To: All staff in DRD Core

CONFLICTS OF INTEREST

Purpose

1. The purpose of this note is to set out the rules and procedures applicable
to DRD Core staff in relation to the reporting and recording of any
personal or private interests which might conflict with their official duties.
The arrangements apply across all Core Divisions and Business Units and
complement those which were recently put in place within Roads Service.

2. Additional rules apply to any staff involved with procurement/contracts.

These rules are detailed at paragraphs 13-15 below.

Background

3. All staff are required to act in the public interest by carrying out their duties
in keeping with the Nolan Principles of Public Life 1 (see Appendix 1).
Amongst other things, these principles emphasise that holders of public
office have a duty to declare any private interests relating to their public
duties and to take steps to resolve any conflicts arising in a way which
protects the public interest.

Conflict of Interest

4. The key Nolan principles relevant to this area are:

• Integrity: Holders of public office should not place themselves under

any financial or other obligation to outside individuals or organisations
that might influence them in the performance of their official duties.

• Honesty: Holders of public office have a duty to declare any private

interests relating to their public duties and to take steps to resolve any
conflicts arising in a way that protects the public interest.

• Leadership: Holders of public office should promote and support

these principles by leadership and example.

1
The Nolan Committee’s First Report on Standards in Public Life (1995), summarised at
http://www.archive.official-documents.co.uk/document/parlment/nolan/nolan.htm
5. The Standards of Conduct Chapter of the NICS HR Handbook (available
on the HRConnect Intranet site) details the NICS core values contained in
the NI Civil Service Code of Ethics and provides guidance as to the
standards of conduct expected of all civil servants. Where private
interests and official duties are concerned, the following general
principles, as highlighted in the Handbook, are particularly relevant:

• You need to be, and be seen to be, honest and impartial in the exercise
of your duties. You must not allow your judgement or integrity to be
compromised or appear to be compromised;

• You must not misuse your official position, or information acquired in

the course of your official duties, to further your private interests or
those of others. Conflicts of interest may arise from financial interests
and more broadly from official dealings with, or decisions in respect of,
individuals who share private interests.

6. The Handbook also provides specific guidance on a number of areas in

which staff might be likely to be required to declare an actual or potential
conflict of interest. These include the following:

• Private Occupations

• Membership of Organisations

• Acceptance of Outside Appointments

• Acceptance of Gifts, Hospitality and Awards

• Financial Transactions

• Broadcasts and Lectures

• Political Activities

• Private Investments/Shareholding

Responsibilities of Staff

7. All staff are required to report in writing any interests which they feel might
be, or might be perceived to be, in conflict with their official duties.
Notification should be made to the relevant manager as shown in
Appendix 2 and should include specific details of the interest and the
actual/perceived conflict with official duties. A pro forma is provided at
Appendix 3.

8. Where an interest is reported, the relevant manager must actively

consider this and must formally record the action which he/she has taken
to deal with any issues which arise. Records of the reported interest and
 the management action taken should be retained by the relevant
manager.

9. Where an immediate line manager has a concern about a possible conflict

of interest on the part of a member of his/her team, this should be
discussed with the member of staff concerned in order to confirm that the
personal/private interest has been reported to the relevant manager as
required. If these discussions reveal that the interest has not been
declared and the immediate line manager has continuing concerns about
an actual/potential conflict of interest, the immediate line manager should
report this in writing to the relevant manager specified in Appendix 2.

10. In addition to the above, and as part of the Department’s internal control
assurance process, all managers at Grade 7 and above within Core
Divisions must declare that, within their respective areas of responsibility:

• all staff have been reminded of their obligation to declare any interest
which they feel might be, or might be perceived to be, in conflict with
their official duties; and

• reported conflicts of interest have been documented and appropriate

action has been taken.

Responsibilities of Senior Management

11. All members of the Departmental Board declare their own interests as part
of Board procedures. A Departmental Board Register of Interests is
published on the Departmental Publication Scheme.

12. In addition, to support the preparation of the Department’s Annual Report,

DRD Core senior managers at Grade 7 and above are being asked to
disclose, annually, any material transactions which they, a close family
member or an organisation controlled by them may have undertaken with
the Department during the previous year. A memo will issue separately
from Finance Division requesting relevant disclosures or confirmed NIL
responses.

Procurement and Contracts

13. As explained in Chapter 9 of the DRD Guidelines for the Procurement of

Supplies and Services2, staff engaged in procurement should be
particularly mindful of the importance of their conduct.

14. In this context, and to protect the integrity of its procurement process,
Roads Service recently introduced further procedural requirements
(additional to the normal conflict of interest declaration procedures) for
those staff involved with Tender Opening or Tender Evaluation Panels.
These require a potential member of such a Panel to declare in advance,
and in writing, whether or not he/she has any external personal or
2
http://drdfinance.intranet.nics.gov.uk/drd_procurement_guidelines_-__2_nov_2009.pdf
 monetary interest in the subject matter of the tender. If any such interest
is declared, the officer concerned will not be permitted to be involved with
that tender.

15. In the case of any procurement contracts arranged by DRD Core

Divisions, tendering, evaluation and other contractual matters are
managed in almost all cases by the Central Procurement Directorate. If,
however, a member of staff in DRD Core becomes directly involved in the
procurement process for a particular contract, he/she should complete a
Conflict of Interest (Procurement) Declaration using the pro forma at
Appendix 4. This declaration, detailing any personal or private contact
with a potential supplier or their representatives (and/or any personal or
private interest in the contract concerned), should be submitted to his/her
immediate line manager. Line management will in turn consider whether
the nature of the interest declared might be perceived to compromise
independence/objectivity and will decide whether or not the officer’s
continued participation in the procurement process for that contract is
permitted.

Conclusion

16. The above rules form an important element of the general principles and
requirements governing the behaviour and conduct of civil servants at all
levels. Within DRD, the prompt declaration of all relevant interests also
makes a key contribution towards protecting the public interest and
maintaining/furthering the reputation, integrity and good governance of the
Department.

17. If required, further advice on Conflicts of Interest may be obtained from

Human Resources Branch (Tel: 028 9054 1122 or 028 9054 1052).

[Signed]

BARRY JORDAN
Director of Human Resources and Organisational Change Division

12 April 2010

BJ69-HROC-04-10

APPENDIX 1
The Seven Principles of Public Life

Selflessness

Holders of public office should take decisions solely in terms of the public
interest. They should not do so in order to gain financial or other material
benefits for themselves, their family, or their friends.

Integrity

Holders of public office should not place themselves under any financial or
other obligation to outside individuals or organisations that might influence
them in the performance of their official duties.

Objectivity

In carrying out public business, including making public appointments,

awarding contracts, or recommending individuals for rewards and benefits,
holders of public office should make choices on merit.

Accountability

Holders of public office are accountable for their decisions and actions to the
public and must submit themselves to whatever scrutiny is appropriate to their
office.

Openness

Holders of public office should be as open as possible about all the decisions
and actions that they take. They should give reasons for their decisions and
restrict information only when the wider public interest clearly demands.

Honesty

Holders of public office have a duty to declare any private interests relating to
their public duties and to take steps to resolve any conflicts arising in a way
that protects the public interest.

Leadership

Holders of public office should promote and support these principles by

leadership and example.
 APPENDIX 2

Reporting of Declarations

Declarations of interest by DRD Core staff should be made in accordance with

the following schedule:

Category Relevant Manager

1 All staff up to and including Grade 6 in Director

Core Divisions (other than those at (2)
below)

2 All staff (including Heads of Units) in Senior Finance Director,

North/South Equality and Policy Resources and Management
Co-ordination Directorate, Central Claims Services
Unit and Internal Audit Branch

3 Directors of Finance Division, Senior Finance Director,

Shareholder Unit and Water Policy Unit Resources and Management
Services

4 Directors of Divisions within the Regional Deputy Secretary, Regional

Planning and Transportation Group Planning and Transportation

5 Departmental Board Members All members of the DRD

Board (including the Roads
Service Chief Executive and
the Director of Human
Resources and
Organisational Change
Division) declare their own
interests as part of Board
procedure. A Register of
Board interests is published
on the Departmental
Publication Scheme.
 APPENDIX 3

Pro forma to be completed by DRD Core staff declaring an

actual/perceived Conflict of Interest

Declaration by Member of Staff

Name (Block letters)

Grade/Title

Business Unit

Details of Conflict of Interest

Signed: Date:

Action Taken by Relevant Line Manager

Name (Block letters)

Grade/Title

Business Unit

Action Taken:

Signed: Date:
 APPENDIX 4

Declaration to be made by DRD Core staff directly involved

with a procurement contract

Sections 1 and 3 must be completed in all cases. Section 2a or Section

2b should be deleted as appropriate (Note: Full details to be provided
where 2b applies)

1. Reference Number and Description of Contract

2a. I hereby declare that I do not have any personal, private or monetary
interest in the contract detailed above.

2b. I hereby declare that I have the following interest in the contract detailed
above
………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

3. Personal details

Name (Block letters)

Grade/Title

Business Unit

Signed: Date:

NOTE: This declaration should be retained with the contract papers for audit purposes