MFEM Antifraud and Anticorruption Policy
MFEM Antifraud and Anticorruption Policy
The Cook Islands have ratified the United Nations Convention Against Corruption (“UNCAC”) which acknowledges that “corruption hurts the poor disproportionately undermines a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment. Corruption is a key element in economic underperformance and a major obstacle to poverty alleviation and development” (UNCAC, 2004, p.iii).
The Cook Islands Government is committed to the provisions of the ADB/OECD Asia Pacific Anti-corruption Action Plan Initiative in 2003 (“APACAP”). Local anti-corruption legislation, which includes but is not limited to the bribery provisions of the Crimes Act, the Proceeds of Crime Act, Mutual Assistance in Criminal Matters Act, the Ministry of Finance and Economic Management (MFEM) Act and the Public Expenditure Review Committee and Audit (PERCA) Act.
The Government confirms the importance of collective leadership, teamwork and partnerships within and outside government to effectively combat corruption and fraud, and the need to involve the community and private sector. However the Government acknowledges the limited resources and therefore the effectiveness of a cooperative approach in the fight against corruption as opposed to individual efforts. The Government reinforces their commitment to promote and strengthen anti-corruption measures and practices (Cabinet Minute CM (11) 0369).
The MFEM considers any kind of fraud and corruption as very detrimental to the realisation of its vision and will therefore MFEM will not tolerate fraud and corruption in its activities and operations.
Therefore, the MFEM will focus on the following key policy objectives:
- Establishing a systematic commitment to the implementation of the Antifraud and Anticorruption Policy for all staff members, consultants and service providers who collaborate with the MFEM; this includes consequences for involvement, directly or indirectly, in an act of fraud, corruption or wrongdoing.
- Establishing proactive prevention by means of a due diligence obligation for MFEM staff.
- Considering integrity and impartiality in all stages of tenders examination and assessment, selection of suppliers and procurement procedure or during services implementation or payment. Each member involved, from within or external to the MFEM, has to commit to the fight against fraud, corruption and wrongdoing.
- Providing an independent and confidential whistleblowing procedure to report any reprehensible practice, conduct necessary investigations, and regulate reported acts.
In this context, the Ministry of Finance and Economic Management (MFEM), has developed this Anti-Fraud and Anti-Corruption Policy.
In addition to the Anti-fraud and Anti-Corruption Policy, MFEM also have in place a Whistleblowing Procedure.
Whistleblowing Procedure
The Ministry of Finance and Economic Management (MFEM) considers fraud and corruption as detrimental to the realisation of the vision and objectives of the Ministry. As such, the MFEM has adopted an Antifraud and Anticorruption Policy. The main elements of this Policy can be summarised as follows:
- Establishing a systematic commitment to the implementation of the Antifraud and Anticorruption Policy for all staff members, consultants and service providers who collaborate with the MFEM; this includes consequences for involvement, directly or indirectly, in an act of fraud, corruption or wrongdoing.
- Establishing proactive prevention by means of a due diligence obligation for MFEM staff.
- Considering integrity and impartiality in all stages of tenders examination and assessment, selection of suppliers and procurement procedure or during services implementation or payment. Each member involved, from within or external to the MFEM, has to commit to the fight against fraud, corruption and wrongdoing.
- Providing an independent and confidential whistleblowing procedure to report any reprehensible practice, conduct necessary investigations, and regulate reported acts.
The Whistleblowing procedure summarises MFEM procedure for the treatment of fraud, corruption or similar acts, with all transparency, independence, and rigour.
MFEM Anti-money Laundering and Counter Terrorism Financing
MFEM Anti-money Laundering and Counter Terrorism Financing
The Cook Islands has a reputation as a sound and well-regulated jurisdiction. It is essential for the country to maintain this reputation in order to continue attracting legitimate investors with funds and assets that are untainted by criminality. Anyone in the Cook Islands that assists with facilitating financial misconduct, whether knowingly, unintentionally or without regard to what they may be facilitating, could face law enforcement action as well as the loss of reputation and customers. This kind of conduct also damages the reputation of the Cook Islands as a whole.
The Financial Transactions Reporting Act 2017 (the Act) replaces the Financial Transactions Reporting Act 2004 and along with the Financial Transaction Reporting Regulations 2017 (the Regulations), provide the legal framework in which reporting institutions must have in place compliance systems to assist with the prevention, detection and prosecution of financial misconduct.
The Ministry of Finance and Economic Management (MFEM) is a low risk organisation in terms of its financial transactions, given that its transfer of funds into the country is only from development partners, who are governments and multilateral organisations already committed to combat money laundering and counter terrorism financing. However, the MFEM recognises that the fight against money laundering and financing terrorism is a global issue, and that an important stakeholder in the Cook Islands Government, it to must be committed to play its part in the country’s commitment against money laundering and financing terrorism.
This Anti-money Laundering and Counter Terrorism Financing aims to provide the perspective of the MFEM on money laundering and financing terrorism and the actions that it will undertake to prevent money laundering and financing terrorism. The Policy is aligned to the Practice Guidelines for Financial Transactions Reporting Act 2017, issued by the Financial Intelligence Unit, in August 2017.
This Policy also recognises the following legislations and regulations related to financial misconduct:
- Bank Act 2011
- Bank Amendment Act 2013
- Bank Amendment Act 2015
- Bank Amendment Act 2017
- Financial Intelligence Amendment Act 2015
- Financial Intelligence Amendment Act 2017
- Financial Transaction Reporting Act 2017
- Financial Transaction Reporting Amendment Act 2017
- Financial Transaction Reporting Regulations 2017
- Financial Transaction Reporting (Maritime Cook Islands) Regulations 2017
- Countering Terrorism Proliferation of Weapons of Mass Destruction Act 2004
- Terrorism Suppression Amendment Act 2007
- Terrorism Suppression Amendment Act 2017
- Currency Declaration Act 2015-16
- Currency Declaration (Forms) Regulations 2017
Complaints Process
Ministry of Finance and Economic Management is responsible for effective economic, fiscal, and financial management by Government.
It provides the accompanying accountability arrangements, together with compliance with those requirements.
MFEM is also responsible for Revenue Management, Development Coordination, Treasury and the Cook Islands Statistics Office.
Contact Details
Initial complaint to: Etuatina Drollett
Phone number: (682) 22878
- Email address: etuatina.drollett@cookislands.gov.ck
- Postal address: PO Box 120, Avarua, Rarotonga
- Location: Ministry of Finance and Economic Management building
- Takuvaine Road (opposite Ministry of Justice and above Post Office)
General Nature of Complaints
Generally complaints will be in relation to exercising the responsibilities imposed by the Legislation administered by the Ministry. They may also relate to the incorrect implementation of the Policies and Procedures referred to above.
Some examples of the type of complaints that may be made are:
- Taxation Assessments
- Purchasing and Tender irregularities
- Financial mismanagement
- Conflicts of Interest
- Staff conduct
Legislation Administered
Principal Acts:
- Ministry of Finance and Economic Management Act 1995-96
- Statistics Act 1966
- Customs Revenue and Border Protection Act 2012
- Customs Revenue and Border Protection Act 2012 Explanatory Notes
- Customs Revenue and Border Protection Act 2012 Regulations
- Customs Tariff Act 2012
- Income Tax Act 1997 (consolidated)
- Value Added Tax Act 1997 (consolidated to 01/01/2006)
- Departure Tax Act 2012
- Legislation governing the application of taxes in the Cook Islands
- Seabed Mineral Regulations 2013
Downloads
Financial Policies and Procedures Manual
Ministry of Finance and Economic Management – Complaint submission form167.24 KB
Office of the Public Expenditure Review Committee and Audit (PERCA)
Public Expenditure Review Committee and Audit is responsible for:
- Undertaking all audits in order to provide comfort as to the reliability of systems and procedures and the integrity of the information produced.
- Pursuing issues of public concern that affects the management of public funds.
- conducting audits, investigations and enquiries into matters referred to it by the Committee
- Ensuring that Heads of Department have complied with their financial management obligations under the Act.
Contact Details
Initial complaint to:
Director of Audit - Allen Parker
Complaints & Disputes
Complaints are in relation to exercising the responsibilities imposed by the Legislation administered by the Office of the Public Expenditure Review Committee and Audit.
These may also relate to the incorrect implementation of the Policies and Procedures imposed under legislation jurisdiction.
General Nature of Complaints
- Misuse of public funds and resources by public officials
- Purchasing and tender irregularities
- Financial mismanagement
- Conflicts of Interest
- Misuse of government assets
Legislations
Principal Act:
Downloads
Cook Islands Audit Office Special Review Manual
Audit Office - Complaints submission form14.25 KB
Office of the Public Service Commissioner
The legislated function for the Office of the Public Service Commissioner is to assist the Public Service Commissioner with the administration of the Public Service Act.
Statutory functions include: recruitment and performance management of heads of departments (ministries), establishing personnel policies and standards for the public service, approving organisation staffing structures, determining the salary ranges of public service positions and administering the remuneration system of government, ensuring compliance with the public service code of conduct, resolving employment disputes, inquiring into matters of public administration, providing advice on training and career development, reviewing the machinery of government and tendering advice to Ministers of the Crown. Other services include: advice on departmental planning and reporting; administering heads of department salaries, leave and official duty travel, including the New Zealand Government Superannuation Fund.
Contact Details
Initial complaint to:
Public Service Commissioner
Location:
Avarua, Rarotonga, Cook Islands
Complaints & Disputes
1. Public complaints regarding the conduct from those listed below should be reported to the Office of the Public Service Commissioner:
- Heads of Ministries
- Heads of Departments
- Public service employees
2. Public complaints regarding service delivery or poor public administration should be reported to the Office of the Public Service Commissioner:
- Heads of Ministries
- Heads of Departments
- Public service employees
3. Employment disputes must be lodged with the respective head of department or Public Service Commissioner (for heads of departments only) within 14 days of the circumstances giving rise to the dispute. The Head of Department (or Commissioner) must resolve the dispute.
Unresolved disputes are referred to the Public Service Commissioner or Public Service Appeal Board (for Heads of Departments) to resolve.
General Nature of Complaints
- Poor or substandard service delivery
- Breaches of Public Service operational policies e.g. Leave
- Breaches of the Public Service Code of Conduct
- Note: Job sizing/evaluation disputes are not considered.
Legislations
Principal Act:
Other relevant Acts:
- Employment Relations Act 2012
- Commissioner's of Inquiry Act 1966
- MFEM Act 1995-96
- PERCA Act 1995-96
Downloads
Office of the Public Service Commissioner - Complaint submission form14.29 KB
Te Mato Akamoeau, Office of the Ombudsman
The Ombudsman is an independent and impartial officer of and responsible to Parliament. The Ombudsman investigates complaints received from the general public, but is also mandated to initiate an investigation of his own motion. It is also responsible for investigating complaints under the Official Information Act, Disability Act and the Police Act. It was tasked by Cabinet to set up a Human Rights mechanism within the Cook Islands.
Contact Details
Initial complaint to:
Assistant Ombudsman - Jeannine Daniel
- Phone number: (682) 20 605
- Email address: complaints@ombudsman.gov.ck
- Postal address: PO Box 748, Avarua, Rarotonga, Cook Islands
- Website: www.ombudsman.gov.ck
- Location: 1st Floor, Iro House (upstairs from Café Jireh, opposite Rarotonga international airport)
Complaints & Disputes
The Ombudsman investigates complaints received from the general public, but is also mandated to initiate an investigation of his own motion for:
- Decisions or recommendations relating to a matter of administration.
- Acts or omissions relating to a matter of administration.
- Refusal, charges, manner of release, imposition of conditions of use for information requested under the Official Information Act (OIC).
- Unlawful discrimination against a person with a disability.
- Acts, decisions, omissions, recommendations, conduct, policy and procedure of the Cook Islands Police.
Legislations
Principal Act:
- Ombudsman Act 1984
- Official Information Act 2008 Disability Act 2008
- Police Act 2012
To view the legislations please click here
Te Mato Akamoeau, Office of the Ombudsman - Complaints submission form
Te Akinanga o te Ture, Crown Law Office
The Crown Law Office is a statutory organisation whose principal functions are to advise the Government of the Cook Islands on legal matters that may be referred to it by the High Commissioner, Cabinet, a Minister, the Ombudsman a head of department, or a statutory body or Corporation. The head of the Crown Law Office is the Solicitor-General, the Junior Law Officer of the Crown.
Contact Details
- Phone number: (682) 29 337
- Postal address: PO Box 494, Avarua, Rarotonga, Cook Islands
- Website: http://www.crownlaw.gov.ck
- Location: Crown Law Office, Ministry of Justice grounds, Avarua
Legislations
Established under the Crown Law Office Act 1980
This webpage is part of collaborative efforts to ensure the public has information on what Fraud/corruption looks like and have accessible avenues to the complaints process where they believe breaches have occured. 