NGO Conflict of Interest in Zimbabwe

As a general rule, Non-Governmental Organisations (“NGOs”) in Zimbabwe should maintain a robust conflict-of-interest policy. Most NGOs walk a tightrope in their daily operations regarding their ethical conduct in relation to donor funds. Most donor-funded contracts or grants contain general conditions of contracts in respect of which NGOs are required to demonstrate that they are able and will be able to follow, adhere, and comply with procurement procedures. This includes retaining proof of the procedures followed, such as tendering documents, bids from tenderers, and evaluation reports.

Persons employed or engaged by NGOs in Zimbabwe must as a general rule disclose a conflict of interest even where no formal conflict-of-interest policy is explicitly laid down. The High Court of Zimbabwe in Young Africa Zimbabwe v Mukurazita HH 69-22 at page 22 held that:

“In her evidence and her closing submissions, the defendant claimed that no conflict of interest policy existed, and accordingly the claim was incompetent. I disagree with this submission for the following reasons. Firstly, the defendant signed her conflict of interest statement more than a year before the KPMG audit was carried out. By voluntarily making that statement in the absence of a policy, assuming none was in place, the defendant clearly acknowledged that she was aware of her duty not to be conflicted in transactions involving her company and the plaintiff.”

A conflict of interest involving NGOs is one which would likely affect adversely the relationship between an NGO and a donor or partner in respect of which one is regarded as a related party. The conflict usually tends to suppress the knowledge obtained as a result of instructions given by one party, which knowledge if withheld from the preferred will no doubt work to the other’s prejudice or vice versa. NGOs must therefore at all costs proactively manage and avoid conflicts of interest.