|
|
 |
|
Spotlight: |
| |
| You are here:
Home > Spotlight > Paul Martin
Gives Up Canada Steamship Lines |
Canada’s Rules on Conflict of Interest
This section examines Canadian federal legislation and rules on conflict of interest.
It should be noted that these rules only govern federal politicians and officials. Provincial
politicians and officials are governed by their own provincial legislation and guidelines.
Specific topics examined in this section include:
- Highlights of the Conflict of Interest Code
- The Office of the Ethics Counsellor
- The Blind Management Agreement for politicians who own private companies
- Important links
Conflict of Interest Code
In 1994, the Liberal government introduced the Conflict of Interest and Post-Employment
Code for Public Office Holders (or “Code”). The Code outlines the rules of conduct for
office holders, as well as punishment for failure to comply. The following are excepts
of the Code with regards to its object or purpose, failure to comply and basic principles:
-
Object of the Code
- The object or purpose of the code is to enhance public confidence in the integrity
of public office holders and the decision-making process in government.
-
Failure to Comply
- Where a public office holder fails to comply with the Code, the office holder is
subject to such appropriate measures as may be determined by the Prime Minister, including,
where applicable, discharge or termination of appointment.
-
Principles of the Code
- Ethical Standards - Public office holders shall act with honesty and uphold
the highest ethical standards so that public confidence and trust in the integrity,
objectivity and impartiality of government are conserved and enhanced.
Public Scrutiny – Public office holders have an obligation to perform their
official duties and arrange their private affairs in a manner that will bear the closest
public scrutiny, an obligation that is not fully discharged by simply acting within
the law.
Decision-Making – Public office holders, in fulfilling their official duties
and responsibilities, shall make decisions in the public interest and with regard
to the merits of each case.
Private Interests – Public office holders shall not have private interests,
other than those permitted pursuant to this Code, that would be affected particularly
or significantly by government actions in which they participate.
Public Interest – On appointment to office, and thereafter, public office
holders shall arrange their private affairs in a manner that will prevent real, potential
or apparent conflicts of interest from arising but if such a conflict does arise between
the private interests of a public office holder and the official duties and responsibilities
of that public office holder, the conflict shall be resolved in favour of the public
interest.
Gifts and Benefits – Public office holders shall not solicit or accept transfers
of economic benefit, other than incidental gifts, customary hospitality, or other
benefits of nominal value, unless the transfer is pursuant to an enforceable contract
or property right of the public office holder.
Preferential Treatment – Public office holders shall not step out of their
official roles to assist private entities or persons in their dealings with the government
where this would result in preferential treatment to any person.
Insider Information – Public office holders shall not knowingly take advantage
of, or benefit from, information that is obtained in the course of their official
duties and responsibilities and that is not generally available to the public.
Government Property – Public office holders shall not directly or indirectly
use, or allow the use of, government property of any kind, including property leased
to the government, for anything other than officially approved activities.
Post-Employment – Public office holders shall not act, after they leave public
office, in such a manner as to take improper advantage of their previous office.
The Ethics Counsellor
The ethics counsellor position was formed by the Liberal government to administer
the Conflict of Interest Code. The role of the ethics counsellor is to:
- Investigate allegations against his ministers and senior officials involving conflict
of interest or lobbying.
- Offer guidance to ministers and other political actors relating to conflict of
interest and lobbying.
- Report annually to Parliament on matters related to lobbying.
It should be noted that the ethics counsellor is not an independent office, but is
directly tied to the prime minister. Critics have argued that this severely limits the
effectiveness of the ethics counsellor as he or she can only investigate and punish
allegations with the consent of the prime minister.
Blind Management Agreement
A public office holder may comply with the Code by placing their privately held corporation
into a blind management agreement. In 1994, Mr. Martin placed Canada Steamship Lines
under such a blind management agreement. Under such an agreement, the public office
holder retains legal ownership of a company, but gives up managerial authority to a
trustee. Only in exceptional circumstances (defined as where an extraordinary corporate
event is likely to materially affect the assets entrusted) may the public office holder
personally intervene in the company. Further, this intervention can only occur after
the ethics counsellor has been consulted and determines that the intervention would
not give rise to a conflict of interest.
Important Links
Office of the Ethics Counsellor
Canada
Canada’s Blind Management
Agreement
|
