Advisory Opinion No. 1993-9
Advisory Opinion No. 1993-9
Application Of
The Codes Revolving Door Provisions
To An Entity Employing The
Former
State
Treasurer
Former State
Treasurer Francisco L. Borges resigned from his
public office, effective March 1, 1993,
to become Managing Director of Public Finance at Financial Guarantee Insurance
Corporation (FGIC), an insurer of state and municipal bonds.
Connecticut
has rarely utilized such bond insurance, because the States own ratings are,
in general, high enough to negate any potential benefit. However, the State is currently considering a
financing for the Unemployment Compensation Fund which might well benefit, in
terms of credit rating, from such insurance.
Due to the size of the contemplated financing (approaching
one billion dollars) it is anticipated that there will be only three potential
bidders for the issue, one of which would be FGIC. Although the bond insurer would be selected
on a competitive bid basis, there is generally some negotiation regarding terms
and conditions after the selection is made.
The current State Treasurer, Joseph M. Suggs, Jr., has asked
the State Ethics Commission whether, considering former Treasurer Borges
senior affiliation with the Corporation, FGIC may bid on the bond issue in
question; and, if so, what steps should be taken to avoid a conflict, or the
appearance of a conflict, of interest?
As the State Ethics Commission has previously held, the Code of
Ethics Post-State Employment provisions, Conn. Gen. Stat. §§1-84a and b, are,
in general, personal to the former State official or employee, and do not
extend to his or her private employer.
State Ethics Commission Advisory Opinion No. 89-13, 50 Conn.
L.J. No. 46, p. 1C (May 16, 1989). As a consequence, FGIC may, with propriety,
bid for and be awarded the work in question.
As mandated by the Code, however, Mr. Borges
may not, for one year after separation from State service, represent his
current employer regarding the bid, negotiations, or any other matter, before
his former agency, i.e., the Office of the Treasurer. Conn. Gen. Stat. §1-84b(b). Additionally, in order to insure that one
does not benefit from an activity otherwise prohibited by the Code, Mr. Borges may not receive any portion of the fee or other
compensation obtained by his employer as a result of its representation before
the Treasurers Office during the proscribed one year period. State Ethics Commission Advisory Opinion No. 89-13,
supra.
By order of the Commission,
Christopher T. Donohue
Chairperson