5.1 What is a Conflict of Interest?

5.1.1 A conflict of interest arises where a public official has private interests which may or do improperly influence the performance of their official duties and responsibilities. Conflicts can include not only the interests of individual employees and contractors, but also the interests of their immediate family (such as spouses, children or other dependents) and the interests of their business partners or associates.

5.1.2 Conflicts of interest are either real or apparent:

• Real: A real conflict of interest relates to a personal interest belonging to you and/or your immediate family members that could influence your decisions, actions or advice given in the course of your public or official duties. A conflict of interest does not have to exist at present for it to be real. A real conflict of interest might arise where your personal interests are not yet in, but could come into, conflict as a result of your official duties.

• Apparent: An apparent conflict of interest relates to a personal interest belonging to you and/or your immediate family members that could be seen to influence your decisions, actions or advice given in the course of your public or official duties, even though this is not in fact the case. An apparent conflict of interest differs from a real conflict of interest in that there is no actual conflict that could arise, although the nature of the person's public duties are such that there is, or may be, a reasonable perception by the public that a conflict of interest could in fact arise.

Obligations of Staff

5.1.3 All staff (APS employees, LES and contractors) have an important duty to uphold and promote the good reputation of Australia, the government, the department and the post. This reputation can be compromised by a real or apparent conflict of interest. For this reason, there are direct and indirect references to conflicts of interest in the APS Code of Conduct, the standard LES Code of Conduct and the duties of officials set out in the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

5.1.4 The APS Code of Conduct requires APS employees to:

• behave honestly and with integrity in connection with APS employment;
• take reasonable steps to avoid any conflict of interest (real or apparent) in connection with the employee's APS employment;
• disclose details of any material personal interest of the employee in connection with the employee's APS employment; and
• not improperly use inside information or the employee's duties, status, power or authority:
  • to gain, or seek to gain, a benefit or an advantage for the employee or any other person; or
  • to cause, or seek to cause, detriment to the employee's Agency, the Commonwealth or any other person.

Contractors must act in a manner that is consistent with the APS Code of Conduct as set out in their contractual obligations.

5.1.5 The LES Code of Conduct requires LES employees to:

• behave honestly and with integrity in connection with their employment with the Embassy, High Commission, Consulate or Business Office;
• disclose, and take reasonable steps to avoid, any conflict of interest, either real or apparent, in connection with their employment in the Embassy, High Commission, Consulate or Business Office, including in relation to any outside employment and/or business activities; and
• not make improper use of inside information, or the employee's duties, status, power or authority in order to gain, or seek to gain, a benefit or advantage for the employee, or for any other person, including the acceptance of gifts, sponsored travel, hospitality, accommodation, hire car costs and entertainment.

5.1.6 The PGPA Act sets out the duties of officials (APS employees, LES and certain contractors), which include to:

• act with care and diligence;
• act in good faith and for a proper purpose, including to manage or use public resources in an efficient, effective, economical and ethical manner;
• not make improper use of inside information or their position to gain an advantage for themselves or another person, or cause detriment to DFAT or another person; and
• disclose material personal interests.

5.1.7 All staff (APS employees, LES and contractors) must take reasonable steps to avoid situations where their private, financial or other interests (or those of immediate family members, such as spouses/partners, children or other dependents) and the interests of their business partners or associates could or could be perceived to conflict with their official duties. They must not allow these interests to influence the decisions they make, the actions they take or the advice they provide in connection with their official duties. If their interests and duties are in conflict, or could be perceived to be in conflict, they must disclose any such conflict to the department.

The National Anti-Corruption Commission Act 2022 (NACC Act) requires the department to make certain mandatory referrals in relation to corruption issues. As outlined in section 5.2.12 below, a conflict of interest may not automatically constitute corrupt conduct. However, corrupt conduct can arise when a conflict of interest is concealed/unreported, understated, mismanaged or abused. For this reason full and frank conflict of interest declarations by all staff are central to the department's ability to effectively manage conflicts of interest and its obligations under the NACC Act. Dishonesty or mismanagement around conflicts of interest declarations which may or do lead to a breach of public trust or misuse of office; misuse of information gained in a person's capacity as a public official; or which may or do cause a public official to behave dishonestly or in a biased way when they carry out their official duties could engage the department's obligations under the NACC Act.

5.1.8 Conflicts of interest can arise, or be perceived to arise, during dealings with former DFAT officers. Upon termination of employment, former DFAT officers are restricted from working on or advising in relation to a contract or grant agreement to which DFAT is, or is proposed to be, a party.

• in which they were substantially involved in the design, preparation, appraisal, review, and or daily management while at DFAT; or
• which substantially involves any employee of DFAT with whom they had significant contact or connection in the course of their employment within the 12 months prior to their separation from DFAT,

for a period of nine (9) months after their separation from DFAT, unless the Chief People Officer/relevant delegate has approved the engagement on behalf of DFAT. All staff should ensure that dealings with former DFAT officers are in accordance with this restriction and assess whether any real or apparent conflicts of interest arise as a result of their dealings.

5.2 Avoiding, Disclosing and Managing Conflicts of Interest

Declaring Conflicts of Interest

5.2.1 All staff (APS, LES and Contractors) will be asked to acknowledge that they understand their obligations and responsibilities around conflicts of interest by completing the Annual Acknowledgement of Conflicts of Interest through the Diplomatic Academy online Training platform, Lumi. This is a mandatory requirement and should be completed on an annual basis in addition to the Essentials Suite.

5.2.2 In addition to the Lumi acknowledgment, all staff who have a conflict of interest to declare must complete Form A: Declaration of Conflicts of Interest and/or Outside Employment Request and have it approved by the appropriate designated approver as listed in Schedule A.

5.2.3 Once Form A has been approved, a copy must be sent to coi@dfat.gov.au so you my be marked as complete in Lumi.

5.2.4 SES employees (including EL2 heads of mission/post and EL2 employees acting in an SES position in Australia for three months or longer) are also required to complete the Annual Acknowledgement of Conflicts of Interest through Lumi. However, agency heads and Senior Executive Service (SES) employees are subject to a specific regime that requires them to submit, at least annually, a written declaration of their own and their immediate family's financial and other material personal interests. SES who have no interests to declare may complete a NIL declaration as part of their Lumi acknowledgment and this will count as their annual written declaration. SES with interests to declare will be required to complete Declaration of Conflicts of Interest and/or Outside Employment Request.

5.2.5 All staff must complete an updated Form A: Declaration of Conflicts of Interest and/or Outside Employment Request in any of the following circumstances:

• within fourteen days of commencing a new position at the SES level within the department;
• within fourteen days of commencing an acting position at the SES level for three months or more within the department, or commencing HOM/HOP posting at the EL2 level;
• within fourteen days of announcement by the Minister for Foreign Affairs of their HOM/HOP position;
• within fourteen days of any change in personal or family circumstances that could involve a new real or apparent conflict of interest, or where a previously declared conflict no longer exists.

What Type of Interests Do I Need to Declare?

5.2.6 Staff only need to provide information about private, financial and other interests that could, or could be seen to, influence their official duties. Other interests do not need to be disclosed.

5.2.7 The types of interests that may need to be disclosed include:

• Financial interests such as:

• • outside employment;
  • real estate investments;
  • shareholdings, trusts or nominee companies;
  • company directorships and/or partnerships;
  • other significant sources of income; or
  • significant liabilities and gifts.

• Non-financial interests such as:
  • personal friendships/relationships with lobbyists;
  • personal friendships/relationships with media;
  • intimate relationships with other DFAT employees (including LES);
  • family relationships where there is a connection with DFAT or DFAT related programs;
  • personal relationships formed through work or engagement with the local community, including sporting, social, cultural or voluntary activities; or
  • volunteer, board and advisory roles.

5.2.8 Staff can seek advice from EES about conflicts of interest by via e-mail at coi@dfat.gov.au. EES is located on the ground floor of the Walter Turnbull Building at 44 Sydney Avenue, Barton.

Interest Disclosures for Immediate Family Members

5.2.9 Where staff disclose information about private, financial or other interests of an immediate family member, the individual should seek the consent of that family member to disclose the information and should declare that they have done so in the Form A Declaration of Conflicts of Interest and/or Outside Employment Request.

Managing Conflicts of Interest

5.2.10 While avoiding conflicts is generally preferable, in practice there may be some situations in which a conflict of interest cannot be wholly avoided and needs to be managed in a way which maintains confidence that the decisions we make, the actions we take or the advice we provide in connection with our official duties has not been influenced.

5.2.12 As outlined above, a conflict of interest does not automatically constitute corrupt conduct. However, corrupt conduct can arise when a conflict of interest is concealed, understated, mismanaged or abused. Managing a real or apparent conflict of interest should take into account the circumstances of the individual, including the role and responsibilities that the person performs for the department and the nature and extent of the conflict.

These could include:

• seeking the person's agreement to divest themselves of conflicting interests;
• altering the person's duties so they are no longer performing the role which may potentially put them in a conflict situation; or
• allowing the person to continue in the same role but for the department to implement appropriate safeguards which address the real or apparent conflict of interest.

5.2.13 Designated approvers (as listed in Schedule A) must review Conflicts of Interest Declarations Forms and consider whether a real or apparent conflict of interest exists. Approvers, in collaboration with the individual, are responsible for identifying strategies to manage the conflict. EES is always available to staff who seek advice on management strategies. The only exception is for declarations made by SES employees, these will be sent directly to EES. EES will then collate these declarations and provide to designated approver for final sign off.

5.2.14 In reviewing Conflicts of Interest Declarations Forms, EES may consult the Legal Division, the Counter Fraud and Anti-Corruption Section, and/or other relevant areas in the department.

Special Envoy

5.2.15 Special Envoy appointments are either undertaken by APS staff as part of their regular duties or by individuals who are employed solely as representatives for a specific function and who are not considered APS employees. Any proposed Special Envoy must complete a conflict of interest declaration prior to commencement of those duties for review by EES prior to approval. Approval of Special Envoy conflict of interest declarations should be completed by the Chief People Officer (CPO), the relevant Deputy Secretary or the Secretary. Areas that that are planning to employ staff under a special envoy arrangement should contact EES via coi@dfat.gov.au for advice.

5.3 Outside Employment and Voluntary Work

What is Outside Employment?

5.3.1 Outside employment means undertaking employment, including paid or unpaid work, with an organisation other than department, while still employed by the department. This includes during periods of paid and unpaid leave. Outside employment also includes appointments to non-government boards, directorships, and study in situations where an employee receives funding or financial support to study from an organisation other than the department or post. The department's policy on outside employment applies to both APS employees and Locally Engaged Staff (LES). Contractors are not required to gain approval from the department for outside employment unless that employment could be a real or perceived conflict of interest (in which case it needs to be declared in the contractor's conflict of interest declaration). For contractors seeking approval for outside employment that does not need to be declared on a conflict of interest declaration, they should seek approval from their primary agency and inform their manager in the department of the outcome.

5.3.2 Staff may apply for leave without pay when also applying to undertake outside employment while on said (nominated) leave. This can be done by completing Declaration of Conflicts of Interest and/or Outside Employment Request. Once completed the form will automatically be sent to the EES who will review and seek approval for the appropriate delegates.

Employment as LES at DFAT-Managed Posts

5.3.3 APS employees on leave without pay wishing to work as LES at DFAT-managed overseas posts are not required to seek prior approval to do so. However, they must inform AS PDB (for non-SES employees) or CPO PPD (for SES employees) at the earliest opportunity that they have accepted an offer of employment as an LES at a DFAT-managed overseas post. They must separately contact Security Clearances and Investigations Section (SCI) should they require re-activation of their security clearance to undertake this work.

Voluntary Work

5.3.4 Voluntary work (including during periods of paid leave) is considered outside employment, and APS employees and LES employees must first seek and obtain approval before engaging in voluntary work. Some types of voluntary work may still conflict with, or adversely affect the performance of, official duties in similar ways to paid outside employment, for example, where the relevant voluntary organisation has interests or aims in relation to or in conflict with policies or programs of the government or the department; or where the number of hours and frequency of the voluntary work are substantial.

Directorships and Appointments to Non-Government Boards

5.3.5 Directorships and appointments to non-government boards (including private sector, academic and charitable organisations) are considered outside employment regardless of whether the positions are paid or unpaid. APS employees and LES employees must first seek and obtain approval before accepting such positions.

5.3.6 In examining requests to assume directorships and appointments to non-government boards, approvers will give particular consideration to whether:

• the organisation in question is in a contractual relationship with the department;
• the organisation in question has received or is likely to receive financial assistance from the Commonwealth;
• the organisation in question's primary role is to lobby ministers or government;
• the organisation in question is regulated by a government agency; and
• the organisation in question would present a real or apparent conflict of interest.

5.3.7 Ex-officio appointments to boards (i.e. appointments to boards which follow directly from the official positions employees may hold) need to be carefully assessed. Senior employees (notably HOMs/HOPs) are often invited to take up roles as honorary directors or board members with charitable or educational institutions. The department recognises that these roles create goodwill and make a positive contribution to relations with host countries or to other departmental objectives. Where approval is granted, there are a number of possible ways in which a conflict of interest relating to a board appointment may be managed, including removing the employee from any decision-making role in relation to any financial relationship the department has or may have with the organisation; and restricting the employee's access to certain relevant information.

Appointments to Government Boards

5.3.8 Employees who sit on department-related foundations, councils and institutes should be guided on conflict of interest issues by the APS Code of Conduct and the DFAT Code of Conduct for Overseas Service. Staff who sit on other government boards and committees can find useful guidance on the APSC website.

Seeking Approval for Outside Employment

5.3.9 APS employees and LES wishing to engage in outside employment must seek and obtain approval before engaging in that employment and abide by conditions attached to that approval. This ensures the employee and the department can take steps to avoid or manage any conflicts of interest arising out of the proposed outside employment. In circumstances where identified conflicts present unacceptable risks to the department, the proposed outside employment will not be approved. Outside employment must not adversely affect the performance of the employee's official duties – as the main employer, the department has first call on their availability to perform work.

5.3.10 Staff who wish to apply for outside employment are required to complete Declaration of Conflicts of Interest and/or Outside Employment Request. Once completed the form will be automatically sent to EES who will review and seek approval from the designated approver as listed in Schedule A.

5.3.11 Staff who have completed an Outside Employment request also need to complete a Change of Circumstances Form via the Security Clearance Management System on the DFAT Intranet. For more information on the Security Management System please contact (Security.Clearances@dfat.gov.au)

5.3.12 Where the prospective employer is in, or is about to enter into a contractual, financial or other relationship with the Commonwealth, the applicant should seek a statement from an SES officer in the line area of the department with primary responsibility for managing the relationship with the prospective employer commenting on whether the proposed outside employment is likely to give rise to a real or apparent conflict of interest with the applicant's work.

5.3.13 Employees given approval to engage in outside employment must inform the delegate and EES if the nature or circumstances of the outside employment changes or if their official duties change in a way which could give rise to a real or apparent conflict of interest with the outside employment. If an employee moves to a different work area, they should advise their new supervisor and relevant SES officer of the nature of their outside employment.

5.3.14 Any approval to engage in outside employment may be rescinded if any conflict of interest (real or apparent) arises or if the outside employment starts to adversely affect official duties (for example, fatigue or limited availability).

Guidance for Approvers of Applications for Outside Employment

5.3.15 In deciding whether it is appropriate for an employee to engage in outside employment, a balance needs to be struck between the interests of the department and those of the employee. The overriding principle is the need to maintain public confidence in the integrity and administration of the government, the department and post.

5.3.16 Approvers must consult with EES in considering whether the proposed employment presents any real or apparent conflict of interest with official duties, whether the conflict can be managed and whether it will adversely affect the performance of official duties. An approver must consider:

• the nature of the employee's role in the department;
• the effort and/or time required to undertake the proposed employment, and whether this could adversely affect the performance of official duties;
• whether the proposed employment will be undertaken during normal work hours (unless special circumstances exist, this will not be approved – during work hours an employee's responsibility is to concentrate on their role as a DFAT employee);
• whether the proposed employment will be undertaken during a period of paid or unpaid leave;
• the potential for the proposed employment to damage the reputation of the department; and the nature of the outside employer and its relationship to the government, department or post. In particular, whether the outside employer concerned is in, or is entering into, a contractual or funding relationship with the government; and
• whether undertaking the proposed employment in conjunction with official duties may be perceived to, or does, lead to a breach of public trust or misuse of office; misuse of information gained in a person's capacity as a public official; or whether the proposed employment could cause the official to behave dishonestly or in a biased way when they carry out their official duties.

5.3.17 Australian Public Service Commission (APSC) guidance states that an inherent conflict exists between the interests of the department and those of a company or organisation with which it has a contractual or funding relationship. While the interests of the department and the company or organisation may align for the purposes of delivering the contract or funded project, generally the interests of the department and those of the company or organisation will be different. This means that the duties an employee owe to the department as a public servant, and those they may owe to an outside employer in a contractual or funding relationship with the department may conflict. Unless special circumstances exist, applications for approval to undertake outside employment with a company or organisation which has, or is about to enter into, a contractual or funding relationship with the department will generally not be approved.

5.3.18 Designated approvers may grant approval to undertake outside employment with conditions (for example, with a requirement to limit the number of hours or the times at which work is undertaken, or with undertakings to not assist the outside employer with any procurement process involving the Australian Government).

5.4 Employment after Leaving the Department

APS Employees

• Inform CPO PPD immediately in writing of offers or applications for jobs presenting conflict of interest with official duties
•  Do not disclose, use or keep official information after leaving DFAT
• Comply with paragraph 5.4.7 below.

LES Employees

• Inform HOM/HOP immediately in writing of offers or applications for jobs presenting conflict of interest with official duties
• Do not disclose, use or keep official information after leaving post.

Contractors

• Inform DFAT contract delegate immediately in writing of offers or applications for jobs presenting conflict of interest with official duties
• Do not disclose, use or keep official information after leaving DFAT

SES Employees and Higher duty EL2s

• Meet obligations under the Lobbying Code of Conduct for 12 months after leaving the department.

5.4.1 Real and apparent conflicts of interest can arise between current official duties and proposed future employment.

5.4.2 For this reason, APS employees, LES and contractors must inform the department in writing immediately if they are approached with a formal offer of employment or if they apply for employment, where a real or apparent conflict of interest between their current official duties and the proposed future employment could arise.

5.4.3 APS employees should inform the CPO. LES should inform their HOM/HOP. Contractors should inform the delegate responsible for their contract. HOMs/HOPs and delegates responsible for contracts should seek advice from EES if they believe there is a real or apparent conflict of interest.

5.4.4 If the CPO, HOM/HOP or the delegate responsible for the contract believes   a real or apparent conflict of interest exists, the department will implement a plan to manage access to official information and resources pending a decision by the relevant staff member on the employment offer, the outcome of the application process and/or the separation by the staff member from the department or the post.

5.4.5 Former APS employees, LES and contractors should refrain from working on or advising in relation to a contract or grant agreement to which DFAT is, or is proposed to be a party and

• in which they were substantially involved in the design, preparation, appraisal, review, and or daily management while at DFAT; or
• which substantially involves any employee of DFAT with whom they had significant contact or connection in the course of their employment within the 12 months prior to their separation from DFAT for a period of nine (9) months after their separation from DFAT (or any other maximum period contained under the terms and conditions of their engagement), unless DFAT has approved the engagement. Contact EES for more information at COI@dfat.gov.au

5.4.6 It is an offence under Division 122 of the Criminal Code Act 1995 for 'Commonwealth officers' (which for the purposes of Division 122 includes APS employees, LES and contractors) to publish or communicate without authorisation, official information which comes to their knowledge or possession by virtue of employment or engagement with the department. It is also an offence for former APS employees, LES employees and contractors to publish or communicate without authorisation, official information which came to their knowledge or possession by virtue of employment or engagement with the department.

Engaging in Lobbying after Separating from the Department or Post

5.4.7 A further component of the department's post-separation employment policy relates to engaging in lobbying activities. Under the government's Lobbying Code of Conduct, SES employees and equivalents (EL2 HOM/HOPs, EL2 employees paid as SES and EL2 employees acting as SES for 12 months or longer) must not for a 12 month period engage in lobbying government representatives on any matters on which they have had official dealings as public servants over their last 12 months of employment with the department. This restriction also extends to former staff employed in the offices of ministers or parliamentary secretaries at adviser level and above under the Members of Parliament (Staff) Act 1984 (MoP(S) Act).

5.4.8 The temporary restriction on senior APS employees and MoP(S) Act staff applies only to those who work as lobbyists. It does not apply to those who separate and then work as in-house lobbyists (i.e. lobby the government on behalf of the company which employs them).

5.5 Dealing with Lobbyists

All Staff

• Ensure lobbyists are registered, identify their clients’ interests, in compliance with the Lobbying Code of Conduct
• Otherwise decline to participate in discussion.

Lobbying Code of Conduct and Register of Lobbyists

5.5.1 Because lobbying of government representatives can create real or apparent conflicts of interest for those representatives, the Australian government has a Lobbying Code of Conduct and a Register of Lobbyists, both of which are available at http://lobbyists.pmc.gov.au/lobbyistsregister. The central aim of the Lobbying Code of Conduct and the Register of Lobbyists is to allow and require government representatives to establish the interests a lobbyist represents when the lobbyist seeks to influence government policy or decisions.

5.5.2 The Lobbying Code of Conduct applies to government representatives. APS employees and contractors in the department are defined as government representatives for the purposes of the Lobbying Code of Conduct and must comply with the Lobbying Code of Conduct.

5.5.3 The Lobbying Code of Conduct also applies to all lobbyists operating in Australia, including foreign lobbyists based in Australia and overseas-based lobbyists visiting Australia to lobby government representatives. It defines a lobbyist as "any person, company or organisation that conducts lobbying activities on behalf of a third party client". This excludes people or businesses lobbying on their own behalf. Additionally, the Lobbying Code of Conduct does not apply to charitable or religious organisations or to associations or organisations constituted to represent the interests of their members such as peak industry groups, trade unions and professional organisations. The Lobbying Code of Conduct also excludes non-profit organisations such as NGOs, members of trade delegations visiting Australia and individuals making representations on behalf of relatives or friends about their personal affairs.

5.5.4 The Lobbying Code of Conduct defines 'lobbying activity' as any communication a lobbyist has with a government representative which aims to influence a government decision, such as a change to legislation, policy, programs, funding arrangements, grants or contract decisions. Exclusions from the definition of lobbying activities are outlined in Clause 3 of the Lobbying Code of Conduct.

Responsibilities under the Lobbying Code of Conduct

5.5.5 Under the Lobbying Code of Conduct, APS employees and contractors must only deal with registered lobbyists. Before any lobbying activity commences, a lobbyist must confirm that he or she is on the Register of Lobbyists and must advise the name of the client represented and the nature of the matter the client wants to convey. APS employees and contractors must attempt to check whether a lobbyist is on the Register of Lobbyists before meeting that lobbyist.

5.5.6 APS employees and contractors must also seek assurances from lobbyists (who approach them) that they are not subject to any post-employment restrictions. Under the Lobbying Code of Conduct, persons who retire from office as a minister or a parliamentary secretary, shall not, for a period of 18 months after they cease to hold office, engage in lobbying activities relating to any matter that they had official dealings with in their last 18 months in office.

• Persons who were employed in the offices of ministers or parliamentary secretaries under the Members of Parliament (Staff) Act 1984 at adviser level and above
• members of the Australian Defence Force at Colonel level (or equivalent) or above, and
• agency heads or persons employed under the Public Service Act 1999 in the Senior Executive Service (or equivalent), shall not, for a period of 12 months after they cease their employment, engage in lobbying activities relating to any matter that they had official dealings with in their last 12 months of employment.

5.5.7 In the absence of such information or assurances, APS employees and contractors must decline to participate in the discussion.

5.5.8 The Lobbying Code of Conduct recognises that contact with lobbyists may occur during informal/social settings. In these situations, it is appropriate to accept statements by lobbyists that they and their clients are properly registered and to ascertain the issues they want to raise on behalf of their client. At the first available opportunity, APS employees and contractors must check whether a lobbyist is on the Register of Lobbyists. By following these procedures, APS employees and contractors should not be in breach of the Lobbying Code of Conduct.

5.5.9 The Attorney-General’s Department administers the Lobbying Code of Conduct (the Code) and the Register of Lobbyists (the Register). For more information, please see guidance on government representatives’ obligations.

Dealing with Lobbyists at Posts Overseas

5.5.10 The Lobbying Code of Conduct does not apply to overseas-based lobbyists engaged in lobbying government representatives overseas. Lobbyists operating in these circumstances are not required to register on the Register of Lobbyists. However, all staff at posts overseas should comply, to the extent possible, with the spirit of the Lobbying Code of Conduct. They should find out the interests a person who lobbies the post represents.

5.6 Conflict of Interest Case Studies and Possible Remedies

5.6.1 The following are case studies on conflict of interest issues. The advice contained is for illustrative purposes only. Different solutions and outcomes may be equally appropriate. EES can provide specific advice on individual circumstances.

Interest Type	Details	Reason f or Conflict	Possible Determination	Possible Remedy
Shareholdings	Currently own 5000 Telstra shares	I am currently assisting Telstra expand its business overseas.	High Risk Requires immediate remedy	Employee required to (a) sell shares and cease trading and (b) sign a declaration not to purchase shares while in current position, or perform different duties.
Real Estate Investments	Partnership in commercial property	The department intends to sign a contract to lease the commercial property I partly own. I have not been involved in the tender or contract process or had any contact or influence with the property section regarding the contract.	Medium Risk (Perception) Examine and monitor	Preliminary examination of the process to confirm information provided and show clear separation from decision.
Company directorships or partnerships	Director of a company that is tendering for a DFAT contract	I am an APS employee and also director in a training company. The company is tendering for a DFAT training contract. I have not yet declared this as a conflict of interest.	High Risk Requires urgent remedy	Employee required to (a) declare COI immediately and (b) withdraw the tender or (c) exit ownership and directorship of the company
Other significant sources of income	Family inheritance	I recently inherited a large parcel of shares in a transport company. The company holds significant contracts with other Commonwealth agencies (not DFAT).	Low Risk	No conflict of interest.
Gifts	Spouse/partner won a gift voucher	My spouse/partner won a $500.00 gift voucher from an IT store. The store has a contract to supply the department with IT products.	Low Risk No Action Required	Competition was open to the public and winning was by chance with no real or perceived influence through position.
Private business	Family owns a language training centre overseas	My family own and operate a language training centre in my posted country. The department uses the training facility. I hold a policy position at post and have no involvement with the company.	Medium – High Risk Requires Remedy	Employee to show clear separation of interest. Post to be aware and manage any information accordingly. Employee to sign undertaking to declare future conflicts when they arise.
Employment	Possibly employing a contractor as a DFAT employee	I have had a contractor working in my section for the past two years. The contractor is now applying for a BB3 position with DFAT and I am chairing the selection panel.	High Risk Requires Remedy.	There is current departmental and APSC policy guiding conflicts of interest in relation to recruitment. While it may be acceptable to remain on the panel, good practice would suggest that an alternative chairperson is appointed.
Voluntary work	Spouse/partner volunteers for a local NGO	I am the SAO at post and my spouse/partner is volunteering for a domestic violence education program funded by DFAT. As SAO I have no direct contact with NGOs or the funded program.	Low Risk Record and monitor	There is no current conflict of interest. If the SAO's duties were to change and they had direct contact with the NGO in question or the funded program, there may be a need to re-assess the situation.
Social or personal relationships	I have developed a friendship with the person who provides floral art to the department	Through my local sporting club I became friends with the florist who is contracted to provide the department's flowers. At work I do not have any contact with this person's company or the services it provides.	Low Risk No Action Required.	No real or apparent conflict exists.
Resignation	I am about to resign from DFAT to take up a management position with A1 indoor plant hire	I currently work in the building maintenance area and manage the department's indoor plant contract held by A1 indoor plant hire. The contract is up for renewal in 12 months.	Medium – High Risk Misuse of official information	The employee is privy to official departmental information and contacts within department. Reassign or remove employee from the position until resignation. Conduct debrief and have employee acknowledge understanding of unauthorised use or communication of official information. Ensure that staff in the work unit are briefed as well.
External employment offer	Over the past year I have been managing a departmental contract with an Australian company. The project is nearing completion and the company has offered me a job.	I have access to official and in-confidence information that would be of great benefit to the company who has offered me the position. In addition, I am recognised as an expert in my field and have conducted independent research on this subject matter. I have also made a significant contribution to relevant professional associations.	Medium – High Risk Misuse of official information	The employee should declare the offer of employment immediately regardless of their intention to accept or decline. The department will implement a plan to manage access to official information pending a decision on the job offer. If the offer is accepted, the employee will continue to have their access to information monitored and be de-briefed prior to leaving the department. Contact with department after resignation should be monitored and incidents reported.
Outside employment	In addition to my work at DFAT, I am considering applying for part-time work at a local supermarket. Can I do this?	There is unlikely to be a conflict of interest in these circumstances.	Likely to be approved.	N/A
Outside employment	I am a monitoring & evaluation (M&E) specialist and am on LSL, I have been approached by a DFAT aid partner to undertake paid M&E work on a project jointly funded by the Australian government. As I have worked on this project from the DFAT side, I feel that experience working directly with the aid partner will be an important professional development opportunity. Will this be approved?	It is unlikely that this application would be approved because it raises an unacceptable conflict of interest for an incumbent DFAT officer to accept a paid role in monitoring and evaluating a DFAT funded project. The tenderer itself would also be failing to meet its requirement to avoid engaging current or former DFAT personnel with a connection to the project.	Unlikely to be approved	N/A
Outside employment	I am on LWOP outside Australia and have been approached by a NGO to design a tender application to be put to DFAT. I have never worked on a tender process within DFAT nor in administering aid funding. The contract is paid work. Would this be approved?	Clear conflict of interest due to a current DFAT employee assisting an external organisation to bid for DFAT funding. Tenderers themselves are also prohibited from seeking the assistance of current or former DFAT employees in the preparation of their proposal/bid.	Unlikely to be approved	N/A
Outside employment	I am a full time policy Branch Head (SES Band 1). I have been offered an appointment as Adjunct Lecturer (unpaid) with an Australian university. The same university runs an executive course for senior officials and military officers from the region, they have asked me to lecture at the course (also unpaid). I would not comment on Australian Government policy nor use information gained from my DFAT employment. Would this be agreed to by the delegate?	The relationship (if any) between the officer's official policy work and the subject matter focus of proposed lectures would need to be reviewed to reduce the risk of any official information from being shared. The potential risks to the department and/or government of any comments made in a lecture being misconstrued as an official position (particularly given the attendance by regional officials) would also need to be assessed. If approved, the applicant will need to ensure they follow departmental policy on giving speeches in a private capacity.	Dependent on deeper assessment of facts of the case	N/A
Outside employment	I am a human resource (HR) specialist but currently working as a divisional co-ordinator and have been asked by an external training company to assist in designing a course to pitch to DFAT's training area. This task has no direct link to my current position but I would be paid a commission should the course be commissioned for use by DFAT. Would this be approved?	Clear conflict of interest arises due to a current DFAT employee assisting an external organisation to bid for a DFAT training contract. The fact you are a DFAT employee means there is an unfair advantage to be gained by the external training company by leveraging your insider understanding of DFAT's corporate systems. Given you also stand to benefit personally from payment of a commission you potentially risk contravening of the APS Code of Conduct which specifies that an APS employee must not make improper use of inside information or their duties, status, power or authority in order to gain, or seek to gain, a benefit or advantage.	Would not be approved	N/A
Outside employment	I am on LWOP accompanying my spouse on posting and have been offered employment with an NGO in their corporate team. My role will include developing systems for human resource management, office administration, organisational performance reporting and financial management. The NGO receives commonwealth funds as part of a global funding arrangement. Prior to going on LWOP I worked in the Stabilisation and Civil-Military Branch. I did not have any contact with the NGO during the course of my official duties.	The nature of both the past employment at DFAT and the outside employment will determine whether any conflicts of interest exist. Even though there is a contractual/funding relationship between the NGO and the Australian Government, given that this relationship is at a global (not program-specific) level, and that the applicant has not engaged with the NGO during the course of his/her official duties, there may be a sufficient separation of interests to allow this proposed outside employment to proceed	Dependent on deeper assessment of facts of the case	N/A
Appointment to non-Government Board	I currently work in the department's Human Rights Section and have been asked to join the board of an international human rights not-for-profit organisation. I am an APS 6 officer and do not consider that I influence policy and am often not privy to decision-making processes.	Your access to a range of sensitive information regarding human rights creates a perceived and actual conflict of interest.	Unlikely to be approved	N/A