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FEDERAL REGULATIONS
Discussion
VHA Handbooks 1200.17 and 1400.2 provide that “all corporation board members,
officers, and employees are subject to federal statutes and regulations
applicable to federal employees with respect to
conduct and conflicts of interest (emphasis added)." Applicable Federal
statutes and regulations include:
Although the NPC authorizing statute and its legislative history specify only
conflicts of interest, VA General Counsel has determined that NPC board members,
officers and employees meet the definition of a federal employee for purposes of
conduct and therefore are subject to federal conduct regulations as well as
conflicts of interest in the performance of their duties. The definition of a
federal employee can be found at 5 U.S.C. part 2105
http://www4.law.cornell.edu/uscode/5/2105.html.
NPC officers, directors and employees must certify that they are aware of and in
compliance with federal conduct and conflicts of interest statutes and
regulations. However, the federal rules provide that employees must report
potential conflicts to their supervisors who will presumably step in to manage
the situation. Unfortunately, this is often impractical when it comes to NPC
boards. Therefore,
NAVREF strongly recommends that NPC boards adopt a conflict of interest
policy that requires annual disclosure and provides a process for managing
potential conflicts.
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