Fed Health Regulators at Risk of Conflict of Interest
Byline: Jim McElhatton, THE WASHINGTON TIMES
Inspectors are warning that federal health regulators are in danger of unwittingly violating conflict of interest laws because of a lack of documentation on conflict of interest waivers.
Under federal ethics rules, employees aren't supposed to participate in matters in which they have a financial interest, including recent employment, grants and stock ownership. But in some instances, employees can receive a special waiver if officials decide the need for the employee's services outweigh potential conflict of interest issues.
However, the Office of Inspector General for the Department of Health and Human Services (HHS) in a report released this week said more than half of the 50 waivers they randomly reviewed from 2009 lacked the recommended documentation.
Some waivers didn't describe the employees specific financial interest, for example. And although not required, several of the conflict of interest waivers were not dated or signed by the employee.
The inspector general's office said the lack of signatures was especially troubling.
If these employees are not aware of their waivers or do not clearly understand them, they may violate the criminal conflict of interest statute by participating in prohibited matters, officials wrote in the report.
What's more, the report stated, If waivers are not documented so that the public understands the employees' conflicts of interest and their effect on the employees' official government duties, the public may question the integrity of the employees' service to the government.
The inspector general's office also said that if employees don't sign their ethics waivers, it becomes harder for authorities to hold them accountable for participating in matters that run afoul of conflict of interest rules. …