Conflict of Interest

A Tender Conflict of Interest, Illustration: EACC
A Tender Conflict of Interest, Illustration: EACC

If there is a conflict of interest in a public matter, any agent for the state in the matter is obliged to disclose this conflict. Otherwise an offence is committed.

Legal Source: Section 42 of the Anti-Corruption and Economic Crimes Act

Conflict of Interest – Definition in more legal Terminology

An agent is guilty of an offence if he has a direct or indirect private interest in a decision that his principal is to make, and knowing or having reason to believe that the principal is unaware of the interest, fails to disclose it and votes or participates in the actions of his principal in relation to the decision.

Illustration

Kinibe is a businessman specializing in cars. Recently, Yangu Co. Ltd advertises a tender to procure cars. Kinibe’s brother, Omega works for the same company as the Procurement Manager. Kinibe buys Tender documents. He asks his brother to prepare the documents for him. He agrees and also promises to talk to the tender Committee. Omega prepares the Bids and places them in the Tender box. Omega does not disclose that he is related to someone who is bidding for the tender.

Omega commits an offence of conflict of interest and also bid rigging.

(Source: EACC-pdf)