Central Co-operative Fund Regulations, 2016

L.N. 344 of 2016

CO-OPERATIVE SOCIETIES ACT

(CAP. 442)

Central Co-operative Fund Regulations, 2016

IN exercise of the powers conferred by article 108 of the Co-

operative Societies Act, the Minister for the Economy, Investment

and Small Business, has made the following regulations:-

The title of these regulations is the Central Co-operative

Fund Regulations, 2016.

(1)

In these regulations, unless the context otherwise

requires -

"Act" means the Co-operative Societies Act;

"Chair" means the Chairperson of the Committee of the Central

Co-operative Fund;

"Committee" means the Committee of the Central Co-operative

Fund;

"Co-operatives Board" means the Board established by article 3

of the Act;

"Fund" means the monies of the Central Co-operative Fund as

established by article 91 of the Act;

"Malta" has the same meaning assigned to it in article 124 of the

Constitution;

"Minister" has the same meaning assigned to it in article 2 of the

Act;

"primary society" has the same meaning assigned to it in article

2 of the Act.

(2) Words and phrases not defined in these regulations shall

have the same meaning as is assigned to them in the Act.

(1) There shall be a Committee which shall be known as

the Central Co-operative Fund Committee whose functions shall be

(a)

to administer the Central Co-operative Fund;

(b)

to employ necessary personnel to fulfil its functions;

(c)

to finance programmes, including education and

training relating to the promotion and development of the co-

operative movement for members of and personnel engaged by

co-operatives and other persons who may actively contribute to

the promotion of the co-operative movement;

(d) to commission studies and research on particular

areas of co-operative activity or any individual co-operative

society in Malta;

(e)

to finance co-operative educational material with a

view to promoting co-operative ideals and practices;

(f)

to support and intensify the participation of the

Maltese co-operative movement in relevant organisations,

activities and projects on an international level;

(g) to collect, recover and institute proceedings for the

payment of sums to the Central Co-operative Fund, in terms of

article 91(6) of the Act;

(h) to compile and approve the annual financial

statements of the Fund;

(i)

to appoint the auditor of the Fund;

(j)

to receive and consider the auditor’s report on the

accounts and workings of the Fund;

(k) to provide assistance to co-operative societies in

connection with access and the raising of finance;

(l)

to investigate any matters concerning the operations

of the Fund; and

(m)

to perform any other function that the Minister may

assign.

(1) The Minister shall appoint the Committee of the Minister to

Central Co-operative Fund, in accordance with the provisions of these appoint

Committee of

regulations.

the Central Co-

operative Fund.

(2) (a)

The Committee shall consist of eleven voting

members who shall be composed of six independent members

appointed by the Minister, three members appointed by a majority

vote from amongst members of eligible and registered co-operative

societies and two members from amongst members of eligible and

recognised organisations

Provided that eligible organisations shall be organisations

which are registered in accordance with regulation 12.

(b) The six independent members shall be appointed by

the Minister responsible for co-operatives for a period of three years.

These members shall hold and vacate office in accordance with the

provisions of these regulations and with the terms of their

appointment, and may at the end of their term of office be re-

appointed thereafter

Provided that a member of the Committee may at any time,

by notice in writing to the Minister, resign from his appointment on

the Committee.

(c)

A member of the Committee appointed by the

Minister may be removed from office by the Minister if such

member -

(i)

is, in the opinion of the Minister, guilty of

serious misconduct in the performance of his duties;

(ii)

is incapable of carrying out his duties; or

(iii) is in breach of any of the provisions of these

regulations.

(d) Any other member of the Committee, other than a

member referred to in paragraph (c), may be removed from office by

a simple majority of the Committee members if such member -

(i) is, in the opinion of the Committee members,

guilty of serious misconduct in the performance of his

duties;

(ii)

is incapable of carrying out his duties; or

(iii) is in breach of any of the provisions of these

regulations.

(e)

The three members appointed by a majority vote

from amongst members of eligible and registered co-operative

societies and the two members appointed from amongst members of

eligible and registered organisations shall, before taking up the

appointment on the Committee, declare in writing under oath, to the

Chair, that at the time of appointment they are not subject to any

pending criminal proceedings, have not been convicted of a serious

criminal offence, have not been interdicted for any period and have

not been declared bankrupt or insolvent. Should any of the afore-

mentioned disqualifications result, the said prospective members

shall not be eligible to take up their appointment on the Committee.

(f)

The Minister shall appoint the Chair of the

Committee from amongst one of the six independent members

appointed by the Minister.

(g) None of the six independent members appointed by

the Minister shall be appointed or shall remain a member of the

Committee if that person is -

(i) involved, directly or indirectly in any activity

or function of the Committee that can give rise to any

conflict of interest; or

(ii) involved, directly or indirectly in any activity

or function of the Committee that can prejudice the work

undertaken by the Committee; or

(iii) if they offer or are engaged in any other kind

of service to any co-operative registered with the Board, or

to founding members in the process of setting up a co-

operative, or any recognised organisation, or the Co-

operatives Board.

(h) All the members shall be persons of integrity and

good moral character who shall work independently and will not

divulge any information, whether financial or of any other nature to

third parties, and when exercising their functions under regulation 3

shall respect and apply the principles of good administrative

behaviour laid down in article 3 of the Administrative Justice Act.

(i)

All the members are expected to have extensive

knowledge in a field related to their appointment including, but not

limited to co-operatives, financial management, legal, regulatory and

accountancy.

(j)

The members of the Committee, other than those

appointed by the Minister, shall be appointed for a period of three

years. These members shall hold and vacate office in accordance with

the provisions of these regulations and with the terms of their

appointment, and may at the end of their term of office be re-

appointed thereafter

Provided that a member of the Committee may at any time,

by notice in writing to the Committee, resign from his appointment on

the Committee.

(3) (a)

In accordance with the provisions of sub-regulation

(2)(a), any co-operative society which is in arrears in its Fund

contribution shall not be eligible to vote and none of its members may

form part of the Committee.

(b) For the purposes of this sub-regulation contributions

made within nine months from the end of the financial year of the co-

operative society shall not be considered to be in arrears.

(4) (a)

A Secretary shall be appointed by the Minister from

among public officers and shall be responsible for performing

administrative duties to support the Committee. The Secretary shall

not have voting rights in the Committee.

(b)

The duties of the Secretary shall include the

following

(i) to convene and attend meetings of the

Committee;

(ii) to maintain correctly and up-to-date all the

Fund’s records, papers and registers, and to conduct its

correspondence;

(iii) to perform any other duties as may be

specified by the Committee.

(5) (a)

Observers who are not part of the Committee may be

invited to attend Committee meetings or parts thereof, upon the

request of the Chair, but shall not have voting rights in any decisions

taken by the Committee.

(b) Observers shall be considered to be any other

individual not forming part of the Committee and who, on the basis of

their own expertise and, or past or present experience, are considered

able to actively contribute towards the promotion of the co-operative

movement.

(6)

A member of the Committee shall be paid such

honorarium as the Minister may, from time, to time determine. Such

honorarium shall be paid out of the Central Co-operative Fund.

(7) When a vacancy occurs for whatever reason in respect of a

member of the Committee in terms of sub-regulation (2), such

vacancy shall be filled by another appointment at the earliest

opportunity.

(8) Any member of the Committee who absents himself for

three consecutive meetings of the Committee without a valid reason

shall be considered as having resigned from the Committee. In this

case the procedure for the filling of a vacancy on the Committee shall

be as described in sub-regulation (7).

(9) Any member of the Committee who, directly or indirectly,

may have a conflict of interest or an interest, otherwise than as a

member of the Committee, in any matter being raised or discussed by

the Committee, shall withdraw from the meeting during the

discussion or until the matter in question is decided upon by the

Committee. Any disclosure shall be recorded in the minutes of the

meeting of the Committee.

(10) The members of the Committee and any employees

engaged by the Committee, and any other person authorised to act for

or on behalf of the Committee shall, at all times, treat any and all

information by applicants during the course of their duties as

confidential.

The legal and judicial representation of the Committee Legal and

shall be vested in the Chair and the Secretary or, in the Chair’s judicial

representation

absence, in any other member of the Committee, who has also been of

Committee.

appointed by the Minister, in his stead.

(1) Meetings of the Committee shall be convened by the Meetings.

Secretary acting on instructions of the Chair, and shall be held as

frequently as necessary but in any case not less than once every

month.

(2) The quorum at meetings of the Committee shall consist of

nine members including the Chair.

(3) Notwithstanding the provisions of sub-regulation (2), the

Committee shall not be precluded from holding any meeting or from

acting in any matter merely by reason of any vacancy in its

Committee.

(4) All decisions of the Committee shall be taken by a simple

majority of votes taken by the members present and voting. The Chair

shall have, in the case of an equality of votes, a casting vote in

addition to his original vote.

(1) The Committee shall exercise a high degree of Reporting of the

diligence in administering the funds under its responsibility. The Committee.

Committee shall at all times assure the adequate liquidity of the Fund.

(2) The Committee shall make available, as a minimum twice

a year, a report on the utilisation of the funding to the Minister and the

Co-operatives Board.

(3) The Committee shall, by no later than three months after

the end of each financial year, make available a complete report of the

previous year, its activities and operations, including audited financial

statements to the Minister and the Co-operatives Board. A copy of

this report shall also be made available to the public.

(4) The Committee shall afford to the Minister every facility

for obtaining and verifying information connected with the activities

of the Committee, in order to enable the Minister to properly exercise

his functions under these regulations.

Every payment made out of the Central Co-operative Fund

shall be approved by the Chair. The payment of the sums approved by

the Chair shall be authorised by means of a voucher signed by two

members of the Committee.

The Committee shall keep proper accounts and all other

necessary records in respect of the financial transactions and

operations of the Fund.

(1) The financial statements of the Fund shall be made

up to the 31st December of each year and shall be audited by a person

in possession of a warrant to practice as a certified auditor and who

shall be appointed by the Committee. The auditor so appointed shall

at all reasonable times have full and free access to all accounting and

other records relating to the financial transactions of the Fund.

(2) The auditor, in taking up the appointment, shall declare in

writing that he has no conflict of interest whether directly or

indirectly with any of the recognised organisations or any registered

co-operative society and, if any conflict of interest is declared, shall

not accept the appointment or, if it arises after such appointment, shall

withdraw from the appointment.

(3) The auditor shall in particular report on

(a)

whether the financial statements show a true and fair

view of the financial transactions and the state of affairs of the

Fund;

(b) whether proper accounting and other records have

been kept;

(c)

whether the receipts, payments, deposits and

investments of monies in respect of the Fund have been effected

in accordance with the provisions of the Act and of these

regulations; and

(d)

any other relevant matters arising from the audit.

(4) The auditor shall forthwith inform the Committee of any

material irregularity disclosed in the course of his audit.

(5) The remuneration of the auditor shall be fixed by the

Committee, as the case may be, and shall be paid for from the Fund.

Any notice, communication or other document addressed Notices and

other

to the Committee shall be addressed to the Chair.

communications

An organisation shall be officially recognised by the Recognised

organisations.

Committee if on an annual basis

(a) it has as its members at least thirty-five percent of

all the eligible registered co-operative primary societies

Provided that an annual declaration issued by the

Co-operatives Board attesting to the above shall be submitted to

the Committee; or

(b) its members contribute at least thirty-five percent of

all the paid-up contributions to the Fund

Provided further that all primary societies shall be required

to inform the Co-operatives Board of their affiliation with any

recognised organisation on an annual basis.

(1) The following shall be eligible to apply for access to Eligibility for

funds from the Central Co-operative Fund in accordance with funding.

regulation 15

(a)

eligible co-operative societies that make a direct

application to the Committee;

(b)

any recognised organisation;

(c)

the Committee;

(d)

the Co-operatives Board; and

(e)

any person who actively contributes to the

promotion and development of the co-operative movement.

(2) Applications shall be made to the Committee in

accordance with the procedures as prescribed by the Committee.

In accordance with regulation 13(1)(a) and (b), any eligible

co-operative society or eligible recognised organisation applying for

access to funds shall be in conformity with all of the following

(a)

all the relative provisions of the Act; and

(b) the co-operative society shall have made a minimum

paid up contribution of seven hundred and fifty euro (€750)

annually in at least two of the last three financial years as

determined by the audited financial statements filed with the

Co-operatives Board. This minimum paid up contribution to the

Fund may be reviewed upwards every three years at the

discretion of the Co-operatives Board; and

(c)

the co-operative societies’ and recognised

organisations’ audited financial statements of the preceding two

financial years shall not be seriously qualified by the co-

operative societies or organisations auditor.

Funds may only be utilised and shall be distributed by the

Committee for the following purposes

(a)

by a co-operative society to finance research and

development, training and educational programmes of the co-

operative society, but excluding general administration costs,

salaries, wages, honoraria, international membership fees and

related personnel expenditure;

(b) by a recognised organisation to finance research and

development, training and educational programmes relating to

the promotion and development of the co-operative movement

but excluding international membership fees and general

administration costs including salaries, wages, honoraria and

related personnel expenditure;

(c)

by the Committee to finance research and

development, training and educational programmes relating to

the promotion and development of the co-operative movement,

support services and general administration costs including

honoraria of its members salaries and wages and to fulfil its

functions;

(d) by individuals or statutory bodies who actively

contribute to the promotion of the co-operative movement to

finance initiatives, training and educational programmes

relating to the promotion and development of the co-operative

movement.

Funding shall be distributed by the Committee, subject to Distribution of

availability, according to the following three-tier structure as shall be funds.

determined by the Committee

Tier 1: full funding is granted towards the financing of

research and development initiatives, training and educational

programmes relating to the promotion and development of the

co-operative movement;

Tier 2: funding of up to twenty thousand euro (€20,000)

annually to each of the recognised organisations and Co-

operatives Board shall be granted towards the reimbursement of

approved international and local membership fees only;

Tier 3

funding of up to seventy thousand euro

(€70,000) annually to each of the recognised organisations shall

be granted towards the reimbursement of administration costs

including salaries, on the condition that no individual full time

salary shall exceed twenty-three thousand euro (€23,000)

annually.

These regulations and the Committee shall be subject to Applicability of

the existing rules governing public funds including the Public other

Administration Act, the Public Services Management Code and the

Code of Ethics in accordance with the Schedule.

In any one year, the Committee may distribute up to one Distribution of

hundred percent (100%) of the yearly contribution recognised in the funds.

latest available audited financial statements of the Fund.

In any case where the Committee agrees to distribute more Authorisation

than one hundred percent (100%) of the amount specified in by the Minister.

regulation 18, the written authority of the Minister is required.

(1) In accordance with the provisions of regulation 14 Ineligibility to

any co-operative society which is in arrears in the Fund contribution benefit

Fund.

shall not benefit from funding and shall not be eligible to apply for

access to funding.

(2) For the purposes of this regulation contributions made

within nine months from the end of the financial year of the co-

operative society shall not be considered to be in arrears.

(1) The management and conduct of the office of the Responsibility

Committee and the administrative control of any of its employees of the Chair.

shall be the responsibility of the Chair.

(2) The terms and conditions of any employees of the

Committee shall be comparable with those of employees in the

service of the Government and shall be established by the Committee

with the concurrence of the Minister.

A beneficiary of funds in terms of these regulations shall

submit, on a minimum basis, an annual return to the Committee with

a detailed account and proof of the use of the funds as prescribed by

the Committee

Provided that all funds not utilized in accordance with the

approval given by the Committee shall be reimbursed to the Fund as

directed by the Committee.

(1) Funds distributed by the Committee shall be subject

to such verifications that the Committee may from time to time

pursue.

(2) The beneficiaries of funds by the Committee shall allow

such verifications to take place as and when requested by the

Committee or by persons appointed by the Committee for this

purpose.

(3) The Committee shall reserve the right to withhold, suspend

or claim back payments made by the Committee to beneficiaries who

(a) do not allow, or in any way obstruct, a verification

exercise; or

(b)

misrepresent their funding accounts; or

(c)

whose funding allocation is not being used for the

specific purposes for which it was intended.

The Committee may carry out investigations concerning

any shortcomings in connection with the use of funds and may refer

its findings to the police.

(1) Any eligible beneficiary of funds in accordance with

regulation 14 who wilfully, with intent to obtain funds under these

regulations or to assist any other person to do so -

(a)

omits from an application or any other document or

statement made, prepared or submitted for the purposes of or

under these regulations, any matter which should be included

therein; or

(b) makes any false statement or entry in any return or

other document or statement prepared or submitted for the

purposes of or under these regulations; or

(c)

gives any false answer, whether verbally or in

writing, to any question or request for information asked or

made in accordance with the provisions of these regulations; or

(d) prepares or maintains or authorizes the preparation

or maintenance of any false books of account or other records or

falsifies or authorizes the falsification of any books of account

or records; or

(e)

makes use of any fraud, art or contrivance whatever

or authorizes the use of any such fraud, art or contrivance,

shall be guilty of an offence, and shall for each such offence be liable

on conviction to a fine (multa) of not less than one thousand and two

hundred euro (€1,200) and not exceeding five thousand euro

(€5,000).

(2) Upon any person admitting to or being found guilty of any

of the above offences, the Committee shall request the full

reimbursement of the funds issued.

The Central Co-operative Fund Regulations, 2001, and the Revocation of

Central Co-operative Fund (Provisional Board) Regulations, 2012, the

operative Fund

are hereby revoked without prejudice to anything done or omitted to Regulations,

2001, and the

be done thereunder.

Central Co-

operative Fund

(Provisional

Board)

Regulations,

2012. L.N. 288 of

2001. L.N. 297 of

2012. SCHEDULE

(Regulation 17)

Code of Ethics

1. Principles

1.1

The Committee and its members should govern according to the

highest standard of integrity, honesty, loyalty, confidentiality, commitment

transparency, accountability and professionalism, and in a manner that treats all

stakeholders fairly, equitably and promptly.

1.2

Without prejudice to the Constitution or where any other law

otherwise provides, the Committee and its members should ensure that their

actions are inspired by loyalty to the policies of the Government of the day. Their

actions should also be inspired by faithfulness to their Committee and to all

stakeholders. This is especially important where the Committee has an overall

regulatory function and or enjoys a monopoly or dominant position in its area of

operation.

1.3

The Committee and its members should ensure that their members are

not only economically efficient, making the best use of available resources but that

they are also socially responsible in terms of their contribution to the fulfilment of

the country’s policies. This means that the achievement of economic, social and

environmental objectives of the Committee is balanced.

1.4

The Committee and its members are expected to provide impartial

and accurate advice to the Government of the day.

2. Fiduciary duty and duty of care

2.1

The Committee and its members owe both a fiduciary duty and a duty

of care towards the Committee and the persons that they serve.

2.2

Fiduciary duty relates to the accord of loyalty, honesty, avoidance of

conflicts of interest, confidentiality and acting in good faith and interests of the

public sector and its members.

2.3

Duty of care relates to the exercise of care, diligence and skill in

doing the job properly.

2.4

As the Committee’s agents, the Committee and its members must use

their discretion to ascertain that decisions are taken in the interest of the

Committee within the policies, parameters and priorities of the Government.

Decisions should never be made for any collateral purpose, nor for personal

interest. The interests of the Committee should be taken to mean the attainment of

its functions whether statutory or otherwise.

3. Compliance with the law.

3.1

The Committee and its members must ensure that individually,

collectively as the Committee, and the Committee, act in full compliance with the

letter and spirit of all the relevant legislation.

3.2

The Committee and its members must ascertain that they commit

themselves and the Committee to act ethically and legally at all times. They must

also avoid situations which could be perceived as improper. The Committee and its

members must be conversant with the relevant legislation and regulations in force,

and are expected to seek professional advice whenever in doubt. They must also

ensure that the Committee’s records are accurate and faithful.

4. Fairness and equity

4.1

The Committee and its members should ensure that their Committee

deals with issues or cases with consistency, promptness and fairness. This involves

dealing with matters in accordance with approved procedures quickly and without

discrimination on any grounds. Every Committee member is obliged to treat each

issue reasonably and with a view of meeting the principles of natural justice.

4.2

In using their discretionary powers, the Committee and its members

should ensure that they take all relevant facts into consideration and have regard to

the particular merits of each case. They should also ensure that the same procedure

is followed by the management and staff of the Committee in dealing with similar

cases.

5. Public comment and confidentiality

5.1

The Committee and its members enjoy the right to make public

comment and enter into public debate on political and social issues so however that

such action does not bring them into conflict in any manner with their primary

duties. However they are expected to refrain from publicly criticising the policy of

the Government of the day with regard to their Committee involvement.

5.2

The Committee and its members can disclose official information

which is normally given to members of the public seeking that information,

provided it is not prejudiced against the commercial interest or any other interest

of the Committee.

5.3

The Committee and its members should only disclose other official

information or documents acquired in the course of their term of office when

required to do so by law or in the course of duty, when called to give evidence in

court, provided that when, in terms of particular legislation, authorisation from the

proper authority is required, such authority has been given. In such cases,

comments made by the Committee and its members should be confined to factual

information and should not express an opinion on the official policy or practice

held by the Committee.

5.4

The Committee and its members should not disclose confidential

information to outside persons during their appointment as members or after the

termination of their appointment. Such confidential information includes technical,

business, strategic, financial, legal, personal data and any other data acquired

through their position as members which is deemed as restricted information.

5.5

The Committee and its members should not use any confidential

information gained through their position for personal, family, friend, associates,

or business and other associations’ benefit.

6. Personal and management attributes

6.1

The Committee and its members must not use their position for an

improper purpose, take personal advantage of the Committee’s opportunities,

allow their personal interest to conflict with those of the Committee or misapply

the Committee’s assets.

6.2

The Committee and its members must adhere to the highest standards

of personal attributes in providing leadership to the organisation, act with integrity,

and commit themselves to fulfil their responsibilities in a professional manner.

6.3

The Committee and its members must ensure that the Committee

applies the highest standards of management: ensure accountability requiring

everyone to be held responsible for their actions, ascertain transparency in the

decision making process to cultivate trust, and integrate and instil all the elements

of good governance within the Committee’s culture.

7. Conflicts of interest

7.1

A conflict of interest arises out of a situation where the Committee

and its members use their post to benefit themselves, friends or families or persons

associated in their work endeavours.

7.2

The Committee and its members should not use their position to

promote their interests, interests of related persons, business associates,

corporations, unions, partnerships and friends.

7.3

The Committee and its members should not take advantage from their

Committee’s transactions and opportunities or to solicit clients for their, their

associates’, work, friends’ or family business’ interests.

7.4

The Committee and its members should not only avoid situations that

may give rise to conflicts of interest, but should also avoid those situations where

there is a perceived risk that conflicts of interest may arise.

7.5

The Chairperson must fully disclose in writing to the Minister all

situations and circumstances that could give rise to conflicts of interests. S/he is to

seek the advice of the Minister in such matters but as a minimum, s/he should not

participate in the meeting nor have access to the relative documents.

7.6

Likewise the Committee and its members must fully disclose in

writing to the Chairperson and the Committee, all situations and circumstances

that could give rise to conflicts of interests. The Chairperson and the Committee

must decide on the most appropriate action in the circumstances, giving due

consideration to disclosing the matter and seeking advice from the responsible

Minister.

7.7

The Committee and its members are duty bound to reject totally and

immediately any undue pressure that is brought to bear on them to influence their

behaviour or decisions, and should disclose such instances to the Chairperson and

the Committee, who must decide on the most appropriate action, giving due

consideration to disclosing the matter and seek advice from the responsible

Minister.

8. Entertainment, gifts and favours

8.1

The Committee and its members, their relatives and friends should

not accept entertainment, gifts, benefits or favours that give rise to or are perceived

to create favoured positions in doing business with the Committee or deviate from

the proper course of duty. Such benefits also include the receipt of cash, loans,

securities or commissions.

8.2

The Committee and its members should not offer entertainment, gifts,

benefits or favours in their role as Committee members to solicit preferred

treatment for themselves, their families or friends, or the Committee.

8.3

Committees will vary in their policies on the acceptance of gifts and

benefits depending on the nature of their business. It is expected, however that

only token gifts or benefits may be accepted in circumstances approved by the

Chairperson and the Committee, provided that there is no possibility that the

recipient might be, or might appear to be, compromised in the process.

8.4

The Committee and its members should remember that the giving and

receiving of gifts to and from Governments, Committees or persons is a delicate

matter. The Committee and its members should as a rule only give or receive

mementoes for the occasion and consult the Chairperson, Committee or Minister in

cases where they feel that particular circumstances lead to giving and receiving

more substantial gifts.

8.5

The Committee and its members only have a right to keep the gifts

they receive if these are only mementoes for the occasion or are not of any

substantial value. In case of doubt, the Chairperson and the Committee should be

consulted. It is the duty of the Committee Director to act in the most prudent and

responsible manner. In cases of the Chairperson, he must consult with the

Committee and the responsible Minister.

9. Procurement

9.1

In all procurement practices, including in the setting out of

procedures for tendering, the Committee and its members must bear in mind that

the expenditure involved is made out of public funds. The highest possible level of

accountability and transparency should be reflected in every stage of the decision

making process of procurement.

9.2

The Committee and its members should seek to ensure the best value

for money in drawing up the specifications and the conditions of procurement and

in the adjudication of the offer or offers.

10. Use of Committee’s property

10.1 The Committee and its members are expected to be efficient and

economical in the use and management of the Committee’s resources. They are

also required to be conscientious in their use of the organisation’s property and

services, and are duty bound to avoid their abuse by other parties.

10.2 The Committee and its members are required to seek the

Chairperson’s and Committee approval to use the Committee’s property for any

purpose not being the Committees business.

10.3 The Committee and its members should seek the Chairperson’s,

Committee and responsible Minister’s authorisation to purchase property from the

Committee unless it is made through channels available to the general public.

Nonetheless, a Committee Director should not purchase property from the

Committee if that member is involved in some aspect of the process.

11. Personal and professional behaviour

11.1 The Committee and its members should perform any duties

associated with their positions diligently, impartially and conscientiously to the

best of their ability. They must

-

strive to obtain the best value for public money spent and avoid

waste and extravagance in the use of public resources or any funds or

resources of the Committee;

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not take or seek to take improper advantage of any official

information gained in the course of their term of office;

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neither wilfully nor negligently supply the Minister, Committee

member or any member of the public with incorrect or misleading

information;

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not indulge in favouritism, cronyism or nepotism; and

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not attempt to curry favour with their Minister by giving advice

he or she wants to hear.

11.2 The Committee and its members are expected not to act outside the

performance of their duties in such a way as to discredit their position or to reflect

adversely on the Committee.

11.3 In the performance of their duties the Committee and its members are

expected to give full support to the policy of the Government of the day regarding

the work and functions of the Committee. When implementing Government policy,

Committee members’ own value judgements should not take precedence over

those explicit or implicit in Government policy. The Committee and its members

should ensure that their Committee does not harass or discriminate in work

practices on the grounds of sex, marital status, pregnancy, age, race, colour,

nationality, physical or intellectual impairment, sexual preference, religious,

political and or other convictions or allegiances when dealing with staff and

members of the public. The Committee and its members should ensure that the

legal requirements regarding employment of disabled persons are observed by the

Committee.

11.4 The Committee and its members individually and collectively are

required to act honestly and in good faith seeking the best interests of the

Committee and should exercise the care, diligence and skill that a reasonably

prudent person would exercise in comparable circumstances. In this regard

membership in a secret society is incompatible with the exercise of a public

function.

11.5 Collectively, the Committee members are ultimately responsible for

the governance and management of the business, activities and other affairs of the

Committee.

12. Outside business interests, employment and associations

12.1 At the time of appointment the Committee and its member’s

nominees should declare in writing any outside business interests, investments,

positions of employment or associations that could potentially give rise to conflicts

of interest.

12.2 The Committee and its members should act and behave in the best

interest of the Committee irrespective of any outside activities.

12.3 The Committee and its members should not hold: any financial

interest, either directly or indirectly; or hold any position of employment,

ownership, directorship or partnership; in any business or other entity with a

material relationship with the Committee, where the member could benefit the

other interests through the member’s involvement in the same Committee.

12.4 The Committee and its members should not directly or indirectly

acquire or dispose of any investments in any company while having internal

confidential information obtained through their role and responsibilities as

members of committees.

12.5 The Committee and its members should not accept positions of

employment, directorships, ownership, partnership or association in any other

committee or organisation of whatever nature that could lead to a conflict of

interest with the role of the post of a member of the Committee. Such offers should

be discussed with the Chairperson, Committee and Minister and their implications

assessed and decided upon.

13. Relationships with stakeholders

13.1 The relationship with stakeholders is at the heart of corporate

governance. The Committee and its members should exhibit care and diligence in

their dealings with the various stakeholders, acting in good faith and fairness in

their rapport with them.

13.2 The relationship between the Minister and the Committee is a

complex one. The Minister is responsible to the Government as well as to

Parliament and must speak both to and for the Committee. The Chairperson and

the Committee must ensure that the Minister is provided with the best possible

information about the decisions and actions of the Committee. At the same time

they should seek to be well informed about Government’s policies, parameters and

priorities in their responsibility in the implementation of the relevant Government

policy and management of the Committee.

13.3 In specific instances, particularly where the commercial interests of

the Committee have to be subordinated to national or social considerations, the

Committee may seek the Minister’s directives in writing as to the policy which

should be followed by the Committee in carrying out its functions and exercising

its statutory powers. The Committee should give effect to all such directives and

should conduct its affairs accordingly.

13.4 The Committee should provide the best policy advice to the Minister

and provide him with the necessary information regarding the policy and activities

of the Committee.

13.5 In line with the provisions of the Constitution and other law which

empowers the Permanent Secretary to supervise a government entity, the

Committee and its members should seek to establish a harmonious working

relationship with the Permanent Secretary and other officials in Government

Departments, particularly when these form part of the same Committee structure.

13.6 The Committee and its members should provide all the assistance

required to ministries, divisions, departments, commissions and any other bodies

set up under any legislation, directive or guideline, or set up in an administrative

capacity by the relative authorities. Such assistance is required, but not

exclusively, by the Office of the relative Permanent Secretary, the Internal Audit

and Investigations Directorate and such other commissions, divisions, directorates

and units which are empowered with supervisory jurisdiction.

13.7 The Committee and its members should remember that the least

tangible but the most valuable of their Committee’s assets is a positive public

perception of their Committee, on which trust is built. The Committee and its

members must ensure that their Committee treats members of the public and other

members of their Committee with courtesy and sensitivity to their rights, and

provides all necessary and appropriate assistance to members of the public.

13.8 In case of monopolistic situations, or where the Committee enjoys a

dominant position, the Committee and its members have an even more serious

obligation towards the public who is the consumer and/or recipient of their

products, goods or services. Besides efficiency and effectiveness of service, the

Committee and its members are to ensure that the quality of the goods and services

provided to the public is of the highest standard.

14. Political activity

14.1 The Committee and its members should ensure that their political

interest does not compromise the conduct and public perception of the duties of

their office.

14.2 To this end, the Committee and its members should avoid political

activity at the Committee’s place of business and the use of Committee equipment

or material for those activities, and avoid activities from which the Committee’s

employees, suppliers and customers might reasonably infer a requirement to

support a particular party.

15. Responsibility

15.1 The Committee should ensure that it behaves, and is seen to behave,

in an ethical manner.

15.2 The Committee and its members should adhere to the standards

described in this Code of Ethics, and to other standards set out in applicable

guidelines and legislation. In fulfilment of this, every Committee member should

review and declare adherence to the Code of Ethics upon nomination.

15.3 The Chairperson is responsible to ensure that this Code of Ethics is

upheld by the Committee and the members. Members found in breach of the Code

of Ethics are liable to censure and recommendation for dismissal from the position,

notwithstanding any other action legal or otherwise that may be taken. The

Chairperson and the Committee must ensure that breaches are reported to the

responsible Minister immediately after they have come to their attention.

15.4 The Chairperson and the Committee should be the appropriate

channels where clarifications on standards of ethical behaviour are sought. The

Chairperson and the Committee will decide if to seek the responsible Minister’s

opinion according to the case.

16. Declaration (To be completed and signed by each Committee member

before taking up appointment on the Committee).

I (name and surname), ...................................... Identity Card number

....................., declare that I have read and understood this Code of Ethics for

the Committee and its members, and agree to conduct myself in accordance

with this Code.

Signature ............................................

Date ...................................................

€1.89