The Dean of the Law School at the University for Professional Studies, Accra (UPSA), Prof Ernest Kofi Abotsi, has explained the evolving legal stance on conflict of interest among public officials in the country.

During an interview on Joy FM’s Super Morning Show on Tuesday, he highlighted the significant changes introduced by the New Companies Act of 2019 and the implications for public officers under the Constitution.

Prof Abotsi explained that the 1992 Constitution imposes a strict, blanket prohibition on any form of conflict of interest.

However, the New Companies Act of 2019 has introduced a more flexible approach, allowing conflicts of interest provided they are disclosed and permitted by the board.

“The old approach under Ghanaian law was a blanket prohibition of conflict of interest in all instances. The new approach appears to be moving towards an angle in which conflict of interest is tolerated, provided there is a disclosure,” Prof Abotsi stated.

Despite this shift in the Companies Act, Prof. Abotsi pointed out a crucial caveat concerning the Constitution's stance on the matter.

He clarified that the Constitution’s code of conduct for public officers unequivocally prohibits any act of conflict of interest, without exceptions.

“The Constitution clearly states that a public officer shall not engage in any act of conflict of interest. Now, it doesn't give an exception,”he noted.

Prof Abotsi underscored the primacy of the Constitution in the hierarchy of laws, asserting that its provisions override those of the Companies Act when it comes to the conduct of public officers.

The Dean further elaborated on the complexities involved in determining what constitutes a conflict of interest, particularly when it comes to public officers who may have interests in private companies.

He emphasised that the fundamental principle remains that the Constitution does not permit any act of conflict of interest once it is established.

His explanation comes after it came to light that the Social Security and National Insurance Trust (SSNIT) is selling 60% of its stake in four hotels to Abetifi MP, Bryan Acheampong, who doubles as the Minister for Food and Agriculture.

Organised Labour has kicked against the move and threatened an industrial action.

This comes days after the NDC MP for North Tongu, Samuel Okudzeto Ablakwa, petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to probe the transaction.

Mr Ablakwa, in his petition alleged that documents he has intercepted show that negotiations to sell 60% of the shares of the six SSNIT hotels to the minister’s RockCity Hotel Limited “are far advanced.”

He is seeking investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

But SSNIT has since clarified that only four of the hotels successfully went through the bid.