Procurement Direction PO7
Policy Series
Conflict of Interest Disclosure
Statement of Intent
This Procurement Direction sets out the requirement for conflict of interest disclosure. It also
details the process to be followed by agencies when disclosing a conflict of interest.
Main Features
Section 11 of the Procurement Act requires Accountable Officers and employees of Agencies to
comply with the Procurement Directions.
Conflict of Interest Disclosure



Agency officers engaged in Procurement activity are not to use information obtained in
the course of official duties to:
o
Gain a direct or indirect pecuniary advantage.
o
Gain improper advantage for self or others.
o
Act partially or inconsistently with their obligations.
o
Cause harm to other people, business or the Government.
The following circumstances must be disclosed in writing to the Accountable Officer:
o
Delegated officers having any indirect or direct interest which conflicts or might
reasonably be thought to conflict with their duties.
o
Delegated officers having any indirect or direct interest which influences or might
reasonably be thought to influence improperly their conduct in the discharge of
their responsibilities.
o
Changes in the above circumstances, whether they vary an initial disclosure or
create a need for a new disclosure.
Prior to conducting a Quotation/Tender assessment, all officers undertaking the
assessment will complete a Declaration of Interests and Confidentiality which is to be
retained by the Chairperson of the assessment panel.
Effective 1 July 2014
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Procurement Direction PO7 Conflict of Interest Disclosure
Contents
Conflict of Interest Disclosure
Authorities
Procurement Act
Public Sector Employment and Management Act - Employment Instruction Number 12 – Code
of Conduct
Procurement Regulations
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Procurement Direction PO7 Conflict of Interest Disclosure
Conflict of Interest Disclosure
PO7.1
Agency officers engaged in Procurement activity are not to use information obtained
in the course of official duties to:

Gain a direct or indirect pecuniary advantage.

Gain improper advantage for self or others.

Act partially or inconsistently with their obligations.

Cause harm to other people, business or the Government.
I.
The Public Sector Employment and Management Act, Employment Instruction 12
“Code of Conduct” applies to all Government officers. The requirements contained
in the “Code of Conduct” apply equally to Government employees involved with
Procurement activities.
II.
Sanctions for breaches of legislative and procedural requirements will apply in
accordance with penalties imposed by the legislation (which could include
imprisonment under the Criminal Code Act and dismissal under the Public Sector
Employment and Management Act).
III.
All Government employees involved in Procurement activities are required to
perform their duties in a manner that is fair, transparent, free from bias and
unaffected by self-interest or personal gain.
IV.
Similarly, potential Suppliers should not approach Government employees in a way
that is or could be perceived to be an attempt to inappropriately influence Agency
Procurement outcomes or processes.
V.
Government aims to foster and maintain complete confidence in the integrity of its
procurement process by ensuring:
a. Individuals involved in the assessment process conduct themselves in an ethical
and appropriate manner.
b. Individuals do not hold financial interests that conflict with the conscientious
performance of their duties.
c. Individuals do not accept from Respondents/Tenderers or associates, gifts,
gratuities or favours including:
i.
Entertainment
ii.
Transportation
iii.
Lodging
iv.
Future employment
v.
Future business opportunity
vi.
Services
vii.
Any other pecuniary or non-pecuniary benefit.
d. Individuals involved in the assessment process do not engage in any practice
that gives one party an advantage over another.
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Procurement Direction PO7 Conflict of Interest Disclosure
e. That it is apparent to all involved that the assessment process is objective,
unbiased, and does not favour one Respondent/Tenderer over another.
f.
PO7.2
PO7.3
That the assessment process ensures open and effective competition.
The following circumstances must be disclosed in writing to the Accountable
Officer:

Delegated officers having any indirect or direct interest which conflicts or
might reasonably be perceived to conflict with their duties.

Delegated officers having any indirect or direct interest which influences or
might reasonably be thought to improperly influence their conduct in the
discharge of their responsibilities.

Changes in the above circumstances, whether they vary an initial
disclosure or create a need for a new disclosure.
Prior to conducting an assessment, all individuals undertaking the assessment will
complete a Declaration of Interests and Confidentiality which is to be retained by the
chairperson of the assessment panel.
I.
Clause 16.1 of the Code of Conduct requires Government employees to disclose any
financial or other interests that may conflict with their official duties. This is
particularly important if a Government employee is a member of an assessment
panel.
II.
An interest that may conflict, or may appear to conflict with the duty of those on the
assessment panel could include:
a. Shareholdings in one or more of the Suppliers that have submitted a
Quotation/Tender.
b. Significant shareholdings in a subsidiary of one or more of the Suppliers that
have submitted a Quotation/Tender.
c. Close family members who work for, or possess significant shareholdings in, one
or more of the Suppliers that have submitted a Quotation/Tender.
d. Offer of employment by a Respondent/Tenderer made to the officer or a family
member.
e. Interests in property leased by any of the Suppliers that have submitted a
Quotation/Tender.
III.
The above list is not intended to be exhaustive and any interest that may call the
integrity of the process and a panel member’s impartiality into question should be
declared.
IV.
Interests that arise during the course of the evaluation and appointment process
should be declared as they arise.
V.
The responsibility rests on each Government employee to identify possible conflicts
of interest, or pecuniary interest in the outcome of a Procurement matter on which
they are working, and to disclose these in writing to appropriate officers within the
Agency or to the chairperson of the assessment panel. In most cases, the early and
open disclosure of such an interest will allow an Agency to resolve any actual or
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Procurement Direction PO7 Conflict of Interest Disclosure
perceived conflict before the integrity of the specific Procurement process is
compromised.
VI.
A copy of a Declaration of Interests and Confidentiality is set out at Attachment A to
this Procurement Direction.
VII.
In any circumstances where the chairperson of the assessment panel considers a
conflict of interest does or might reasonably be thought to exist, the chairperson will
make a decision on the individual’s continued role in the assessment process.
VIII.
Where the conflict is not of a serious nature, no action beyond the disclosure may be
required. However, where the conflict could, or could be perceived to lead to a
compromise of the assessment process, arrangements must be made for the
individual to be removed from the assessment panel.
IX.
An Agency Accountable Officer has the discretion to remove an individual from the
assessment process at any time.
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Procurement Direction PO7 Conflict of Interest Disclosure
Attachment A
Declaration of Interests and Confidentiality (example)
Quotation/Tender Number: [Enter Number]
Project Name:
[Enter Project Name]
I,
[Enter Name]
of
[Enter Address]
declare that I am undertaking evaluation for the above project.
I acknowledge that it is a requirement that strict confidentiality as described below is maintained
at all times.
I understand that I may handle and obtain information, which is of confidential nature, and that
this information must be kept confidential.
Further, I understand that I am to disclose any conflicts of interest, real or potential, as I become
aware of them.
Specifically, I undertake:

Not to disclose confidential information to anyone not directly involved in the evaluation
process without the written permission of the Accountable Officer;

Keep all information safe and secure;

Not to personally retain, destroy or remove any original documentation or confidential
information without the written permission of the Accountable Officer; and

That the promise of confidentiality shall continue notwithstanding the expiration or
termination of this evaluation process;

Not to adopt or apply the information contained within the Quotation/Tender for any
future benefit.

I understand that failure to comply with this Declaration of Interests and Confidentiality
may result in disciplinary action being taken against me.
Details of related interests:
[Enter any details of Interests here]
Signature:
Effective 1 July 2014
______________________
Date: [Enter Date]
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Procurement Direction PO7 Conflict of Interest Disclosure
Table of Amendments
Amendment
Detail
Effective Date
General
Amendments to reflect new Quotation requirements
30 March 2009
General
Formatted for WCAG2.0 accessibility – changes to formatting, spelling, grammar and punctuation
1 January 2013
PO7.1 and
PO7.2
Changes to reflect amendments to the Public Sector Employment and Management Act
20 March 2013
General
Amended to reflect Procurement Reform changes
1 July 2014
Effective 1 July 2014
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