Conflict of Interest: The most dangerous form of corruption

By Mawut Guarak, New York, USA)

February 11, 2009 — The most dangerous form of corruption in many emerging democracies is conflict of interest. Politicians and other public servants who love to become millionaires overnight wind up serving two masters at a go. When an official, whether elected or appointed, holds two positions at once, it becomes harder and harder for him/her to diligently perform the duties in which he/she was elected/appointed to serve.

Africa in particular has been hit the hardest by this form of malady. Conflict of interest has remained untreated in many developing countries, particularly in Africa, because public servants do not recognize it as a problem, or are too reluctant to define it as ‘corruption.’ Of all affected nations in the world, South Sudan suffers severely from this type of ailment.

The term ‘conflict of interest’ is often used when an elected or appointed official has competing personal or professional interests. Once conflict of interest emerges, it becomes difficult for a public servant to diligently and impartially execute the duties as anticipated, hence creating appearance of impropriety that undermine confidence in such figure’s position and service.

There are usually five types of conflict of interest public servants are involved. These are: gifts from friends, family interest, outside employment, pump and dump, and self-dealing. Each of these negatively affects the overall performance of a task. South Sudanese officials are deeply involved in almost all of these types. That is why corruption is only to be campaigned against but not corrected. Almost every public servant is somehow involved in corruption, knowingly or unknowingly.

Before I can elucidate on effects conflicts of interest can cause, it is extremely significant that each type is understood. The most common type is “gift from a friend” who does business or has interest in doing business with a public servant. Such gifts do not necessary have to be tangible, uniquely bulky, or financially worthy in term of market value. They can be as simple as a glass of water, tickets for movies, free transportation, or other favors in return. People give and receive such gifts in exchange for other goods and services which may interfere with their neutrality and job execution. For instance, a police officer who receives free accommodation in a lodge is being biased to ignore some violations that may be taking place around that premises.

Family interest is the second common type of “conflict of interest” in South Sudan and other parts of Africa. Family interest as a form of corruption has caused Africa millions of lives and trillions of dollars in damages. It occurs when a relative or member of an extended family working in a certain position recruits unqualified family members for the sake of having them paid. Once employed, these unqualified and mediocre employees cost the public dearly as a result that they do not add anything to the economy; instead, they suck out of government every dime that should have been productively used. Worse of all, even if identified as unproductive, they can not be discharged because they remain under full protection from the high ranking family member in the office. As a result, the output declines and the entire population feel the pain. In such situations, system becomes corrupt and trust begins to disappear, creating nothing but hatred and confrontation.

The third type of conflict of interest is “outside employment” in which the interest of one job contradicts that of the other. An elected or appointed public servant who works for the government and accept employment with other organization can be at high risk of misrepresenting the interest of the people who elected/appointed him to the office. For instance, a local Member of Parliament who also serves in the board of directors for an oil company can have contradicting values that would hinder his job performance in the parliament. In other word, it is quite impossible to negotiate against one’s self at the same time when one is the government and represents the oil company as well.

Fourthly, “pump and dump” is another emerging type of conflict of interest. Pump and dump happens when stock brokers upgrade/downgrade or spread negative/positive rumors in one’s own favor. For example, a government official who owns oil processing station can use his/her position advantage to access the media and mislead the public by announcing that gas prices will increase in the near future as a means to encourage people to buy gas from him. In such occasions, the official abuses his authority by promoting his personal business in the expense of public position.

The fifth and last type of conflict of interest in this article is “self-dealing.” Self-dealing is almost like outside employment. It is when public and private interests crash. If, for instance, a government official (Member of Parliament) chairs an environmental committee and owns Oil X Company that drills in a populous site, is called to testify about environmental issues or to partake in negotiation, will have contradicting values in choosing which to serve.

This is particularly hard because government is always to protect the people as a collection; in this case, the government toughens rules and regulations governing mining, waste disposals, and exploration where as the oil company on the other hand is trying to do everything to keep the expenses low and increases profits by spending less on clean environment.

The conflict in this case is that the government needs to protect the local population that may be affected by chemicals brought about by the Oil Company; the oil company on other hand is working hard to avoid any cost whether or not their activities harm local population. In this case, the Member of Parliament who chairs the committee and holds position in the oil company is of no help to the public.

Only four years old, the Government of South Sudan (GOSS) is confused between fighting and encouraging corruption. It is hard to understand whether or not the government understands conflict of interest as one branch of corruption. There is nothing more contradictory than a government fighting against itself.

Since its birth, top officials from the GOSS have been taking jobs as executives in oil and other mining companies across South Sudan. At the same time, these very politicians are always in the media attacking corruption on the one hand when they are hypocritically spreading it on the other.

As a teacher in Jerusalem and Judea, Jesus asked his disciples “how can Satan cast out Satan?” Basically Jesus was elucidating the fact that all evil deeds serve the same purpose; therefore, it will not be of any sense for a Satan to cast out another Satan. Jesus stressed that “if a kingdom is divided against itself, that kingdom can not stand. And if a house is divided against itself, that house can not stand. And if a Satan has risen up against himself, and is divided, he can not stand but has an end” (Mark 3:24-26).

Based on interpretation of the above verses, it is hard, if not impossible, for a government official to serve public purposes in Juba and be executive in major oil companies and expect to not be corrupted. How can regional officials in the GOSS fight corruption when they are lobbying against government (as executive in the oil companies)? How can one be against and for something at the same time? Can GOSS officials effectively serve public interest and that of the commercial companies in parallel?

The above quotation from the New Testament makes even more sense when you look at the government (regional and state’s). Governors, commissioners, generals, and so forth are allocating themselves hundreds of plots in newly surveyed cities when hundreds of thousands of ordinary citizens have waited three or so years to get a single plot. What is it called that a commissioner of B county owns 100 plots when Ms. X waited three years since she paid her required fee to the ministry to be allocated a piece of land?

Was his appointment meant to have him own one-quarter of a town? I ]don’t think so. Such a commissioner or his like don’t qualify to say the word “corruption.” That is hypocrisy if he claims to be anti-corruption when he is more than corrupted.

Regardless of type, conflict of interest is the most dangerous form of corruption in South Sudan. It affects every single living thing in the country. As the most disadvantaged region in the world, South Sudan needs labor and skills to improve from destruction done by several regimes in Khartoum. But because of the aforementioned problem, it is almost impossible for anyone to remedy. Money is leaving government premises in large cases, offices are packed with unskilled family/tribal members, and officials are running personal businesses on the expenses of the public positions and money. No country is ever built through corruption; South Sudan too, will never be built through corruption.

Conflict of interest is a serious problem that needs immediate attention. I know those involved are bitter and not interested in reading this article but facts ought to be told. If our gallant fighters laid down their lives to set everyone free, then wouldn’t it be worthwhile to accept whatever consequence that may be as a result of advocacy for truth?

As elucidated throughout this article, conflict of interest is corruption and corruption tightens the distribution of already scarce resources. When resources are scarce and a few takes all, the community divides against each other, poor versus rich, tribe versus tribe, region versus region, and religion versus religion. The disadvantaged mobilize against privileged elites. At the end, this tension evolves and would cause a revolution, not necessarily militarily, however.

It ought to be recalled that SPLM/A didn’t take up arms because of race, religion, or geographical location. Although they contributed to the problem, the primacy of going to war was economic periphery caused by lack of political presentation in Khartoum. The Marginalized areas of South Sudan, Nuba Mountains, the Funj/Ingessina, and Abyei were economically disadvantaged; as a result, they decided to ask for their fair share of the pie.

Just six years ago, the people of Darfur revealed their dissatisfaction with how government works, so they demanded their share. For most people, ‘intifadha’ is a way to ask, which in this case, no guarantee that the sidelined will remain faithful to the government that doesn’t satisfy them!

Despite the complicated system, people should not give up, however. There is a solution for everything. John Garang once said that “the NIF is too deformed to be reformed” but gave a solution to it at the same time; it (NIF) can only be reformed [“through NDA,” he added referring to the National Democratic Alliance. That strategy succeeded! The only way to succeed in anything—peaceful co-existence, development, referendum whatever you call it—is by eliminating barriers that keep government gloomy.

There are many ways by which conflicts of interest can be purged. The first and affordable approach is by enacting tougher laws that will explicitly and permanently deal with the problem, thanks to South Sudan Parliament for taking a lead in deliberating on a bill that will hopefully address this part of a problem. The government must enact rules and regulations that define conflict of interest, its effect on people and government, how it shall be dealt with, and procedures through which these laws will be implemented. Including such laws in government codes of ethic can ease implementation. Once such codes are enacted, taught to the public, and implemented, no official shall have reason to excuse him/herself if involved. As pointed out above, laws independently can not solve them problem; they need implementation by somebody, at least.

Given the enactment of such rules, process of implementation is always a problem in governments as young as GOSS. Therefore, empowering Anti-Corruption Commission is uniquely significant. Authorities outside the commission must respect the authority vested in the Commission and trust their judgment by not interfering in the commission’s duties. One of the many barriers to good governance is that authorities interfere randomly at duties that are not theirs; usually when a problem involves family member (which is already a conflict of interest and corruption) or a tribesman. Rules should be tough enough to discipline those officials who abuse their authority by protecting wrong doers.

Another means through which conflict of interest can be eliminated is by hiring outside experts to evaluate the situation. This approach works well when a public servant runs another business that contradicts his/her official duties. For instance, a minister of communication who owns a local phone company can no longer be objective to run his company and ministry without undermining the latter. There is no way such a minister can give his company a bad deal if the deal doesn’t work in the company’s favor. Unless the minister opts to resign his position and concentrate on running his company, the only way to resolve this problem is to involve a third party that neither works for the government nor the company to coordinate.

Thirdly, conflict of interest can be avoided through reclusal. Any individual with conflict of interest should recluse him/herself from involving in decisions where conflict exists. For example, a member of jury can not take part when the case involves a family member or a friend. No matter how sincere, this relationship will affect his decision-making ability. In order to be objective, such person’s opinion should not be considered under any circumstance. In case of those in authority, they must not consider taking part in any issue that reflects them in any way. It can cause more harm than good to them and their communities.

Fourthly, disclosing one’s wealth before taking a public job can antidote a conflict of interest. Ordinary citizens often times look at public servants as living on their expenses; in avoiding this and other accusations that may emerge, anyone who runs a business or owns sizeable wealth must declare it before taking any public office to aware the public that his wealth does not come from the their money. A good example being United States former Senator Hillary Rodham Clinton, who after accepting position as Secretary of State uncovered her and her husband’s businesses before entering the Department of State. This creates transparency and trust in the course of leadership.

Finally, any government official must choose between holding his government or commercial position, not two at once. How can a vice president, deputy commander-in- chief, or state chairman of a powerful party serves as executive in a company that is exploiting local community and be protective of them (as government representative)?

In conclusion, as I discussed the fundamental genesis of the problem, I am compelled to encourage the Sudanese and South Sudanese in particular to hold their leaders accountable for wrongdoings, and give credit where applicable. It is you, the ordinary citizen, who make those big politicians in Khartoum, Juba, and in state and local governments what they are! Without you, the ordinary citizen, there would be no government. It is time for you, the ordinary citizen, to hold them accountable.

Don’t let them come a few days before election and tell you that they represent you; ask them: ‘where?’ If you can not get a piece of land when your commissioner owns 100 of them, would you call that your government? Would you vote for an MP who never visited your locality since being appointed four years ago? Would you vote for an MP who has employed the entire family in the government when you can’t even be listened to?

In essence, I want to finish by repeating what Jesus once said to his listeners: anyone who denies the son of man in front of people shall be denied in front of angels in heaven.

The author holds a BA in Political Science/International Relations and a Masters in Public Administration; he lives and works in New York and can be reached at [email protected]