Daily Archives: February 16, 2014

Legal Versus “Personal” Conflicts of Interest


Conflict of interest?In May, 2013, I wrote my thoughts about Ontario’s Municipal Conflict of Interest Act and the effect it had on the governance and procedural behaviour of municipal councillors. Back then, I wrote,

The Act allows no grey areas: there are no “perceived” conflicts in law, only clearly defined legal ones. This is obviously intended by the stringent wording that lays out what construes a conflict of interest.

This clarity absolves everyone of trying to second guess the intention of the Act, or trying to interpret degrees of conflict.

For the MCOI Act, only pecuniary – i.e. financial – conflicts matter: only they have to be declared; only they affect procedure and governance. And only the person and his or her direct family – parents and/or children – are involved. Siblings or other relatives, friends and coworkers are not considered to present a conflict:

Indirect pecuniary interest
2. For the purposes of this Act, a member has an indirect pecuniary interest in any matter in which the council or local board, as the case may be, is concerned, if,
(a) the member or his or her nominee,
(i) is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public,
(ii) has a controlling interest in or is a director or senior officer of, a corporation that offers its securities to the public, or
(iii) is a member of a body,
that has a pecuniary interest in the matter; or
(b) the member is a partner of a person or is in the employment of a person or body that has a pecuniary interest in the matter. R.S.O. 1990, c. M.50, s. 2.
Interest of certain persons deemed that of member
3. For the purposes of this Act, the pecuniary interest, direct or indirect, of a parent or the spouse or any child of the member shall, if known to the member, be deemed to be also the pecuniary interest of the member. R.S.O. 1990, c. M.50, s. 3; 1999, c. 6, s. 41 (2); 2005, c. 5, s. 45 (3).

Last week at our Feb. 10 council meeting, in his report to council, Collingwood’s Integrity Commissioner, Robert Swayze, proposed changes to two sections of the town’s Procedural Bylaw. The proposed change to section 13.7 would add a clause for “personal conflict” to the bylaw, and I address that below. I’ll deal with the changes to section 13.8 in a subsequent post.

In his report, Mr. Swayze said,

In my opinion, all members of Council should be encouraged to declare a conflict, whether pecuniary or not, if the member feels that he or she cannot be impartial in voting on a matter. If for example, a member sits on the board of directors of a charity and awarding grants to the charity is before Council, the Councillor should declare a conflict, refrain from voting and such a declaration should not be deemed to be a vote against the charity. I have recommended in Appendix “D” that personal conflicts be added to section 13.7 and that 13.8 be deleted from the Procedural By-law.

In his oral presentation, he said that other municipalities had included similar “personal conflict” conditions in their own governance regulations. I did some research into those regulations this past week.

Mississauga has the term in its procedural bylaw, I found, but it lacks a firm definition of the term, leaving it open to individual interpretation. The other references I’ve found are in codes of conduct or policy statements.

I’m troubled by the potential pitfalls of implementation as presented, rather than the intent, and argue below that the appropriate place for such terms is in the town’s Code of Conduct.

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