What has spurred me to write this week’s contribution on this subject was the request by the Malta Developers Association to be given the right by law to appoint one of its own members to a new authority tasked with policing the construction sector. Here we have an evident conflict of interest and this request should be refused outright.

Students of law know that a conflict of interest exists if one of the interests of a person might conflict with other interests which that person may have. For example, a person cannot be a member of the board of directors of companies that compete with each other.

Within the area of state affairs, we have a conflict of interest when the private interests of the person might interfere with the public interests which that person is required to serve, in virtue of one’s appointment to a public office. In the case of the Malta Developers Association, it is evident that there would be a conflict between the interests of that person who would be appointed by this lobbyist organisation and the interests of the Building Construction Authority to be set up.

To claim that there is no such conflict of interest demonstrates a total lack of knowledge of what good governance is all about. In fact, this is the whole issue. We recognise that our economy requires the application of principles of good governance, and yet we keep faltering in this regard.

The comparison made with Malta Enterprise and the com­position of its board is also a clear indication that there is a total lack of knowledge of the role and remit of this organisation. And as the saying goes, when ignorance is bliss, it is folly to be wise. But we need to be wise.

What is the pertinence of all this within the sphere of the economy? Businesses require clear rules and regulations to be able to thrive. There are enough studies that show that there exists a positive correlation bet­ween good governance and economic growth.

A total lack of knowledge of what good governance is all about

Countries may achieve economic growth without having good governance in place. However, this growth is short lived and is not sustainable.

Tackling issues of conflict of interest is one way of adopting best practices in good governance. Another important principle of good governance is engaging with stakeholders.

Engaging with stakeholders means acting transparently, publishing policy papers, maintaining an open dialogue, listening to all opinions. It certainly does not mean appointing a representative of a lobbyist organisation to the board of an authority that is meant to regulate that sector, which this lobbyist organisation claims to represent.

I sincerely hope that in this country we have a comprehensive debate on conflict of interest and the role it plays in good governance both at a public level and at the level of a private company.

Probably at the level of a private company, the issue is understood and appreciated more. And this is what makes it all the more worrying. Why is it that in public affairs we want to throw out with the bath water any notion of good governance?

I also want to emphasise that this is a question of mentality.

We cannot put all the burden on government to save us from ourselves. It is the business sector itself and the various organi­sations that represent it that need to appreciate the importance of tackling conflict of interest issues. It is a matter of self-responsibility.

To my mind there should be no doubt that the request of the Malta Developers Association should not even be debated, let alone be accepted. It represents a clear conflict of interest and, as such, it is harmful to the eco­nomy and goes against the interests of the common good.