Handling Conflict of Interest
In recent years, there are growing public expectations on the integrity and accountability of public servants. The public expects public servants to make fair and transparent decisions. Failing to manage conflict of interest or the perception of such will bring disrepute to the public bodies.
Conflict of Interest
A conflict of interest situation arises where the private interests of an employee (or a member) compete or conflict with the interests of the public body or his official duties. Private interests include the financial and other interests of the employee (or member) himself; his family or other relations; his personal friends; the clubs and associations to which he belongs; any other groups of people with whom he has personal or social ties; or any person to whom he owes a favour or is obligated in any way.
Common examples of conflict of interest situations
A staff member involved in a procurement process is closely related to or has beneficial interest in a supplier being considered by the public body.
One of the candidates under consideration in a recruitment or promotion exercise is a family member, a relative or a close personal friend of the staff member responsible for the exercise.
A staff member accepts excessively frequent or lavish entertainment from the public body’s customers, suppliers or contractors.
A staff member responsible for processing applications for services provided by the public body is considering an application from his family member, relative or personal friend.
A staff member undertaking part-time work for a contractor whom he is responsible for supervising.
A staff member soliciting assistance from his subordinate staff in dealing with his own personal matters.
Avoidance and declaration of conflict of interest
A fundamental rule is that all staff and members should, as far as possible, avoid any actual and perceived conflict of interest from arising in the first place. When a situation of conflict of interest cannot be avoided, staff (or members) should as soon as possible declare all relevant interests which conflict, may conflict or be seen to conflict with their official duties through the reporting channels to the management (or the governing body). In case of doubt, staff (or members) should consult the management or the person designated by the organisation.Failure to avoid or declare a conflict of interest may render a public servant liable to disciplinary proceedings and, in certain circumstances, may be prosecuted for the common law offence of misconduct in public office.
Managing declared conflict of interest
Upon receipt of a report on conflict of interest situation from staff (or members), the supervisors (or the governing body) should follow the organisation’s code of conduct and, as soon as practical, decide on the appropriate course of action to be taken, such as to relieve the subordinate concerned of his involvement in the task, and give clear instruction to the staff concerned. The declaration, decision and action should be properly recorded. Supervisors (or the governing body) should ensure the staff’s (or the members’) compliance with the instruction so as to effectively remove or mitigate the conflict of interest.
