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Explainer: Is There Potential Conflict Of Interest When Mps Hold Full-Time Private Sector Jobs And What Are The Safeguards?
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February 4th, 2023 | 10:45 AM | 573 views
SINGAPORE
Since tech and ride-sharing company Grab announced the appointment of Ms Tin Pei Ling as its new director of public affairs and policy on Wednesday (Feb 1), there has been much online discussion about the potential conflict of interest with her role as Member of Parliament (MP) for MacPherson.
In particular, there are two aspects that have come under scrutiny: The fact that the full-time position at Grab is a government affairs-related role and that she is the chairperson of the Government Parliamentary Committee (GPC) for Communications and Information, and a member of the GPC for Culture, Community and Youth.
To be fair, Ms Tin is far from the only MP to hold a full-time job in the private sector — the majority of them do — and neither is this her first job in the private sector since being elected to Parliament in 2011.
She has also said in a LinkedIn post on Thursday (Feb 2) that Grab has established clear rules of engagement to declare and avoid any possible conflict of interest.
The ruling People's Action Party (PAP) which Ms Tin belongs to also has a published set of rules of prudence, and mechanisms to avoid conflict of interests.
TODAY spoke to analysts on why this news has sparked much debate and how MPs deal with potential conflicts of interest.
COMMON FOR MEMBERS OF PARLIAMENT TO HAVE FULL-TIME JOBS
MPs can hold full-time jobs as well as executive, advisory and directorship positions, and it is a very common practice, said Professor Mak Yuen Teen, a corporate governance expert who is professor (practice) of accounting at the National University of Singapore (NUS).
Other MPs who hold such positions, just to name a few, include Mr Derrick Goh (Nee Soon Group Representation Constituency), who is managing director and head of group audit at DBS Bank and also a member of the GPC for Finance and Trade and Industry, and Mr Ang Wei Neng (West Coast Group Representation Constituency), who is president of SMRT Corporation subsidiary, Strides Mobility Services, and a member of the GPC for Transport.
GPCs are committees comprising PAP MPs that scrutinise the legislation and programmes of their assigned ministerial portfolios and provide feedback on government policies.
According to associate professor of law at the Singapore Management University (SMU) Prof Eugene Tan, there is “no actual, potential, and apparent conflict of interest” by MPs for merely being employed in the private sector or running one’s business.
This also applies to opposition MPs, he said, noting that former Workers' Party chief Low Thia Khiang was also a businessman.
“The issue is more of when a conflict of interest arises, rather than whether there will be a conflict of interest," said Assoc Prof Tan.
"As such, how the MP deals with the conflict of interest matters immensely and there are rules and guidelines on how to do so.
“The key question is whether the MP’s conduct, both inside and outside of Parliament, is incompatible with his being an elected representative.”
Associate Professor Chong Ja Ian of NUS' Department of Political Science said that in looking at whether MPs can hold external positions, there are three issues to consider.
The first issue that there is a potential for conflicts of interest, given that MPs are responsible for legislation.
“These may involve laws that affect the commercial interests of the entity for which an MP works. Legislation may deal with regulation as well as assistance for industries or sectors,” said Assoc Prof Chong.
The second issue is setting precedence for “grey area” situations which less scrupulous persons in the future may seek to exploit.
The third issue is public perception. “The impression — even if in error — that businesses can have special access through the hiring of MPs may foster doubt in the minds of the public about a key national institution — in this case, the Parliament,” said Assoc Prof Chong.
“Such a risk can be avoided should MPs keep business interests, especially roles where they may be devising strategies for government engagement, at an arms' length."
WHY MS TIN PEI LING'S APPOINTMENT TRIGGERED DEBATE
Ms Tin’s appointment has generated much public debate due to the nature of her work at Grab and her role as a parliamentarian who is also involved in two GPCs, said Assoc Prof Chong.
“Her role at the corporation may be one where she is responsible for devising relations with the sitting administration and the bureaucracy. This may include regulatory agencies. Her role may also involve the development of corporate strategies for dealing with the Singapore state,” he added.
“Given her public role as a legislator and the opportunities for close contact with elected office holders and bureaucrats, there is more public interest and scrutiny of her new role.”
He stressed however that "nothing suggests that she is or will be doing anything wrong".
Prof Mak also noted that the issue of gig economy workers’ rights has been in the public spotlight, with ongoing discussions "about how Grab and other gig economy companies are going to pay their drivers, and give gig economy workers' rights".
Assoc Prof Chong said that while it is possible for conflicts of interest to arise, depending on the issues that a parliamentary committee might have to handle, MPs "could recuse themselves should they have concerns about conflicts of interest".
But that could be tricky, given the "complexity and inter-connectedness of business, government, and society", he added.
RULES FOR HANDLING CONFLICTS OF INTEREST
There are safeguards in place should an issue of conflict of interest arise, one of which is the declaration of interests of recusal before they begin their parliamentary speeches.
"It is expected for MPs to clearly state the interest, pecuniary or otherwise, in parliamentary matters at all appropriate times," said Assoc Prof Tan, adding that an MP also has to comply with his or her party's rules.
Prime Minister Lee Hsien Loong, who is PAP’s secretary-general, also spelt out the party’s rules of prudence in a letter to the party’s MPs in July 2020, shortly after the General Election.
Some of the rules include:
MPs have to declare pecuniary interest first when raising matters in Parliament that are related to their own businesses or clients
MPs should not solicit directorship positions in any company
MP’s should not sit on any boards of companies that they own
If offered a directorship position, MPs should consider the impact of holding the position on their political life
If MPs accept directorship positions, they should not use their political position to champion the interests of the companies or lobby the Government
Assoc Prof Chong said that one issue with party rules, which also applies to the opposition, is that they are internal to the party and not legal ones.
"What happens within political parties is not easily observable by the public from the outside," said Assoc Prof Chong, who suggested that MPs be required to make public all directorships and work via Parliament.
Nevertheless, Assoc Prof Tan said that the PAP rules make it abundantly clear that an MP "must not exploit” his public position for personal interest or the benefit of his employer.
"The bottom-line, as the rules have it, is an MP’s conduct 'must always be above board'," he said.
Source:
courtesy of TODAY
by NUR HIKMAH MD ALI
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