Current Event Group 8 Mohamed Ibrahim Suleiman What is conflict of interest? Conflict of interest is not between conflicting interests only, but it is more about when a personal interest comes into conflict with an obligation to serve other’s interests. This type of ‘obligation’ is characterized by a relation between an (agent) who agrees to act in the interest of the (principal), for example- among fiduciaries, such as executors and trustees.
The subject matter: The subject matter regarding the conflict of interest topic is Egypt’s ex-housing minister Mohammed Ibrahim Suleiman and Magdi Rasekh- the father-in-law of Alaa Mubarak- were found guilty of squandering public funds, profiteering and illegally seizing a large swath of land.
In a 50-page report the ACA (Administrative Control Authority) has accused Suleiman of allocating eight plots of land to his son Sherif, his daughter Dunia and his wife Mona in the New Cairo district of Tagammu Al-Khamis in “violation of the new communities law which allows just one plot of land to be allocated per 600 metres to each member of his family only to subsequently increase it to 2,000 and 4,500 metres”, (Al-Ahram). Another main conflict of interest issue is Suleiman allocation of four plots of land in east Cairo’s Golf Heights district to his family. Each member of his family bought the land for LE250 a meter though just three months later Suleiman ordered that plots of land in the Golf village be priced at LE1,000 a meter. His actions constitute the misappropriation of public property and profiteering,” said the report. “Members of Suleiman family, after paying just LE250 per meter for the land, sold it shortly afterwards to private real estate investors for LE1,000 a meter. The ACA report also says Suleiman did the same in the northern Mediterranean resort of Marina and the southern Cairo district of Tagammu Al-Khamis, where 20 plots of land were allocated to his brothers-in-law and their sons at just LE250 per meter. Suleiman is also accused of aiding wealthy businessmen, MPs and cabinet ministers to secure large plots of land in exclusive real estate developments in New Cairo, Sheikh Zayed, 6 October and Sherouq. “Suleiman also sold 1,500 feddans to Mohamed Hassan Dora, a real estate development investor, in 1994, but Dora has refused to pay the purchase price,” alleges the report.
However, in return, Dora “bought a villa in the North Cairo resort of Qanatir Al-Khairiya for LE10 million from one of Suleiman’s relatives. ” Suleiman is accused of facilitating the purchase of a hotel, a cinema and a bowling centre in Marina by “the same businessman to whom he allocated 300 feddans in Tagammu Al-Khamis, charging him just LE250 per meter”. The ethical problem: Is it ethical for Suleiman to distribute lands to businessmen, members of his family and relatives?
Is it any how right or acceptable for Suleiman to transfigure his obligation from maximizing the state treasury profits by selling these land plots through public auctions to allocating lands for his personal interests in violation of the law? Analysis Cost Benefit analysis: Costs| Benefit| He will lose the public confidence and may be punished for his actionsHe may lose his position as the housing ministerHe may resemble a bad image for the governmentHe was sentenced to eight years in prison for corruption.
A fine of 2 billion pounds| Increase his own and family’s wealthOwn lands throughout the country that has been bought at low pricesAs he allocated an estimated 10,000 square meters of land to his immediate family| The Public Costs| Benefit| They were forced to buy lands at high costs for the personal gain of the housing minister. The land that should have been for the public has been traded at low costs. | Raising ethical awareness towards similar cases that happen everyday|
Stake holders analysis: Ibrahim Suliman * He lost his reputation and his Position as a Housing Minister. * He was sentenced to eight years in prison and a fine of 2. 18 billion Pounds. The Public * They were forced to buy lands at high prices for the personal gain of Ibrahim Suleiman. * Their rights were abused by their housing minister due to the fact that the land that should have been distributed to the public was sold for the personal interest of Ibrahim Suleiman. The Government Other officials in the government will be under pressure. * Each action taken by the government will be monitored by the people. * Such corruption would undermine the legitimacy of government and such democratic values as trust and tolerance. Ethical Question Was it ethical for Ibrahim Suleiman As a housing Minister to benefit from his position by giving land to his family at low prices? Utilitarianism: The action is only right when it produces a greater pleasure over pain.
Although ibrahim Suleiman has gained a huge benefit from such acts,he was held liable for his mistakes. Thus the right action for a person in his position was to disregard his personal interests and stick to his duty as a housing minister. Kantianism: Kantianism theory argues that one should do the right thing regardless the consequence. The “right thing” here is that Ibrahim Suleiman as a housing Minister was to do his duty as an official by serving the public and not using his power for a personal interest. Recommendations
The government has already lost its credibility and has been labeled as a corrupt government, that’s why it should give the people of Egypt the idea that it’s no longer corrupt and that the revolution marked a birth of a new government. In order to create that new image, Swift decisions should be made. In order to prevent such abuse of power from happening again, the government should form an investigating committee of a group of people mainly responsible for monitoring the actions of the people of high positions in the country to avoid the abuse of the power of certain individuals.
Moreover, Swift decisions should be made by the new government in order to retain its image and credibility as to enforce the law on Ibrahim Suleiman and all the people of the past regime who broke the law in order to serve as an example for what’s next and to insure that the law will not be broken. Works Cited: Boatright, John. ”Ethics and the Conduct of Business”. Seventh Edition. Pearson. El-Din, Gamal Essam. “Suleiman Defends Himself. ” Al-Ahram Weekly. Al-Ahram, 18 – 24 Feb. 2010. Web. 12 Nov. 2012. Mohamed Mahmoud. “Former Egyptian Minister Faces Corruption Charges | Al-Shorfa. ” Al-Shorfa. com. Al-Shorfa, 2 Mar. 2010. Web. 11 Nov. 2012
