[Lnc-business] Potential conflicts of ineterest

[Geoffrey Neale]

This is an ill-defined section of our Policy Manual.  The Bylaws do not
specify conflicts of interest at all.  Neither does the Platform.

 

So why is it in the Policy Manual?  The authority for us to set rules that
constrain the LNC is contained in the Bylaws under Section 8.1:

 

"The National Committee shall have control and management of all the
affairs, properties and funds of the Party consistent with these Bylaws. The
Libertarian National Committee shall establish and oversee an organizational
structure to implement the purposes of the Party as stated in Article 3. The
National Committee shall adopt rules of procedure for the conduct of its
meetings and the carrying out of its duties and responsibilities. The
National Committee may delegate its authority in any manner it deems
necessary."

 

It is important for us as a body to avoid the appearance of impropriety.
When it comes to conflict of interest, we are expected to act on behalf of
the best interests of the LP, and to not act in a way that benefits us
personally, or benefits the interests of outside groups, organizations or
business at the expense of LP interests.

 

In order to avoid the appearance of impropriety in this regard, I feel we
should each disclose any relationship that could be questionable, even if
the individual actions related to the potential conflict of interest are
not.  In my opinion, this means that if you are an officer or board member
of an affiliate party, or are an officer or a board member of another
organization with an ongoing relationship with the LP, or are a vendor, or
are married to someone with a similar relationship, or receive income or
benefit from any of the above, the potential conflict of interest should be
reported.

 

This does not mean that you do have a conflict of interest.  I know for a
fact that HQ purchases items from a company owned by an LNC member, but that
the purchases are at "arms-length", and the LNC has not, to date, discussed
or voted on these specific expenditures.  These are made by staff, who have
selected to use this vendor through a competitive process where the member
played no part.  For this member to vote on a budget line from which the
purchases are made does not represent a conflict of interest, but it should
be reported.

 

If you sit on the board of Advocates for Self-Government, and staff
routinely purchases items from them, that does not represent a conflict of
interest, but you should report this as a potential conflict of interest.
If we vote directly to purchase $10K of material, I suggest you recuse
yourself from debate and voting.

 

If we vote to budget $300K for ballot access, and your state might receive
some of these funds, I do not believe you have a conflict of interest.  Now
let's suppose Bill Redpath proposes an encumbrance of $20K for your state,
and you're the state chair.  This is a conflict of interest, and I would
expect you to recuse yourself from debate and voting on the motion.

 

In absence of any real guidance in the Policy Manual, I'm setting out what I
think.  In the absence of real guidance, I will have to rule on instances
like this.  Please feel free to challenge me if and when it comes up. 

 

Remember that it's all about managing the appearance of impropriety.

 

Geoffrey Neale

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