Did You Know? Conflict Of Interest

  • Tuesday, April 22, 2025
  • Jerry Summers
Jerry Summers
Jerry Summers

The above term has always been treated lightly by politicians, lawyers, board appointees, etc. and anyone else that might have a direct, or indirect, financial interest in spending (often taxpayers) money for their own benefit has recently been a topic of discussion at the national and local levels.

A quick website review of the phrase produces a variety of definitions that might have some applicability to local and county governments particularly in the areas of 501(c)3 non-profits.

The first known use of the three words was in 1860.

Merriam Webster Dictionary simply defines it as “a conflict between the private interests and the official responsibilities of a person in a position of trust.”

In the City of Chattanooga there are over 40 appointed boards that are nominated and appointed by the mayor and City Council. (The same process is followed by the Hamilton Mayor and County Commission).

(The decision of who to appoint is beyond the scope of this article.)

The appearance of whether a conflict is either a civil, criminal, or ethical violation may depend on several variable factors.

A non-local recent scandal has risen in the field of hockey involving employees of a professional team in the Lone Star State and a youth hockey non-profit organization is one of the latest schemes involving out of town tournaments that required local participants to book hotel/motel rooms for a minimum number of nights without revealing that the employees were also getting part of the proceeds for steering the players (and families) to selective hotels/motels.

In Chattanooga the local newly organized Beer Board faces multiple issues of potential “conflicts of interest” as reported in the March 23, 2025 report by Gail Perry in Chattanoogan.com under the caption “Beer Board Members Discuss Multiple Issues With New Regulatory Setup”.

The legal questions are much wider than just the Beer Board. Each regulatory board and/or commission cannot just be sluffed over by a member recusing or abstaining from voting on a matter where state or federal funding or grants may be involved.

The multiple issues of “conflict of interest”, “appearance of impropriety” and “financial interests of a few allegedly on behalf of a larger sized group” may occur.

The age-old cliché that “it's just politics” also may or may not be applicable.

The effect on taxpayers may justify further scrutiny by the appropriate regulatory or law enforcement agencies?

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If you have additional information about one of Mr. Summers' articles or have suggestions or ideas about a future Chattanooga area historical piece, please contact him at jsummers@summersfirm.com)

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