Question

Describe in detail the roles and responsibilities of the Ombudsman in relation to the financial planning environment and its role-players.

Answer 1

INTRODUCTION

This introductory chapter sets the scene for the subsequent technical chapters. In many ways, financial planning is a product of the circumstances that arose in the early 1980s when it became apparent that issues such as an ageing population, poor levels of domestic savings and substantive changes in government policy relating to the funding of an individual's retirement created the need for holistic financial advice. This chapter attempts to define the term financial planning, followed by a discussion of the factors which have contributed to the emergence of this new profession/industry. Finally, the chapter briefly considers the historical framework of the industry and the role played by the major professional bodies and other players.

Financial planning environment;

Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plandescribes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.

The Financial Planning activity involves the following tasks:

• Assess the business environment
• Confirm the business vision and objectives
• Identify the types of resources needed to achieve these objectives
• Quantify the amount of resource (labor, equipment, materials)
• Calculate the total cost of each type of resource
• Summarize the costs to create a budget
• Identify any risks and issues with the budget set

The role of the Ombudsman;

The institution of the ombudsman, first created in Sweden more than 200 years ago, is designed to provide protection for the individual where there is a substantial imbalance of power.

Initially, this imbalance was between the citizen and the state but as the institution has developed, it has embraced other sectors. ombudsman schemes now exist, not just in the public sector, but also covering the private and independent sectors.

As well as considering complaints about public services, Ombudsman Association member schemes consider disputes between consumers and companies or between universities and students, for example.

However, in the private sector, coverage is fragmented and sparse with, in a very few cases, some duplication (where the ‘industry member’ can choose which scheme to belong to). None of this is ideal, but will require legislation to improve the situation as few sectors now readily establish schemes voluntarily.

The Ombudsman is an independent officer of Parliament with responsibility to investigate the actions of public authorities including State Government departments, prisons, hospitals, schools and technical colleges, local governments and public universities.

The creation of the office of the Ombudsman recognised:

• the growing power of public authorities to affect people’s daily lives;
• the need for these agencies to be accountable for this power; and
• the desirability of creating a body that provides timely, accessible and low cost means for people to resolve their disputes with these agencies

An ombudsman, ombudsperson, ombud, or public advocate is an official who is charged with representing the interests of the public by investigating and addressing complaints of maladministration or a violation of rights. The ombudsman is usually appointed by the government or by parliament, but with a significant degree of independence. In some countries an inspector general, citizen advocate or other official may have duties similar to those of a national ombudsman, and may also be appointed by a legislature. Below the national level an ombudsman may be appointed by a state, local or municipal government. Unofficial ombudsmen may be appointed by, or even work for, a corporation such as a utility supplier, newspaper, NGO, or professional regulatory body.

The typical duties of an ombudsman are to investigate complaints and attempt to resolve them, usually through recommendations (binding or not) or mediation. Ombudsmen sometimes also aim to identify systematic issues leading to poor service or breaches of people's rights. At the national level, most ombudsmen have a wide mandate to deal with the entire public sector, and sometimes also elements of the private sector (for example, contracted service providers). In some cases, there is a more restricted mandate, for example with particular sectors of society. More recent developments have included the creation of specialized Children's Ombudsman and Information Commissioner agencies.

In some jurisdictions an ombudsman charged with handling concerns about national government is more formally referred to as the "Parliamentary Commissioner" (e.g. the United Kingdom Parliamentary Commissioner for Administration, and the Western Australian state Ombudsman). In many countries where the ombudsman's responsibility includes protecting human rights, the ombudsman is recognized as the national human rights institution. The post of ombudsman had by the end of the 20th century been instituted by most governments and by some intergovernmental organizations such as the European Union.

Responsibilities:

as protectors of the people shall act promptly on complaints filed in any form or manner against officers or employees of the Government, or of any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations, and enforce their administrative, civil and criminal liability in every case where the evidence warrants in order to promote efficient service by the Government to the people (Section 13, R.A. No. 6770; see also Section 12 Article XI of the 1987 Constitution).

The Ombudsman shall give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties (Sec. 15, R.A. No. 6770).

.Mission:

As protectors of the people, we shall endeavor, in cooperation with all sectors of the Filipino society, to promote integrity and efficiency and high ethical standards in public service through proactive approaches in graft prevention and public assistance, prompt investigation of complaints and aggressive prosecution of cases filed against erring public officials and employees.

Vision:

A truly independent office run by God-fearing men and women with the highest degree of competence, honesty and integrity and effectively serving as watchdog, mobilizer, official critic and dispenser of justice for the people it is constitutionally mandated to protect

The Office of the Ombudsman shall have the following powers, functions and duties

Investigate and prosecute on its own or on complaint by any person, any act or omission of any public officer or employee, office or agency, when such act or omission appears to be illegal, unjust, improper or inefficient. It has primary jurisdiction over cases cognizable by the Sandiganbayan and, in the exercise of his primary jurisdiction, it may take over, at any stage, from any investigatory agency of Government, the investigation of such cases (Sec. 15(1) R.A. No. 6770; see also Sec. 13(1), Article XI, 1987 Constitution);

Direct, upon complaint or at its own instance, any officer or employee of the Government, or of any subdivision, agency or instrumentality thereof, as well as any government-owned or controlled corporations with original charter, to perform and expedite any act or duty required by law, or to stop, prevent, and correct any abuse or impropriety in the performance of duties (Sec. 15(2) R.A. No. 6770; Sec 13(2) Article XI, 1987 Constitution);

Direct the officer concerned to take appropriate action against a public officer or employee at fault or who neglects to perform an act or discharge a duty required by law, and recommend his removal, suspension, demotion, fine, censure, or prosecution, and ensure compliance therewith; or enforce its disciplinary authority as provided in Section 21 or this Act: Provided, That the refusal by any officer without just cause to comply with an order of the Ombudsman to remove, suspend, demote, fine, censure, or prosecute an officer or employee who is at fault or who neglects to perform an act or discharge a duty required by law shall be ground for disciplinary action against said officer (Sec. 15(3) R.A. No. 6770; see also Sec 13(3), Article XI, 1987 Constitution);

Direct the officer concerned, in any appropriate case, and subject to such limitations as it may provide in its rules of procedure, to furnish it with copies of documents relating to contracts or transactions entered into by his office involving the disbursement or use of public funds or properties, and report any irregularity to the Commission on Audit for appropriate action (Sec. 15(4) R.A. No. 6770; see also Sec. 13(4), Article XI, 1987 Constitution);

Request any government agency for assistance and information necessary in the discharge of its responsibilities, and to examine, if necessary, pertinent records and documents (Sec. 15(5), R.A. No.6770; see also Sec. 13(5), Article XI, 1987 Constitution);

Publicize matters covered by its investigation of the matters mentioned in paragraphs (1), (2), (3) and (4) hereof, when circumstances so warrant and with due determine what cases may not be made public: Provided further, That any publicity issued by the Ombudsman shall be balanced, fair, and true (Sec 15(6) R.A. No. 6770; see also Sec 13(6), Article XI, 1987 Constitution);

Determine the causes of inefficiency, red tape, mismanagement, fraud, and corruption in the Government and make recommendations for their elimination and the observance of high standards of ethics and efficiency  (Sec 15(7) R.A. No. 6770; see also Sec 13(7), Article XI, 1987 Constitution);

Administer oaths, issue subpoena and subpoena duces tecum, and take testimony in any investigation or inquiry, including the power to examine and have access to bank accounts and records  (Sec 15(8), R.A. No. 6770);

Punish for contempt in accordance with the Rules of Court and under the same procedure and with the same penalties provided therein  (Sec 15(9), R.A. No. 6770);

Delegate to the Deputies, or its investigators or representatives such authority or duty as shall ensure the effective exercise of performance of the powers, functions, and duties herein or hereinafter provided (Sec 15(10), R.A. No. 6770);

Investigate and initiate the proper action for the recovery of ill-gotten and/or unexplained wealth amassed after February 25, 1986 and the prosecution of the parties involved therein (Sec 15(11), R.A. No. 6770);

Promulgate its rules of procedure and exercise such other powers or perform such functions or duties as may be provided by law (Sec 13(7), Article XI, 1987 Constitution; see also Sec. 18, R.A. No. 6770)