Revision and Implementation of Private Consignment Management Guidelines
Ban on Special Family Hiring, 'One Strike Out' Policy for Unfair Hiring to Eliminate Unfair Elements at the Source
[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government is overhauling the private consignment operation system to eradicate unfair practices such as irregular hiring revealed in some private consignment institutions.
On the 8th, Seoul announced that it has revised the "Seoul Administrative Affairs Private Consignment Management Guidelines," which serve as the operational standards for private consignment tasks, and will implement them starting from the 16th. Following last year's "Reset Seoul" initiative, which established the "Private Consignment Task Operation Improvement Plan" to normalize the misuse of the private consignment system by specific organizations causing waste of public funds, moral hazard, and distorted decision-making structures, Seoul has prepared additional measures.
First, Seoul will significantly strengthen conflict of interest prevention measures to completely block the previously covert "exclusive preferential hiring" practices. It aims to eliminate irregular hiring that deprives job seekers of fair opportunities. The new rules prohibit special hiring of family members of institution heads and others, and to ensure fair evaluation, individuals who have previously worked together cannot participate as hiring committee members. If irregular hiring is confirmed, a "one-strike-out" policy will be applied.
New regulations restrict the hiring of family members of executives and employees who can influence personnel decisions, such as institution heads or HR managers. The previous rule that allowed special hiring without clear conditions if justified by the nature of the work has been removed. Instead, special hiring is only allowed with the approval of the supervising department when proposing personnel to participate in the task at the time of selecting the private consignment institution, thereby strengthening the conditions for special hiring.
Improvements to ensure fair evaluation during the hiring process have also been introduced. A new rule prohibits individuals with "special" relationships?such as family members or those who have previously worked together, which could undermine fairness?from serving as hiring committee members. Procedures for disqualification, avoidance, and recusal have been established to prevent conflicts of interest in advance. If disciplinary actions are decided by audit institutions due to hiring corruption, the "one-strike-out" policy will be applied, and contract termination can be decided through the review of the "Private Consignment Operation Evaluation Committee." Additionally, the institution will receive the lowest rating in the comprehensive performance evaluation and be excluded from contract renewal. From the job posting to the final selection, a "Fair Hiring Checklist" will be created and distributed to private consignment institutions to enable self-inspection of hiring procedures and encourage voluntary compliance with hiring standards.
Furthermore, as a more fundamental measure, Seoul will comprehensively reexamine from the ground up whether it is appropriate to entrust the relevant tasks to the private sector and whether there is any duplication with similar tasks. This applies to both new projects starting and existing private consignment projects whose contract expiration dates are approaching. Unnecessary tasks will be terminated, and similar tasks will be integrated or consolidated. For tasks that need to be maintained, Seoul will consider changing the operation method, such as direct management by the city or delegation to autonomous districts, proceeding with structural adjustment procedures.
Since the announcement of "Reset Seoul" last year, after reviewing the continuation and operation methods of consigned tasks in some private consignment institutions, 30 consigned tasks have been terminated or had their operation methods changed. Seoul expects that an additional 50 or so private consignment projects will undergo structural adjustment procedures such as operation method changes, integration, consolidation, or termination.
To prevent inappropriate budget execution by private consignment institutions in advance, preventive supervisory functions will also be strengthened. In addition to the existing post-detection control methods such as guidance inspections and accounting audits (settlement audits) of entrusted institutions, a pre-monitoring system including on-site consulting in the accounting field will be introduced, and education for practical personnel will be expanded.
Seoul will start by checking this month whether the revenue and expenditure budgets of all entrusted and consigned tasks are prepared according to standards. In September, it will support one-on-one on-site consulting between accounting firms and entrusted institutions to resolve difficulties faced by task managers and strengthen internal accounting management. The on-site consulting will be piloted this year for 10 newly entrusted institutions and fully expanded from next year.
Hwang Bo-yeon, Acting Director of the Seoul Metropolitan Government Planning and Coordination Office, said, "Since private consignment involves having the private sector perform roles of the public sector, ensuring transparency and fairness in the execution of consignment projects is as important as in the public sector," adding, "Through thorough management, supervision, and continuous institutional improvements, we will eliminate unfair elements and provide citizens with a higher level of service."
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