BUFFALO CITY MUNICIPALITY

1. BUFFALO CITY MUNICIPALITY Code of Conduct for Municipal Staff members

2. Prepared by • G Walton, Acting Manager: Internal Audit • and • L Wulff, Acting Manager: Industrial Relations Fraud and theft are not acceptable

3. Introduction • The code of conduct was promulgated as part of the Municipal Systems Act. • Other aspects are sourced from the relevant disciplinary codes and standards of conduct set by the employer as well as other relevant legislation and policies. Fraud and theft are not acceptable

4. Cont’d • The code therefore has legal status and is enforceable. • The Code does not have to be adopted by Council and is in fact imposed by operation of Law. Fraud and theft are not acceptable

5. Cont’d • The Code sets out minimum standards of conduct. • It is not a discussion document. • The Council and/or the City Manager are entitled to add to the minimum standards set in the Code. Fraud and theft are not acceptable

6. General Conduct • As an employee you are required to: • loyally execute the lawful policies of the Council. • act at all times in good faith, diligently and honestly. Fraud and theft are not acceptable

7. Cont’d • act in the best interests of the Council. • act impartially and treat all equally without favour or prejudice. Fraud and theft are not acceptable

8. Serve the Public Interest • As an employee you are required to: • adopt a culture of commitment to serving the public. • adopt a sense of responsibility for the performance of the goals of the Directorate, Department or Section. Fraud and theft are not acceptable

9. Cont’d • act in such a way that you maximise the ability of the Municipality to deliver an improved quality of life to all residents of the City. Fraud and theft are not acceptable

10. Cont’d • Promote and seek to implement the basic values and principles of public administration. • Participate in the overall performance management of the Municipality by seeking to attain the goals of the Directorate or Department as approved by Council Fraud and theft are not acceptable

11. Cont’d • Obtain copies of or information relating to the Municipality’s integrated development plan and as far as possible seek to implement the objectives set out therein and to try to achieve the relevant performance indicators Fraud and theft are not acceptable

12. Personal Gain • You may not use your position or privileges or confidential information for private gain or to improperly benefit another person. • Take a decision on a matter if you have a direct or indirect personal or business interest. Fraud and theft are not acceptable

13. Cont’d • You may not, except with the permission of Council be a party to any contract with the Council. • You may not,except with the permission of the Council, be engaged in any business trade or profession other than the work of the Council. Fraud and theft are not acceptable

14. Cont’d • Obtain a financial interest in any business of the Municipality • Be engaged in any business, trade or profession other than the work of the Council Fraud and theft are not acceptable

15. Disclosure of any benefit • An employee who, or whose spouse, partner, business associate or close family member stands to gain any direct benefit from a contract with the Council shall disclose in writing full particulars of such benefit to the Council. Fraud and theft are not acceptable

16. Cont’d • All Directors and employees shall disclose to the Council, all business interests, affiliations, and/or relationships that could reasonably give rise to a conflict of interest involving the Council. Fraud and theft are not acceptable

17. Cont’d • If an actual or potential conflict of interest is disclosed, the affected employee should refrain from participation in matters to which the conflict relates. The City Managerwill review and determine the appropriate course of action. Fraud and theft are not acceptable

18. Unauthorised disclosure of information • An employee may not without permission disclose any privileged or confidential information obtained to any unauthorised person Fraud and theft are not acceptable

19. Cont’d • “Privileged or confidential information” includes any item determined by the Council to be confidential. • Discussed in a closed session of Council or a Committee. • Where disclosure would violate a persons right to privacy. Fraud and theft are not acceptable

20. Cont’d • Declared by law to be confidential. Fraud and theft are not acceptable

21. Cont’d • Discussions with others concerning future rates, fees, and other competitive information should not occur until after the information has been officially announced to the public by theCouncil. • In this regard until a matter has been resolved it is best not discussed with anyone from the public Fraud and theft are not acceptable

22. Cont’d • This does not detract from any person’s right of access to information in terms of National legislation Fraud and theft are not acceptable

23. Undue Influence • An employee may not attempt to influence Council with a view to obtaining an appointment, promotion, or any benefit for a family member, friend or associate. Fraud and theft are not acceptable

24. Cont’d • Mislead or attempt to mislead the Council, or a structure of the Council in the consideration of any matter • Be involved in a business venture with a councilor without the prior written consent of the Council Fraud and theft are not acceptable

25. Rewards, Gifts or Favours • An employee may not request, solicit or accept any reward, gift or favour for: • persuading the Council with regard to the exercise of any power or the performance of any duty. • making a representation to the Council. • disclosing any privileged or confidential information. Fraud and theft are not acceptable

26. Cont’d • Doing or not doing anything within that employee’s powers or duties. • An employee has a duty to report without delay to a superior official any offer which if accepted may constitute a breach of the above provisions. Fraud and theft are not acceptable

27. Cont’d • Legislation prohibits the acceptance of gifts for services rendered in the course of one's normal employment. Gifts from individuals or organizations with whom the Council does business, or from those who hope to do business with the Council, are prohibited. Fraud and theft are not acceptable

28. Cont’d • In addition, acceptance of social invitations from individuals doing business with, or seeking to do business with Council when such invitations can be construed as an attempt to influence an employee's decision, are prohibited. Fraud and theft are not acceptable

29. CONFLICT OF INTEREST • Most people have heard the term "conflict of interest". There is confusion about what is meant by the term. • We will look at some examples of potential conflicts of interest. Fraud and theft are not acceptable

30. Cont’d • A possible conflict of interest exists if an employee (or an employee's family member):   • has an existing or potential financial or other interest which impairs, or mightappear to impairthat person's independent, unbiased judgment   • has a significant business relationship with a person or firm engaging in, or seeking to engage in, business with the Council. Fraud and theft are not acceptable

31. Cont’d • has a significant ownership interest, and may receive a financial or other benefit from knowledge or information confidential to the Council. Fraud and theft are not acceptable

32. Cont’d • Employees have an obligation to avoid conflicts of interest or any appearance of conflicts between their personal interests and the interests of the Council. Fraud and theft are not acceptable

33. Cont’d • Conflicts of interest often relate to situations where an employee uses influence with the Council for personal gain. • The Council expects that employees will refrain from personal activities which could cause or appear to cause a divided loyalty to the legitimate interests of the Council. Fraud and theft are not acceptable

34. Cont’d • Employees should ensure that suppliers and independent contractors receive fair and uniform treatment. Suppliers should feel they are being given every reasonable opportunity to be awarded business by providing the best offer. Fraud and theft are not acceptable

35. Cont’d • Employees should avoid doing anything that might create the appearance that a supplier is being given preferential treatment. • The appearance of preferential treatment can have a detrimental effect on the perception of the Council by other employees and by potential bidders Fraud and theft are not acceptable

36. EXAMPLES • PURCHASE/CONTRACT • an employee negotiates or approves a contract or purchase on behalf of the Council has an interest in or receives a personal gain from the company providing the goods or services. Fraud and theft are not acceptable

37. Cont’d • CONVERSION OF ASSETS • an employee uses Council facilities or other assets for personal gain. • USE OF EMPLOYEES • an employee directs subordinates to perform tasks for an outside business which the employee has an interest in or receives personal gain or for his private purposes Fraud and theft are not acceptable

38. Cont’d • SALES ACTIVITIES • an employee sells products or services offered by the Council in competition with the Council or sells Council goods. • RECEIPT OF GIFTS • an employee responsible for initiating or approving purchases is given a substantive gift by a vendor used by the Council (for example a trip) Fraud and theft are not acceptable

39. Cont’d Council policy also prohibits the offering of a gift or entertainment that could be construed as wrongfully or unfairly attempting to influence a decision that will benefit either the Council or an employee of the Council. Fraud and theft are not acceptable

40. Council Property • An employee may not use, acquire or benefit from any property or asset owned, controlled or managed by the Municipality, to which that employee has no right. Fraud and theft are not acceptable

41. DUTY OF CARE • Council policy is that each employee should assume responsibility for safeguarding and preserving the assets and resources of the Council. • The following control requirements are appropriate and serve only to illustrate. They should not be considered to be a full list: Fraud and theft are not acceptable

42. Cont’d • All revenues generated by the Council, and all expenditures for goods and services, must be recorded and accounted for within the financial accounting system. Fraud and theft are not acceptable

43. Cont’d • No false entries may be made in the accounting records for any reason. • No payment on behalf of the Council is to be approved or made with the understanding that any part of such a payment is to be used for any purpose other than that described by the documents supporting the payment. Fraud and theft are not acceptable

44. Cont’d • The use of Council funds or assets for any personal, unlawful, or improper purpose is prohibited. • The use of any Council equipment, supplies, or facilities that benefits an individual employee is strictly prohibited. Fraud and theft are not acceptable

45. Cont’d • No person in a supervisory or management position is to use the authority of that position to assign an employee to perform non Council related tasks. Fraud and theft are not acceptable

46. Duty to pay accounts • An employee may not be in arrears to the Municipality for rates or service charges for a period longer than three months and the Council may deduct any outstanding amount from an employees’ salary after this period. Fraud and theft are not acceptable

47. Sexual Harassment • An employee may not embark on any action amounting to sexual harassment. • A policy in this regard has been prepared and is awaiting approval. Fraud and theft are not acceptable

48. Duty to report • An employee whenever he/she has reasonable grounds to suspect that there has been a breach of this Code shall immediately report the matter to a superior officer. Fraud and theft are not acceptable

49. CONT’D • If you believe a possible fraud has occurred, you should report it to Management • If there is reasonable evidence of an irregularity , Management will liaise with the Internal Audit Department ,Human Resources and other Departments, as may be appropriate, and decide how the matter will be further investigated Fraud and theft are not acceptable

50. HOT LINE • The Council is considering setting up a confidential “hotline” which will assist in this regard. Fraud and theft are not acceptable