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Conflict of Interest: RULE OBSERVED IN BREACH, By Dr S Saraswathi, 13 April, 2015 Print E-mail

Events & Issues

New Delhi, 13 April 2015

Conflict of Interest

RULE OBSERVED IN BREACH

By Dr S Saraswathi

(Former Director, ICSSR, New Delhi)

 

The enormous clout of the tobacco industry is suspected to be the force behind the Government’s decision to defer action on the proposal to increase the size of pictorial warning against smoking.  The parliamentary committee on subordinate legislation looking into the rules regarding sale of tobacco products includes, according to press reports, some members having links with the tobacco trade. Hence, a strong objection is raised to the presence of conflict of interest influencing the recommendations of the committee.  

 

The member heading the committee has stated that there is no India-specific study proving that tobacco consumption causes cancer. Another MP has asked the Government to hold back its decision to increase the size of pictorial warnings from 40% to 85% as proposed.

 

Cancer experts are shocked and view these statements as an affront to the numerous studies and immense body of work in India establishing a direct link between various forms of cancer and tobacco use. They think that holding back the decision to enlarge pictorial warning is a retrograde step medically.

 

But, the tobacco lobby is sticking to the argument that there is no conclusive proof against the use of tobacco to merit enlarging the size of warnings. In their own commercial interest, it assumes a posture of championing the interests of tobacco farmers and insists that a cut on tobacco would lead to more suicide of farmers.

 

Apparently, this lobby is believed to be so powerful that some even remark that it succeeded in shifting a popular Union minister from Health to Science and Technology for his anti-tobacco stand. As a doctor, he is a firm believer that tobacco is a cause of cancer.

 

Insofar as the rules of procedure in the Lok Sabha go, any MP   may object to inclusion of any member in a parliamentary committee on the ground that “he has personal, pecuniary, or direct interest” in the matter under its consideration. The Speaker has to resolve the issue and give a ruling. Till then that MP cannot vote in the committee and has to quit the panel if the ruling goes against him.

 

The Rajya Sabha rules further prescribes that before participating in a debate in Parliament or its committee, members should declare their personal interest if any, in the matter under consideration of Parliament or its committees.

 

In the meantime, strong anti-tobacco views come from many leaders including both Prime Minister and Finance Minister.  Opinion seems to be more in favour of discouraging tobacco use.

 

Apart from the issue of medical findings on tobacco, efforts in fighting cancer, the state of tobacco farmers, etc., the controversy has more political significance. There is plenty of scope for people with personal interests in a matter taking part in official decision-making bodies pertaining to the same matter. It creates a “conflict of interest”, which in recent years has grown as big as corruption and nepotism. This phenomenon is seen repeatedly and proving to be an inconvenient factor between lobbyists and decision-makers.  

 

Conflict of interest is a term used to describe the situation in which a public official or fiduciary, who, contrary to the obligation and absolute duty to act for the benefit of the public or a designated individual, exploits the relationship for personal benefit, typically, pecuniary. Any situation in which an individual or corporation is in a position to exploit a professional or official capacity in some way for personal or corporate benefit denotes “conflict of interest”.

 

It may be present even without the occurrence of any impropriety or biased decisions. To establish a conflict of interest, it’s not necessary to establish a positive link between a decision or a deed and personal interest of decision-making body or any of its members. The original definition of Dennis Thompson states: “A conflict of interest is a set of circumstances that creates a risk that professional judgement or actions regarding a primary interest will be unduly influenced by a secondary interest”. The argument that personal interest has not guided one’s viewpoints or the final decision is not valid. The presence of individual interest is enough to indicate a conflict.

 

For instance, a lawyer cannot act for and against the same client in the same case. A judge cannot sit in judgement over a case in which his own son is involved. It is indeed difficult to explain conflict of interest. It appears in infinite variety of situations and works in several forms. One can know it when it is present.

 

In many western countries, there are laws to prevent intervention of personal interests in discharging one’s professional duties.  Statutes define what constitutes “conflict of interest” and prescribe sanctions against it. Professional bodies apply the rules to maintain professionalism and professional conduct. Any person involved in a conflict of interest may be subject to disciplinary proceedings.

 

The Government of Canada has adopted the Conflict of Interest Act in 2006 under which a public office holder is said to be in conflict of interest when he/she exercises an official power, duty, or function that provides an opportunity to further his/her private interests or those of relatives or friends or to improperly further another person’s private interests. Ministers must follow “Conflict of Interest and Post-Employment Code” that outlines ethical standards as well as public and private interests, and prohibits use of information obtained officially for private purpose. Ministers cannot engage in outside professions or business. Certain posts cannot be held by a person simultaneously. The Ethics Commissioner conducts enquiry into breaches of the code.

 

In Britain, MPs have to declare their past and potential interest before joining a debate on a matter. Detailed Code of Conduct provides guidelines to prevent conflict of interest.

 

In India, the Rajya Sabha includes several members having commercial and business interests, professional assignments, and even remunerative positions that may influence independent thinking on an issue before Parliament or its committees.  Therefore, there may arise many occasions of conflict of interest, as in the case of tobacco warning.

 

A committee set up by the Government of India in 1954, the Bhargava Committee, which recommended enacting Prevention of Disqualification Act was primarily motivated by the principle of averting conflict of interest in one’s personal interest and public interest in policies and programmes that may come before Parliament.

 

Prevention and Management of Conflict of Interest Bill was introduced in the Rajya Sabha in 2012. It provided for a Conflict of Interest Commission with nine members including six from civil society organizations. They were to be persons of eminence known for ability and integrity from various fields of activity like education, public health, food and nutrition, employment and livelihood, agriculture, environment, natural resource management, economics, law, etc.

 

An organization called Alliance Against Conflict of Interest (AACI) has been formed in various sectors to expose such cases   and bring them to the notice of affected parties, the government, and media.

 

Regulating conflict of interest in government is one of the major objectives of ethics in politics. It is a tough job due to multiple interests of office holders and inter-connection of many fields.  Self-discipline more than external regulations is required to check breach of any code of conduct.----INFA

 

(Copyright, India News and Feature Alliance)

 

 

 

 

 

 

 

 

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