Section 26 of the Leadership Code Act [CAP 240] provides that a leader must not have or seek a beneficial interest in a government contract, except where such interest is obtained on a transparent, arm’s-length commercial basis, in accordance with the law, and through a legitimate tender process. This applies where one of the parties to the contract is the Government, a statutory body, or a company wholly or partly owned by the Government. The provision is designed to ensure that public resources are managed fairly and without improper influence from those in positions of authority.

This restriction applies to all persons classified as “leaders,” including those holding positions prescribed under Section 5 of the Leadership Code Act and Article 67 of the Constitution. These individuals—such as Members of Parliament, Ministers, and senior public officials—are entrusted with public power and are therefore bound by strict ethical and legal standards. By virtue of holding such offices, they are expected to avoid any situation where personal business interests intersect with public duties.

In effect, Section 26 significantly limits, and in practical terms defeats, a leader’s ability to own or maintain interests in companies that engage in government contracts. While the law allows a narrow exception where dealings are transparent, lawful, and conducted through proper tender processes, the threshold is high. Any undisclosed, preferential, or improperly influenced arrangement would amount to a breach of the Leadership Code.

The purpose of this provision is to prevent conflicts of interest and abuse of office. Leaders are placed in positions where they can influence decisions relating to contracts and procurement. Section 26 ensures that such influence is not used for personal or associated gain, whether directly or indirectly through relatives, associates, or proxy entities.

A breach of Section 26 constitutes an offence and may lead to serious legal consequences, including investigation, prosecution, and penalties under the Leadership Code framework. Ultimately, the section reinforces the principle that leadership is a public trust, requiring those defined under Section 5 of the Act and Article 67 of the Constitution to separate their private business interests from their public responsibilities.