SIR Malcolm Rifkind today will take up his sixth City directorship despite criticism of a possible conflict of interest.
He has agreed to become non-executive chairman of ArmorGroup, which is the biggest private security company currently working in Iraq.
Sir Malcolm, who has been selected as the Conservative candidate for the safe Tory seat of Kensington and Chelsea, said: ''The work that the company does is of great importance at the moment. It is necessary to provide proper protection for people in dangerous locations. It is the leading company in its field.
A spokesman for the Institute of Directors said: ''It's all about contacts. That's the one thing former cabinet ministers bring to big companies, particularly a former foreign secretary. He's going to be an invaluable asset.''
ArmorGroup has extensive interests in the Middle East and Africa, areas which Sir Malcolm knows well because of his time in the Foreign Office.
The directors also believe their new non-executive chairman will play a vital role in pressing for the creation of a regulatory body for private security firms.
Christopher Beese, director of ArmorGroup, said: ''Sir Malcolm was looking for an appointment consistent with international relations. He understands our industry, particularly because of the directorships he already holds with petroleum companies.
''As a company, ArmorGroup is pushing for greater regulation of the industry. The government has been looking at it closely so we thought it as well for us to have someone with Sir Malcolm's legal understanding and former government perspective who could make the odd contact for us, in terms of regulation and getting things done in government.
Mr Beese said Sir Malcolm would be paid a ''sensible but modest sum'' for the part-time post, which was created for him. Unless the former Edinburgh Pentlands MP is given a cabinet post after the next election, his new colleague did not anticipate he would have to give up the role to represent the safe seat of Kensington and Chelsea.
''I doubt there would be any conflict of interest,'' said Mr Beese.
Asked whether he would relinquish the post if elected, Sir Malcolm said: ''Well, we don't know when the general election is going to be. It could be up to two years from now.
''Obviously, my first responsibility would be to the House of Commons so I'll have to decide when the time comes, but many MPs do have outside interests. I'll have to make a judgment on that when the time comes.''
However, Mike Weir, SNP trade and industry spokesman, said: ''Being an MP should be a full-time job, and Sir Malcolm now has six company directorships. It does raise the question of whether he is serious about prioritising his candidacy in Kensington and Chelsea.
''But aside from that, he faces a clear conflict of interest. He has expressed views on UK government policy in Iraq on behalf of the Tory party, and now also has private commercial interests in the country. Sir Malcolm really must choose one career or the other - if he wants to become an MP, he should not be accepting directorships that place a question mark over his interests and judgment.''
Since losing his Edinburgh Pentlands seat in 1997, Sir Malcolm has become more involved in business. He is a consultant to BHP Billiton, the diversified resources company, and to accountants PwC. He is non-executive director of Ramco Energy, the European gas exploration company and Aberdeen Asset Management - branded ''the unacceptable face of capitalism'' by the Commons Treasury committee after its shareholders lost millions of pounds.
business interests
DIRECTORSHIPS
Alliance Medical Ltd
(chairman)
Ramco Engergy (non-executive director)
F&C Emerging Markets
(Non-executive director)
British Assets Investment Trust (non-executive director)
Aberdeen Asset
Management (non-executive director)
ArmorGroup (non-executive chairman)
CONSULTANCIES
BHP Billiton (diversified resources company)
PwC (accountants)
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