A project of the Office of the Ombudsman in collaboration with the Department of Budget and Management, Civil Service Commission, Commission on Audit,

and the Development Academy of the Philippines

PPursuing ursuing RReforms thru eforms thru IIntegrity ntegrity

DEDEvelopment velopment thru

Integrity Development Review

DR. DAVID J. LOZADA, JR

Assistant Secretary of Health

AGENCIES COVERED AGENCIES COVERED (1(1stst cycle) cycle)

Office of the Ombudsman (Central Office Office of the Ombudsman (Central Office including OSP)including OSP)Department of Education (Central Office, NCR, Department of Education (Central Office, NCR, Region I, Region VIII)Region I, Region VIII)Civil Service Commission (self-administered Civil Service Commission (self-administered survey)survey)Department of Budget and Management (CVA Department of Budget and Management (CVA Project of DAP-WB))Project of DAP-WB))

AGENCIES COVERED AGENCIES COVERED (2(2ndnd cycle) cycle)

Department of Public Works and Department of Public Works and HighwaysHighwaysPhilippine National PolicePhilippine National PoliceBureau of Internal RevenueBureau of Internal RevenueBureau of CustomsBureau of CustomsLand Transportation OfficeLand Transportation Office

“Corruption is not primarily a problem of bad people, but of bad systems.”

-- Robert Klitgaard

“An ounce of prevention is worth a pound of cure.”

Fighting Corruption in Several Fighting Corruption in Several FrontsFronts

PreventionPreventionProsecutionProsecutionPromotion of Promotion of corruption intolerancecorruption intolerancePartnershipsPartnerships

WHAT IS IDRWHAT IS IDR

Integrity development Integrity development review is a preventive review is a preventive measure against measure against corruption. corruption.

It entails a systematic It entails a systematic assessment of the assessment of the agency’s corruption agency’s corruption resistance mechanisms resistance mechanisms and its vulnerabilities to and its vulnerabilities to corruption. corruption.

OBJECTIVE OF IDROBJECTIVE OF IDR Assist the management and leadership of the Assist the management and leadership of the

agency to:agency to: Assess the level of integrity development within the Assess the level of integrity development within the

agencyagency Identify the agency’s vulnerability to corruptionIdentify the agency’s vulnerability to corruption Assess the adequacy of agency’s controls to detect and Assess the adequacy of agency’s controls to detect and

prevent corruptionprevent corruption Prepare a more focused Corruption Prevention and Prepare a more focused Corruption Prevention and

Integrity Development PlanIntegrity Development Plan Establish benchmarks by which performance and results Establish benchmarks by which performance and results

of anti-corruption programs can be monitoredof anti-corruption programs can be monitored

Concept of Integrity ReviewConcept of Integrity Review

Corruption Resistance

Review

Corruption Vulnerability Assessment

Integrity Development

Review

CRR of ICAC NSW/HK CVA of US-OMB/DAP

Integrity Development Review Framework

• Leadership•Code of Ethics• Gifts and Benefits Policy

Performance Management

Corruption Risk Management

Individual

Environment

Organizational

Whistleblowing, Internal Reporting & Investigation

Managing Interface with External Environment

Human Resource Development

Procurement Management

Financial Management

Integrity Development AssessmentIntegrity Development AssessmentAssessment areasAssessment areas

LeadershipLeadershipCode of conductCode of conductGifts and benefitsGifts and benefitsRecruitment & Recruitment & promotionpromotionPerformance Performance managementmanagementProcurementProcurementFinancial Financial managementmanagement

Internal reporting Internal reporting Corruption risk Corruption risk managementmanagementManaging interface Managing interface with stakeholderswith stakeholders

IDA Levels of AchievementIDA Levels of Achievement

0 – Anecdotal, no systematic approach

1 – Minimum standards

2 – Adaptation/deployment

3 – Enforcement

4 – Integration

5 – Evaluation of effectiveness

1. Leadership 1. Leadership

The role of senior leaders in promoting integrity The role of senior leaders in promoting integrity in the organization is very important. Senior in the organization is very important. Senior leaders and officials are key in setting values leaders and officials are key in setting values and directions, promoting, practicing, and and directions, promoting, practicing, and rewarding performance, and using these to rewarding performance, and using these to proactively address ethical and accountability proactively address ethical and accountability requirements.requirements.

Corruption prevention Corruption prevention and integrity is primary and integrity is primary responsibility of senior responsibility of senior leaders and managers.leaders and managers.

1. Leadership 1. Leadership

Objective: To assess how senior leaders Objective: To assess how senior leaders lead the organization towards integrity lead the organization towards integrity buildingbuilding

Outcome: Increased management Outcome: Increased management accountability for corruption preventionaccountability for corruption prevention

Leadership Leadership Rating Levels of achievement

5 Senior leadership organization reviewed6 Practices/performance of senior leaders

evaluated7 Senior leaders have specific responsibilities for

prevention and detection of corruption8 Senior leaders take proactive steps to discourage

staff from engaging in corrupt practices1 Senior leaders set values, directions and

performance expectations; articulate importance of ethical conduct

2. Code of Conduct 2. Code of Conduct

A Code of Conduct sets out the standards of behavior expected of staff. It defines the desirable behavior for all types of work in the agency. An effective code relies not only on appropriate form and content but also on its continued promotion and enforcement.

2. Code of Conduct2. Code of Conduct

Objective: To determine the existence, employment, and enforcement of a Code of Conduct that will address potential unethical behavior & conflicts of interest in an agency’s operations and interaction with stakeholders.

Outcome: Strengthened commitment to public Outcome: Strengthened commitment to public service and primacy of public interestservice and primacy of public interest

Code of Conduct Code of Conduct Rating Levels of achievement

5 Code regularly reviewed for effectiveness6 Agency’s code of conduct integrated in key

agency systems/mission critical functions7 There are sanctions/rewards for non-

compliance/compliance8 Code is adopted to agency’s operations1 Has a general code of conduct based on RA

6713

3. Gifts and Benefits Policy 3. Gifts and Benefits Policy Gifts and benefits are offered innocently or as bribes. The acceptance of gifts or benefits can create a sense of obligation that may compromise the receiver’s honesty and impartiality.Hence, agencies must set policies to deal with gift giving.

3. Gifts and Benefits Policy 3. Gifts and Benefits Policy

Objective: To ensure accountability and enhance transparency of officials/staff by properly reporting the offer and receipt of gifts and benefits

Outcome: Increase transparency and accountability

Gifts and BenefitsGifts and BenefitsRating Levels of achievement

5 Gifts and benefits and reported bribes regularly reviewed

6 Gifts received by agency or staff documented in register

7 Policies on acceptance of gifts consistently enforced with managers having clear tasks

8 Policies on acceptance of gifts made known to clients, suppliers

1 Agency has a written policy on acceptance of gifts and offer of bribes

4. Human Resource Management4. Human Resource Management

The recruitment process provides the agency an opportunity to screen incoming employees for likelihood of corrupt behavior and conflicts of interest. The promotion system provides opportunity to sanction corrupt behavior and reward people who comply with agency’s integrity standards.

4. Human Resource Management4. Human Resource Management

Objective: To prevent entry of corrupt and unqualified applicants and ensure promotion based on merit and adherence to standards

Outcome: Increased proportion of new recruits and promotions based on merit.

Human Resource Management Human Resource Management

Rating Levels of achievement

5 Outcomes of personnel recruitment, selection and promotion regularly reviewed to enhance integrity of the process

6 PSB decisions are randomly checked; deviations documented

7 Meetings and decisions of PSB planned and documented

8 Guidelines communicated to all employees 1 Agency’s recruitment and selection process

follows CSC guidelines

5. Performance Management5. Performance ManagementPerformance management aims to align agency and individual interests and ensures that agency goals are met. Performance monitoring can increase the likelihood of spotting unproductive activities of employees and providing incentives for ethical behavior. Efficient and effective units or agencies do not only save time and resources, but are more resistant to corruption.

5. Performance Management5. Performance Management

Objective: To increase monitoring and encourage employees to take personal responsibility for maintaining high standards of behavior and work targets

Outcome: More efficient service delivery; reduced corruption incidence

Performance Management Performance Management Rating Levels of achievement

5 Performance management system regularly reviewed for effectiveness

4 Staff performance rating are consistent with the attainment of unit’s targets and level of performance

3 Organizational and individual performance regularly accounted for

2 Agency has a performance management and evaluation system in place

1 Performance targets and work plans at the unit and individual level are based on agency goals

6. Procurement Management6. Procurement Management

The procurement system covers the process of planning, bidding, selection, delivery and inspection of goods and services. A poorly managed procurement system opens risks of corruption and wastage of resources due to poor quality of goods and overpricing.

6. Procurement Management6. Procurement Management

Objective: To strengthen the procurement process and manage agency’s resources better

Outcome: Transparent and clean procurement process; enhanced value for money of procured items

Procurement Management Procurement Management Rating Levels of achievement

5 BAC decisions and other procurement outcomes are regularly audited.

4 Sanctions and penalties are applied for non-performing suppliers

3 BAC meetings and decisions documented; performance of suppliers and contractors against obligations monitored

2 Guidelines are disseminated to every unit and relevant personnel are trained

1 Agency’s procurement system has adopted R.A. 9184

7. Financial Management7. Financial Management

Financial transactions are generally vulnerable to corruption. Issuing and receiving payments represent significant temptation for opportunistic and potentially corrupt individuals. Profligate use of financial resources can happen due to loose controls, arbitrary setting of budgets and misallocation.

7. Financial Management7. Financial Management

Objective: To determine the existence and effectiveness of controls to prevent fraud and misuse of agency’s finances

Outcome: Enhanced financial accountability

Financial Management Financial Management Rating Levels of achievement

5 Financial controls are reviewed for effectiveness in preventing fraud.

4 Financial reports made public3 Budgeting and accounting guidelines strictly enforced2 Guidelines on financial management disseminated to

every unit; training for relevant personnel conducted.1 Agency has adopted the New Government

Accounting System.

8. Whistleblowing, 8. Whistleblowing, InternalInternal Reporting Reporting and Investigationand Investigation

Whistleblowing should be encouraged in every agency because it is the fastest way of detecting corruption yet the most difficult to do. An effective protected disclosure and a good witness protection should be established within the agencies.

8. Whistleblowing, 8. Whistleblowing, InternalInternal Reporting Reporting and Investigationand Investigation

Objective: To foster a conducive environment for internal reporting & investigation of suspected corruption in the agency.

Outcome: High motivation of employees to report corrupt behavior that they observe.

Whistleblowing, Internal Reporting and Whistleblowing, Internal Reporting and Investigation Investigation

Rating Levels of achievement

5 System for internal reporting and investigation is reviewed for effectiveness in preventing corruption.

4 Sanctions imposed one erring personnel3 Investigations are conducted and complaints are

resolved completely 4 Employees are oriented on the procedures;

relevant personnel receive training 1 Agency has a written policy on internal reporting

and investigation

9. Corruption Risk Management9. Corruption Risk Management

Corruption is often deeply embedded in an agency’s systems & procedures, making it difficult to fully define the dynamics contributing to corruption. Thus, strategy for curbing corruption should be well defined and targeted.Risk assessment is an important management tool in detecting and preventing corruption.

9. Corruption Risk Management9. Corruption Risk Management

Objective: To directly address and eliminate corruption risks

Outcome: Reduced corruption cases within the agency

Corruption Risk Management Corruption Risk Management Rating Levels of achievement

5 Corruption risk management plan is regularly reviewed to enhance integrity measures.

6 Corruption prevention plan supported in the corporate/management plans

3 Agency has a plan/strategy to address identified risks

2 Agency proactively undertakes risk assessment 1 Agency recognizes the role of internal audit in

preventing/detecting corruption

10. Interface with External 10. Interface with External EnvironmentEnvironment

Several corruption incidences with an agency involves an external party.Agencies should effectively manage their external environment to contain corruption.

10. Interface with External 10. Interface with External EnvironmentEnvironment

Objective: To establish effective parameters for external relations and foster good client relations.

Outcome: Improved public perception on performance of the agency

Interface with External Environment Interface with External Environment

Rating Levels of achievement

5 System of managing interface with external environment reviewed

4 Complaints analyzed to identify possible incidence of corruption

3 Agency has mechanism to check published rules, procedures, standards are followed

2 Agency proactively disseminates information to the public

1 Agency has a policy on disclosure of information

Survey of EmployeesSurvey of Employeesapproachdeploymentcorruptionperceptionopen&close-end Qs100 samplerespondentssealedenvelope likert scale

Survey of Employees: AgendaSurvey of Employees: AgendaLeadershipLeadershipCode of conductCode of conductGifts and benefitsGifts and benefitsRecruitment & Recruitment & promotionpromotionPerformance Performance managementmanagementProcurementProcurementFinancial managementFinancial managementInternal reporting & Internal reporting & investigationinvestigation

Corruption risk Corruption risk managementmanagementManaging interface Managing interface with stakeholderswith stakeholdersOrganizational Organizational culturecultureTypes of corruptionTypes of corruptionPerceptions/ Perceptions/ Attitudes on Attitudes on corruption corruption incidenceincidence

Net Satisfaction Rating from Likert Scale = Net Satisfaction Rating from Likert Scale = % Strongly Agree + % Somewhat Agree – % Strongly Agree + % Somewhat Agree – % Somewhat Disagree - % Strongly Disagree% Somewhat Disagree - % Strongly Disagree

Net Rating Interpretation+ 50 or higher+ 50 or higher Highly positiveHighly positive+ 20 to + 49+ 20 to + 49 Moderately positiveModerately positive+ 1 to + 19+ 1 to + 19 Slightly positive, % undecided Slightly positive, % undecided

substantial substantial 00 Split opinionSplit opinion-1 to -19-1 to -19 Slightly negative, % undecided Slightly negative, % undecided

substantialsubstantial-20 to -49-20 to -49 Moderately negativeModerately negative-50 or lower-50 or lower Extremely negativeExtremely negative

Corruption Vulnerability AssessmentCorruption Vulnerability Assessment

Examine high risk functions, Examine high risk functions, programs and activitiesprograms and activities

Assess probability that corruption Assess probability that corruption could occurcould occur

Assess adequacy of existing Assess adequacy of existing controls and if controls are controls and if controls are operatingoperating

Identify measures to address Identify measures to address residual risksresidual risks

Project ComponentsProject Components

Training of AssessorsTraining of Assessors Guided Assessment of 5 Guided Assessment of 5

agenciesagencies Presentation of Findings Presentation of Findings

to the Advisory Groupto the Advisory Group Development of Agency-Development of Agency-

Specific Corruption Specific Corruption Prevention PlanPrevention Plan

Composition Composition of Assessment Teams of Assessment Teams

OMBOMB PAGCPAGC

DBMDBM COACOA

DAPDAP CSCCSC

DepEdDepEd Internal Internal AssessorsAssessors

Note: CSO assessors may be included

General Set of ActivitiesGeneral Set of ActivitiesStep 1. Program Communication and Assessor Preparation

Step 2. Guided IDA Self-Assessment

Step 3. Survey of Employees

Step 4. Indicators Research

Step 5. Corruption Vulnerability Assessment

Step 6. Analysis and Validation

Step 7. Management Presentation Project Duration:

8 months Step 8. Development of Corruption Prevention Plan

4949DAP - CfGDAP - CfG DAP - CfGDAP - CfG

DimensionDimension Status/RemarksStatus/Remarks

1. Leadership DOH-Champion-Sec FTD,DOH-IDC

2. Code of Conduct For finalization of the revised DOH Code of Conduct

3. Gifts and Benefits Policy For EXECOM approval of draft DO

4. Human Resource Management DO no.2005-0006,Feb 21,2005(recruitment & selection of Appointees 1st & 2nd level in CO)

5. Performance Management DM no.2005-0034,Feb 21,2005(Integration of client rating in employees PES)

6. Procurement Management RA 9184 fully implemented,Tripartite CODE of Conduct in Public Procurement-on going meeting with OMB

7. Financial Management E-NGAS training completed, software and hardware (to be provided by EU)

8. Whistle blowing, Internal Reporting and Investigation

C/O Atty.deVeyra

9. Corruption Risk Management Baseline Info to be used - the DOH Agency analysis framework made by the OMB

10. Interface with External Environment NGO-partners(NAMFREL/TAN),publication of blacklisted suppliers DOH website

INTEGRITY DEVELOPMENT ASSESMENT

Notes: You may use this presentation. Just acknowledge Notes: You may use this presentation. Just acknowledge source. Some pictures were downloaded from the internet.source. Some pictures were downloaded from the internet.

For additional information, contact DAP at cfg@dap.edu.ph