Managing Conflict of Interest - Organisation for Economic Co ...

8 Managing Conflict of Interestwhich a conflict of interest may result with respect to theirfunctions as public officials.• Public procurement and management of public finances(Article 9 §1): Each State Party shall take necessary stepsto establish appropriate systems of procurement, basedon transparency, competition and objective criteria in decision-making,that are effective in preventing corruption.Such systems shall address…measures to regulate mattersregarding personnel responsible for procurement, such asdeclaration of interest in particular public procurements,screening procedures and training requirements.• Private sector (Article 12 §2): Each State Party shall takemeasures to prevent corruption involving the private sector.Measures to achieve these ends may include…the developmentof standards and procedures designed to safeguardthe integrity of relevant private entities, including codesof conduct for the correct, honourable and proper performanceof the activities of business and all relevant professionsand the prevention of conflicts of interest, and for thepromotion of the use of good commercial practices amongbusinesses and in the contractual relations of businesseswith the State.Consequences of Conflict of InterestWhen not prevented, COI can lead to a range of offenses from“simple” abuse of power and influence peddling to obstruction ofjustice and criminal misappropriation or capture of public assets forpersonal use or gain. The UNCAC addresses each possible offensein various articles as designated in the list below:••••••Embezzlement, misappropriation or other diversion of propertyin the public sector (Article 17);Trading in influence (Article 18);Abuse of function (Article 19);Illicit enrichment (Article 20);Embezzlement in the private sector (Article 22);Obstruction of justice (Article 25).ADB/OECD Anti-Corruption Initiative for Asia and the Pacific