– transfer of interest to children is not the answer

Despite no longer having legal control of her mining interests, concerns still abound that preferential treatment and favours will be granted to the children of Minister within the Ministry of Natural Resources Simona Broomes, who recently announced that her children have taken over all her mining operations in an effort to quiet down conflict of interest concerns.

Minister Simona Broomes

However, political commentator Dr Henry Jeffrey contended that the only way those concerns can be eliminated is by completely removing the Minister from the Natural Resources Ministry. “I don’t think Minister Broomes understands clearly what conflict of interest means, I can understand her dilemma being in mining all this time and you know it’s a family business and she is now in the Ministry involved with mining. What she should be asking is for government to remove her from there and put her somewhere else. She could be in another Ministry,” Dr Jeffrey stated.

Documents showing dredge licence granted to the Junior Natural Resources Minister’s daughter, Simona Broomes

The recent approval of an application to operate a dredge in the name of ‘Simona Broomes’ sparked much controversy and once again raised conflict of interest concerns. However, reports indicate that the applicant ‘Simona Broomes’ is actually the daughter of the Minister, who shares the same name as her mother.
According to reports, Broomes said since becoming a Minister, she took a personal decision to relinquish control of all her dredges. In this regard, Broomes dismissed conflict of interest concerns with her children operating dredges, insisting that they have been in the mining industry all their lives.
But, questions still remain as to whether the minister is using her children as a front.
Another political commentator Ramon Gaskin, in an invited comment, supported the notion that the transfer of mining operations to her children does not put to rest conflict of interest concerns. “That doesn’t solve the problem because when the children go into Guyana Geology and Mines Commission (GGMC) to do business, they know that the children’s mother is the Minister, so that really don’t solve the problem,” he explained.

Blind trust
Gaskin said the best way to settle the conflict of interest concerns is to set up a blind trust. “You don’t hear from them and they don’t hear from you. They just running it for you and you have nothing to do with it. That’s how you deal with those kinds of situations. Not by giving it to your children and all that nonsense, that doesn’t solve the problem,” he stated.
A blind trust protects an investor from charges of conflict of interest and other improprieties because its specific assets and trading practices are unknown to the investor. In modern societies, corporate employees and public officials often use blind trusts to avoid charges of insider trading and corruption, respectively.
In fact, Gaskin said blind trusts should be established for all government ministers who have business interests. “This also goes to all ministers who have businesses, all of them should be required to set up a blind trust and turn over all their business deals, have nothing to do with it at all, ever. In that way, you would avoid any allegations of impropriety, because it is blind,” he stated.

Code of Conduct
According to the draft code of conduct, “Ministers, Members of Parliament and public office holders should avoid using their official position or transmitting any information made available to them in the course of their work to benefit themselves, their relations or any other individuals with whom they are associated.
They should avoid compromising themselves or their office which may lead to an actual or perceived conflict of interest. Failure to avoid or declare any conflict of interest may give rise to criticism of favouritism, abuse of authority or even allegations of corruption.”
The Code is further meant to engender and reinforce public confidence in the manner in which senior government officials perform their duties in service to the people. It is based on ten principles – Accountability, Dignity, Diligence, Duty, Honour, Integrity, Loyalty, Objectivity, Responsibility and Transparency – and is a Coalition Government manifesto promise.
Reports indicate that the government is still receiving feedback from stakeholders on the draft code of conduct before finalising it and passing in it in the National Assembly. Something which was supposed to have been done since August last year.

as accusations of conflict of interest continued to be levelled against Junior Minister of Natural Resources Simona Broomes over her mining interests and current oversight of the mining sector, the minister came out to defend her integrity and declared that she did nothing wrong by transferring her mining interests to her two children.

Broomes’ mining interest came under scrutiny over the weekend after information surfaced suggesting she was granted another Mining Permit H43/MP/000 by the Guyana Geology and Mines Commission.

However, the Minister during a news conference at her Brickdam office on Monday morning, claimed that what is being pedalled in the media is part of a “deliberate attempt to besmirch” her character and that of her children.

“Why would one want to drag my children through the mud, my children have committed no crime,” she declared and clarified that no new mining permit was granted but rather it was a transfer of her dredge to her

Junior Minister of Natural Resources Simona Broomes

son, and daughter whose name is also Simona Broomes.

“All I have done is transfer a dredge that was in existence for decades. It has nothing to do with a permit… I have done nothing wrong,” the minister declared, adding that she was not responding to any individual attack on her, but rather was just giving clarity to the Guyanese people.

“I think that what is circulating out there at this time it is deliberate attempt to besmirch me,” said Broomes.

The minister who spent some 28 years as a miner said that while her children continue to operate in the mining sector, there is no preferential treatment, rather, her children are “towing the line.”

She noted that should a situation arise which could be deemed a conflict of interest, it will not be handled by her, but will be passed to senior Natural Resources Minister Raphael Trotman.

Broomes boasted that prior to becoming a minister, she maintained a spotless character and it is her intention to continue to maintain that character and leave a legacy of transparency and accountability.

“It is not an easy task but I have committed. I am one of the female ministers that will stand tall and I will not buckle,” she said.

But, while the minister is maintaining there is no conflict of interest since her mining interest are now being handled by her children, many still believe that the fact she is a government minister and more so responsible for the mining sector, it is already a factor that could influence decision in her children’s favour as they remain in the industry.

Some transparency and accountability advocates are maintaining that the minister’s decision to transfer her mining interests to her children does not remove the cloud of conflict of interest, since they are in essence managing her business.

Many say that Broomes seems to be in breach of the government’s highly-touted Code of Conduct for Ministers, Parliamentarians and other public officials, even before its implementation.

The Draft Code of Conduct says that, “a conflict of interest situation arises when the private interests of the public office holder compete or conflict with the interests of the State.”

“Private interests” mean both the financial and personal interests of the official and staff or those of their connections including, family and other relations; personal friends; other companies or business interests which they hold or own (both in part or in whole); other clubs and societies to which they belong; and any person to whom they owe a favour or are obligated in any way.

On Sunday, political commentator Dr Henry Jeffery contended that the only way those concerns can be eliminated is by completely removing the Minister from the Natural Resources Ministry.

“I don’t think Minister Broomes understands clearly what conflict of interest means. I can understand her dilemma being in mining all this time and you know it’s a family business and she is now in the Ministry involved with mining. What she should be asking is for government to remove her from there and put her somewhere else. She could be in another ministry,” Dr Jeffrey stated.

Meanwhile, another political commentator and economist Ramon Gaskin reasoned that Broomes’ decision to transfer her mining operations to her children does not put to rest conflict of interest concerns.

“That doesn’t solve the problem because when the children go into Guyana Geology and Mines Commission (GGMC) to do business, they know that the children’s mother is the minister, so that really don’t solve the problem,” he explained.

Gaskin suggested that the best way to settle the conflict of interest concerns is to set up a blind trust: “You don’t hear from them and they don’t hear from you.

They just running it for you and you have nothing to do with it. That’s how you deal with those kinds of situations. Not by giving it to your children and all that nonsense, that doesn’t solve the problem.”

A blind trust protects an investor from charges of conflict of interest and other improprieties because its specific assets and trading practices are unknown to the investor.

In modern societies, corporate employees and public officials often use blind trusts to avoid charges of insider trading and corruption, respectively.

Despite these allegations against the minister, there has been no official statement from government regarding this issue.