Transparency Times August 2018

From the Chair

Suzanne Snively ONZM Chair Transparency International New Zealand

Suzanne Snively ONZM
Chair
Transparency International New Zealand

An important milestone for defending our New Zealand way of life from international criminals and scoundrels was 1 July 2018.

It was the date for the implementation for Anti-money Laundering (AML) requirements for some lawyers, all conveyancers and those businesses that provide services to help set up trusts and/or run trusts and companies. 

The other good July happening was that the group of public sector organisations that worked together on AML – the Department of Internal Affairs, Justice, the Reserve Bank of New Zealand, Financial Markets Authority, New Zealand Customs and Inland Revenue – won the award for their category,  Excellence in Regulatory Systems, at the IPANZ/Deloitte Public Sector Excellence Awards on 25 July.

From 1 August, AML provisions apply to businesses involved in sports and racing betting and those involved in trading in high value goods such as jewellery, precious metals, precious stones, watches, motor vehicles, boats, art or antiquities. Requirements for accountants take effect from 1 October and for real estate agents on 1 January 2019.

Transparency International NZ (TINZ) celebrates these important events as major steps towards strengthening integrity systems here and in the development of New Zealand as a good citizen.

However not everyone is happy, there are grumbles throughout New Zealand. Major concerns include:

 A well-intentioned launch by the Coalition Government’s Anti-Corruption Minister just skims the surface.  Lovely posters of the New Zealand landscape are reminders of what is at stake if steps fail to be taken to reduce the impact of massive offshore corruption. 

It is important too to specify the direct benefits to financial services, banks, law firms, high value goods businesses, conveyancers, accountants, real estate agents and sports and racing betting. They are:

  1. They will save huge costs in know your customer investigations as opportunities for money laundering will be contained and managed through New Zealand linking with international enforcers. 
  2. This improved security will attract and retain more customers, both from on shore and offshore.

Meanwhile, TINZ continues to promote public registers of all overseas beneficial owners. (see our August submission: Increasing the Transparency of the Beneficial Ownership.)  A public register of all owners will make it easier for law enforcement.  It will also reduce duplication of systems for collecting information about beneficial ownership, leading to reduced costs of duplication to businesses and other organisations as well as less cost to the taxpayer. 

As Ash Johnstone points out in his article in this newsletter, (Foreign Beneficial Owners need to be registered – New Zealanders already are!) New Zealand already has a central register of company details which is a publically accessible online for any person, organisation and for law enforcement anywhere in the world.

New Zealand’s register of its resident beneficial company owners is the only register in the world that can be easily searched with almost all of the company details online.

The key change needed now is that the same level of detail is collected about all overseas beneficial owners whether actually doing business in New Zealand or, and especially if, they are just trying to hide here.

Suzanne Snively, ONZM

Chair

Transparency International New Zealand Inc.

Julie Haggie, new CEO, will increase reach of TINZ Team New Zealand

Julie Haggie

By Brendon Wilson
TINZ Director
Chair TINZ Personnel Committee

Transparency International New Zealand (TINZ) has appointed Julie Haggie to become its Chief Executive Officer (CEO). She takes up this appointment on 10th September and has already joined in with TINZ Team activities.

Julie is ideally qualified to help lead TINZ through the next stage of growth in creating awareness, influence and capacity to prevent corruption, improve transparency and strengthen integrity systems.

In a newly created full-time leadership role, Julie will be working with the TINZ staff, and through the Chair with the TINZ Patron, Directors and Members with Delegated Authority. She will be managing TINZ operations to engage partners and affiliates to bring TINZ principles to greater effect across New Zealand.

This will enhance the effectiveness of TINZ’s focus on government, business, civil society and wider community sectors at strengthening integrity systems to increase their effectiveness as antidotes against corruption.

Wealth of capability

Julie Haggie brings to TINZ 20 years of experience in CEO or senior leadership roles. For the last eight years, she has led the Home and Community Health Association during a time when it was challenged by growing demand and limited resources.

Julie enjoys leading and influencing for change and positive outcomes, and that is what attracted her to the TINZ position. Her appointment will enable TINZ to grow its efforts more widely across sectors throughout New Zealand. She brings a warm principled quality of leadership which will greatly add to our ability to improve our society. Julie exemplifies TINZ values and she says:

“I believe in the importance of transparency, accountability and open decision-making to the New Zealand brand, and the social fabric of society”, adding “I am excited to contribute my skills and leadership to this endeavour”.

This appointment has been made after exhaustive efforts to define the role and find the right person. Julie will be key to TINZ’s ongoing effort to expand the national understanding of the importance of stronger integrity systems as the best antidote to corruption. There is much to do.

Foreign Beneficial Owners need to be registered – New Zealanders already are!

Ash is with the New Zealand Police and has aMasters of Anti-money Laundering and Counter Terrorism.

By Ashton Johnstone

Transparency International New Zealand Member

Masters of Anti-money Laundering and Counter Terrorism

New Zealand already has a central register of company details about beneficial ownership which is a publicly accessible online for any person, organisation and for law enforcement anywhere in the world. It is the only register in the world that is completely free to search and almost all of the company details are online.

Companies Office registers

The New Zealand Companies Register allows online searches of the companies registered in New Zealand. It is a straight forward and accurate source of information for company secretaries and auditors to maintain records of existing companies, or new ones when they are incorporated.

The Companies Office also maintains the Financial Service Providers Register for organisations that offer financial services in New Zealand and New Zealand registered financial service providers that work internationally. It also maintains the records for charitable trusts, Incorporated Societies and Limited partnerships.

Director and shareholders information required to incorporate a company include:

  • At least one director must live in New Zealand or be a director of an incorporated company in an enforcement country under a law that is equivalent to the Companies Act
  • For each director, their full name, residential address and date and place of birth is required
  • The full name and residential address of every shareholder and the number of shares to be issued to each. 
  • The proposed company’s ultimate beneficial holding company information, inclusive of other companies that can be named as shareholders.

Actions to get legislation up to AML standards

What is missing from the existing New Zealand Companies Office legislation for alignment with Anti-Money Laundering (AML) standards, are:

  • the requirement for more details to identify beneficial owners, and
  • an enforcement system that ensures that the New Zealand directors are held accountable with penalties of imprisonment for non-compliance.   

Beneficial ownership identification details need to be strengthened through adding to the Companies Office Act mechanisms such as those found in existing AML legislation which requires a passport and mail address verification.

The Companies Act needs to define a “Beneficial Owner”. The United States has that it is a “natural person who exercises substantial control of corporation through LLC, ownership interests, voting rights or has a substantial interest in or receives substantial economic benefits from assets of corporation or LLC.”  

The true “beneficial” owners of a business or other organisation are the individuals who ultimately control or profit from it. Often this information is unavailable or deliberately obscured, making it far more difficult to detect corrupt activity. 

Making directors liable for any non-compliance on changes to shareholding, for failure to supply identification documents or for creating false documents, would mean that persons setting up companies are responsible.

This would go a long way to deterring people who are living overseas, from setting up shell company structures, because anonymity is a key attribute behind a decision about where to harbour their funds. 

Sanctions are required if any falsity is discovered, on New Zealand company operators that incorporate these companies in the first place. An example  from United States is, apart from their civil penalties of up to a $1 million, a person found to have falsely incorporated a company can get up to three years imprisonment.    

Lessons learnt from Ministry of Transport fraud case

Debbie Gee: TINZ Member with Delegated Authority for Whistleblowing, Affiliations, and OPG

Debbie Gee: TINZ Member with Delegated Authority for Whistleblowing, Affiliations, and OPG

Debbie Gee

TINZ Member with Delegated Authority for Whistleblowing

The high-profile $725,000 fraud perpetrated at the Ministry of Transport by its former GM Organisational Development Joanne Harrison had many victims.

  • Those Ministry staff who tried to escalate her continued non-compliance were ignored and subsequently disadvantaged through Harrison’s actions.
  • Former colleagues, who felt a keen sense of betrayal and shame.
  • The wider New Zealand public sector, in which public  trust and confidence had been shaken.

The biggest price of all was paid by the Ministry’s former Chief Executive, Martin Matthews. By the time Harrison’s offending became public, he was the Auditor General, the highest watchdog in the land. He was ultimately forced to resign that position due to fall out from the case. This despite taking swift and decisive action when evidence emerged that what he had previously believed to be lax non-compliance was actually calculated fraud.

The point of examining this case is not to apportion direct blame to anyone other than Harrison herself. She is a skilled and habitual fraudster and manipulator with previous convictions for which she had name suppression.

But lessons can be learnt. This case raises questions about the adequacy of whistleblowing legislation and policies. It also highlights the importance of organisational culture and leadership in creating and maintaining workplace environments that support ethical behaviour and protect staff who flag inappropriate behaviour.

Harrison had been a highflyer, regarded by many inside and outside the organisation as innovative and inspirational. She helped the Ministry to achieve the highest staff engagement scores in the public sector.

Yet there were clear and repeated instances of her non-compliance, such as no contracts for work. These had been noted in internal audit reports and raised by one staff member as a protected disclosure.

Matthews said he chose to trust Harrison, having no information to cause him to question whether services she invoiced for were provided. “Naturally, if I did have such information I would treat it with deep concern and seriousness. To act without good cause, however, would have equally serious implications for the perceived trust and confidence I have in one of my senior managers.”

However, as former Auditor General, Lyn Provost, had previously observed,

“It is also important to remember that trusting staff is not a fraud control. Systems do not commit fraud, people do. Public entities need to ensure that they have the right systems in place.”

Future directions

Among the rich possibilities for study raised by this case can be grouped under the following headings:  

  •  Whistleblowing
  •  Governance
  •  Organisational culture
  •  Leadership
  •  Obedience to authority
  •  Change management.

Under these headings, areas of exploration, personal reflection and learning from this case include:

  • Individual-level factors that shape employees’ ability and willingness to identify and report inappropriate workplace behavior by colleagues.
  • ‘Formal’ organisational-level factors that permit, encourage and discourage such reporting, such as policies, codes of conduct and procedures.
  • ‘Informal’ organizational-level factors that permit, encourage and discourage such reporting, for example power and politics, culture, group dynamics, conformity and leadership.
  •  Wider systemic factors that permit, encourage and discourage reporting, such as public sector governance legislation and societal/ cultural understandings.

Consideration of the inter-relationship between these levels can provide insights to develop action plans for creating organisations where staff are morally attuned and empowered to speak up about inappropriate behaviour at work.

Blockchain – Fad or Fail?

 

Tod Cooper
Member with delegated authority for
Procurement/ Online Training/ Whistleblowing

By Tod Cooper

Member with delegated authority for Procurement

Initial version appeared in Employers and Manufacturers Association BusinessPlus Magazine

What is Blockchain?

Blockchains provide a distributed and decentralized ledger of encrypted transactions, or bundle of information, called a ‘block’.  Each block records all transactions independently of others but in sequence, establishing a strong failover resilience and data sharing validation.  These transactions could be tangible such as for a car or house, or intangibles like copyrights or patents.

“The blockchain … can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors Blockchain Revolution (2016)

Distributed Entries

Similar to working simultaneously on a Google Doc instead of sharing a Word document by email, all parties update a common entry rather than individual copies.

The blockchain database isn’t stored in any single location. The records it keeps are truly public and easily verifiable. No centralized version exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.  (See What is Blockchain Technology? A Step-by-Step Guide For Beginners.) 

Cryptocurrencies such as Bitcoin sit on top of a blockchain platform. Their consensus-keeping process is secured by strong cryptography – secured by math not by people or by trust.

Is Blockchain Legitimate?

There are so many views for and against ‘blockchain’ it’s hard to know who to believe and what it is actually all about. 

Business people need to understand it as it may well be the next wave to revolutionise the way we do business, as was the introduction of the internet by its inventor Tim Berners-Lee in 1990-91. Blockchain is likely to impact anyone who deals in data or transactions of any kind.

By all appearances, it is here to stay; companies such as IBM, Oracle and Walmart are embracing blockchain technology.

Disruptive Technology

Blockchain is ‘foundational disruptive technology’ with huge potential to create opportunities for both our economic and social systems.  Being ‘disruptive’ means it will enter at the lower end of the value chain and move up, displacing existing traditional business models – much as Artificial Intelligence will do, and Uber and AirBnB already do. 

How does it work? 

A block has three key parts:

  1. Data  What you need to store information in a record, eg in the case of a transaction this would include a buyer, seller, amount of transaction, terms;
  2. Hash  A unique identification of the block and all its contents.  Think of it like a fingerprint;
  3. Previous Hash  This creates the chain and ultimate traceability back to the ‘genesis’ block (first block in the chain).

A transaction occurs within a distributed Peer-to-Peer network.  When a new transaction occurs, the ‘nodes’ on the network (probably millions) all use cryptography to verify that the block has not been tampered with.  Only after consensus is achieved that the block is genuine, is the transaction ratified.

Who controls it?

No one, but everyone!  People all over the world automatically check and validate blockchain transactions using servers, personal computer and smart devices.

Impact

Potential applications for blockchain include smart contracts, the sharing economy, governance, file storage, prediction markets, protection of intellectual property, Internet of Things (IoT), neighbourhood microgrids, identity management, Anti-money laundering and know your customer, data management, land title registration, stock trading. – blockgeeks.com

Three particular areas of business and procurement lend themselves to blockchain applications:

  1. Smart Contracts:  A distributed contracts ledger, implementing a series of rules, all within the blockchain.  This removes the need for initial and ongoing trust within the transaction and business relationship.  Since the rules are on blockchain they are immutable (i.e. unable to be changed/tampered) and distributed (i.e. the output of the contract is validated by everyone on the network).  This significantly reduces the likelihood of tampering (thus fraud and corruption, either planned or opportunistic) and builds a high-trust business environment, giving confidence to both businesses and customers.. 
  2. Supply Chain Management: Transactions are documented in a permanent and decentralized record, with total transparency.  This will verify authenticity of environmental standards and/or fair trade by allowing irrefutable visibility of the full supply chain. Every transaction from origin to final destination will be secured e.g. from the Colombian coffee plantations to your triple shot soy latte.  This in itself will provide assurance within the transaction – not only will it mean the cost of doing business is cheaper (bypassing traditional intermediaries such as banks and brokers) but it will also highlight the inefficiencies in a supply chain. 
  3. Banking and payments:  Essentially blockchain will do to banking what the internet did to media.  It has zero-discrimination on wealth by providing open access to banking for developing third world countries. It is borderless as anyone can send money across borders. It is instantaneous because transactions are immediate, i.e. real-time digital, removing intermediaries (banks, agents and others) between transactions. 

Risks

Blockchain is the platform on which cryptocurrencies such as Bitcoin, Neo, Monetha, Ethos, operate to achieve transactions. The market is very young and so still very volatile.  As with anything in its infancy, we still need to watch for people taking advantage of our unfamiliarity for their own fraudulent purposes. Though scams are certainly not isolated to blockchain, sadly it is a human behaviour to exploit the vulnerable.  Heard of Jordan Belfort? 

Blockchain’s strength is also its weakness.  Its borderless underpinning of cryptocurrencies also means that it can, and is, used to transfer and launder money by corrupt organisations and states, evading normal controls and monitoring by government agencies and regulators such as the US Securities and Exchange Commission (SEC).  On the flip side, we also need to be wary of those lobbying against it, say banks, which have a huge amount to lose as intermediaries, as discussed earlier.  They will fight to hold back the tide which threatens their business. 

Ignore at your peril

As I am in Hawaii as I write this, I feel the need to quote Vice Admiral William S Pye on 6 December 1941, when asked about all the warnings of imminent attack by the Japanese on Pearl Harbour: “The Japanese will not go to war with the United States.  We are too big, too powerful and, too strong.”

We need to listen to advice of coming change, or ignore it at our peril.  People who believe blockchain is already a ‘fail’ probably don’t really understand it. They may be confusing the flaky sensational cryptocurrencies with the underlying blockchain technology. 

I have a strong feeling that blockchain is here to stay.  We still have time to understand it and how it will directly and indirectly impact our lives, and to prepare for it to take advantage of its huge possibilities. Businesses for example do not want to let their competitors steal a march, while at the same time they must understand its risks.  

Coming, Ready or Not….

While still in its infancy, blockchain’s growth is reinforced by many large and start-up tech companies, all rapidly developing capability in this underlying foundation technology.  Blockchain will offer major opportunities to conduct business with increased assurance and trust, faster and at lower cost, and by by-passing traditional business chains of actions and intermediaries.  It will undoubtedly also be used for malign purposes and we should all be on our guard for that, but it is essentially a neutral, forceful technology which will change the ways we do things – an opportunity and a basis for better business. 

Transparency International New Zealand is particularly interested in technologies which offer higher integrity and trust to society, and reduce opportunity for corruption and fraud, whether in business or in any walk of life.

Open Government Partnership update

Newsletter Co-editor
Member with Delegated Authority for Open Government Partnership, Parliamentarian Network and SGDs

 

David Dunsheath

TINZ Member with Delegated Authority for Open Government

Transparency Times Newsletter Co-editor

The Government, led by Minister Clare Curran, is backing work by Officials to complete the commitments for the Open Government Partnership. There are two plans currently being worked on:

  • The second National Action Plan 2016-2018 (NAP2) is being completed with a dual review due in early 2019,
  • The third National Action Plan 2018-2020 (NAP3) with a Cabinet paper containing new commitments due for eventual approval by September 2018.

Formulation of third OGP National Action Plan 

A total of 449 ideas were received from civil society (community of citizens) to kick start development of New Zealand’s third Open Government Partnership (OGP) National Action Plan 2018-2020 (NAP3). This is led by State Services Commission’s (SSC) Open Government Partnership (OGP) officials.   

Ideas were sourced from 64 participants at OGP workshops, 120 at other events, plus on-line contributions from the public. 

The independent OGP Expert Advisory Panel (EAP) together with officials and representatives from each workshop, then distilled seven aspirational themes from these ideas. Five of these themes survived further scruitiny using the following foci:

  1. participation in democracy,
  2. collaboration to develop policy and services, and
  3. transparency and accountability,

resulting in an initial package of potential Commitments.

We look forward to learning of further progress on the suite of individual Actions that will underlie each of these Commitments. The drafted NAP3 will then be submitted through the Cabinet process before its approval,  international publication, and implementation.  

Timeline for NAP3

  • April 2018; Invitations were extended to the public, NGOs and civil society, to partake in OGP development workshops in Auckland, Wellington and Christchurch
  • May: Four workshops were completed, ideas recorded and workshops’ representatives elected to further participate in the plan development process
  • 5 June: The OGP Expert Advisory Panel (EAP) and members of the OGP team (OGP officials and workshop representatives) met to group 449 ideas into themes and sub-themes
  • 27 June: Seven themes were publicly announced together with access to all related papers
  • 2 July: The EAP, OGP team and government agencies attended a Synthesis Workshop to review ideas, themes to draft the Commitments with which to structure the NAP3
  • 11 July: The EAP and OGP team met to continue deliberations and agreed on three Focus areas for the NAP3
  • August – September: development of the Actions to underpin each Commitment, and finalisation of the plan for Cabinet approval and submission to OGP International (Washington).

Completion of second OGP National Action Plan (NAP2)

Meanwhile, the Government’s second OGP NAP (2016-2018) (NAP2) is drawing to a close. We await:

  • the Government’s Self-Assessment Report on what has been achieved from its two-year plan
  • the findings by the OGP Independent Reporter, Keitha Booth, on those achievements
  • the opportunity to provide public feedback on both of these two reports.

This process assists government and the public to understand what works best in developing more open governments.

Open Government Partnership annual summit in Georgia

Hui E!

Open Government Partnership annual summit in Georgia

OGP Global Summit July 2018

This year, Georgia hosted the Open Government Partnership Global Summit.

Representatives of civil society, government and the tech community from over 70 countries met in Tbilisi , the capital of Georgia, on 17- 19 July 2018. Over 2,000 representatives discussed progress in governmental transparency and accountability during the 5th Open Government Partnership (OGP) Summit.

The Summit’s objectives were to promote peer learning and inspire OGP reformers to raise the level of ambition about ways to engage the wider public through their countries as well as deepen the commitments’ responsiveness. By pushing the open government agenda forward to address new challenges, OGP can improve the lives of citizens around the world.

Continuing the spirit of co-creation, the Summit’s agenda was co-created with the community through an open call for proposals, which were then evaluated by an editorial committee. Over five hundred proposals were received in less than a month, covering the three main tracks of: Anti-Corruption, Civic Engagement, Public Service Delivery, and an open track showcasing of other cross-cutting and emerging issues.

Former Prime Minister, Helen Clark, attended as one of six OGP Ambassadors charged with raising the partnerships’ profile, protecting its credibility and promoting its sustainability. New Zealand was represented at the summit by Anaru Fraser. Anaru is CEO of  a Civil Society Organisation, Hui E! and represents Civil Society as a member of the New Zealand OGP Expert Adivosry Panel.

Parliamentarian diary publication strengthens transparency

Recently Green party ministers released meeting logs for their official activities carried out within the last three months. This is an important step in strengthening the transparency of New Zealand’s political process.

Transparency International New Zealand (TINZ) released a supporting media release on 24 July encouraging all parliamentarians to follow the Green’s lead and release their diaries.

This non partisan position is consistent with recommendations from TINZ’s Integrity Plus 2013 New Zealand National Integrity System Assessment (NIS). The NIS recommended better transparency to enable public officials, citizens, and businesses to obtain sufficient information on, and to scrutinise lobbying of, members of Parliament and ministers.

The first release of four Green ministers is available here, covering the April-June 2018 quarter.

NZX slamed for lack of transparency

As a followup to her July Transparency Times article NZX needs transparency and modernisation to support New Zealand’s future TINZ Chair Suzanne Snively was interviewed by the National Business Review. The resulting article is titled Corruption watchdog slams NZX for lack of transparency (N.B. the paywall can be by-passed by one-time registration for free limited weekly access).

TINZ looks forward to forming closer ties with the New Zealand Stock Exchange (NZX) as it increases transparency in the matching of buy and sell transactions.

This will strengthen the integrity system that underpins the New Zealand equity market.

International trends are towards increasing demand for responsible investments. With greater transparency and accountability, the NZX can authentically align with the New Zealand public services ranking on the Transparency International Corruptions Perception Index at #1 through being the least corrupt in the world.

This, combined with the evidence collected by NZTE through the New Zealand Story (see www.nzstory.org.nz) that finds our country is a good country with integrity, provides a strong platform to attract equity capital to New Zealand. This is important for the success of the NZX. It is also an important contributor to a robust business growth that drives a sustainable and prosperous economy.

Safeguarding the integrity of Australian sport

The Australian Government released a review of Australia’s Sports Integrity Arrangements – the most comprehensive analysis of Australia’s sports integrity arrangements ever undertaken.

“The Review acknowledges Australia’s position as a world leader in sports integrity; however, identifies serious and emerging threats that require a national approach,” said the Australian Minister for Sport, the Hon Bridget McKenzie.

In December SportNZ announced they were considering a similar review into sport integrity. At that time growing concerns over doping, match-fixing, and corruption were creating the need for further review of the sporting sector.

The SportNZ review is in process, watch this space.

Transparency International New Zealand encourages the Government and New Zealand sporting bodies to aspire to world class integrity.

TINZ and UNA NZ sign affiliation agreement

Signing the affiliation Memorandum of Understanding between TINZ and UNA NZ. Standing L-R: Gus van de Roer (TINZ Director) and Luke Qin (TINZ Member with Delegated Authority for Affiliations). Seated are: John Morgan (UNA NZ Special Officer for Human Rights - recently retired), Suzanne Snively (TINZ Chair), Peter Nichols (UNA NZ President) and Joy Dunsheath (UNA NZ Immediate Past President).

The United Nations Association of New Zealand (UNA NZ) and Transparency International New Zealand (TINZ) have made an agreement to fully affiliate and co-operate with each other.

UNA NZ president Peter Nichols and TINZ chair Suzanne Snively signed the affiliation agreement at a meeting of TINZ’s Board in Wellington on Monday 23 July 2018.

Both organisations have common interests in promoting ethics in government and business, and advocating for effective integrity systems to maintain trust and confidence in New Zealand. This affiliation relationship can contribute greatly to the success of maintaining high standards of ethics, of being vigilant about the enforcement of anti-corruption measures and of being able to demonstrate how training and leadership can make a difference.

A key opportunity is the facilitation of connections to communicate and network across all of the members of both organisations. This will enhance their capacity to promote knowledge about ways to prevent corruption and build strong integrity systems.

Safeguarding precious historical records

Good intentions

The Coalition Government is assessing the contributions our national archives and libraries can make to New Zealand’s culture and democracy. This work programme spans:

  • The National Library of New Zealand
  • Archives New Zealand
  • Ngā Taonga Sound and Vision (the audio-visual archive).

Co-Chair of this programme is Associate Minister for Arts, Culture and Heritage, Grant Robertson. He said these institutions “have vital roles in our democratic and cultural infrastructure.” Apart from their “.. distinct roles, they have much in common, including storing and preserving physical collections, managing digital information and increasing access to information through digitisation.”

Independence of Chief Archivist

The Government’s news release indicated the guiding objectives of the work programme are to ensure:

  • these institutions support an accountable, open and transparent democracy
  • records documenting New Zealand’s history and culture are collected and preserved as taonga for current and future generations, and are as accessible as possible for all New Zealanders, and
  • the memory of the New Zealand government is managed and preserved for future generations.

The other co-Chair is Internal Affairs Minister, Tracey Martin. She indicated the costs associated with physical storage of various library and archival material was a major pressure on the institutions. Therefore, it makes sense to look at the value to the country of their work, as well as how they could better work together.

The independence of the Chief Archivist in New Zealand’s constitutional framework is a key consideration. “The Chief Archivist sets the framework for government recordkeeping and for regulating the creation and disposal of public records,” Minister Martin said.

TINZ takes particular interest in this aspect.  Effective and non-partisan record keeping achieved on an on-going basis, from which future generations can be reliably guided, is an essential ingredient to transparency and accountability.

Have your say by 19 August

Overall details include five questions to guide public feedback by the Sunday 19 August deadline.

Anonymous whistleblowing tool

The Commerce Commission has launched an anonymous whistleblowing tool to enable people to report cartels without being identified.

Cartel conduct is where two or more businesses agree not to compete with each other through conduct including price fixing, dividing up markets, bid rigging, or restricting output of goods and services. Cartels deprive consumers and other businesses of the benefits of competition in markets and may result in higher prices, and reduction in the levels of choice, service and quality for goods and services.

For more information, review the media release, the Commerce Commission’s Anonymous whistleblowing tool page and the  submission information requirements.

This tool is limited to reporting cartel behaviour. While this is a great start, TINZ encourages the Commerce Commission to support anonymous whistleblowing in a broader scope aimed at preventing corruption & illegal individual or corporate behaviours in all business activities.

TINZ comings and going

Accreditation for TI Chapter, Transparency International New Zealand Inc

Delia Ferreira Rubio Chair Transparency
Delia Ferreira Rubio
Chair Transparency International

TINZ has been re-accredited for 3 years by the global body, Transparency International (TI).  On 22 June 2018, TI Board Chair, Delia Ferreira Rubio formally wrote to the TINZ Board stating that the TI Board of Directors “has decided to reconfirm your Chapter’s status as an accredited National Chapter of Transparency International…with the understanding that your Chapter agrees to the content of this letter….”

TI’s Board sub-committee, the Members Advisory Committee, considers self-assessments from each country Chapter every three years.  Feedback to TINZ is that its self-assessment was the most comprehensive of any ever received.  TI’s letter to TINZ said that “your Chapter is required to introduce term limits for its Board members over the next three years, and further diversify its funding base and its membership to prevent perceived conflicts of interests.”

Prior to receiving these messages, TINZ has been undertaking a review of its rules, including about appropriate succession planning that supports good governance.  Aspects of this include the development of job descriptions for Board members and the recruitment of Members-with-Delegated Authority whose focus on special topics demonstrates a commitment to thought leadership, providing an incubator of talent appropriate to governance. Further, the TINZ Team has been searching for Auckland relationships to assist in widening its membership north of the Bombay Hills. Watch this space for Rule changes which address TI’s requirements and for an unfolding of TINZ plans to engage funding from more diversified sources.

Farewell and hello to Stephanie Hopkins, TINZ General Manager Operations

Stephanie Hopkins

Stephanie Hopkins, TINZ General Manager, Operations has moved on to become the CEO of the Digital Media Trust from August. 

Stephanie has made huge difference in her short-time with TINZ.  Her role was to assist with professionalizing TINZ Annual Reporting and to provide staff support and management.  She organised a successful 2017 AGM with a full house. She also led the completion of TINZ comprehensive self-assessment and other processes required by TI as part of its 3-yearly accreditation requirements.

The launch of the 2017 TI Corruption Perceptions Index had its greatest impact yet with Stephanie overseeing yet another change in the methodology applied by the TI Secretariat in Berlin.  She ensured that interested parties were well informed and prepared to respond to the good news that the New Zealand Public Sector was again ranked as the least corrupt, despite that new end-February launch date.

Stephanie attended the Asia Pacific Regional Meeting in Taiwan at the end of June and has taken an active interest in the future of the Chapters in the Pacific and the role they play in addressing the serious corruption there, where other sovereign states are position themselves to gain access to resources that are not theirs to have.

It has been a privilege to experience Stephanie’s demonstration of respect for the TINZ Team which has led to TINZ achieving a great deal over the last 12 months. As well as contributing to a successful AGM, a published annual report, website re-development, an exciting Public Sector Leaders Integrity Forum programme (leading into an extension to local government), the further three-year TI accreditation (which included a review and update of all internal policies and processes) and of the introduction of a new video conferencing system enabling TINZ Team Members to participate in Board meetings from all over the world, Stephanie also initiated a new approach to increasing TINZ social media profile.

Through Stephanie’s commitment, TINZ has a solid foundation from which to continue to grow and develop and New Zealand society will benefit accordingly.  The TINZ Team is extremely grateful for this and wishes Stephanie all the best in her new role.

The good news is that at its July Board meeting, the TINZ Board approved Stephanie becomong a Member-with-Delegated-Authority. Her special topics are Affiliate Relationships, the Pacific and the Financial Integrity System Assessment.

Farewell to Eva Lu

Eva Lu

After over 3 years with Transparency International, Eva Lu has moved on from August to take up a permanent role at the Department of Internal Affairs in its new Anti-Money Laundering Unit. She’s also off overseas, efficiently carrying only a backpack, for a tour of Vietnam, Thailand and Cambodia.

While working as TINZ Administrator and Board Secretary, Eva showed unflappable professionalism in dealing with the details of communications and technology for making Board meetings happen for the up-to 45 potential attendees including the Patron, Directors, Staff and Members-with-Delegated Authority.

She also assisted in developing the TINZ membership base and refreshing it as a platform for thought leadership, media releases and events aimed at raising TINZ profile.  Eva’s focus on ideas that had direct appeal for members meant that she developed an acute sense of how to write and distribute invitations in a way that ensured TINZ events generated a full house.

Eva facilitated the organisation behind the scenes when New Zealand hosted the Asia Pacific Regional Meeting with TI Board Chair in 2017.  She made it possible for overseas Chapters who were unable to travel to New Zealand to be represented by video-conferencing.

Eva’s charm and can-do attitude has made a huge difference to what TINZ has been able to achieve with limited resources.  The TINZ Team acknowledges her contribution and looks forward to working with her in her new role at DIA in rolling out the Financial Integrity System Assessment.

The Board hopes that Eva will be able to find the time to join as a Member-with-Delegated-Authority later this year.

Autumn Prow appointed Administrative Assistant of Transparency International New Zealand

Autumn Prow

Autumn Prow Transparency International New Zealand (TINZ) has taken on Eva Lu’s role as TINZ Administrator and Board Secretary.  She has been assisting with the role since March and is taking over entirely from August.

Autumn is in her final year of undergraduate studies at Victoria University in Wellington, majoring in International Relations. She became interested in TINZ as it came up quite often in her class discourse.

Bringing both expertise and experience in technology and cyber security, Autumn is well versed in the skills required to set up the technology that ensures TINZ’s monthly Board meetings run smoothly.  Autumn has already demonstrated a keen interest to take over Eva’s role in ensuring that TINZ events receive full houses.  She has an interest too in identifying youth-based organisations that share TINZ values as potential affiliates.

The TINZ TEAM welcomes Autumn and looks forward to working with her.

Director Appointments

As part of its succession strategy, TINZ is searching for experienced Directors to fill the vacancies that will arise at this year’s AGM when two of its Directors will be moving on.  Also, there is a current vacancy.

Transparency International New Zealand Inc. (TINZ) is an incorporated society and a registered charity. It is an accredited chapter of the Germany based Transparency International, an organisation set up in 1993 with New Zealander Jeremy Pope as its inaugural CEO. TINZ was established in New Zealand in the 1990s and formally set up as an Incorporated Society in April 2001.

Our Vision (what we would like to see as a result of our work)

A world with trusted integrity systems in which government, politics, business, civil society and the daily lives of people are free of corruption.

Our Mission (what we do to achieve our vision)

To foster a New Zealand culture where transparency, integrity, good governance and ethical standards and practices are the core values of the all New Zealanders.

Our Values

  • Trust
  • Transparency
  • Respect
  • Integrity
  • Courage
  • Cultural & Social Responsibility
  • Environmental Sustainability

The Role

We are seeking expressions of interest from people wishing to make a significant contribution at governance and operational levels to New Zealand society, to the Pacific and through this, have global influence.

Key Considerations for a Board Position:

  • Confident team contributor with leadership skills to enable us to prevent corruption and strengthen integrity systems.
  • Ability to communicate and logically outline principled views.
  • Demonstrated understanding of and commitment to integrity, ethical practice and good governance.
  • Fundraising experience
  • Knowledge of and experience with anti-corruption practices and strategies to enhance organisational viability and sustainability through strengthening integrity systems
  • Capability and experience to fully contribute to a principled high-performing board.
  • Demonstrated experience in associated disciplines eg legal, HR, networking and events management.
  • Ability to commit time to advancing the work of TINZ, both through monthly board attendance (and associated preparation and prior contribution) and to projects and initiatives of the organisation – a minimum of 12 hours per month.
  • Access to networks that will support TINZ through membership, partnership or affiliation
  • Must be a financial member of TINZ

How to Apply

You must be a fully-paid, up-to-date member of Transparency International New Zealand Inc. Nominations from two fully-paid TINZ members are required as well as your permission for your nominators to provide references for you.

Your application should include the following information:

  • A short bio highlighting areas relevant to this position
  • An explanation as to why you wish to become a Board Member
  • Details of three special topic areas you would be willing to assist with
  • Confirmation of your willingness to commit time beyond the monthly board meetings to lead activities as agreed at Board meetings or in areas in which you may be given delegated authority
  • How you will assist in fundraising to contribute to TINZ sustainability

2018 Directors nomination form

Short Takes

Pledge tracker released

Transparency International UK announced that the  Global Anti-Corruption Pledge Tracker is now live.

The Anti-Corruption Pledge Tracker monitors the progress of the commitments made by governments at the 2016 Anti-Corruption Summit.

Exporting Corruption Report 2018 to be released in September

On Wednesday 12 September in Berlin, Transparency International will be releasing the Exporting Corruption Report 2018.

The OECD Anti-Bribery Convention, adopted in 1997, requires each signatory country to make foreign bribery a crime for which individuals and enterprises are responsible. The Convention is a key instrument for curbing the export of corruption globally because the 41 signatory countries are responsible for approximately two-thirds of world exports and almost 90 per cent of total foreign direct investment outflows.

Progress reports from Transparency International (TINZ’s umbrella organisation) present a regular independent assessment on the status of enforcement in OECD Convention signatory states. The last progress report was published in 2015.

In preparation for the 2018 Exporting Corruption Progress Report, the secretariat of the global body, Transparency International, asked its national chapters to draft their country report. These are then reviewed by the global body and once their comments are addressed, the evidence collected by the national chapters in incorporated into the overall report. 

The 2018 evidence for New Zealand was compiled by TINZ Director, Dr John Hopkins, a Law Professor from Canterbury University. He conducted a robust search for information about corruption cases in New Zealand, double checking with relevant official sources. A final review was then carried out by TINZ Directors, Suzanne Snively and Brendon Wilson.

In case you missed it August 2018

New Zealand transparency, integrity and accountability

Do-good businesses must prove their heart  New Zealand is increasingly looking out-of-step when it comes to the transparency required of social enterprise overseas.

‘It’s murky’: Questions over use of Provincial Growth Fund National wants answers as to why the Economic Development Minister is giving out cash to a private trust it says is set to make a killing off it.

Police launch inquiry after running policeman cops sports ban for importing performance-enhancing drugs

New report calls for ethical guidelines for Artificial Intelligence 

Ombudsman report: which banks have gathered the most complaints?

Sport

Basketball: NBL scrutinise illegal betting allegations

TAB inquiry into suspicious betting activity in NBL game

Basketball: Police investigating allegations of inappropriate betting in NBL game “Basketball New Zealand was recently advised of allegations of inappropriate betting activities linked to a National Basketball League game. It is imperative that the integrity of our sport be protected,” said Basketball New Zealand chief executive Iain Potte

Sustainable Development

Sixty major NZ companies make climate change pledge to reduce their greenhouse gas emissions and hold themselves publicly accountable by setting targets.

TINZ

TINZ and UNA NZ sign affiliation agreement Press Release: The United Nations Association of New Zealand (UNA NZ) and Transparency International New Zealand (TINZ) have made an agreement to fully affiliate and co-operate with each other.

Julie Haggie appointed CEO of Transparency International NZ

International

Three priorities at the Open Government Partnership summit namely Beneficial Ownership Transparency, Lobbying, and Open contracting. 

TINZ Team

TINZ engages New Zealand and the New Zealanders in a broad range of issues related to building stronger integrity systems to mitigate the impact of bribery and corruption. TINZ Directors, Members with Delegated Authority and staff provide subject matter expertise in the topic areas of interest. Below is a list of TINZ Subject Matter Experts as of August 2018. This link is to be page that lists the range of issues TINZ is concerned with and respective current subject matter experts.

TINZ Team as at 5 August 2018

Name

 

Current Term

Patron

 

Lyn Provost

Patron

2018 – 2021

TINZ Directors Elected by Members

Charles Hett

Director TINZ Ethics

2015 – 2018

Gus van de Roer

Director TINZ Investments Attraction

2015 – 2018

Tim Goodrick

Director Business Integrity Systems

2016 – 2019

David McNeill

Director IT Systems

2016 – 2019

Henry Lynch

(Replacing MSainsbury)

Director Financial Sector From May 2018

2016 – 2019

Suzanne Snively

CHAIR and Director of Integrity Systems

2017 – 2020

Brendon Wilson

Director Business Integrity (SMEs)

2017 – 2020

ChristineStevenson

Treasurer

2017 – 2020

John Hopkins

(Replacing CPowell)

Director Christchurch events/Corruption

measures/Grand corruption.

2017 – 2020

Josephine Serrallach

Director Global TI Relationships and

2017 – 2020

Karen Webster

Director Local Government

2017 – 2020

Vacant Position

 

2017 – 2020

TINZ Staff

Julie Haggie

CEO Designate

10 Sept 2018 – 9 Sept 2019

Helen Bewley

Financial Officer

2015 – June 2019

Lucy Jones

Administration Intern

Until Feb 2019

Steve Snively

Webmaster

2012 – ongoing

Anne Gilbert

Public Sector Project Manager

2015 – March 2019

Autumn Prow

Administration Assistant

2018 – Dec 2018

TINZ Members with Delegated Authority

Ferdinand Balfoort

Corporate Governance and Fundraising

19 Sept 16 – 18 Sept 18

Liz Brown

National Integrity Assessment

17 Oct 16 – 16 Oct 18

Karen Coutts

Tiriti – O – Waitangi/ Chair Maori

17 Oct 16 – 16 Oct 18

FuimaonoTuiasau

OGP/ Pasifika

1 Dec 16 – 30 Nov 18

Declan Mordaunt

Affiliations, Civil Society Network, T20

20 Dec 16 – 19 Dec 18

James Bushell

Business and Non-Profit Sectors

20 Dec 16 – 19 Dec 18

Claire Johnstone

Pacific Programme/ Maori Caucus

20 Dec16 – 19 Dec 18

Mark Nicholas

Taranaki Events/Membership/Maori

13 Mar 17 – 12 Mar 19

Michael Macaulay

OGP/ Whistleblower

10 Apr 17 – 9 Apr 19

Nichola Hodge

Christchurch Events/Membership

10 Apr 17 – 9 Apr 19

Daygan Eager

OGP/Palmerston North Events/ Fiscal Transparency

10 Apr 17 – 9 Apr 19

Tod Cooper

Procurement/ Online Training/

22 May17-21 May 19

David Dunsheath

Newsletter Editor/OGP/Parliamentary

24 Jul 17 – 23 Jul 19

Luke Qin

FISA/AML/Affiliations

25 Sept 17 – 24 Sept 19

Bryce Edwards

Political Party Integrity/ Media/Anti- corruption Policy & Legislation

20 Nov 17 – 19 Nov 19

James Brown

FISA/Corporate Partnerships/Sporting

20 Nov 17 – 19 Nov 19

John Hall

Civics /Migrant Rights and

20 Nov 17 – 19 Nov 19

Ann Webster

Public Sector / NIS

20 Nov 17 – 19 Nov 19

Sarah Mead

Board Secretary

20 Dec 17– 19 Dec 19

Vicki Squires

Christchurch Events

15 Dec 17 – 14 Dec 19

Alexandra Mills

Wellington and National Events

18 Apr 18 – 15 Apr 20

Karin Lasthuizen

Chair Ethics

2 Jan 18 – 1 Jan 21

Thomas Nash

Defence/Parliamentary Liaison/Values

1 May 18 – 30 Apr 20

Debbie Gee

Whistle-blowing, Affiliations, OGP

24 July 18 – 23 July 20

Stephanie Hopkins

Pacific, Affiliations, FISA

7 August 18 – 6 August 20