Public Administration | Conflict| Of| Interest| Slides.

CONFLICT OF INTEREST

Ethical Dilemma

An ethical dilemma is a complex situation that often involves an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing another.
In one way or the other, officials are in most cases caught in a tight corner in an attempt to make decisions at the workplace.
Whenever individuals are found in a position where they need to take crucial decisions, they usually find themselves in an apparent conflict whether to do this or that.
This scenario may also be described as predicament.
 As public officials or public servants, making decisions in most cases may be difficult as individuals belong to various or several sects.
These sects appear to get some benefits or preferential treatment from officials.

Effect of unethical practices on the public sector
 

• Due to the pervasive nature of the behavior of public servants, ignoring the impact of their decisions on the larger audience becomes detrimental to society.
• Such disregard for ethical considerations might seriously affect civic morality of the citizenry. It also, in negative sense, affect the level of efficiency of public service delivery.
•  A major task for public administrators is to develop a balance between the reality of public organizations and the public’s high expectation from them.
•  The behavior of public sector officials depend on several factors - their environment, organizational context and their individual personal values.
• These variables determine the general orientation of the administrator towards action.
• Instead of promoting high standards of ethical conduct in the performance of their duties, significant number of officials at different levels of public administration, use public resources to satisfy their own personal needs, wishes and priorities. Financial loss
• Loss of trust
• Underdevelopment
• Human cause disaster/catastrophe
• Loss of life
• Skewed development
• National planning

Conflict of interest
“Two rams cannot drink from the same bucket at the same time, they will lock horns”; and it is also said that if you use your two eyes to look inside the bottle, it is the nose that usually sees inside.
The above suggests that public administrators should not foil themselves in two contrasting positions/stakes where one of such would necessarily affect their judgments or decisions and actions as public servants.
Conflict of interest is found in all situations and among different players; lawyers, judges, Public Administrators, referees etc. all come face to face with conflict of interest. 
But it is heightened particularly in public sector management because the need to maintain public trust and confidence is critical.

Defining conflict of interest
“A ‘conflict of interest’ involves a conflict between the public duty and private interests of a public official, in which the public official has private ... interests which could improperly influence the Performance of their official duties and responsibilities.” (OECD 2003)
 A conflict of interest can arise from avoiding personal losses as well as gaining personal advantage – whether financial or otherwise.
 A conflict of interest involves a conflict between a public official’s duty to serve the public interest, and the public official’s private interests. 
It occurs when you as a public official are in a position to be influenced, or appear to be influenced, by your private interests when doing your job.
A conflict of interest can involve avoiding personal disadvantage as well as gaining personal advantage.
 Conflicts of interest cannot always be avoided or prohibited.
Unavoidable conflicts of interest need to be identified, disclosed and effectively managed.
Conflicts of interest are not wrong in themselves but how they are managed is very important.
Public officials are also private individuals, and there will be occasions when your own private interests may come into conflict with your public duty to put the public interest first at all times.
All conflicts of interest must be disclosed and effectively managed - It is the failure to adhere to the prohibitions governing conflict situations that may amount to an infringement of the rules.
A Conflict of interest situation arises when an office holder places himself in a position that results in a rivalry between his personal and official interests.
The rule derives its roots from the common law rule of natural justice, which postulates that no one should be a judge in his own cause. (Nemo judex in causa sua).

 In Ghana, the rules on conflict of interest have been given elaborate expression in all legislation s, statutes, rules and regulations bordering on corporate governance.
The constitution of the republic of Ghana, The companies code, the Civil Service Act, and all other Acts of Parliament setting up Governmental agencies have provided room for the rules on conflict of interest.
 
Conflict of interest is within this broad framework of the difficulty of serving two masters that one is asked not to take or receive compensation from people for doing official work.

 The Directive Principle of State Policy serves as guidelines to ethics in Public Administration.
The attempt to resolve the conflict of interest is to make people have confidence in the system.
The danger therefore exists to enter into conflict of interest without knowing.
The interest in the organization in which the official may have can be indirect e.g. a wife’s share. 

Types of conflict of interest.
Depending on the nature, conflicts of interest may be classified into three namely actual, perceived or potential.
An actual conflict of interest involves a direct conflict between a public official’s current duties and responsibilities and existing private interests.  

A perceived or apparent conflict of interest can exist where it could be perceived, or appears, that a public official’s private interests could improperly influence the performance of their duties – whether or not this is in fact the case.

A potential conflict of interest arises where a public official has private interests that could conflict with their official duties in the future.

Conclusion

• Definition
• Types and nature
• Management

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