Legal Regulation of Conflict of Interest in Uzbekistan

In the context of modernizing public administration, legal mechanisms for preventing and resolving conflicts of interest have acquired special importance. The adoption of the Law of the Republic of Uzbekistan “On Conflict of Interest” (Law No. ZRU-931 of June 5, 2024) marked an important stage in the institutionalization of anti-corruption policy and the formation of a legal framework to ensure transparency in the activities of state bodies and state-owned organizations. This normative act comprehensively enshrines the concept of conflict of interest, establishes principles, rights, and obligations of participants, and details institutional mechanisms for prevention and resolution.

Article 3 of the Law defines a conflict of interest as a situation in which a person’s personal interest (direct or indirect):

• influences or may influence the proper performance of their official or employment duties;
• leads to an actual or potential contradiction between this interest and the rights and legitimate interests of citizens, organizations, society, or the state.

Thus, a conflict of interest is not always corruption, but rather a condition creating a risk of corrupt behavior.

Personal interest — any benefit or advantage that a public official (or related person) may receive. This may include:

• Material benefit: money, property, shares, stakes in companies;
• Career preferences: promotion, patronage of relatives;
• Intangible benefits: reputation, personal connections, assistance to acquaintances.

Example: an official makes a decision on a public procurement where one of the participants is a company employing the official’s relative.

Types of Conflicts of Interest

Actual Conflict of Interest

• The situation has already occurred;
• Personal gain directly contradicts official duties;
• Example: a public servant signs a lease agreement with their brother’s company.

Potential Conflict of Interest

• There is only a possibility of conflict arising;
• Example: an employee of a state body is a founder of a legal entity that plans to participate in a tender conducted by this body.

Signs of a Conflict of Interest

• Existence of personal interest of the official or their related persons;
• Influence of this interest on the performance of duties;
• Contradiction between private and public interests;
• Possibility of harm to the rights of citizens, state bodies, or society as a whole.

Difference Between Conflict of Interest and Corruption

• Corruption — already an illegal act (bribe-taking, abuse of authority).
• Conflict of interest — a risk situation that may lead to corruption if not resolved in time.

The legislator deliberately distinguishes these concepts to allow preventive risk elimination before an act of corruption occurs.

Subjects and Their Obligations

The law identifies three groups of subjects:

• Employees of state bodies and organizations — must notify of an actual conflict of interest within one business day, refrain from actions in favor of personal gain, and provide information upon request of the special unit.
• Related persons (relatives, affiliated legal entities) — must file a declaration of potential conflict of interest and avoid misrepresentation.
• State bodies and organizations — must maintain a register of conflicts of interest, ensure verification and corrective actions, and publish standard declaration forms.

Institutional Mechanisms

The law details the powers of key structures:

• Anti-Corruption Agency — the specially authorized body coordinating law enforcement practice, approving document forms, and initiating lawsuits.
• Ethics Commissions — internal collegial bodies monitoring compliance, analyzing measures for conflict resolution.
• Special Units — structural divisions for anti-corruption control that analyze declarations, conduct official checks, and prepare reports.

Information Disclosure Mechanisms

The law establishes two key forms:

• Notification of actual conflict of interest, submitted within one day;
• Declaration of potential conflict of interest, submitted annually by employees and related persons.

The collected data are included in a Register, which serves as a monitoring and analysis tool.

Liability and Consequences

The law provides for:

• Administrative fines for failure to report or concealment (from 3 to 30 basic calculation units, depending on severity and recurrence);
• Invalidity of transactions and decisions made in violation of conflict-of-interest rules, with profits transferred to the state budget;
• Possibility of recourse claims against liable persons.

Table of Subjects, Rights, Obligations, and Liability

Subject	Rights	Obligations	Liability
Employee of state body or organization	- Request consultation from special unit; - Provide additional information in declaration; - Exercise rights under labor and anti-corruption law.	- Perform duties in good faith; - Notify of actual conflict within 1 business day; - Avoid personal gain while exercising authority; - Report colleagues’ conflicts; - Provide information upon request.	- Administrative fines (Art. 193⁴ Administrative Liability Code: 3–30 BCUs); - Disciplinary liability; - Possible dismissal or transfer; - Recourse recovery of damages.
Related persons (relatives, affiliated entities)	- Receive free consultation from special unit; - Appeal actions of state bodies related to conflict resolution.	- Submit declaration of potential conflict; - Avoid conflicts for personal benefit; - Provide truthful information.	- Administrative sanctions for false data; - Possible invalidation of transactions.
State bodies/organizations	- Organize ethics commissions and special units; - Encourage exemplary compliance.	- Maintain conflict-of-interest Register; - Publish declaration forms; - Amend or cancel decisions made with conflict; - Conduct checks and ensure compensation for damages.	- Liability for improper resolution (including lawsuits); - Loss of public and state trust.
Ethics Commission	- Review measures for resolution; - Issue conclusions based on checks; - Recommend sanctions.	- Collegially monitor conflicts of interest; - Review appeals of citizens and employees; - Monitor sufficiency of measures taken.	- Liability for inaction or formalism in reviews (including official).
Anti-Corruption Agency	- Request and review information; - Approve standard document forms; - Submit proposals for annulment of decisions or transactions; - Draft protocols for administrative offenses.	- Coordinate state bodies’ activities; - Organize training and methodological guidance; - Ensure recovery of damages.	- Accountability to the President and Parliament for ineffective policy; - Risk of losing trust status.

 

Roadmap for Implementation of the Law

Stage	Actions	Responsible Entities	Timeline / Frequency
1. Organizational	- Establish ethics commissions; - Form special units for conflict resolution.	State bodies, organizations	Ongoing (before law comes into force)
2. Regulatory	- Approve standard forms for declarations and notifications; - Publish them on official websites.	Anti-Corruption Agency, state bodies	Within 6 months before law’s entry into force
3. Educational	- Conduct awareness-raising work among employees; - Train HR and anti-corruption units.	Agency, ethics commissions	Systematically, annually
4. Individual Control	- Employees submit notifications of actual conflicts (within 1 day); - Annual declaration of potential conflict (by January 15).	Employees, related persons	Daily as conflicts arise; annually
5. Analytical	- Special unit analyzes declarations and submits proposals to ethics commission; - Maintain conflict-of-interest Register.	Special unit	Annually by February 15; ongoing
6. Collegial Review	- Ethics commission reviews resolution measures; - Summarizes analysis results every 6 months.	Ethics commission	Semi-annually
7. Law Enforcement	- Submit proposals to annul decisions; - Judicial recognition of transactions as invalid; - Recovery of profits and damages.	Agency, courts, state bodies	As violations are identified
8. Control & Reporting	- Prepare annual compliance report; - Publish on official websites of state bodies.	Special unit	Annually by March 1

Conclusion:

The adoption of the Law “On Conflict of Interest” marks a transition to systemic regulation of this area in Uzbekistan. The document not only introduces new mechanisms of reporting and transparency but also forms an institutional framework for preventing corruption risks. However, the effectiveness of its implementation will depend on practical application: the readiness of state bodies to introduce internal procedures, employees’ discipline in providing truthful information, and the systematic work of the Anti-Corruption Agency.