Public sector accountants under the scanner
Public sector accountants were given a lesson in ethics on Tuesday when a number of financial and legal specialists highlighted the importance of maintaining accounts without falling under pressure to act unethically.
Solicitor General Dilrukshi Dias Wickramasinghe said that accountants were whistle blowers and the first investigator to any transaction, while speaking at a seminar on “Ethical Responsibility of Professional Accountants in Public Sector” held at the Chartered Institute of Accountants Sri Lanka auditorium conducted by the Association of Public Finance Accountants of Sri Lanka (public sector wing of Sri Lanka).
In order to implement the people’s sovereignty the public service was created, she said pointing out that Sri Lanka needs to strengthen its systems for recruitment, hiring, retention, promotion and retirement of public servants.
In this respect, the recruitment to the public sector must be on principles of efficiency, transparency and objective criteria such as merit, equity and aptitude, Ms. Wickramasinghe explained.
Citing the recruitment process, it was noted that in the public sector in Sri Lanka, officials would receive millions of calls when even the position of a minor grade falls vacant.
“When you get inefficient you contribute to the mismanagement of the system,” she said and in this respect, it was noted that “every time you sign that cheque see if you comply by the guidelines provided”.
She also explained that when faced with issues of fraud or other malpractices it is possible to bring this to the notice of the relevant authorities even anonymously “if you don’t have the guts.”
Focusing on the subject of conflict of interest, she pointed out that this would happen when a public officer’s ability to make an impartial decision with regard to his/her public responsibility is affected by his/her personal interests.
There are three instances of conflict of interest where in the case of actual conflict of interest is when it occurs at the point of making a decision; secondly a potential conflict of interest is even though a conflict is not evident presently, there is a possibility of such a conflict arising in future; and in the case of perceived conflict of interest there is no actual or potential conflict but in the eyes of others a perception may be created that there exists a conflict of interest, Ms. Wickramasinghe explained.
In this respect, she noted that this situation would be accepted as long as it is completely disclosed.
The Solicitor General asserted, “Unconscious actions result in ripples, creating unperceivable repercussions,” adding that: “Our actions and thoughts as public servants will be remembered even after we are no more.”
Central Bank Governor Dr. Indrajit Coomaraswamy, chief guest at the seminar, identified the role of professional accountants as fundamentally based on trust.
Accountants in the public sector need to maintain a higher standard of ethics as they are dealing with intimate financial details of everyday people, he explained.
Commenting on insider information, he pointed out that accountants needed to maintain trust as they are the guardian of information and they should never try to be a prima donna.
CIFPA (Chartered Institute of Public Finance and Accountancy) London President Carolyn Williamson on a visit to the country after assuming office, addressing the gathering said that ethics and integrity are important for professional accounting especially for those in the public sector.
“Often public systems are not as efficient as they should be,” she said adding that according to a CIPFA survey it was found that almost 60 per cent of public sector finance professionals have come under pressure to act unethically at least once in their career.
The results also revealed that of those who felt under pressure, 8 per cent said they had fully carried out an unethical action and 28 per cent had done so partially.
CA Sri Lanka President Jagath Perera insisted that accountants needed to ensure they do what is right and correct in discharging their duties that should actually be nurtured from early childhood.
He said that the government had come up with the National Anti-Corruption Action Plan in a bid to avoid corruption in the public sector.
The concepts of conflict of interest policy; the gift policy; and the integrity policy were been closely looked at.
Maintaining integrity among public officers would ensure maintaining standards; also prohibition of soliciting any gifts in any kind of project they are involved in is imperative; and using your office or authority for your own use or someone else’s is a conflict of interest, Mr. Perera said.
CIPFA is the professional body for people in public finance with a membership of 14,000 throughout the public services.