4.4.2  Conflict of interest

A conflict of interest (COI) arises where a member of, or an advisor to a project team has an affiliation or interest which might be seen to prejudice their impartiality.  If a COI exists (whether actual, potential or perceived) the project director must undertake a risk assessment and determine the appropriate approach to protecting the interests of government.

A three-question test determines whether a COI exists and whether further risk assessment or immediate remedial action is required. The test aims to establish whether the interests of government and the competitive process could be compromised by this event, and involves:

•  might the person's other duties result in the individual compromising their obligation to government (e.g. conflict of duty)?

•  does the person have the ability to compromise their obligation to government by accessing information that may benefit themselves or other parties?

•  could the person compromise the interests of government and their obligation to it by potentially influencing or altering the outcome to government in a material way that will benefit the person or other parties?

Disclosures should be directed initially to the project director who then reviews the disclosed situations in consultation with the probity practitioner, legal advisers, the project steering committee, and senior government officials as needed.

Further information on conflict of interest is provided in the Practitioners' Guide. Also discussed in the Practitioners' Guide are related party probity principles.