Following investigative reports by the News & Observer, WRAL-TV, and Carolina Journal over the mysterious firing of former Deputy State Treasurer Patricia Gerrick, the Office of State Treasurer announced several changes in ethics policy regarding department employees.
Under the Dome reports the changes are:
* Two-year revolving door ban: The treasurer, senior executive staff
and key investment division staff are prohibited from doing business with the treasurer’s office for two year years after they leave employment.* Disclosure of third-party reimbursements: Requires the treasurer, senior executive staff and key investment officers disclose third party-reimbursements for travel.
* Travel Policy changes: Prohibits third party reimbursements from a contractor or investment manager doing business with the state,
requires full disclosure of reimbursements for all employees and moves approval and retention of all travel records to the Financial
Operations office.* Placement Agency policy: Requires full disclosure of external investment managers to disclose the names of placement agents as well
as any fees paid to those agents.
The new policies do not cover charitable contributions solicited by Treasury Department employees from people connected with firms dealing with the state’s pension fund. This concern was highlighted in this Carolina Journal exclusive. As the story noted, other states limit the amount of donations that can be given at the request of a board member, employee, or officer of a public pension fund by anyone doing business with that pension.
The new policy does not address these potential conflicts of interest, so it looks like there’s more work to do.
