You are a senior civil servant, in a government Ministry in Fijicurrently experiencing acute staff shortages. You have just beencalled to take on the work portfolio of a colleague, who has beensent on leave pending an enquiry by Fiji Independent CommissionAgainst Corruption (FICAC). Your immediate concern relates to theoversight of an important development project. The projectinterests you as you had hoped that it would be located closeto your home village and provide the villagers with considerableemployment opportunities. Another site has been chosen, but youstill expect that the project will yield some benefit to yourvillage. The project will be funded largely by overseas aid funds,but under the terms of the aid agreement the Fiji Government is tobe responsible for establishing a rudimentary infrastructure toensure communication to the development site. This work should beput out to tender, but the tender process will delay the start ofthe work by four months. The infrastructure needs to be put inplace quickly, as the aid funds with the withdrawn if the projectcannot be initiated within six months. On reviewing theinfrastructure work required, you consider the possibility ofviewing it as a series of small scale activities. You conclude thatall of these activities, with the exception of two, can becontracted for by issuing local purchase orders within the limitsof the Ministry's financial authority as set out in theFinance Instructions.
The two exceptions will either have to put out to tender, orcontracted for by issuing two local purchase orders for the onepiece of work.* One business organization, which is experiencingcash flow problems, is keen to secure a contract for one of theseactivities and is prepared to undertake it at a highly competitiveprice. The firm in question has a reputation for good quality work,meeting deadlines and just happens to be run by a closerelative.
Suchpractice is not permitted under the government FinanceInstructions. Officers who have engaged in such practices have beendisciplined by the Public Service Commission. Penalties imposedhave included demotion and dismissal.
Required: Applying the American Accounting Associations‘Seven step ethical decision making model' construct a written report explaining how you will proceed.