Written Answers. - State Bodies Code of Conduct.
Alan Shatter
Ceist:
60
Mr. Shatter
asked the
Minister for Finance
if he will outline in relation to each State and semi-State company under the aegis of his Department the companies which have a code of conduct delineating the activities which board members and employees of such bodies can engage in to ensure that an actual or potential conflict of interest does not arise vis-à-vis their duties as members and/or employees of such State bodies and other activities; the way in which this code of conduct, if any, is monitored by his Department; if he will make available in full, any such code of conduct stating the State and semi-State bodies to which it applies; and if he will make a statement on the matter.
The semi-State companies operating under my aegis are the Industrial Credit Corporation and the Agricultural Credit Corporation.
In the case of the Industrial Credit Corporation, codes of the type described for board members and employees are applied. It is a matter for the corporation itself to apply the codes, and the corporation would bring any irregularities to the attention of the Department. An official of my Department sits on the board of the ICC.
The code covers guidelines to business conduct, which are issued to all staff and includes as conflicts of interest, confidentiality, personal financial transactions, outside employment, fees, gifts, public appearances and publishing of articles, and political activities.
A declaration is signed by all members of staff covering secrecy, disclosure, prejudice of the company, observation of rules of the company, frauds, stock exchange speculation and engagement by the company. Guidelines to board members include disclosure of interests, borrowing, holding of shares and advice to the secretary of other offers of appointment. Each director must sign a declaration of secrecy.
In the case of the Agricultural Credit Corporation, the company do not have a formal comprehensive, written code of conduct for directors and staff. The corporation, however, expect high standards of ethical behaviour from directors and employees and tight internal control procedures are designed to monitor compliance with these standards. Board members are required to declare in writing any possible conflicts of interest that might arise in connection with their position as directors. If a conflict should arise, they will be excluded from any deliberations on that item.
Employees including management are prohibited from having any other gainful employment including directorships without the prior written approval of senior management. Staff members must also sign a declaration of secrecy and give a written undertaking to bring any fraud or irregularity of which she/he may become aware to the attention of the board of directors or the secretary.
Monitoring of the principles is a matter for the corporation itself. However, an official of my Department sits on the board of ACC. The corporation are currently examining the question of establishing a formal code of conduct.
The secretary of my Department has prepared a report on the principles which govern the relationship between Departments of State and State bodies under their aegis. I am examining the conclusions and recommendations of this report, in consultation with my Cabinet colleagues, with a view to preparing and setting in place appropriate guidelines for State bodies based on the findings of the report.
