[ 2015-02-20 ]

Analysis: Conflict of interest in new GN Bank Div. One deal?
Is there a potential for conflict of interest in
the newly signed deal between the Ghana Football
Association and GN Bank?

Ghana's Division One League (DOL) kicks off this
weekend under a new sponsorship with a GHS2.1
million ($605,000) sponsorship deal from GN Bank.

The duration of the deal is three years and it
comes as a relief for the 48 clubs. But there have
been murmurings of discomfort - one of those 48
clubs is Elmina Sharks, which is known to be
affiliated to businessman Dr. Paa Kwesi Nduom.

Joy Sports cannot independently confirm that
Sharks operate under Groupe Nduom, which is owned
by the former presidential aspirant.

As part of the agreement with the DOLB, there is a
further GHS 4,500,000 investment that has gone
into TV Production equipment to produce live
coverage, rebroadcast of at least six matches
weekly, highlights and preview shows, Division One
League news and so on.

GN Bank, is also owned by Groupe Nduom which is
why the question of conflict of interest has
arisen. To explore the issue, we first need to
understand how conflict of interest really works.


When does conflict of interest arise?

In simple terms, a conflict of interest situation
arises when one party's responsibility to a
second-party limits its ability to discharge its
responsibility to a third-party.

In this case, Division One fans fear that GN
Bank's relationship with both the DOL and Elmina
Sharks will present a problem. But a closer look
shows that may likely not be the case.

"The fact that a citizen donates a vehicle to a
police station doesn’t mean when he goes
contrary to the law he will not be arrested it has
no bearing," said chairman of the Division One
League Board (DOLB) Owoahene Acheampong in an
interview with Joy Sports.

Owoahene's example may be a tad simplistic, but it
rings true.

Can GN Bank influence decision-making for Sharks?

It is important to note that's for a conflict of
interest to occur here, GN Bank must be in a
position to influence decision-making in the
league.

But are they? Actually, no.

"GN Bank is just a sponsor so per their agreement
with the Division One League Board, their
obligations include paying a certain amount at a
stipulated period to enjoy certain benefits. The
contract does not allow them to make decisions," a
sports lawyer tells Joy Sports.

That is to say, all decisions that have to do with
the league will be handled by the Ghana Football
Association, through the DOLB. Therefore, fans
need not fear that GN Bank's connection to Elmina
Sharks - assuming they even exist - will inhibit
the process of fairness.

Owoahene was at pains to stress this point,
saying: "GN Bank and Elmina Sharks have an
association with Dr. Paa Kwesi Nduom but that does
not establish conflict of interest. I don’t
think it will have a bearing on issues that will
be discussed and the board will be fair to all 48
clubs."

Precedent?
Worried fans have pointed to the existing
situation in the Ghana Premier League where GFA
Kwesi Nyantakyi is the owner of Wa All Stars,
which takes part in the said league.

That situation has been explored before, but the
GFA boss always maintained that he has no hand in
the day to day operations of the team.

To spread the discussion further, football
watchers in Ghana have long complained about the
ease with which officials can corrupt the system
because of the laxity of the rules governing the
game.

For example, in Nyantakyi's case, the statutes of
the FA actually require him to be affiliated to a
club before being in the position he occupies.

"This kind of system engenders corruption so as it
is we simply have to be each other's keeper to
make sure no funny business occurs," says Moses
Asamani, a sports administrator in an interview
with Joy Sports.

Other examples include Moses "Mospacka" Armah, who
owns Medeama Sporting Club and Emmanuel Kyeremeh,
owner of Berekum Chelsea. Both were in top FA
positions while their teams were in the Premier
League.

More fears
Another area where Division One watchers have
feared a potential conflict has been in the
incoming television coverage that accompanies this
deal. The company to do the TV production and
distribution, First Digital, is also associated
with Groupe Nduom.

But again, analysts say there is no need to fear.

"There will only be a problem if First Digital
were in charge of fixtures and allocation of the
broadcast. But that isn't so," the sports lawyer
explains.

Per the terms of the deal, the DOLB will draw
fixtures independently and will consult with the
48 teams on feasilibilty of shooting
games.Therefore, all First Digitial TV will do is
follow the orders of decisions made by the DOLB.

In the part, potential sources of interest have
included coercion of refs to officiate games in
favour of powerful interests as well as fixing of
match schedules to their benefit.

Conclusion
Assuming, without admitting, that GN Bank is in a
position of confict of interest at any point in
time when decisions involving Elmina Sharks are
involved, the bank (or the TV station for that
matter) will be obliged to do two things.

First, disclose this interest to all parties
involved. Secondly, they have to recuse themselves
from any such decision-making process to ensure
fairness.

In short, there's no need to fear.

This year’s DOL will have three Zones made up of
16 clubs each with the three winners of each zone
qualifying automatically into the Ghana Premier
League

Source - MyjoyOnline

... go Back