Conflicts of Interest Go Beyond Financial Benefits to Officials

Many local government ethics codes define a conflict of interest as existing only when an official stands to receive a financial benefit from his or her action or inaction. But real and perceived conflicts exist even when there is no financial benefit to an official. Important examples include benefits to relatives and business associates, where the official only benefits indirectly, while others benefit directly.

According to an article in the Indianapolis Star yesterday, the mayor, city attorney, and communications director of Carmel (IN) all sat on the board of the town's Performing Arts Foundation, which gets lots of money from the city. A council member filed an ethics complaint, and the city's ethics board dismissed the complaint because the officials themselves received no financial benefit.

The most interesting and valuable part of the article is what the council member said:

Accetturo said he knew the ethics ordinance's limitations before he filed his complaint, but he thought it was important to express his concerns anyway. "You just cannot separate yourself when you're sitting on both sides of the fence in regards to transactions," Accetturo said.

Accetturo lost his case, but proved a point. For now, two of the three officials are still on the foundation board. But perhaps the council will consider re-defining a conflict of interest.

Robert Wechsler
Director of Research-Retired, City Ethics

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