78 



JUN 29 1992 



MEMORANDUM TO: 



FROM: 



SUBJECT: 



FRANK DeGEORGE 

 Inspector General 



FREDERICK PINCIARO 

 Assistant Inspector 



r General for Investigations 



NORTH PACIFIC FISHERY MANAGEMENT COUNCIL 



Anchorage, Alaska 



National Oceanic and Atmospheric Administration 



CONFLICT OF INTEREST MATTERS 



92DN5-3766 



INTRODUCTION 



North Pacific Fishery Manaaenient Council 

 Inshore/Offshore Preference Issue 



We initiated this investigation upon the receipt of allegations 

 that certain voting and staff members of the NORTH PACIFIC 

 FISHERY MANAGEMENT COUNCIL (NPFMC or the Council) violated 

 conflict of interest laws and regulations. The allegations 

 revolved around the inshore/offshore preference issue (I/O) 

 before the Council. This issue involved a proposal by the NPFMC 

 to amend the Bering Sea/Gulf of Alaska Groundfish Plans by 

 allocating pollock and Pacific cod between inshore and offshore 

 processing interests. The amendment is controversial because it 

 would transfer a large portion of the total allowable catch from 

 at-sea processors (mainly based in Washington State) to shoreside 

 processors in Alaska. 



Allegations 



We investigated the activities of five individuals. It was 

 alleged that RONALD E. HEGGE and OSCAR DYSON, two voting members 

 of NPFMC, violated conflict of interest statutes when they 

 participated in the deliberations and voted in favor of their 

 personal financial interests on the I/O amendment. 



It was also alleged that (^^■^^■^■^^i^HH^^HHHHI^i^^^^ 

 two former staff mergers of NPFMC, violated post employment 

 conflict of interest statutes when they accepted employment with 

 LGL Alaska Research Associates, Inc. (LGL) , a consulting firm 

 located in Anchorage. Further,^iBifc was said to have 

 participated in the I/O amendment at the Council after 

 negotiating for employment with LGL . The ame ndment was thought 

 to have a financial effect on LGL. ^■■■Kwas said to be given 

 preferential access to Council information while at LGL and to 

 have helped the staff prepare for discussions on the I/O issue. 



'jY^ 





