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What is meant by conflict of interest? Illustrate with examples, the difference between the actual and potential conflicts of interest.

In public administration, a Conflict of Interest (COI) is a situation where the private interests of a public official clash with their professional duties and responsibilities.

Manifestation of conflict of interest

Financial Investments in companies regulated by one’s own department.

Family Ties (Nepotism). Eg- Chanda Kochhar Case

Post-Employment Ambitions (Revolving Door). Eg- “Amakudari” in Japan

Gifts and Hospitality

Outside Directorships

Personal Biases

Secondary Employment. Eg- Moonlighting

Property Interests

Actual vs. Potential Conflict of Interest

Ways to Prevent Conflict of Interest

Mandatory Disclosure of Assets (2nd ARC)

Cooling-off Period

Code of Ethics and office of Ethics Commissioner

Institutionalized “Conflict of Interest” Registers

Integrity Pacts

In a democracy, the appearance of integrity is as important as integrity itself. Moving from a culture of secrecy to a culture of disclosure, can help maintain public trust in governance.