Code of Ethics: Part D - Rules on fraud
These rules on the avoidance, prevention, detection, investigation and reporting of fraud are applicable to all members
D.1 Definition of fraud
Fraud includes unethical and illegal acts which are characterised by the intent to deceive. Fraud includes the following activities and standards of conduct:
a. gaining a benefit by dishonesty such as drawing an allowance or payment (e.g. travelling and sustenance expenses) where no such entitlement exists;
b. accepting gifts, money or entertainment in response to, or in the expectation of, a favourable tender outcome or other benefit;
c. knowingly accepting collusive tendering by outside bodies;
d. making false statements, either orally or in writing, about quality assurance or one's own qualifications, professional experience and competence;
e. misuse or the deliberate misallocation of their employer’s resources.
D.2 Prevention of fraud
Members, as local government managers, are responsible for preventing fraud by ensuring that fraud prevention controls are established and maintained in their areas of responsibility.
D.3 Detection of fraud
Members are responsible for recognising indicators of fraud and of recommending to their employer or senior staff when an investigation is warranted in the light of such indicators.
D.4 Investigation of fraud
Members must help in any investigation of fraudulent practice(s) which occur in the administration or operations of their employer.
D.5 Reporting fraud
Members must report to their Chief Executive Officer any evidence of fraud and the Chief Executive Officer, being so informed, must immediately inform their employer. A member who is a Chief Executive Officer must report evidence of fraud direct to their employer or the appropriate authorities. Where the evidence of fraud relates to the Chief Executive Officer, the member must report this to their employer.
