CONFLICTS OF INTEREST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00154R000100030004-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: January 4, 2017
• Document Release Date: April 10, 2008
• Sequence Number: 4
• Publication Date: June 1, 1982
• Content Type: REGULATION

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I
- This Notice Expires 1 January 1983
PERSONNEL
CONFLICTS OF INTEREST
Field Counterpart: I (dated 1 June 1982
STAT
STAT
1. It is important that Agency personnel be reminded periodically
of their obligation to observe the various conflict of interest laws to
which they are subject as Government employees. Such a reminder is
particularly appropriate in light of a recently filed Securities and
Exchange Commission complaint charging a Navy Department employee with
illegally profiting from "material nonpublic information" which the
employee had access to only through his Navy position. The complaint
alleges that the employee, upon learning that a major Navy contract
was to be awarded to a particular company, purchased 800 shares of stock
in that company. When the contract award was publicly announced, the
company's stock more than doubled in value with a resulting $9,000
profit for the Navy employee.
2. Agency employees should be fully aware that the use of
official information in furtherance of private financial interests is
clearly contrary to law. Agency employees should avoid entering into
financial transactions in reliance upon information, contacts, or
relationships developed through and available only as a result of
Agency employment. The use of such "insider information" for personal
profit adversely affects the confidence of the public in the integrity
not only of the individual employee involved, but also of the Agency
and its mission.
3. In addition to prohibiting the use of "insider information,"
certain other restrictions limit participation by Agency personnel in
matters in which they have a personal or derivative financial interest
(18 U.S.C., Section 208). Section 208 addresses those cases in which
an employee's participation in an Agency matter will have a direct and
-predictable effect upon the financial interests of the employee, the
employee's spouse, dependent children, partner, or an enterprise with
which the employee is affiliated. This provision thus would prohibit
an employee from participating in the award of a contract to a company
in which the individual owns stock. An employee also should avoid
involvement in the administration or evaluation of a company's performance
under a contract to the extent that the individual has a financial
interest or other relationship with that company. Section 208 also
prohibits employees from participating personally and substantially
,in matters in which an organization with which they are negotiating
for or have an arrangement concerning prospective employment has a
financial interest. A waiver of the above prohibitions is available
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1 June 1982
if the Agency determines that the financial interest is too remote or
too inconsequential to affect the integrity of the services which the
Government may expect from the particular individual involved.
4. In addition to the above criminal conflict of interest
statute, Executive Order 11222 prescribes comprehensive standards of
ethical conduct for Federal officials. This order operates essentially
as a compact between the President and the employees of the executive
branch. The order provides that Government employees should avoid
taking any action which may result in or create the appearance of:
a. Using public office for private gain.
b. Giving preferential treatment.
c. Impeding Government efficiency or economy.
d. Losing complete independence or impartiality of action.
e. Making Government decisions outside official channels.
f. Affecting adversely the confidence in the integrity of
the Government.
5. The order sets forth more specific standards with respect to:
a. Gifts, entertainment, and favors.
b. Outside employment.
c. Reporting of financial interests.
d. Use of Government property.
e. Misuse of information.
f. Indebtedness.
Supervisors should ensure that this Agency regulation and handboo are
reviewed periodically by all employees under their supervision. A
continuing dialogue between supervisors and employees concerning
conflict of interest matters is essential to ensure that employees
are collected in
Gambling, betting, and lotteries.
6. The principal conflict of interest prohibitions which apply _
to Agency employees both during and after their Government service STAT
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STAT
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HN 20-1097
avoid becoming involved unwittingly in situations in which an employee's
private financial interests conflict or appear to conflict with the
individual's Agency duties and responsibilities.
7. The Agency's obligation to report to the Department of
Justice possible violations of these conflict of interest laws
further emphasizes the need for continuing education and periodic
review of these prohibitions. For the protection of both individual
employees and the Agency and its mission, Agency employees, especially
those in supervisory positions who review financial disclosure statements,
are encouraged to seek advice from the Office of General Counsel in
any instance in which the application of the above prohibitions is
unclear. Identifying and anticipating potential conflict of interest
problems provide the best means of ensuring that the integrity of the
Agency and its employees is above reproach.
Harry E. Fitzwater
Deputy Director
for
Administration
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