NUS Presentation Title 2001

EG2401 Engineering Professionalisms, Part 3

Conflict of Interest and Singapore

Professional Engineerings Act
2nd semester, AY2016/17

Lecturer: Pat YEH (ceeyehj@nus.edu.sg)

Dept. Of Civil and Environ. Eng

1
 Outline

Conflict of Interest (COI)

Singapore PE Act (Chapter 253)
Singapore Code of Professional
Conducts and Ethics (Chapter 253,
Section 36)

If time not enough, these 2 parts are

for Self-Reading
 Conflict of interest (COI)
Definitions: https://en.wikipedia.org/wiki/Conflict_of_interest
1. A situation in which a person or organization is involved in
multiple interests, financial interest, or otherwise, one of which
could possibly corrupt the motivation of the individual or
organization.
2. A set of circumstances that creates a risk that professional
judgement or actions regarding a primary interest will be unduly
influenced by a secondary interest.
Primary interest refers to the principal goals of the profession or
activity, such as the protection of clients, the health of patients, the
integrity of research, and the duties of public office. Secondary
interest includes not only financial gain but also such motives as
the desire for professional advancement and the wish to do favors
for family and friends. The secondary interests are not treated as
wrong in themselves, but become objectionable when they are
believed to have greater weight than the primary interests.
 Conflict of interest (COI)
COI rules usually focus on financial relationships
because they are relatively more objective, fungible, and
quantifiable.
The conflict in a conflict of interest exists whether or not
a particular individual is actually influenced by the
secondary interest. It exists if the circumstances are
reasonably believed (on the basis of past experience
and objective evidence) to create a risk that decisions
may be unduly influenced by secondary interests.
The presence of a conflict of interest is independent of
the occurrence of impropriety. Therefore, a conflict of
interest can be discovered and voluntarily defused
before any corruption occurs.
 Conflict of interest (COI)
One way to understand this is to use the term "conflict of roles". A
person with two roles an individual who owns stock and is also
a government official, for example may experience situations
where those two roles conflict. The conflict can be mitigated, but it
still exists. In and of itself, having two roles is not illegal, but the
differing roles will certainly provide an incentive for improper acts
in some circumstances.
These risks can be evaluated by a government agency to
determine whether the risks create a substantial advantage to the
organization in question over its competition, or will decrease the
overall competitiveness of the bidding process.
COI is sometimes termed competition of interest rather than
"conflict", emphasizing a connotation of natural competition
between valid interests rather than violent conflict with its
connotation of victimhood and unfair aggression.
 Conflict of interest (COI)
Related to the practice of law
Perhaps the most common example encountered by the general
public, the same firm should not represent both parties in a divorce
or child custody matter. In the United States, a law firm usually
cannot represent a client if its interests conflict with those of another
client, even if they have separate lawyers within the firm, unless (in
some jurisdictions) the lawyer is segregated from the rest of the firm
for the duration of the conflict.
Unrelated to the practice of law
More generally, conflicts of interest can be defined as any situation
in which an individual or corporation (either private or governmental)
is in a position to exploit a professional or official capacity in some
way for their personal or corporate benefit.
Depending upon the law or rules related to a particular organization,
the existence of a conflict of interest may not, in and of itself, be
evidence of wrongdoing.
 Conflict of interest (COI)
Types of COI:
1. Self-dealing, in which an official who controls an organization
causes it to enter into a transaction with the official, or with
another organization that benefits the official only. The official is
on both sides of the "deal."
2. Outside employment, in which the interests of one job conflict
with another.
3. Nepotism, in which a spouse, child, or other close relative is
employed (or applies for employment) by an individual, or where
goods or services are purchased from a relative or from a firm
controlled by a relative. To avoid nepotism in hiring, many
employment applications ask if the applicant is related to a
current employee of the company. This allows recusal if the
employed relative has a role in the hiring process. If this is the
case, the relative could then recuse from any hiring decisions.
 Conflict of interest (COI)
Types of COI:
4. Gifts from friends who also do business with the person receiving
the gifts or from individuals or corporations who do business with
the organization in which the gift recipient is employed. Such gifts
may include non-tangible things of value such as transportation
and lodging.
5. Pump and dump, in which a stock broker who owns a security
artificially inflates the price by "upgrading" it or spreading rumors,
sells the security and adds short position, then "downgrades" the
security or spreads negative rumors to push the price down.

Note - Accepting bribes can be classified as corruption. Use of

government or corporate property or assets for personal use is fraud.
Nor should unauthorized distribution of confidential information, in
itself, be considered a conflict of interest. For these improper acts,
there is no inherent conflict of roles.
 Conflict of interest (COI)
Mitigation
1. Removal - Sometimes, people who may be perceived to have a conflict of
interest resign from a position or sell a shareholding in a venture, to eliminate
the conflict of interest going forward.
2. Blind trust - A politician who owns shares in a company that may be affected
by government policy may put those shares in a blind trust with themselves or
their family as the beneficiary.
3. Disclosure Commonly, politicians and high-ranking government officials are
required to disclose financial informationassets such as stock, debts such
as loans, and/or corporate positions held, typically annually.
4. Recusal - Those with a conflict of interest are expected to recuse themselves
from (i.e., abstain from) decisions where such a conflict exists.
5. Third-party evaluations - For example, a corporation that leases an office
building that is owned by the CEO might get an independent evaluation
showing what the market rate is for such leases in the locale, to address the
conflict of interest that exists between the fiduciary duty of the CEO (to the
stockholders, by getting the lowest rent possible) and the personal interest of
that CEO (to maximize the income that the CEO gets from owning that office
building by getting the highest rent possible).
To: All NUS Staff NUS Staff: Declaration of Conflict of interest (COI)
Declaration of Conflict of Interest (Student-Related) Exercise, Semester 1 of AY 2016
1. The objective of the Declaration of Conflict of Interest (Student-Related) Exercise is to help
ensure impartiality in managing students' assessment records. As part of audit requirements,
Faculties/Schools, Departments and Institutes which have access to student academic-related
systems and/or are involved in students' assessment processes, are required to make such
declarations.

2. The declaration has to be made in Semester 1 of each academic year. In addition, a new
declaration is required in the course of the academic year if a relationship with a student becomes
apparent, or if there is a change in the work portfolio such that the staff member has become
involved in students' academic-related systems/assessment processes.

3. At the beginning of Semester 2, an email notification will be sent out but there is no need to
re-declare if there are no changes to the most recently submitted declaration.

4. As an NUS staff member in one of such Faculties/Schools/Departments/Institutes, you are

required to submit your declaration via the online COIS System between 08-Aug-2016 and 21-
Aug-2016.

5. You may contact your COIS Department Administrator for further assistance.

6. For more information on the above matter, please refer to the following:

(a) List of FAQs

(b) COIS User Guides
(c) List of COIS Department Administrators

Thank you.
Registrar's Office
Singapore PE Act (Chapter 253)
(https://www.peb.gov.sg/Archive/peact92.pdf)
 Basic Definitions
Professional Engineering Services
Consultancy or advisory services that require a person to
engage in professional engineering work

Professional Engineering Work

Includes any professional service, consultation,
investigation, evaluation, planning, design, or responsible
supervision of construction or operation in connection with
any public or privately owned public utilities, buildings,
machines, equipment, processes, works or projects wherein
the public interest and welfare, or the safeguarding of life,
public health or property is concerned or involved, and that
requires the application of engineering principles and data.
 Singapore PE ACT (Chapter 253)
1992 Ed. CHAPTER 253 Professional Engineers Act
ARRANGEMENT OF SECTIONS
PART I PRELIMINARY
1. Short title. 2. Interpretation. 3. Act not to apply to Government, etc.

PART II PROFESSIONAL ENGINEERS BOARD

4. Establishment of Professional Engineers Board. 5. Common seal of Board.
6. Functions of Board. 7. Committees. 8. Registers. 9. Appointment and duties
of Registrar.

PART III PRIVILEGES OF PROFESSIONAL ENGINEERS

10. Illegal practice. 11. Employment of unregistered professional engineer
prohibited. 12. Remuneration for professional engineering services. 13. Minor
building works. 14. Relationship with architects, etc.

PART IV REGISTRATION OF PROFESSIONAL ENGINEERS

15. Qualifications for registration as professional engineers. 16. Application for
registration. 17. Certificates of registration.
 Singapore PE ACT (Chapter 253)
PART V PRACTISING CERTIFICATES
18. Practicing certificates. 19. Cancellation of practicing certificates. 19.
Cancellation of practicing certificates.

PART VI MULTI-DISCIPLINE AND CORPORATE PRACTICE

20. License for multi-discipline and corporate practice. 21. Conditions of
license to practice. 22. Change in composition of board of directors,
members, etc. 23. Application of Companies Act. 24. Liability insurance.
25. Relationship between client and corporation. 26. Professional
responsibility of supervising engineers.

PART VII
DISCIPLINARY PROCEEDINGS AND REVOCATION OF LICENCES
27. Cancellation of registration or suspension from practice. 28. Removal
from register of professional engineers. 29. Revocation of license. 30.
Appeals. 31. Reinstatement of registration.
 Singapore PE ACT (Chapter 253)
PART VIII GENERAL

32. Application of fees, etc., received by Board. 33. Powers of Board and
Investigation Committee to require attendance of witnesses, etc. 34.
Penalty for wilful falsification of register and for wrongfully procuring
registration, etc. 35. Offences by bodies corporate, etc. 36. Rules. 37.
Exemption. 38. No action in absence of bad faith or malice.

PART IX SAVINGS AND TRANSITIONAL PROVISIONS

39. Persons already registered. 40. Continuation of office of Board
members, etc. 41. Transfer of assets and property. 42. Transitional. 43.
Disciplinary proceedings. 44. Certificates of registration. 45. References
in other written laws. The Schedule - Exempt classes of persons.
 Singapore PE ACT (Chapter 253)
3(1) Nothing in this Act shall apply to anything done or
omitted to be done by the Government or by a public officer
under the authority of the Government
3(2) - This Act shall not be construed as requiring any public
authority which supplies professional engineering services in
Singapore under the provisions of any written law to obtain a
license; and in this subsection, public authority means any
body established by or under any written law and exercising
powers vested therein by written law for a public purpose.
 Singapore PE ACT (Chapter 253)
Compulsory Voting
4A- (1) : Every registered professional engineer who has in force a
practicing certificate on the day of election of candidates as
members of the Board under section 4 (2) (c) shall vote for the
election of such members at such time and in such manner as
may be prescribed.

4A- (2) : Every registered professional engineer who is required to

vote for the election of the members of the Board in accordance
with subsection (1) and who fails to do so shall not be entitled to
apply for a practicing certificate unless he
(a) satisfies the Registrar that he had a good and sufficient
reason for not voting at the election; or
(b) Pays to the Board a penalty prescribed by the Board.
 Singapore PE ACT (Chapter 253)
PRIVILEGES
10(1) No person shall engage in any professional engineering
work in Singapore or draw or prepare any plan, sketch,
drawing, design, specification or other document relating to
any professional engineering work in Singapore unless the
person -
10(1)(a) a registered PE who has in force a practicing certificate
10(1)(b) under the direction or supervision of a registered PE who
has in force a practicing certificate
10(2) No signing and submission to a building authority
(a) any plan, sketch, drawing, design specification or other document
relating to any professional engineering work in Singapore
(b) any report on or a certificate or other document relating to any
professional engineering work in Singapore which is required by any
written law to be signed by a PE
 Singapore PE ACT (Chapter 253)
PRIVILEGES
10(3) - No person (unless a PE) shall use verbally or
otherwise
professional engineer with designation
engineer, Er., or Engr. as title
Any word, name or abbre. Will lead to belief that he is a PE

10(4) Non-PE Cannot advertise that he is authorized

to supply professional engineering services
 Singapore PE ACT (Chapter 253)
Employment of unregistered PE
11(1) No person shall employ as a PE any person who neither
is a registered PE nor has in force a practicing certificate

Remuneration for Professional Engineering Services

12 Not entitled to recover in any court any charge, fee or
remuneration for any professional engineering services
rendered in Singapore unless the person rendering such
services is authorized (PE)
 Singapore PE ACT (Chapter 253)
Registration of PE & Registration Requirements
Qualifications :
a) Any degree, or qualification listed in the Professional Engineers
Notification; or
b) Satisfies the Board that he is otherwise qualified by having proper and
recognized academic qualification in engineering
Civil Engineering : acquire not < 4 years practical experience :
i) A period of not < 12 months in a design office whilst under the
supervision of a registered professional engineer;
ii) During a period of >= 12 months in supervisory work at a project site
Mechanical/electrical engineering
- A period of not < 2 years whilst under the supervision of a PE
Full-time teaching or research work
- Relevant experience as may be acceptable to the Board obtained during a
period of not less than 2 years under a PE
 Singapore PE ACT (Chapter 253)
PE Exams
a) Fundamentals of Engineering Exam
b) Practice of Professional Engineering Exam
Application be made within 5 years of passing Practice of Professional
Engineering Exam.
Disciplinary Proceedings
Cancellation or Suspension -
28 (a) conviction involving fraud, dishonesty, or moral turpitude
28 (b) any improper act or conduct
28 (c) any contravention of prescribed code of professional conduct and
ethics
28 (d) ability to carry out duties
28 (e) any failure to take reasonable steps to prevent any improper act or
misconduct
PDU (Professional
Development Unit)
Code of Professional Conduct
and Ethics (Singapore PE Act,
Chap. 253, Section 36)
 Code of Professional Conduct and Ethics
(Singapore PE Act, Chap. 253, Section 36)

2(1) Every registered PE guided by Parts I and II

2(2) Every licensed corporation guided by Part I
2(3A) - Misleading, Deceptive, Inaccurate
(a) material mispresentation
(b) omission of material fact
(c) unverifiable information
(d) unjustified expectation
2(3B) PUBLICITY
(a) justify expertise or specialization
(b) no breach of confidentiality in direct or indirect mention
of past projects
(c) no comparison or criticism to other professional
Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
2(3C) JUSTIFICATION
(a) academic qualification (b) experience
(c) facilities (d) personnel (e) capacity
2(4) PUBLIC OPINION
Refrain from expressing public opinion on an engineering
project unless informed of the related facts
2(5)(a) No criticism of another PE
2(5)(b) No injury to reputation, prospects or business of
another PE
2(6) Sub-paragraph 2(4) shall not affect any moral obligation to
expose unethical conduct before the proper authorities or
prejudice a frank but private appraisal of employees or of PE
being considered for employment
 Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
Fidelity
(1) Discharge duties to employer or client with complete
fidelity
(2) No remuneration from others except employer or client
unless approved
(3) Disclosed to employer in writing if having substantial
interest in another company related to his employment

3(4) No commission in connection with any professional

engineering work in which he is engaged
3(5) Shall not receive royalty of any patented article or process
unless authorized in writing by employer
3(6) Shall not accept a position which conflicts with
professional duty
Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
Fidelity

3(7) Shall not disclose confidential information without

consent

3(8) Shall not use information obtained confidentially in course

of assignment for making personal profit

3(9) Shall not divulge any confidential findings

3(10) Shall give best professional judgment

3(11) Advised engaging experts and specialist if needed

Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
PUBLIC INTEREST
Notwithstanding the responsibility to his employer and to his
profession, a PE shall act with prime regard to the public interest
6 PE shall not knowingly attempt to supplant another PE
7(1) A PE shall not undertake a commission from any person while
any claim for compensation or damages or both by another PE
previously employed and whose employment has been terminated
remains unsatisfied
7(2) The previous PE may report to PE Board if he has reasonable
grounds for not being satisfied with the security and the Board may
forbid the first-mentioned PE in 7(1) from proceeding with the work
8 A PE shall not canvass or solicit professional employment or offer
to make payment for the introduction of such employment
9 A PE shall not be the medium of any payment unless requested by
his employer, and shall not place any contract or order except with
the authority of his employer
 Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
CONFLICT OF INTEREST
11(2) A PE shall not prepare or submit or offer to prepare or submit
a design without informing the client as to the nature of his
connection with the construction or manufacture of the work in
question
11(3) Except at request of client, a PE shall not offer to design any
engineering work, the design of which to his knowledge has already
been entrusted to another PE, who is acting as a consultant, unless
with the approval of such PE
12 (a) Exercise due diligence to ensure that there is no
contravention of or failure to comply with any written law by any
person carrying out of any building project or works of which the PE
is the consultant or engineer
12 (b) Report to appropriate authority any contravention of or
failure to comply with any written law by any person, if such
contravention comes to his knowledge
 Code of Professional Conduct and Ethics (Singapore PE Act,
Chap. 253, Section 36)
PART II (SALARIED)
1(1) Shall not use advantage of a salaried position to compete
unfairly with other PE
1(2) Shall not accept any professional commission from persons
other than his employers which would result in conflict of interest
1(3) If permitted by employer, confined to consultation on phases
of engineering for which he has special qualifications not inherently
available in usual engineering practice, except that he shall not
establish an office
1(4) Shall not use influence of a salaried position to direct clients to
another PE
2 A PE shall not, for the purpose of obtaining any permit, license or
approval of any public authority, sign any plans or calculations which
neither he nor any member of his staff under his supervision verified,
checked or prepared
 For some of yours convenience

P. 4 fungible: ; defuse: ;

P. 5 connotation: ; aggression:

P. 7 nepotism:

p. 8 recusal: ;; abstain: ; fiduciary: