Rising Above

Conflict of Interest
Juan D. De Zuñiga, Jr.
 Juan D. De Zuñiga, Jr.
▧ De Zuñiga is a member of Monetary
Board and previously as Deputy
Governor and General Counsel of
Bangko Sentral ng Pilipinas (BSP).
▧ He is a columnist in the Manila Bulletin
• He is a Lawyer where he writes mostly about corporate
and placed fifth practice and good governance.
in the board ▧ Outstanding alumnus awardee of Far
exam. Eastern University.

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 “
The Phrase “Conflict of interest”
conveys negativism. It can be
readily suggestive of abuse of
authority favouritism, collusion or
corruption.
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How does one define
Conflict of Interest?

I do not note any such definition from the law

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 The law
What the law prohibits is the commission of unethical
transactions involving financial or pecuniary interest
in any transaction in connection with which the
official takes part in his official capacity. This means
that the official, by virtue of his position, would have
the capability to influence and persuade an action in
his favour or in favour of his related interest.
-Anti Graft and Corrupt Practices & the Corporation Code

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According to jurisprudence, there is no
Conflict of Interest if a director is engage
in a business which competes with or is
antagonistic to that of corporation, or if there
is diversion of transaction opportunities to
another corporation owned by a relative of a
company official.

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 “ The fiduciary duty has many ramification and
the possible conflicts of interest situations are
almost limitless, each possibility posing different
problem”
(Campos, Corporation Code)

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Standards which would raise the institution
above allegation of conflict of interest

֎ Delicadeza

֎ Transparency

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Delicadeza
Are you familiar with this word?

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 Delicadeza

Delicadeza is concerned not only with legality but

more essentially in assuring everybody else that one is
free from suspicion that he unduly intervened in a
transaction. Delicadeza thus has a broader coverage.
One must be “beyond suspicion”. The transaction
should not only be proper, there also should be no
appearance, perception or suspicion whatsoever that
there was abuse of authority is process.

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 Delicadeza

• It covers not only improprieties but also the

appearance or perception of improprieties.
Delicadeza is a very demanding trait of the Filipinos.
• It is not governed by any specific law or guidelines,
and yet very encompassing as to deter involvement
in a transaction on account of self-interest,
friendship, close relations or for any reason which
could taint objectivity and fairness.

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Transparency

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 Transparency

Whenever a conflict of interest exists or

seemingly appears, the challenge is on the person
involved to acknowledge the same, disclose it and,
henceforth abstain and inhibit from participation. Such
disclosure and abstention should not only be by lip
service, but should be consistently affirmed by deed to
show a sincere and genuine posture of non
involvement.

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Conflicts of interest can do exist from time to time but
it can be overcome and should be addressed by being
steadfast in one's governance principles. The strength
of good governance lies not on the capability of others
to point and prove conflicts of interest situations but
on the willingness and firms determination of the
person concern to disclose and abdicate from the
transactions beforehand, without waiting for any
complaints to arise.

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 “
“ Ethics involve naturally, and we trample
upon when with the laws created by reason
and experience”
Winston Churchill

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