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Agricultural Trade: Cooperator Conflict of Interest Regulation Needs Strengthening

NSIAD-91-217 Published: May 22, 1991. Publicly Released: May 22, 1991.
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Highlights

Pursuant to a congressional request, GAO reviewed whether the U.S. Department of Agriculture's (USDA) conflict-of-interest regulation for the Cooperator Foreign Market Development Program, and the restructuring of the Purebred Dairy Cattle Association's International Marketing Development Council (IMDC) effectively addressed conflict-of-interest situations for individual exporters.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FAS, as part of the plans to strengthen the conflict-of-interest prohibition, to specifically provide that any firm, organization, or individual involved in approved Cooperator Foreign Market Development Program activities shall not improperly use the activities to promote private self-interests or conduct private business.
Closed – Implemented
The Secretary of Agriculture has directed the Administrator, FAS, to strengthen the conflict-of-interest prohibition.
Department of Agriculture To ensure that cooperators effectively implement the conflict-of-interest regulation, since the current regulation does not specifically address sanctions for noncompliance by members, the Secretary of Agriculture should direct the Administrator, FAS, to require that the cooperators establish: (1) appropriate internal controls to ensure that members of cooperators comply with the regulation; and (2) procedures specifying sanctions when members do not comply. These sanctions should include withholding member reimbursement for expenses and declaring members ineligible for continued participation in the program.
Closed – Implemented
Guidelines reflecting this change are being converted to regulations, which were finalized.

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Topics

Agricultural industryCommodity marketingConflict of interestsEthical conductExport regulationExportingInternational trade regulationLivestock productsAgricultural tradeLivestock