How Officials’ Business Interests will be Scrutinised: Dismissal and Prison Terms in New Bill

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A draft bill prepared by the Ministry of Justice provides for the creation of a powerful independent oversight body to monitor the professional activities of office‑holders, with sanctions ranging from dismissal to imprisonment for violations.

The legislation is titled the Law on the Control of Incompatibility of Duties and the Taking Up of Employment in the Private Sector by Officials and Others of 2026. Its stated aim is to create an effective monitoring mechanism for officials’ professional activities, prevent conflicts of interest between public duties and private interests, safeguard transparency and integrity in public administration, and protect the public interest by regulating post‑service employment in the private sector for former officials, judges and public servants.

The new three‑member committee will replace two existing bodies, one responsible for checking incompatibilities during an official’s term and the other for approving employment in the private sector after the end of a term. The new framework strengthens the committee’s independence, enhances enforcement powers and allows for penalties including dismissal from office and prison sentences for those found to have violated the law.

Former judge to chair the committee

The committee’s chair must meet the qualifications required for appointment as a judge of the Supreme Constitutional Court or the Supreme Court. The remaining members will be the Auditor General of the Republic or a senior official of the Audit Office at grade A15, and a public prosecutor or senior counsel of the Republic.

The chair and members will be appointed by the Council of Ministers for a five‑year term, renewable once. Decisions will be taken by simple majority. The committee will be staffed by public servants and will also be able to procure services from the private sector.

Officials subject to oversight

The bill lists a wide range of office‑holders whose professional activities will be subject to scrutiny during their term of office and for the first two years after it ends. These include the President of the Republic; the Speaker of the House; ministers and deputy ministers; members of parliament; the government spokesperson and deputy spokesperson; the governor and deputy governor of the Central Bank; the Auditor General and Assistant Auditor General; the chair and members of the Public Service Commission and the Educational Service Commission; the chair and members of the Police Complaints Authority; the chair and members of the Competition Authority; the Commissioner for Transparency and members of the Anti‑Corruption Authority; the chair and members of the Tenders Review Authority; the director of the Office of the President and the director of the Press Office of the President; the chair and boards of semi‑state organisations; commissioners, assistant commissioners, regulators and registrars; chairs of district local authorities; mayors, deputy mayors and municipal councillors; and chairs and members of community councils.

Prohibited business activities

Throughout their term of office, the above officials will be barred from participating in or holding senior management positions – including chair, board member, director, chief executive or deputy – in companies, cooperatives, joint ventures or businesses that submit bids to or enter into contracts with the state, the wider public sector, legal persons governed by public law, or state and semi‑state companies.

They will also be prohibited from holding positions as chair, board member or director in public or private companies, as well as legal persons governed by public law, that operate in electronic or print media. The bill clarifies that the incompatibility does not apply to municipalities, communities or district authorities that establish or participate in non‑profit companies or foundations.

Declarations and penalties

Officials must declare any incompatibility to the committee within fifteen days of their election or appointment. No one will be allowed to assume office unless they first submit a written commitment to resign from, divest or terminate, within a reasonable period, the relationship or activity giving rise to the incompatibility.

Failure to declare an incompatibility constitutes lawful grounds for the appointing authority to revoke or terminate an appointment. Refusal or failure to appear before the committee is a criminal offence punishable, upon conviction, by up to one year’s imprisonment or a fine of up to €10,000, or both.

Submitting false or inaccurate information to the committee carries penalties of up to three years’ imprisonment or a fine of up to €30,000, or both.

Restrictions on private sector employment and lobbying

Former officials, judges and senior public servants will be prohibited from taking up private sector employment for two years after leaving office unless they obtain written approval from the committee. The committee must decide on such applications within two months, guided by the public interest, taking into account factors such as previous dealings with the prospective employer and access to sensitive information.

Taking up private sector employment without permission, or securing approval through false statements, will constitute a criminal offence punishable by up to three years’ imprisonment or a fine of up to €30,000, or both.

The bill also introduces a two‑year ban on lobbying activities for former officials following the end of their term, retirement or dismissal from service.