal

Synchronic PreventionSynchronic Prevention


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ting

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rupt

ion

Sit on tender assessment panel as an observer

ProjectPlanning

ContractLetting Administration

ContractAdministration

Synchronic PreventionSynchronic Prevention


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ting

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rupt

ion

Providing prevention to areas of great public concernsProviding prevention to areas of great public concerns

Risk-Based PreventionRisk-Based Prevention

E.g. NGOs which receive substantial government fundsE.g. NGOs which receive

substantial government funds

E.g. Car testing procedures where public safety is a concern

E.g. Car testing procedures where public safety is a concern


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ting

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rupt

ion

Cases referred from the Operations Department

Provide corruption prevention advice to subject parties

Prevent recurrence

Post-investigation PreventionPost-investigation Prevention


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ting

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rupt

ion

Strong & Independent Legal Framework

Support from Partners

System ApproachSample codes of conduct

Best practice manuals

Factors for SuccessFactors for Success


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Prevent corruption through improved systems and procedures to ensure they are :

Fair,

Accountable,

Simple, &

Transparent

Prevent corruption through improved systems and procedures to ensure they are :

Fair,

Accountable,

Simple, &

Transparent

System ApproachSystem Approach


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ting

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rupt

ion

Be “Fair”

equal opportunities

declaration of conflict of interestlaid-down assessment criteria/ standards, requirementsunbiased individual assessmentcomplaint/appeal mechanism

Be “Fair”

equal opportunities

declaration of conflict of interestlaid-down assessment criteria/ standards, requirementsunbiased individual assessmentcomplaint/appeal mechanism



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ting

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rupt

ion

Be “Accountable”

promulgated probity requirements

segregation of dutiesclear delegation of authoritieslaid-down workflowproper documentation

Be “Accountable”

promulgated probity requirements

segregation of dutiesclear delegation of authoritieslaid-down workflowproper documentation



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Be “Simple”risk management – risk assessment, random checkingstreamlining of proceduressufficient but not excessive checks and balancesclear instructions and guidelinesperformance pledges

Be “Simple”risk management – risk assessment, random checkingstreamlining of proceduressufficient but not excessive checks and balancesclear instructions and guidelinesperformance pledges



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ion

Be “Transparent”

public accessibilityproper announcementdeclaration of financial interestsinternal/external auditclear internal circulars/guidelines

Be “Transparent”

public accessibilityproper announcementdeclaration of financial interestsinternal/external auditclear internal circulars/guidelines



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Corruption Prevention :

Be FAST



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Thank You

Documents

Enhancing Corporate Governance in the Public and … Man-shing_ppt.pdf · Enhancing Corporate Governance in the Public and Private Sectors ... Prevention Group (CPG) ... Best Practice