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