The presentation by Ross Waugh discusses the significance of ethics in professional conduct, defining it as moral principles guiding behavior and the various branches of ethics including applied and business ethics. A series of case studies illustrate recent ethical violations in local government, highlighting issues of fraud and corruption resulting in significant financial and reputational damage. The document concludes by emphasizing the importance of maintaining high ethical standards and proper processes to mitigate ethical dilemmas in the workplace.

1. Ethics
Selwyn Young Professionals, 9 May 2017
Presentation by Ross Waugh

2. What is Ethics? Oxford Dictionary
 1[usually treated as plural] Moral principles that
govern a person's behaviour or the conducting
of an activity
‘medical ethics also enter into the question’
‘a code of ethics’
 1.1 The moral correctness of specified conduct.
‘many scientists question the ethics of cruel
experiments’
 2[usually treated as singular] The branch of
knowledge that deals with moral principles.
‘neither metaphysics nor ethics is the home of
religion’

3. What is Ethics? Wikipedia
Defining Ethics
Meta Ethics
Normative Ethics (10 headings)
 Virtue ethics
 Ethics of care
Applied Ethics (9 headings)
 Business ethics
 Public Sector ethics
Moral Psychology
Descriptive ethics
It is a huge subject area

4. Sources of Ethics Statements
 IPENZ https://www.ipenz.nz/home/professional-
standards/ethical-conduct/code-of-ethical-conduct
 IPWEA http://www.ipwea.org/about/national/corp_info
 Law Society https://www.lawsociety.org.nz/for-
lawyers/regulatory-requirements/client-care
 Chartered Accountants ANZ https://www.ifac.org/about-
ifac/membership/members/chartered-accountants-
australia-and-new-zealand-formerly-recognized-0

5. IPENZ Code of Ethical Conduct
Public Interest
Take reasonable steps to safeguard health and
safety
Have regard to effects on environment
Report adverse consequences
Personal Conduct
Act competently
Behave Appropriately
Inform others of consequences on not following
advice
Maintain confidentiality
Report breach of Code

6. IPWEA Code of Ethics
Demonstrate Integrity
Practise Competently
Exercise Leadership
Promote Sustainability

7. How often to review / refresh
How often do you need to remind
yourself of Ethics requirements?
US Engineers have to take a CPD paper
on ethics every 2 years
Most professional societies offer ethics
papers and refreshers
Taking a paper every few years 2-5
sounds like good advice, but who does
this unless it is compulsory

8. Case Studies - Problems in LG over the past decade
Small Borough rates, 1950’s (as the story
goes)
 Prior to financial delegations requirements
 Borough Clerk collected the rates
 Borough Clerk left for Australia with all the rates
 Lead to the Financial Delegations requirements
for Councils

9. Case Studies - Problems in LG over the past decade
Otago District Health Board IT procurement
 Two Otago businessmen are facing prison terms after being
convicted of one of New Zealand's biggest frauds
 Otago District Health Board Chief Information Officer and
Queenstown Surveyor
 Guilty of stealing $17 million from the Otago District Health Board
 luxury boats, flash cars and expensive homes, mostly paid for
with millions of dollars of public health money dishonestly taken
 Over six years, Board invoiced for computer support services and
risk mitigation insurance
 "They've stolen health opportunities from the sick and the elderly
and they've stolen equipment opportunities and asset
management opportunities from our staff”

10. Case Studies - Problems in LG over the past decade
Dunedin CC Car Sale and Procurement
 theft of more than 150 council vehicles and misused fuel
cards
 Over an 11-year period, 152 vehicles were unaccounted for,
while more than $100,000 was misappropriated on a council
fuel card
 Fleet Manager, who is suspected of committing suicide soon
after questions were raised
 "A number of red flags, including Mr Bachop's lifestyle
exceeding his salary...were ignored”
 Other effects – loss of Council trust in staff, 2 Group
Managers left or resigned, one other manager resigned

11. Case Studies - Problems in LG over the past decade
Rodney / Auckland Transport
 A roading contractor and a senior council manager have been found guilty of
corruption
 Council Manager (Noone) was found guilty on six charges of receiving $1.2
million in bribes from Roading Contractor (Borlase).
 Borlase, in turn, was found guilty on eight charges of offering bribes to Noone
and other council staff.
 They have each been sentenced to at least five years in prison after being found
guilty of corruption, bribery and fraud and convicted.
 The corrupt relationship ran from 2006 until 2012, from Noone worked at
Rodney District Council, continuing when he joined Auckland Transport following
the supercity merger.
 "The extensive provision of benefits to staff at all levels of their teams resulted
in a culture where corruption flourished and was normalised, with no questions
asked” – additional 6 staff resigned
 "There was very little chance of disgruntled or principled employees speaking
out as everyone was being 'looked after' or was compromised.

12. Case Studies - Problems in LG over the past decade
Westland DC
 Council assets manager Goel is being investigated by the Serious
Fraud Office (SFO) over allegations of financial impropriety.
 Goel was in charge of organising tenders and supervising contracts for
council projects such as wastewater treatment.
 The project was not put out to public tender. It is understood three
companies were approached for expressions of interest in the
project.
 A new business, run by a cake decorator, which had no track record in
waste management won a Westland District Council project to build a
$7 million sewage plant in Franz Josef (being used as a ‘shell’
company for an Indian importer)
 Other impacts – loss of Council Trust, CEO has resigned

13. How to …. sticky situations
 You suspect your boss of fraud
 A contractor or consultant approaches
you with a gift or offer (AT/MAD)
 One of you colleagues seems to have a
‘what’s in it for me’ approach
 You have an entrepreneurial / innovative
idea and want to use public money PNCC
 Council wants you to change advice in a
report
 You are asked to do something you
consider unethical

14. How to …. sticky situations (2)
 You are asked to step outside contract
processes – by other staff or contractor
 Tender evaluation ‘pressure’ (CCO)
 Tender ‘irregularities’
 Engineer to Contract evaluations
 Getting ‘around’ Council purchasing
policy to expedite work
 Preferred contractor/consultant
 Over-running approved Contract sums
 The ‘study tour’

15. How Councils manage ethics issues
 Gifting Policy, Register, Declarations of Gifts, Interests
 Procurement Policy
 Use of Probity Auditors in procurement
 Contract Administration Manual
 Contract Variations Processes, SOP and Policies
 Multiple Signatories to documents, processes
 Purchase Orders
 Delegations Register

16. Conclusion
 Ethics is about moral principles
 NZ has absolutely no tolerance of
unethical, dishonest or corrupt practice
 Understand and review professional
society ethics statements / requirements
 Good processes, policies, practices and
administration go a long way
 Stay awake to potential problems
 Sunlight/Transparency is a good antidote

17. Last Thoughts
 Your professional reputation is vital to
your continued career in any industry
(Arthur Anderson)
 If in doubt ask for guidance, checks
 Be transparent and open
 Show leadership in ethics
 Behaviour, addictions, financial stress can
be triggers for ethics issues
 Don’t compromise in ethics