Managing conflict of interest scenarios
Scenario 1: An SV employee consults with an industry consultant about the design of a forthcoming grant program and the consultant submits a grant application.
Jill, an SV employee, is the Project Manager for a new grants program. Jill engages an expert industry participant, Sustainexpert to assist in designing guidelines for potential applicants and drafts the application form. The documents are published, and applications are sought from industry. While registering the applications received, Jill notices one has been submitted by Sustainexpert.
As the grant project manager, what should Jill do?
- Discuss the situation with her Manager, responsible Director/Project Sponsor, Legal & Governance if further advice or guidance is required, and Chair of the Assessment Panel – as may be appropriate.
- If warranted, seek independent probity advice (this should be done through Legal & Governance).
- Check the contractual requirements of Sustainexpert's engagement, including any obligations to avoid conflict of interest or exclusions from participating in future grants processes.
- Consider whether it would be possible for Sustainexpert to avoid the conflict, including whether Sustainexpert can be excluded from the grants process.
- Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
- Obtain approvals and securely store all relevant records of the management of the conflict.
It should be noted that a situation such as this can create an opportunity for a prospective applicant to influence the process to their own benefit, give them a timing advantage so they have longer lead times to be ready to submit a strong application, and provide preferential access to information.
To avoid the situation the following is suggested:
- The RFx for the expert's engagement should make clear that the successful tenderer will be precluded from applying for a grant or advising any applicant about a funded project.
- The contract should require Sustainexpert to:
- avoid conflicts of interest where possible and specifically undertake not to apply for a grant or advise any applicant about a funded project.
- declare any conflict of interest that arises during the engagement.
Scenario 2: Failure to declare a conflict of interest.
John has been an employee of SV and its predecessors for many years and is well-regarded within the industry. John is currently involved in the design of a forthcoming grant program. In order to assist in his work, John has consulted with two organisations. The consultation included informal enquiries about the type of grants that would be attractive to industry and the form which applications could take. John collated the information he collected and ultimately used it in the design of the program which was approved by SV management. John hands over the grants program to Phill, the grants project manager, however he retains a role on the Assessment Panel.
John completes a conflict of interest declaration but does not declare any relationships with industry. However, during the Assessment Panel pre-briefing, John tells Phill and the Assessment Panel about his industry consultations. Phill asks John to update his conflict of interest declaration.
While registering the applications received, Phill notices one has been submitted by one of the organisations that John consulted, Sollive.
As the project manager, what should Phil do?
- Discuss the situation with his Manager, responsible Director/Project Sponsor, Legal & Governance and Chair of the Assessment Panel – as may be appropriate.
- If warranted, seek independent probity advice (this should be done through Legal & Governance).
- Consider whether it is appropriate for John to retain his role as a member of the Assessment Panel or if he should be excluded completely or partially.
- Consider whether Sollive has had an unfair advantage, and if it has, what can be done about this.
- Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
- Obtain approvals and securely store all relevant records of the management of the conflict.
It should be noted that a situation such as this can create an opportunity for a prospective applicant to influence the process to their own benefit, give them a timing advantage so they have longer lead times to be ready to submit a strong application, and provide preferential access to information.
To avoid the situation the following is suggested:
It is suggested that a formal, documented market-sounding process that involves a broader section of industry be undertaken and that steps be taken to ensure that all applicants get the same information as market- sounding participants. It is also recommended to minimise any time advantage, where possible. Note that it is not recommended to remove a member of the Assessment Panel for only one application or some applications as this may affect the consistency required for comparable scores/assessments.
Scenario 3: An SV employee involved in assessing grant applications receives a job offer from an applicant.
Matilda has been an employee at SV for over five years working on waste and resource recovery programs, many of which involve collaboration with industry. Some of the industry partners that Matilda has worked with are applying to SV for competitive grant funding. Matilda is one of three assessment panel members. As the recommendation report is being finalised, Matilda advises her manager that she has received a job offer from one of the recommended applicants. A review of her conflict of interest declaration form shows that Matilda has disclosed various prior professional dealings with the applicant including co-authoring a research paper with the Managing Director of the applicant and co-presenting the findings at a conference.
What should Matilda's manager do?
- With Matilda's agreement, discuss the situation with the Chair of the the Assessment Panel, the responsible SV Director/Sponsor, Legal & Governance.
- Otherwise, keep the job offer strictly confidential.
What should the Assessment Panel Chairperson do?
- Immediately suspend Matilda's participation in the assessment process.
- Seek independent probity advice from Legal & Governance.
- Confirm the exact timing of employment discussions and the job offer.
- If warranted, appoint an independent person to review the assessments to identify any indication of bias or favouritism or to confirm the recommendations.
- Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
- Obtain approvals and securely store all relevant records of the management of the conflict of interest.
Scenario 4: A VPS colleague involved in an SV grant assessment has another role to support particular businesses to obtain government funding and one of those businesses is an applicant.
Martin, a VPS employee, has been invited by SV to be an assessment panel member on an upcoming grants program. Martin’s day-to-day role in the VPS involves assisting priority industry sectors to develop, including promoting and assisting relevant businesses to access opportunities for progress and to obtain government funding. Martin completes a conflict of interest declaration immediately following his appointment to the assessment panel indicating that he has no conflicts to disclose.
Joseph, the grant project manager, provides the assessment panel with all applications that have passed the relevant conformance checks. Martin contacts Joseph after he has received the applications and lets him know that Wastetec, one of the applicants, is a company that he has been working with.
As the grant project manager, what should Joseph do?
Discuss the situation with his Manager, responsible Director/Project Sponsor, Legal & Governance, and Chair of the Assessment Panel.
If warranted, seek independent probity advice (through Legal & Governance).
Confirm the exact details of Martin's involvement with Wastetec and ask him to document that in a conflict of interest disclosure form.
Consider whether it would be appropriate for Martin to remain an assessment panel member at all or whether he should remain on the assessment panel but be excluded from assessing Wastetec's application (noting that this is not recommended if it impacts on the consistency required for comparable scores/assessments).
Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
Obtain approvals and securely store all relevant records of the management of the conflict.
Scenario 5: An SV consultant providing technical assessment of grant applications wishes to provide other professional services to a grant applicant.
Ecohelp consultants have been retained by SV to provide advice and expert assessment of business cases for a new multi-million-dollar grants program. Ecohelp is a medium to large consultancy business and has a very good reputation in the industry.
The first round of applications are received and Ecohelp provides SV with its assessments, including detailed written reports.
The due date for the second round of applications is only a week away. The project lead for Ecohelp contacts SV’s grant project manager, Sandra, and advises that Ecohelp has been invited to put in a quote for one of the companies that will lodge an application in the second round. A few days later, Ecohelp contacts Sandra again and advises that another applicant has invited them to quote for work relating to planning approvals linked to the project for which the applicant is applying for funding.
As the grant project manager, what should Sandra do?
Discuss the situation with her Manager, responsible Director/Project Sponsor, Legal & Governance, and/or Chair of the Assessment Panel.
If warranted, seek independent probity advice (through Legal & Governance).
Confirm the contractual requirements of Ecohelp's engagement, including any obligations to avoid conflict of interest.
Consider whether it would be possible for Ecohelp to avoid the conflict.
If it is not possible or reasonable to avoid the conflict, put in place a probity management plan that provide for the information barriers to separate the two engagements (both the people and confidential documentation/processes)
Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
Obtain approvals and securely store all relevant records of the management of the conflict.
Scenario 6: A relative or a friend of an SV employee involved in the grant program works at or is on the board of an applicant.
Jim has been working at SV for two years, having had a long-standing interest in sustainability issues and with a network of friends and family of like mind. Jim has been asked to be an assessor for a new grants initiative announced by the Victorian Government as a COVID-19 priority project that will provide millions of dollars to the recycling industry. Jim’s close circle of friends include a person who is an employee of a small company that might apply for a grant and another person who is on the board of a larger entity that may also apply. Jim completed a conflict of interest form when he was approved as an assessor for the process but did not disclose these two relationships. Once applications are received and he starts assessing them, Jim contacts the Assessment Panel Chair to let her know of his relationships.
What should the Assessment Panel Chair do?
Immediately suspect Jim's participating in the assessment process.
Ask Jim to update his conflict of interest form and specifically detail the nature of the relationships which may conflict with his duty as an assessor.
Discuss the situation with the Project Manager, responsible SV Director/Project Sponsor, or Legal & Governance.
If warranted, seek independent probity advice (through Legal & Governance).
Consider appointing an independent person to review the assessments to identify any indication of bias or favouritism or to confirm the recommendations.
Document a way forward to manage the conflict of interest and confirm accountability within SV for the approval of the documented course of action.
Obtain approvals and securely store all relevant records of the management of the conflict of interest.