ON THE STATUS OF MILITARY PERSONS
Shackley F. Raffetto
Article 10, Paragraph 7 of the Federal Law Acts Prohibited for Military Members
This provision generally prohibits the misuse of military position or property by RF
military members. The provision does not, by its terms, require disclosure of conflicting
economic interests or prohibit ownership of passive interests in businesses. In the US,
there is an elaborate statutory and regulatory framework intended to prohibit and
regulate government ‘ethics’ or misuse of position or property by civilian officials and
military members. Central to the US regulatory scheme is a requirement that certain
high level officials and officers file annual written disclosures of their financial holdings
(shares of stock, mutual funds, bonds, etc.) in the private (civilian) sector.
These disclosures are reviewed and compared with a list of companies that do business
with the government/military and if a conflict of interest is revealed, it is addressed by the
officer either disposing of the interest or by his disqualification from participation in the
particular government/military activity or transaction. The disclosure requirements and
restrictions are most stringent for those civilian officials and military officers whose
official duties involve the procurement of goods or services for the government/military.
This scheme also serves as a method to guide and advise officials/military members
who may have unknowingly acquired a conflicting interest in a private enterprise.
Paragraph 7 of the law prohibits ownership through ‘trustees’, but does not appear to
deal directly with the issue of ownership by military personnel of shares of stock or these
types of passive interests in commercial enterprises.
Expanding Paragraph 7 of the law to include such passive investments and require
disclosure of privately held investments may be very helpful in preventing corruption or
at least avoiding conflicts of interest. In the US approach, the laws are designed to
prevent even ‘the appearance of impropriety’ in the carrying out of duties by civilian
government and military officials, because even the ‘appearance’ of misconduct (even
though none exists) undermines public trust and confidence in the government/military.
As the market economy in the RF expands the opportunity for investment by public
officials and military members in enterprises operating within the ‘military-industrial
complex’ and doing business with the government/military will increase substantially. A
carefully drafted and enforced ‘ethics’ (anti-corruption) law might be very helpful in
further promoting the rule of law and fighting corruption.