Conflict of Interest Regulations, 2004

L.N. 433 of 2004

INTERNAL AUDIT AND FINANCIAL INVESTIGATIONS

ACT, 2003

(ACT NO. VI OF 2003)

Conflict of Interest Regulations, 2004

IN EXERCISE of the powers conferred by article 26 of the Internal

Audit and Financial Investigations Act, 2003, the Prime Minister and

Minister of Finance has made the following regulations>

The title of these regulations is Conflict of Interest Title.

Regulations, 2004.

Mitbug] fl-Istamperija tal-Gvern - Printed at the Government Printing Press

For the purpose of article 17 of the Internal Audit and Definition of

conflict of interest.

Financial Investigations Act>

(a) direct conflict of interest refers to a situation where the

official of the Directorate is himself related with the auditee by

virtue of a professional or work relationship, provided that a period

of five years has not elapsed since such relationship has been

terminated.

(b) indirect conflict of interest refers to a situation where

the official of the Directorate has a family relationship with the

auditee where the auditee is related to the official by being a person

who is>

(i) the husband or wife<

(ii) the son or daughter<

(iii) the parent<

(iv) the brother or sister<

(v) the grandfather or grandmother<

(vi) the uncle or aunt< or

(vii) the nephew or niece.

(c) in all other cases, the official of the Directorate shall

consider the circumstances of the particular case in order to see

whether the relationship he has with the auditee has any form of

influence on him or can cause an influence on his judgement in

such manner that he would not be in a position to perform his

duties in an impartial and fair manner. In making such a

consideration, the official shall keep in mind the principle that he

should be independent in fact and in appearance. In addition, the

Code of Fundamental Principles for officials serving in the Internal

Audit and Investigations Directorate and for any Compliance and

Assurance official, as referred to in article 20 of the said Act shall

also be consulted<

(d) if, after such consideration as is mentioned in paragraph

(c) hereof, the official is still in doubt, he shall refer the matter to

the Director explaining all the facts relative to his doubt. The

Director shall consider and decide on the facts as presented by the

official and shall relate his decision to that official. The Director’s

decision shall be final.

(e) in all cases where a conflict of interest is claimed by an

official under these regulations, a declaration should be made in

the form shown in the Schedule.

B