CONFLICT OF INTEREST -- EMPLOYMENT AND FINANCIAL INTEREST STATEMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R001100150035-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: July 5, 2005
• Sequence Number: 35
• Publication Date: July 2, 1975
• Content Type: MF

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M 7
2 July 1975
MEMORANDUIVI FOR: Executive Secretary
Assistant to the Director
Deputy Director for Administration
Deputy Director for Intelligence
Deputy Director for Operations
Deputy Director for Science & Technology
D/DCI/IC
D/DCI/INNIO
Legislative Counsel
Inspector General
Chief, Audit Staff
Comptroller
Administrative Officer, DCI
SUBJECT : Conflict of Interest -- Employment and Financial
Interest Statements
REFERENCE : Memo for same addressees, fm General Counsel
dtd 19 June 1975, Subj: Conflict of Interest
1. Since the referent memorandum was distributed, this Office has
received a number of inquiries concerning whether certain individuals should
file, what form should be used, who should retain the forms, when should the
forms be destroyed and so forth. The purpose of this memorandum is to provide
some guidelines, and where possible, some specific answers to the various
questions raised.
2. With regard to the question of "who should file," referent indicates
that employees paid at a level of the Executive Schedule must file. I will
examine all such statements and send those of the Deputy Directors forward
to the Director of Central Intelligence for his review. '-These statements should
be sent to me marked PERSONAL, CONFIDENTIAL and EYES ONLY. I will retain
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these statements in a similarly marked file. All statements, original. and
supplementary, will be retained for a period of at least one year after the
individual filing the slatements has either left the Agency or no longer holds
an executive position
3. As a suggested rule of thumb', Deputy Directors should consider
having all heads of offices and staffs and their deputies file statements of
employment and financial interest. These statements should be reviewed by
the Deputy or Associate Deputy Director in accordance with referent and
should be retained in the Office of the Deputy Director for a period of at least
one year after the employee leaves the position, unless the individual, transfers
to a similar or is promoted to a higher position. In the Directorate for Operations
and perhaps in the Directorate for Science and Technology, the Chiefs of Support.
of various offices and staffs should, as a suggested rule of thumb, also be asked
to file.
10.735-206(b) (1912L._)
4. Beyond this point, the question of "who should file" rests with you.
An employee paid at the grade of GS-13 or above must file if he or she is in a
position the basic dut=es and responsibilities of which require the exercise of
judgment in making P. Government decision or in taking Government action on
contracting or procurement, administering or monitoring grants or subsidies,
regulating or auditing private or other non-Federal enterprises, or other
activities when the decision or action has an economic impact on the inter. ests
of any non-Federal enterprise. Because of the mission and functions of the
Agency, I am interpreting "non-Federal enterprise" to mean business enter-
prises of any type, partnerships, non-profit organizations and educational
or other institutions whose headquarters are located within the United
States or its possessions and territories. (Any individual filing a statement
must still. list employment and financial interests in non-U.S. organizations
in Part I of the statement.) I have suggested tol t in drafting
a new regulation covering employee conduct and conflict of interest, he should
add a provision whereby an employee assigned to a foreign country is pro-
hibited from engaging in a commercial enterprise of any type located in the
country of assignment. Our employees would be restricted in the same
manner as are State. AID and USIA employees, who may not engage in any
commercial enterprise in the country of their assignment. (See 22 C . F . R .
STAT
STAT
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5. Several individuals have asked if employees who indirectly partici-
pate in decisions having an economic impact on non-Federal enterprises or
who, as part of their assignments, acquire proprietary information, should
also file employment and financial statements. I believe it is prudent to "err
on the side of caution" and ask such employees to file. Therefore, on a staff
such as the IC Staff, employees recommending program decisions or who
ave
f
access to in
- -~ _~~
ormation concerning su d file,
1- 11 - as should, for example the Office
of Finance, or the Offic arc a
14
n
eve_ opment who acquire trade
secrets or commercial or financial information from rr
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t f; t.
f - .* r
p
n
o
V enterprise, etc. , which is not in the public domain and which is given to the
Agency on a privileged or confidential basis. Employees responsible for
contracting, whether for Agency or community programs, should, of course,
file. Deputy Directors may, however, exclude certain of these employees
from filing if they make a determination that their duties are such that the
likelihood of a conflict of interest involvement is remote or that they are at
such a level of responsibility that filing is unnecessary because of the degree
of supervision and review that exists over them (including the consideration
of the inconsequential effect on the integrity of the Government) . I would
appreciate receiving a copy of 'such determinations. (An employee who feels
his position has been improperly designated as one that requires the filing
of a statement is entitled to a review of the requirement under the Agency's
grievance procedure.)
6. 1 suggest that employees designated to file statements who are below
the position of head of an office or staff (or a deputy), should have their state-
ments reviewed and approved by the head of the office or staff concerned. In
certain circumstances, the statements of certain employees may be reviewed by
the Deputy or Associate Deputy Director. The latter procedure may be desirable
where individuals exercise contracting authority or program management
responsibility delegated to them from a Deputy Director.
7. For 1975, employees should continue to use Agency Form 2630 (4-66)
to report employment and financial interests. It is not necessary to have the
form reviewed by an "operating official" but the approving officer should note
the approval date and sign the statement as the "responsible authority." If an
employee does not have information available to him by 31 July, which is
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accurate as of 30 June, he or she should note the name tnd address of the person
who has been asked to supply the information, as well s the type of information
and the date it was requested. Missing information should be reported as soon
as it becomes available.
If there are any further questions, please contact either
or me. Please be assured that I would not at this time he asking for your
personal attention to this matter unless it was important.. I thank you for your
cooperation and for the constructive suggestions we have received.
~JO
CGenera: Counsel
cc: DCI
DDCI
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