Integrity

Integrity Commission and Conflicts of Interest

In our previous article, some of the positive highlights and the downsides of the Integrity Commission Bill were discussed. Given the importance of this bill, further discussions are necessary to increase public awareness on what it seeks to achieve. It is widely recognized that asset declarations are useful. Thus, one of the main focus of the bill is to improve public sector integrity by ensuring that public officials declare their assets and liabilities. Critical to this is the existence of an independent commission which monitors such declarations. A review of the bill shows that one of its main cornerstones is the establishment of such an Integrity Commission which would receive, manage and examine the asset declarations of public officials. It is important to note the information is kept confidentially by the Integrity Commission so it is not a matter of the person’s information being made public. Requiring that pubic officials declare their assets can have a meaningful impact on improving integrity in the public sector. Asset declarations are useful as they can uncover and help to resolve potential conflicts of interests. A conflict of interest occurs when a public official’s personal interests such as their financial well-being, improperly influences the performance of their official duties.

The effects of conflicts of interest

Public official’s primary duties should be to act in the public’s interest. When conflicts of interest influence public officials to act in their own interest, this breaches their duties and jeopardizes the public good. These self-serving acts can undermine public confidence in decision making, negatively impact good governance, lead to the improper distribution of government resources, and can be costly to public financing. Therefore, the harm that conflicts of interest can pose makes the passage and operationalization of the Integrity Commission Bill necessary.

Why transparency is necessary

Provisions within the bill allow for the transparency that could uncover instances where private interests may cause public harm. This transparency would be assured as the bill stipulates that specified persons in public life shall file with the commission a declaration containing personal income, assets and liabilities. The assets of spouses and dependent children, along with any gifts received during the performance of their public function must also be declared.  This legislative approach is necessary as it limits public officials from concealing potential conflicts of interests through these family relations.

Asset declarations are designed to properly address conflicts of interests where they may arise. Declarations would allow the commission to evaluate and manage the relationships between public officials and their private interests. The bill has proposed many requirements that satisfy these intents. One requirement is the creation of a blind trust which is a financial arrangement where public officials transfer the administration of their assets to an independent agent.  The independent management that blind trusts provide can lessen the possibilities of officials intentionally skewing decisions to benefit their assets. Therefore, the bill states that if the commission has reasonable grounds to believe that a public official is likely to contravene or has contravened the act, the commission may direct that person to place their assets in a blind trust and file a copy of the trust deed with the commission.

The bill also requires that members of parliament file statements of registrable interest. These statements pertain to parliamentary representatives, their spouses and dependent children. The statements should contain filings relating to directorships in companies, information regarding contracts made with government, particulars relating to sources of income, and any other substantial interest that may appear to raise conflict between private interests and public duty.

Why sanctions are critical

In addition to declaratory requirements, the Integrity Commission Bill has stiff fines for members of parliament that contravene filling requirements. Failure to fill or knowingly filing false statements are offences punishable by a $15, 000 fine or a year imprisonment. If a member is convicted on filing offences this can lead to their disqualification from holding any public office for a period the court considers appropriate. Additional actions that encourage compliance are also contained in the bill. The commission has the power to report to the Director of Public Prosecutions, instances where they are unsatisfied with any aspect of the declarations after examinations and inquiries. With these declaratory requirements and compliance mechanisms, the operationalization of this bill could lessen instances where potential conflicts of interests can undermine the public good.

Protecting the public good

Barbados as a small territory must ensure that public officials are transparent by revealing any perceptible or actual conflicts of interests to protect the public good. This is possible under the Integrity Commission Bill as its provisions limit the potential of corruption. The bill could also encourage a more hospitable environment for public officials as the necessary anti-corruption measures can increase public trust. Therefore, both private individuals and public officials should support the Integrity Commission Bill and pressure government to maintain its commitment to its passage.

June 10, 2018
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