Best practices in modern governance require careful scrutiny of the private interests of elected officials – particularly ministers – to ensure that there is no actual conflict, or even an appearance of one, if, indeed, the government in question intends to maintain the highest standards of probity.
On September 28, the law firm, Hughes, Fields and Stoby announced it would be opening a law office in Houston, Texas to tap opportunities in the oil and gas sector. The firm should be congratulated for investing in such a ground-breaking venture.
A statement issued by the firm said:
“Long before a potential investor even arrives in Guyana, the law offices of Hughes, Fields and Stoby will now be on hand in Houston, Texas to guide clients through what could be a complex process of establishing business relationships in Guyana.
“From legal representation right through to assistance with the appropriate business protocols and linkage to a network of officials in the public and private sector, a client’s every need is attended to in ensuring the doors to doing business in Guyana are easily and readily open.
“Hughes, Fields and Stoby, in partnership with Access Point, becomes the first legal and business protocol firm locally, to establish a Houston, Texas presence in recognition of the emerging importance between the American energy capital and Guyana, as an emerging energy powerhouse.
“U.S. Partner, Greg Clark, who worked with Occidental Petroleum Company, a large Oil and Gas company as that organisation’s General Counsel, will lead the Hughes, Fields and Stoby team in Houston. Mr Clark has worked for 13 years in the industry as legal counsel based in places such as Qatar and Ecuador. He brings a history of understanding and depth of knowledge to what will be a unique and welcomed resource”.
Just as an aside, and in the context of the local content debate, it would be interesting to see over time, how much money this arrangement channels to the Houston economy as opposed to Georgetown. The investment would also put paid to opportunities for other Georgetown-based firms. Ideally, for all services to the oil and gas sector, Guyana wants these companies on terra firma and purchasing the range of needs this entails, here.
The main concern though, of this editorial, is strictly the appearance of a conflict of interest for a government minister, in this case, the Minister of Public Telecommunications, Mrs Cathy Hughes, who is the wife of a leading principal in the law firm, Mr Nigel Hughes.
There is no imputation of any impropriety, but strictly a matter of the appearance of a conflict of interest, which, in modern governance codes, is seen to be just as important to avoid in order to boost public confidence in government and assure that the highest standards are being adhered to. In the extant circumstance, there are issues to kindle significant concerns in the minds of the public.
As a senior official of government, Mrs Hughes will be privy to the deepest deliberations at Cabinet about everything to do with oil and gas including local content policy, which oil firms may be under consideration for contract awards, proposed legislative changes etc.
Many of the oil firms, their joint venture partners and their services providers will also be fully aware of the relationship between the principal of the law firm and the minister. There is therefore, the likelihood that this could drive business towards the law firm simply because it is believed by the oil stakeholders that that would be a strategically sensible decision. In its own statement announcing the opening of the law office, Hughes, Fields and Stoby promised “assistance with the appropriate business protocols and linkage to a network of officials in the public and private sector, a client’s every need is attended to in ensuring the doors to doing business in Guyana are easily and readily open”.
All of that can be seen by the public to be indubitably possible as a result of the relationship between the law firm principal and the minister.
It is not a question of the minister having taken an inappropriate step; it is really a matter of how her standing could be affected via the business relations of her spouse. The connections pertain not to some run-of-the mill sector but to oil and gas, where, unarguably, the most crucial decisions in the country’s contemporary history are being and will be made.
This ethical dilemma is one that the government and the AFC – of which Mrs Hughes is a leading member – should take cognisance of and consider. However, neither the government nor the AFC has shown interest since 2015, in upholding the highest standards of conduct by government officials, key examples being the lies told to Parliament by Minister Norton and the obstreperous behaviour of Minister Broomes in a restaurant parking lot.
Nevertheless, the government’s governance approach in light of this matter will come under careful scrutiny. It would be useful to cite sections of the UK ministerial code of January 2018.
At General Principle 7.1 it says Ministers “must ensure that no conflict arises, or could reasonably be perceived to arise, between their public duties and their private interests; financial or otherwise.”
7.2 says, inter alia, “It is the personal responsibility of each Minister to decide whether and what action is needed to avoid a conflict or the perception of a conflict…”
7.3 requires the minister on appointment to each new office, to list matters which might be thought to give rise to a conflict of interest, including the interests of the minister’s spouse.
In the consideration of the highest standards of governance, it would be interesting to see how the various stakeholders approach this ethical dilemma.
