B-141322, DEC. 22, 1959

B-141322: Dec 22, 1959

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TO THE SECRETARY OF THE AIR FORCE: WE HAVE RECEIVED ALLEGATIONS THAT THE ACTIVITIES OF LIEUTENANT GENERAL K. BRING HIM WITHIN THE PURVIEW OF STATUTORY PROVISIONS PROVIDING FOR THE FORFEITURE OF RETIRED PAY FOR A PERIOD OF TWO YEARS AFTER RETIREMENT IN THE CASES OF RETIRED OFFICERS OF THE UNIFORMED SERVICES WHO ARE ENGAGED IN ACTIVITIES CONNECTED WITH THE SALE OF SUPPLIES OR WAR MATERIALS TO CERTAIN AGENCIES OF THE GOVERNMENT. PUBLIC HEALTH SERVICE FOR A PERIOD OF TWO YEARS AFTER RETIREMENT WHO FOR HIMSELF OR FOR OTHERS IS ENGAGED IN THE SELLING OF OR CONTRACTING FOR THE SALE OF OR NEGOTIATING FOR THE SALE OF TO ANY AGENCY OF THE DEPARTMENT OF DEFENSE. IDENTICAL PROVISIONS ARE CONTAINED IN SECTION 1409 OF THE SUPPLEMENTAL APPROPRIATION ACT.

B-141322, DEC. 22, 1959

TO THE SECRETARY OF THE AIR FORCE:

WE HAVE RECEIVED ALLEGATIONS THAT THE ACTIVITIES OF LIEUTENANT GENERAL K. B. WOLFE, USAF, RETIRED, IN THE COURSE OF HIS EMPLOYMENT BY OERLIKON TOOL AND ARMS CORPORATION OF AMERICA FOLLOWING HIS RETIREMENT FROM THE AIR FORCE ON JUNE 30, 1951, BRING HIM WITHIN THE PURVIEW OF STATUTORY PROVISIONS PROVIDING FOR THE FORFEITURE OF RETIRED PAY FOR A PERIOD OF TWO YEARS AFTER RETIREMENT IN THE CASES OF RETIRED OFFICERS OF THE UNIFORMED SERVICES WHO ARE ENGAGED IN ACTIVITIES CONNECTED WITH THE SALE OF SUPPLIES OR WAR MATERIALS TO CERTAIN AGENCIES OF THE GOVERNMENT.

SECTION 1309 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1952, 65 STAT. 757, PROVIDES:

"NO PAYMENT SHALL BE MADE FROM APPROPRIATIONS IN THIS ACT OR ANY OTHER TO ANY OFFICER ON THE RETIRED LISTS OF THE REGULAR ARMY, REGULAR NAVY, REGULAR MARINE CORPS, REGULAR AIR FORCE, REGULAR COAST GUARD, COAST AND GEODETIC SURVEY, AND PUBLIC HEALTH SERVICE FOR A PERIOD OF TWO YEARS AFTER RETIREMENT WHO FOR HIMSELF OR FOR OTHERS IS ENGAGED IN THE SELLING OF OR CONTRACTING FOR THE SALE OF OR NEGOTIATING FOR THE SALE OF TO ANY AGENCY OF THE DEPARTMENT OF DEFENSE, THE COAST GUARD, THE COAST AND GEODETIC SURVEY, AND THE PUBLIC HEALTH SERVICE ANY SUPPLIES OR WAR MATERIALS.'

IDENTICAL PROVISIONS ARE CONTAINED IN SECTION 1409 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1953, 66 STAT. 661.

IN SUPPORT OF THE ALLEGATIONS, WE WERE FURNISHED CERTAIN DOCUMENTS. AMONG SUCH DOCUMENTS IS WHAT PURPORTS TO BE A COPY OF A LETTER DATED APRIL 10, 1953, FROM "JAMES H. DOUGLAS" TO GENERAL WOLFE IN REPLY TO A LETTER FROM HIM INQUIRING AS TO AIR FORCE INTEREST IN OERLIKON ARMAMENT PRODUCTS. A COPY OF THAT DOCUMENT IS ENCLOSED.

IT IS ALLEGED THAT UPON BEING ADVISED AGAINST CONTACTING THE AIR FORCE ABOUT PROCUREMENT CONTRACTS FOR TWO YEARS FOLLOWING RETIREMENT, GENERAL WOLFE SAID HE HAD "SPECIAL DISPENSATION" FROM THE SECRETARY OF DEFENSE. IN SUCH CONNECTION, WE NOTE THAT AS EARLY AS JUNE 18, 1948, AIR FORCE REGULATION 30-30 PROVIDED FOR THE SUBMISSION IN CERTAIN CASES OF AN AFFIDAVIT FOR THE PURPOSE OF DETERMINING WHETHER A PARTICULAR EMPLOYMENT WOULD VIOLATE THE POLICY REFLECTED BY OTHER STATUTORY PROVISIONS DESIGNED TO PREVENT NON-FEDERAL EMPLOYMENT ACTIVITIES OF RETIRED OFFICERS IN CASES WHERE A CONFLICT OF INTEREST COULD BE INVOLVED. IT MAY BE THAT SUCH AN AFFIDAVIT WAS SUBMITTED BY GENERAL WOLFE AND HIS CLAIMED SPECIAL DISPENSATION REFERS TO A CLEARANCE BASED UPON SUCH AFFIDAVIT.

WE ARE REQUIRED, OF COURSE, TO MAKE A DETERMINATION AS TO GENERAL WOLFE'S RETIRED PAY RIGHTS DURING THE PERIOD INVOLVED; AND IN VIEW OF THE ABOVE- QUOTED STATUTORY PROVISIONS AND THE INTEREST OF THE COMMITTEE ON ARMED SERVICES, HOUSE OF REPRESENTATIVES, IN THE AREA HERE INVOLVED, WE BELIEVE YOU WILL AGREE THAT THIS CASE SHOULD BE FULLY INVESTIGATED AND CAREFULLY CONSIDERED IN ORDER TO INSURE A PROPER DETERMINATION OF THOSE RIGHTS. ACCORDINGLY, IT IS REQUESTED THAT EITHER WE BE FURNISHED COPIES OF ALL CORRESPONDENCE AND DOCUMENTS IN THE AIR FORCE FILES CONCERNING GENERAL WOLFE'S EMPLOYMENT BY OERLIKON AND HIS CONTACTS WITH THE AIR FORCE IN THE INTEREST OF OERLIKON PRODUCTS DURING THE 2-YEAR PERIOD BEGINNING AUGUST 1, 1951, THE DATE ON WHICH WE UNDERSTAND HIS OERLIKON EMPLOYMENT BEGAN, OR THAT SUCH CORRESPONDENCE AND DOCUMENTS BE OTHERWISE MADE AVAILABLE TO US. IN ADDITION WE SHOULD BE ADVISED OF THE SUBJECT MATTER OF ANY KNOWN PERSONAL CONTACTS OR CONFERENCES BETWEEN GENERAL WOLFE AND OFFICIALS OF THE AIR FORCE OR OTHER DEPARTMENTS OF THE DEPARTMENT OF DEFENSE RELATING TO PROCUREMENT OR PROSPECTIVE PROCUREMENT DURING THAT PERIOD. SEE GENERALLY 38 COMP. GEN. 470, 473; B-140581, NOVEMBER 9, 1959, 39 COMP. GEN. -; AND GEORGE H. SEASTROM V. THE UNITED STATES, C.CLS. NO. 220-57, DECIDED NOVEMBER 4, 1959. ALSO, WE WOULD APPRECIATE AN EXPRESSION OF YOUR VIEWS ON THE CASE.