Did Interior Minister Tunji-Ojo Breach Code of Conducts on Conflict of Interest? by Okoi Obono Obla Bar
A company belonging to the Minister of Interior was mentioned as one of the beneficiaries of a multi-million Naira contract awarded by the Ministry of Humanitarian Affairs and Poverty Alleviation in the scandal that rocked the ministry this week.
On 8th January 2023, the Minister of Interior appeared on CHANNEL TV to respond to the allegation that his company benefited from a multimillion naira contract awarded by the Federal Ministry of Humanitarian Affairs and Poverty Alleviation to clean up the National Social Investment Register.
He admitted that the alleged contractor company belonged to him, but he had left the directorship of the company in 2019, and he remained a shareholder of the company.
He also admitted that his wife is the managing director of the company.
In company law, what is the status of a shareholder?
A shareholder is an individual or entity that owns shares in a company and, as a result, holds a certain portion of ownership in that company. Shareholders are considered the owners of the company and have certain rights and responsibilities.
The status of a shareholder in a company typically includes the following:
1. Ownership
2. Dividends
3. Voting rights
4. Information rights
6. Preemptive rights
7. Transferability
In light of the above, it is clear that even though the Minister of Interior is no longer a director of the company, he is a shareholder with specific rights; I have enumerated, which include ownership and entitlements to dividends flowing to the company.
It is therefore clear that the Minister of Interior used his official influence, clout, and weight as a senior member of the cabinet, which the Minister of Humanitarian Affairs and Poverty Alleviation also belongs, to get a contract for a company belonging to him which he is a shareholder and his wife is presently managing!
The matter is laden with conflict of interest issues.
What is a conflict of interest?
A conflict of interest arises when an individual or entity has competing interests or loyalties that could compromise their objectivity, judgment, or decision-making abilities in a particular situation.
In the context of shareholders in a company, conflicts of interest can occur in various scenarios:
1. Personal Interests:
2. Insider Trading
3. Fiduciary Responsibilities
4. Related Party Transactions.
It is not only in company law that you find cases of conflict of interest.
It is inherent in governance issues or government.
To mitigate conflicts of interest, policymakers often adopt and establish a code of conduct or ethics policy that outlines guidelines for shareholders and employees to identify and address conflicts of interest.
In this wise, paragraph 1 of Part 1 of the 5th Schedule of the Constitution is titled Code of Conduct for Public Officers in the Constitution, which provides that a public officer shall not put himself in a position where his interest conflicts with his duties and responsibilities.
In light of the above, you can judge by yourself whether or not the Minister of Interior breached the provisions of the Code of Conduct for Public Officers when a company he has interest won a contract multi-million contract awarded by the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
Okoi Obono Obla Bar
