Resolution Trust Corporation: Better Assurance Needed That Contractors Meet Fitness and Integrity Standards
GGD-93-127
Published: Jul 26, 1993. Publicly Released: Jul 26, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the Resolution Trust Corporation's (RTC) administration of its fitness and integrity and conflict-of-interest policies for business contractors and outside legal counsel.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Resolution Trust Corporation | To better ensure that contractors meet RTC fitness and integrity requirements, the President and Chief Executive Officer, RTC, should require background checks for major legal contractors who contract with RTC. This requirement would be consistent with the requirement for major business contractors. |
Closed – Implemented
RTC's Office of Contract Oversight and Surveillance and its legal division have developed procedures for conducting background checks of major legal contractors. Additional staff are being hired and trained to conduct the background checks. The RTC General Counsel approved the new program's procedures on August 30, 1994. On September 30, 1994, these procedures were implemented by RTC's Division of Legal Services.
|
| Resolution Trust Corporation | To better ensure that contractors meet RTC fitness and integrity requirements, the President and Chief Executive Officer, RTC, should ensure that checks are being completed as required by developing internal controls to track contractors who should receive background checks. |
Closed – Implemented
RTC staff now regularly review reports on newly issued contracts to determine whether background investigations have been completed as required by RTC procedures. This was not done prior to GAO recommendations.
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Topics
Conflict of interestsContract administrationContractorsEthical conductFinancial institutionsLawyersManagement information systemsProgram abusesRisk managementService contracts