Transparency & Disclosure

This summer, several New Jersey local government officials were arrested in a big FBI sting operation (see my blog post). Yesterday, an ethics audit focused on development practices was released. Requested by the Jersey City council, it was written by three members of a New Jersey law firm.

Update: November 20, 2009 (see below)

An article on the Texas Watchdog website focuses on a serious loophole in the Texas gift disclosure policy, which applies to local government officials. Section 176.003(a-1) of the Local Government Code (Title 5, Subchapter C) states:

It's always nice to see politicians provide evidence for the argument that ethics self-regulation doesn't work, but it's rare for it to happen in so public a way as occurred yesterday. According to an article in Roll Call, Rep. John Carter (R-TX), "the point man for Republicans seeking to strip Ways and Means Chairman Charlie Rangel (D-N.Y.) of his gavel," did not disclose large profits from a sale of Exxon stock, even after Roll Call contacted him about the omission a year ago.

A central dispute in the first group of charges brought against Maricopa County Supervisor Don Stapley involved whether he was required to disclose properties held by a company he owned, as long as he listed the company among his assets. Stapley felt this was not required.

Government ethics policies sometimes clash. The most common clash involving ethics commissions is with transparency laws.

Who should pay for a lack of government transparency, the officials keeping the secrets or the citizens who lack access to information?

As it is now, in most jurisdictions, when a complaint is made under a freedom of information/sunshine (FOI) act or ordinance, either local government attorneys represent the respondent or the respondent is compensated for reasonable legal fees. In effect, the complaint is treated as if it were filed against the local government rather than against the official.

Applicant disclosure is an effective part of local government ethics that is usually ignored. Usually it is officials who are required to disclose potential conflicts of interest, either in the form of annual disclosure statements, revised when circumstances change, or in the form of announcements that they have a potential conflict and are withdrawing from involvement in a matter.

Thanks to Texas Watchdog, "an independent, nonpartisan entity [that] serves as a government watchdog and training center where reporters, bloggers and activists of any stripe learn how to uncover waste, fraud and corruption in state and local governments," the financial disclosure forms of Houston's council members are now available online.

A report worth reading was recently published by the OECD: Self-Regulation and Regulation of the Lobbying Profession. Its focus on European countries provides a valuable complement to American lobbying regulation. Below is a condensed version of the report's executive summary: