Anti-fraud policy ‹ Chetna India

Conflict of interest policy

Purpose:

The purpose of this policy is to ensure fairness in CHETNA’s decision-making, to protect the reputation and integrity of CHETNA and its interests, and to ensure broad public trust and confidence in CHETNA activities.

Principles:

CHETNA strives:

To operate in a balanced, ethical, collaborative, transparent and open manner;
To prevent financial interests of persons from compromising their duties and responsibilities.

Policy:

Staff members and other persons acting on behalf of CHETNA or sitting on CHETNA panel should not generally participate in any decision involving a transaction in which they may have a conflict of interest.

Definitions:

a. Conflict of interest:

A “conflict of interest” arises when a CHETNA person participates personally and substantially in an official capacity in any particular matter in which, to his/her knowledge, he or she or an associated person or an associated institution has a financial interest, if the particular matter will have a direct and predictable effect on that interest.

b. CHETNA person:

“CHETNA person” includes (a) staff members, (b) other persons acting on behalf of CHETNA to whom this policy is expressly applied, and (c) any person sitting on the CHETNA panel, such as trustees, Directors of CHETNA offices and experts appointed to panels for specific situations.

c. Associated person:

“Associated person” means CHETNA person’s parent, spouse, domestic partner, child, brother, sister, business partner, relative, friend or person by whom the CHETNA person is employed or with whom he or she is negotiating or has an arrangement concerning prospective employment.

d. Associated institution:

“Associated institution” means (i) any legal entity in which a CHETNA person is serving as a member of any governing body, or of which a CHETNA person is an employee or a consultant, that receives or may receive funding from CHETNA or with which CHETNA has a contractual or other legal relationship; or (ii) any legal entity with whom a CHETNA person is negotiating or has an arrangement concerning prospective employment.

e. Panel, panel member:

A “panel” is any committee deciding on contract or grant awards, or any other standing or ad hoc committee, panel or board created within CHETNA. A “panel member” is any member of such a panel.

Nepotism and favouritism:

We will not favour friends, family or other personal relations in recruitment, procurement, aid delivery or other situations.

Nepotism is favouritism toward relatives and friends. For instance, offering friends or family members a contract, despite the fact that there are other alternatives availble who are better qualified and willing to perform the job, or offering higher earnings and other benefits to employees who have a personal relation to the management. To avoid favouritism and nepotism in procurement we follow CHETNA’s “Standard Operating Procedure (SOP) about Procurement procedures.” In recruitment at CHETNA, general transparent procedures are followed in order to identify the best candidate. It is important to underline that if conflicts of interests are handled, it can in some cases be acceptable to hire/collaborate with family or friends.

Procedure for disclosing and dealing with conflicts of interest:

(1) Staff members

Duty to disclose:

All CHETNA staff members have a duty to disclose:

the existence of any conflict of interest (actual or potential); and
the nature of that conflict of interest,

Whenever he or she becomes aware that a conflict actually exists or that it is reasonably likely to occur.

Who to tell about a conflict of Interest:

Disclosures of conflict of interest should be made to the Designated Person. If the Designated Person may him/herself be subject to a conflict of interest, the matter shall be dealt with by the Designated Alternate; at CHETNA, this is the Director.

Dealing with a conflict:

The Designated Person or Alternate will decide how to deal with the conflict of interest in that particular circumstances of the conflict, and will direct the affected person regarding his or her future duties and involvement in CHETNA’s work so that they are not prejudiced by the conflict. However, where a conflict of interest exists, the CHETNA staff member will not participate in the matter that has given rise to the conflict.

Disciplinary action for non-disclosure:

Where a CHETNA staff member is believed to have a conflict of interest that has not been disclosed to the Designated Person or Alternate as required by this policy, the staff person will be told why it is believed a conflict exists and be given the opportunity to explain his/her non-disclosure. If, after hearing the response and making further investigations, the Designated Person or Alternate determines that the staff member has failed to disclose a conflict of interest, he/she may decide that disciplinary action should be taken by CHETNA in accordance with its grievance and disciplinary procedures. This will depend on the materiality of the conflict and the reasons for non-disclosure.

Procedure for disclosing and dealing with conflicts of interest:

(2) Panel members:

Any CHETNA panel, as defined above, shall apply the following regulations within the context of this policy:

A panel member at the beginning of the first meeting of the Panel shall read this policy and shall sign the attached Conflict of Interest Statement (see Appendix).
Any conflict of interest shall be disclosed by the panel member to the Panel immediately s/he becomes aware of its existence or aware that it may arise.
Any other person participating in the meeting of the Panel (in whatever capacity, whether a member of the Panel or an observer) having information regarding any conflict of interest shall immediately report it to the Panel.
It is the duty of the Panel (in the absence of the panel member) to review these disclosures and to decide by majority vote (the Chair having the casting vote in the event of a tie) whether a conflict of interest exists or may arise, and to decide whether to issue a waiver defining the extent to which that panel member may participate in any discussion of the issue that has given rise to the conflict.
Where the panel member failed to disclose a conflict of interest reported to the Panel by any other person, s/he shall withdraw from the Panel.
The quorum of the Panel’s meeting shall not include the panel member, with regard to the matter in respect of which he or she has a conflict of interest. This means that the panel member may not vote on that matter.

Where obliged by a legal agreement with a donor, CHETNA shall report a conflict of interest to the donor after all necessary and relevant investigations and decisions have been made.

In the event of a Panel becoming aware of a potential conflict of interest only after a decision has been made, the Chair of the Panel may, if reconvening the Panel is not practical, declare the decision null and void. However, where possible the Panel shall reconvene to consider the potential conflict in accordance with this Policy. If the Panel determines that a conflict exists, the members of the Panel shall further determine whether the decision of the conflicted member would have affected each of their votes. If each panel member determines that his or her vote would not have been affected, the initial decision will stand. However, if any member states that their vote would have been affected, the vote will be retaken with each affected vote being reversed.

Examples of actual and potential conflicts of interest:

A CHETNA person advocates the approval of a particular policy from which an associated person or institution will realise some direct financial benefit.
A CHETNA person participates in the assessment of an associated institution as a grantee of CHETNA.
A panel member advocates approval of a particular grant or contract whereby an associated person or institution will benefit either as a recipient of funds or by playing some other direct project implementation role.
CHETNA appoints an expert to review a specification, and the expert is employed or has some other financial interest in a potential bidder.
A decision-maker’s associated institution has a cooperation agreement with an applicant participating in a call for proposals.
An associated person has a shareholding in an organisation which has tendered to provide services to CHETNA.
A panel member is involved with an applicant for funding as a result of his/her providing a service to that applicant through their intellectual activity, such as freelance writing or media work.

Appendix to conflict of interest policy

CONFLICT OF INTEREST STATEMENT FOR PANEL MEMBERS

(For completion by all Panel members)

I have read and understood CHETNA’s Conflict of Interest Policy and declare that I will abide by the procedures outlined in that policy.

Signed ………………………………………… Date: ………………………………………….

Name ………………………………………………………………………………………………

Title ………………………………………………………………………………………………..

Organisation ………………………………………………………………………………………

Address ……………………………………………………………………………………………

………………………………………………………………………………………………………

By filing this form you agree to CHETNA retaining this Declaration for as long as it is relevant and necessary for it to do so.