Post-Government Employment Restrictions and Foreign Agent Registration: Additional Action Needed to Enhance Implementation of Requirements
Published: 2008-07-30T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: Congress has enacted post-government employment restrictions and foreign agent registration requirements with the objectives of protecting the U.S. government against the improper use of government information by former federal employees and ensuring the American people know the identity of persons trying to influence U.S. government policy in the United States on behalf of foreign entities. This report discusses (1) the extent to which selected agencies have information on the post-government employment activities of former senior federal employees who represent foreign principals and (2) the challenges the agencies face in enforcing these requirements. We reviewed federal ethics guidance, laws, and other documents, and interviewed officials at the Departments of State and the Treasury, the U.S. Agency for International Development and the U.S. Trade Representative.
section_title: What GAO Found
paragraphs: Executive branch agencies are not required to and do not collect and maintain information on the post-government employment activities of former senior federal employees who represent foreign principals. Post-government employment restrictions prohibit former senior federal employees from engaging in certain activities, such as lobbying or other advocacy communications, for a specified period of time after leaving federal service. The agencies we reviewed undertake a variety of activities, including providing training and advice, to promote compliance with the restrictions. The Foreign Agents Registration Act (FARA) requires that all persons in the United States working as agents of a foreign government, foreign political party, or other foreign principal disclose to the Department of Justice (Justice) such connections as well as the activities they perform on behalf of such principals in the United States. Justice provides information on FARA registration requirements to the public. It also collects information on all entities that register with Justice as foreign agents. However, the registration information does not identify individuals who are former senior federal employees. Nevertheless, of the nearly 8,000 senior federal employees who left government service between calendar years 2000 and 2007, we identified 29 who registered as foreign agents and engaged in activities that ranged from promoting tourism to lobbying on behalf of foreign principals such as the governments of Argentina and Saudi Arabia. This number may not include all former senior federal employees who represent foreign entities because individuals engaged in exempted activities under FARA, such as diplomatic, commercial, and legal activities, and those registered under the Lobbying Disclosure Act, are not required to register. The agencies we reviewed face information, legal, and resource challenges in promoting compliance with the post-government employment restrictions and monitoring FARA. One challenge is inconsistent documentation of advice provided to senior federal employees on post-government employment restrictions. While agencies document information such as ethics training courses given, subject matters covered, and counseling services offered, they do not consistently keep records of what advice was given to specific employees. The Office of Government Ethics (OGE) has encouraged the executive branch agencies to document such advice. For example, a 2005 OGE memorandum to all designated agency ethics officials discussed the advantages of documenting advice and offered suggestions on when to document ethics advice. Documentation of advice is useful for proving intent, which can help to prosecute violations of the restrictions. In addition, a lack of clear legal authority and a lack of resources have been cited by Justice as barriers to increased monitoring of FARA compliance. For example, Justice officials said the department does not have clear legal authority to inspect the records of persons that it believes should be registered and that the department does not have the authority to require advance written notification from persons claiming to be exempt from FARA requirements. Without advance written notification, Justice has no way of knowing whether persons exempting themselves should in fact be registered.

section_title: Letter
paragraphs: Congress has enacted specific post-government employment restrictions  designed to protect the U.S. government from the improper use of  government information or other undue influence by former government  employees. The restrictions prohibit federal employees from engaging in  certain activities, such as lobbying or other advocacy communications, for  a specified period of time after leaving federal service. For example, the  restrictions include a ban, for 1 year, on all senior and very senior  employees of federal agencies, Members of Congress, and congressional  staff from performing certain representational or advocacy activities on  behalf of a foreign government, before any U.S. government official, with  the intent to influence a decision of the government official. The Office of  Government Ethics (OGE) and executive branch agencies have  implemented regulations and procedures to inform employees about the  restrictions. Individuals who violate the restrictions are subject to  administrative, civil, or criminal penalties.
In addition to these laws and other lobbying disclosure requirements, such  as the Lobbying Disclosure Act of 1995 as amended, Congress has enacted  the Foreign Agents Registration Act (FARA) to ensure that the U.S.  government and the American people are informed of the source and  identity of persons engaging in representational activities or otherwise  trying to influence U.S. government policy on behalf of foreign entities.  FARA requires anyone—including all individuals, not just former federal  employees—representing foreign principals in certain activities to register  with the Department of Justice (Justice) and file forms outlining their  agreements with, income from, and expenditures on behalf of the foreign  principal. FARA provides certain exemptions to registration, such as for  diplomatic or humanitarian activities. Persons who engage in such  activities on behalf of a foreign principal are not required to notify Justice  they are claiming an exemption.
Our past work has found problems with the U.S. government’s  implementation of these laws. For example, in 1980 Justice officials stated  that as a result of improperly taken exemptions, Justice believed that there  were more active agents than those registered. Also, according to Justice  then and now, exemptions, such as those allowed for commercial and  legal activities, were broadly written and fostered differing interpretations.  In addition, Justice stated that some changes could be made to improve  enforcement of FARA, such as providing Justice with subpoena power for  use in cases of suspected unregistered agents. In 1990, we reported that  Justice had not implemented a 1980 GAO recommendation to seek  authority to (1) give the Justice Department additional enforcement  measures, including administrative subpoena powers, and (2) require  individuals to submit written notification of all exemption claims prior to  engaging in the representation of a foreign principal. In 1991, Justice  sought to obtain such authority; however, the l991 legislation was not  passed.
In response to your request, we examined efforts by OGE, Justice, and  four agencies involved in international activities to enforce post- government employment restrictions on former senior federal employees  who represent foreign principals. This report discusses (1) the extent to  which these agencies collect and maintain information on the post- government employment activities of these officials and (2) the key  challenges the agencies face in enforcing post-government employment  restrictions and FARA requirements.
To accomplish the first objective, we analyzed OGE guidance and other  documents on post-government employment restrictions and Justice rules  and regulations on FARA, and interviewed OGE and Justice officials. We  also interviewed officials at selected executive branch agencies that work  on issues directly related to bilateral relations, including the Departments  of State (State) and the Treasury (Treasury), the U.S. Agency for  International Development (USAID), and the Office of United States Trade  Representative (USTR), and analyzed documents at those agencies to  understand how the agencies notify employees of post-government  employment restrictions. We also reviewed the procedures used by  Justice’s Registration Unit to identify and address unregistered agents. To  identify the number of senior-level federal officials who registered as  foreign agents after leaving government service between calendar years  2000 and 2007, we obtained a list from Justice of all individuals registered  as foreign agents during those years, and provided these names to the  Office of Personnel Management (OPM) to match against all executive  branch senior federal employees in its Central Personnel Data File  (CPDF). To accomplish the second objective, we reviewed past and  proposed legislation and other documents describing agency regulations,  policies, and procedures and interviewed OGE, Justice, State, Treasury,  USAID, and USTR officials. We conducted our work from September 2007  to June 2008 in accordance with generally accepted government auditing  standards. Those standards require that we plan and perform the audit to  obtain sufficient, appropriate evidence to provide a reasonable basis for  our findings and conclusions based on our audit objectives. We believe  that the evidence obtained provides a reasonable basis for our findings  and conclusions based on our audit objectives.
subsections: section_title: Background
paragraphs: In 1962, the U.S. government enacted conflict of interest laws that were  designed to protect against the improper use of government information  by former employees, as well as to limit the potential influence that a  financial arrangement may have on current federal officials when dealing  with prospective private clients or future employers while still in  government service. Among other requirements, the post-government  employment restrictions permanently prohibit former federal employees  from representing a private company or organization before any federal  agency on particular matters involving specific parties, which they  personally and substantially handled while working for the federal  government. The law also restricts former federal employees from  representing anyone before the official’s former agency for defined  cooling-off periods that vary according to the former official’s involvement  and seniority. For example:    Former personnel may not represent their new employer before their  former agency on matters that were pending under their official  responsibility in their last year of service, with the intent to influence any  communication with the agency for 2 years after leaving government  service.
Former senior-level officers and employees may not contact their former  agency with the intent to influence any matter on which the person seeks  official action by the agency for 1 year after leaving the agency.
Former senior and very senior federal employees, as well as former  members of Congress and their staff, are prohibited from representing,  aiding, or advising foreign entities with the intent to influence a decision of  an official of an agency or department, the President, the Vice President,  or Members of Congress for 1 year after leaving the position.
FARA requires all persons in the United States working as agents of a  foreign government, foreign political party, or other foreign principal to  disclose to Justice such connections, as well as the activities they perform  on behalf of such principals in the United States. FARA was designed to  ensure that the U.S. government and the American people are informed of  the source of representational activity in the United States and the identity  of persons attempting to influence U.S. public opinion, policy, and laws.
Under FARA, a person is considered an agent of a foreign principal when  the person acts in any capacity at the order or request or is under the  control, supervision, or financing of the foreign principal, and engages in  the following within the United States:    political activities for or in the interest of the foreign principal;    public relations, information-service employment, or political consulting  for or in the interest of the foreign principal;  fundraising, collecting, or disbursing of money or things of value for or in  the interest of the foreign principal; and  representing the interests of a foreign principal before any agency or  official of the U.S. government.
FARA requires individuals engaged in the listed activities to file a  registration statement, which collects detailed information on the  registrant and the activities he or she will perform on behalf of the foreign  principal listed. Additionally, foreign agents are required to file a  supplemental statement every 6 months for the duration of the foreign  principal-agent relationship, providing updated information on the agent’s  activities. According to Justice, a statement is “detailed” within the  meaning of the Act when it has the degree of specificity necessary to  permit meaningful public evaluation of each of the significant steps taken  by the registrant to achieve the purposes of the foreign principal-agent  relationship. Certain activities, such as humanitarian, commercial, and  legal activities, are exempt from FARA. Individuals and organizations  engaging in such activities on behalf of a foreign entity are not required to  register with Justice. Appendix II provides detailed definitions of the  various exemptions. For individuals who willfully violate FARA  requirements, Justice may pursue criminal and civil penalties, such as  imprisonment and fines. According to Justice, it has prosecuted one  violation of FARA since 1990.
section_title: Agencies Promote Compliance with Post-Government Employment Restrictions and Foreign Agent Registration Requirements
paragraphs: The agencies (State, Treasury, USAID, and USTR) we reviewed are not  required to and generally do not collect and maintain information on and  monitor the post-government employment activities of persons who leave  government employment, including former senior government employees  who represent foreign entities. The agency officials described a variety of  activities they use to inform senior employees of the post-government  employment restrictions. Justice collects and maintains information on all  individuals who register with the department as foreign agents, but this  information does not identify registrants who are former senior federal  employees. We were able to identify 29 former senior federal employees  who registered as foreign agents between 2000 and 2007.
subsections: section_title: Agencies Are Not Required to and Do Not Collect or Maintain Information on Post-Government Employment Activities
paragraphs: We found that agencies do not collect or maintain information on the post- government employment activities of former senior employees because  they are not required to do so. While the agencies we reviewed provided  training and advice on the post-government employment restrictions, none  monitored or maintained information on the post-government employment  activities of former senior employees. OGE and agency officials explained  that they are not required to monitor such activities, although such  information might be useful for identifying potential violations. As  previously mentioned, we identified 29 former senior employees who left  government service and registered as foreign agents under FARA between  2000 and 2007. Our review of the registration information indicates that 6  former senior federal employees were registered as agents of foreign  principals during the 1-year cooling off period required by the post- government employment restrictions. However, the scope of our review  did not include assessing compliance with the post-government  employment restrictions by any of the 29 former senior federal employees  who registered as foreign agents.
section_title: Post-Government Employment Compliance Efforts
paragraphs: The executive branch promotes compliance with post-government  employment restrictions through agency ethics-in-government programs,  which are guided by OGE, a separate executive branch agency. Executive  branch departments and agencies are required by law to have programs to  implement provisions of the Ethics in Government Act of 1978, including  reviewing and filing financial disclosure forms, implementing a program to  educate employees on ethics standards, keeping records, and taking action  when the standards are violated. OGE is responsible for providing overall  direction to executive branch policies related to preventing conflicts of  interests on the part of officers and employees of any executive agency. It  carries out these responsibilities by, among other things, providing  educational materials and training, developing executive branch ethics  program policies and regulations, interpreting laws and regulations,  assisting agencies in legal and policy implementation, and recommending  changes in conflicts of interest and ethics statutes. The individual agencies  are responsible for the day-to-day administration of their own ethics  programs. The agencies we met with described a variety of activities they  use to inform senior employees of the post-government employment  restrictions, such as conducting training programs, disseminating  information on internal Web sites, and providing information to departing  employees.
All of the agencies provide ethics orientations for new senior employees,  which may include discussions of post-government employment  restrictions.
All of the agencies offer annual ethics training for senior employees,  although post-government employment restrictions are not covered  annually.
Some agencies offered or plan to offer training on post-government  employment restrictions in 2008 in anticipation of senior officials leaving  government service because of the change in the administration. For  example, Treasury began its mandatory training on the post-government  employment restrictions to all political appointees in 2008, and State plans  to update its internal Web site.
In addition, officials at all of the agencies we met with stated that post- government employment restrictions are discussed with departing senior  employees as part of the close-out procedures that occur when an  employee leaves the agency. For example, departing senior employees at  Treasury complete a checklist that certifies that they have reviewed the  post-government employment restrictions. Finally, all of the ethics  officials we met with said their agencies provide advice to current and  former employees in response to specific requests. Executive agencies  also are required by regulation to provide written notification to senior  executives of personnel actions affecting their coverage under 18 U.S.C. §  207(c), including notification that they are subject to restrictions on  representing, aiding, or advising foreign entities. The written notice must  include information on the specific penalties for violating the post- employment laws, and must also indicate that these employees are subject  to the restrictions on representing, aiding, or advising foreign entities  found at 18 U.S.C. 207(f).
section_title: Justice Collects and Maintains Information on Entities That Register as Foreign Agents, and Promotes Voluntary Compliance with FARA
paragraphs: Justice collects and maintains information on all entities that register with  the department as foreign agents; however, this information does not  identify individuals who were former senior federal employees, and  Justice is not required to do so. FARA requires all persons working on  behalf of a foreign principal to file a statement with Justice’s Registration  Unit. These statements collect information such as the individual’s name,  address, year of birth, nationality, name and address of the primary  registrant they work for, and current occupation. Further, the statement  asks registrants to list all foreign principals to which they will render  services in support of the primary registrant, as well as a detailed  description of services they will provide on behalf of the foreign principal.  These statements do not, however, ask individuals about their previous  employment status.
Justice promotes voluntary compliance with FARA primarily through its  public Web site. The Web site provides an overview of FARA, an index and  text of the FARA statute, a link to the FARA regulations, answers to  frequently asked questions, information on fees and related statutes, a  public feedback portal, and downloadable FARA public disclosure forms.  Justice’s Registration Unit also offers guidance and assistance to  prospective registrants by issuing formal advisory opinions on whether  individuals need to register and by conducting private meetings with  potential registrants. In addition, Justice officials said they answer  inquiries from agency ethics officers on FARA requirements and provide  information on FARA registration and reporting requirements for federal  employees to ethics officers from every agency. Further, Justice officials  said the Registration Unit regularly provides general guidance concerning  registration requirements to the Senate Foreign Relations Committee,  other House and Senate committees, and various governmental agencies,  including the Federal Bureau of Investigation, the Department of  Homeland Security, and the Central Intelligence Agency.
Moreover, Justice officials said the Registration Unit is proactive in  identifying potential registrants. In an effort to do so, Justice’s Registration  Unit reviews publications such as Congressional Quarterly; monitors the  Lobbying Disclosure Web site; and acts on tips provided from various  sources. Justice officials estimated that, between January 2004 and May  2008, the Registration Unit identified approximately 130 individuals or  firms it believed may have an obligation to register as foreign agents under  FARA; the unit subsequently sent these entities letters requesting  information that would enable the unit to determine whether the entities  had to register. As of May 22, 2008, the Registration Unit had received  approximately 25 registrations as a result of these letters; the remaining  entities were either determined not to have an obligation to register or are  still being reviewed.
section_title: Few Former Senior Federal Employees Registered as Foreign Agents between 2000 and 2007
paragraphs: By matching FARA and OPM data, we identified 29 former senior federal  officials who left U.S. government service between 2000 and 2007 and  registered as foreign agents with Justice. However, this number may not  include all former senior federal employees who represent foreign entities  because individuals engaged in certain activities who may be exempted,  including those registered under the Lobbying Disclosure Act, are not  required to register with Justice. The 29 registrants we identified engaged  in activities that included the promotion of trade, lobbying, policy  consulting, and public relations on the behalf of foreign principals such as  the governments of Argentina, China, Indonesia, Saudi Arabia, and the  Kurdish Democratic Party of Iraq. For example, a former Treasury senior  employee advised and assisted the government of Argentina on economic  restructuring issues, and worked to develop U.S. government and  international financial institution support for providing economic and  financial assistance to Argentina. In another example, a former U.S.  Department of Transportation senior employee provided government  relations services to the Royal Embassy of Saudi Arabia. According to the  description of services on the agent’s statement, the agent specifically  worked to defend and advance the country’s international trade interest  before the U.S. government when Congress and the executive branch were  enacting and executing laws, policies, and administrative decisions that  could benefit or harm the country’s relationship with the United States.  Appendix III provides a description of the activities performed by the 29  former senior federal officials on the behalf of foreign entities.
section_title: Agencies Face Information, Legal, and Resource Challenges
paragraphs: The agencies we reviewed face information, legal, and resource challenges  in promoting compliance with post-government employment restrictions  and in enforcing and monitoring the registration requirements of FARA.  For example, while the ethics officials provide guidance and information  to employees on post-government employment restrictions, they do not  consistently document specific advice provide to senior federal  employees. The Inspector General officials we met with said that  documentation of specific advice on post-government employment  restrictions provided to senior federal employees can assist the agencies  to prove intent to violate the post-government employment restrictions. In  addition, Justice officials have cited a lack of clear legal authority and a  lack of resources as barriers to monitoring compliance with FARA  registration requirements.
subsections: section_title: Information-Related Challenges
paragraphs: An OGE best practice described in its 2004 ethics program review  guidelines is for agencies to establish a written policy defining when to  keep records of advice. In addition, OGE has encouraged the executive  branch agencies to document such advice. For example, a November 17,  2005, OGE memorandum to all designated agency ethics officials  discussed the advantages of documenting advice and offered suggestions  on when to document ethics advice. For example, it stated that the more  senior the official, the more important it is to create written  documentation. Several of the officials we met with discussed the  importance of documenting advice. For example, to prevent conflict of  interest violations between federal employees discussing future  employment with one of its contractors, USAID entered into a written  agreement with the contractor that requires the contractor to first obtain a  written ethics opinion from an agency ethics official. In addition, some  defense contractors require former senior Department of Defense (DOD)  employees to provide ethics advice letters from their ethics officials to  determine if their employment with a specific contractor is permitted  under the post-government employment restrictions. Moreover, under a  provision of the National Defense Authorization Act for Fiscal Year 2008,  defense contractors may not knowingly compensate former DOD officials  who are subject to post-government employment restrictions without first  determining that the official has sought and received a written ethics  advice opinion from DOD within 30 days of seeking the opinion. DOD has  to retain each request and written opinion provided in a central database  for 5 years.
The agencies document information such as ethics training courses given,  subject matters covered, and counseling services offered to employees.  However, despite the 2005 memorandum from OGE, we found that the  agencies we reviewed did not consistently document specific advice given  to specific employees regarding post-government employment restrictions.  In response to complaints from federal employees that ethics officers were  not providing written ethics advice, OGE sent an e-mail to over 2,500  ethics officials in 2008 reemphasizing to them the importance of  responding to requests for written ethics advice and referring them to the  2005 memorandum for additional guidance. State, Treasury, and USAID  Inspector General officials and an official of Justice’s Criminal Division  told us that the lack of consistent documentation of specific advice given  to departing and former senior federal employees on post-government  employment restrictions presents a challenge to enforcing post- government employment restrictions and FARA. OGE officials also stated  they receive comments from agency Inspectors General expressing  concern about the lack of consistent documentation of ethics advice. The  Inspector General officials we met with said documentation of specific  advice on post-government employment restrictions provided to senior  federal employees can assist the agencies to prove intent to violate the  post-government employment restrictions; however, this advice is not  consistently documented. Certain civil and criminal penalties available  under the post-government employment laws require that the violation of  the law be knowing or willful, as opposed to a lesser standard such as  negligence. Proving intent is one of the most significant barriers to  prosecuting cases, according to an official of Justice’s Criminal Division.  Inspector General officials at one of the agencies we reviewed described a  situation in which a former employee engaged in activities that he was  specifically told were prohibited. The government had detailed  documentation of the advice provided to this individual, and it used the  documentation to demonstrate willful intent to violate the law and  successfully prosecute the violation.
section_title: Legal and Resource Challenges
paragraphs: Justice officials cite a lack of clear legal authority and a lack of resources  as barriers to increased monitoring of FARA compliance. First, the law  does not provide Justice with specific authority to inspect the records of  persons that it believes should be registered and to require advance  written exemption notifications. In July 1991 testimony, Justice’s Deputy  Assistant Attorney General for the Criminal Division stated that the  department supported requiring individuals who use either legal or  commercial exemptions to notify the Attorney General. In 1991, Justice  sought such authority but was not successful because the proposed  legislation was not passed by Congress. Without such authority, Justice  states that it cannot inspect the records of persons it suspects should be  registered as agents of foreign principals or collect information to help  Justice better identify persons who should be registered as foreign agents.
Second, Justice cited resources limitations as a barrier to monitoring  FARA compliance, including any new requirements, such as reviewing  exemption notifications. Specifically, the number of staff resources in  Justice’s FARA Registration Unit has significantly declined over the last 17  years from 13 (9 professional and 4 administrative) in 1990 to 8 (6  professional and 2 administrative) in 2008. Nonetheless, this unit remains  responsible for (1) identifying unregistered agents, (2) ensuring that agents  file reports on time, (3) rendering advisory opinions interpreting the Act,  (4) reviewing reports to ensure proper form and completeness, (5)  requesting report corrections when errors are found while processing  registration forms, and (6) conducting inspections of registrants’ records.  According to the Chief of the FARA Registration Unit, requiring advance  written notification of exemptions would shift the focus of the unit’s  limited resources from those who are required to register to those who are  not.
section_title: Conclusions
paragraphs: While collecting and maintaining information on the post-government  employment activities of former senior federal employees is not required,  several agency officials have acknowledged that having certain  information could enhance the enforcement of post-government  employment restrictions. Establishing a written policy defining when to  keep records of advice is an OGE best practice, and OGE has made efforts  to emphasize to agencies the importance of documenting ethics advice.  Documentation of specific advice on post-government employment  restrictions provided to senior federal employees can help the agencies to  prove the intent element needed to prosecute violations of the post- government employment restrictions. Additionally, such information could  be useful to senior officials leaving federal government who seek  employment during the transition of administrations, such as the  upcoming 2009 change in administration. We have previously  recommended that Justice require advance written notification of certain  FARA exemptions before agents can begin to engage in the exempted  activity. We continue to believe that such a requirement could improve  program administration. For example, through other methods, such as  monitoring news articles to identify and scrutinize potential registrants,  Justice has identified persons engaging in nonexempt activities on behalf  of foreign principals. However, Justice officials said the department does  not have clear legal authority to inspect the records of persons that it  believes should be registered or to require advance written notification by  persons engaging in exempt activities. Without advance written  notification, Justice has no way of knowing whether persons exempting  themselves should in fact be registered.
section_title: Matter for Congressional Consideration
paragraphs: To enhance Justice’s ability to ensure that the American people know the  identity of persons trying to influence U.S. government policy in the  United States on behalf of foreign entities, Congress may wish to consider  (1) granting the Department of Justice civil investigative demand authority  to inspect records of persons Justice believes should be registered as  foreign agents and (2) requiring persons claiming certain exemptions to  provide advance written notification to Justice before engaging in the  exempt activities.
section_title: Recommendations for Executive Action
paragraphs: To enhance executive branch enforcement of the post-government  employment restrictions, we recommend that the Director of the Office of  Government Ethics strongly encourage agency ethics officials to  implement the suggested actions described in the November 2005 OGE  memorandum and its subsequent 2008 reminder to designated agency  officials on documenting ethics advice, and also encourage agency ethics  officials to work closely with their Inspectors General to ensure that this  information is shared when needed.
section_title: Agency Comments and Our Evaluation
paragraphs: OGE and Justice provided written comments on a draft of this report,  which are reproduced in appendixes IV and V, respectively. OGE and  Justice generally agreed with our findings, conclusions, and  recommendations. OGE stated that it had made several efforts recently to  impress upon agencies’ ethics officials the importance of documenting  ethics advice when practicable. Justice said that the GAO report is useful;  however, it could not say at this time whether GAO’s suggested revisions  to the FARA statute would be helpful in addressing the articulated  concerns or the extent to which they actually might compromise FARA  enforcement efforts. Justice provided no information on how expanded  authority might compromise FARA enforcement efforts. Also, Justice said  that it would look forward to working with Congress if it chooses to move  forward with legislation. Our report notes that in a July 1991 testimony,  Justice’s Deputy Assistant Attorney General for the Criminal Division  stated that the department supported requiring individuals who use either  legal or commercial exemptions to notify the Attorney General to achieve  greater compliance with registration requirements. In addition, in 1991,  Justice sought such authority but was not successful because the  proposed legislation was not passed by Congress. We maintain that  Congress consider the proposed legislative changes to enhance Justice’s  ability to ensure that the American people know the identity of persons  trying to influence U.S. government policy. Justice, State, Treasury,  USAID, and USTR also reviewed a draft of this report for technical  accuracy. OGE, Justice, State, and Treasury provided technical comments,  which we incorporated into the report as appropriate.
We are sending this report to other interested Members of Congress and to  the Secretaries of State and the Treasury, the Attorney General, the  Directors of the Office of Government Ethics and the U.S. Agency for  International Development, and the U.S. Trade Representative. We will  also make copies available o others upon request. In addition, the report  will be available at http://www.gao.gov.
If you or your staff have any questions about this report, please contact me  at (202) 512-4128 or fordj@gao.gov. Contact points for our offices of  Congressional Relations and Public Affairs may be found on the last page  of this report. GAO staff who made contributions to this report are listed  in appendix VI.
section_title: Appendix I: Scope and Methodology
paragraphs: To determine the extent to which the U.S. government collects and  maintains information on the post-government employment activities of  former senior federal employees who represent foreign entities, we  analyzed Office of Government Ethics (OGE) guidance and other  documents on post-government employment restrictions. We analyzed  Justice Department (Justice) rules, regulations, and procedures for  administering, monitoring, and enforcing the Foreign Agents Registration  Act (FARA) and interviewed officials in Justice’s Registration Unit. We  also interviewed officials at OGE, the Departments of State (State) and the  Treasury (Treasury), the U.S. Agency for International Development  (USAID), and the Office of United States Trade Representative (USTR)  and examined documents at those agencies to understand how the  agencies notify employees of post-government employment restrictions.  We analyzed documents related to violations of the post-government  employment restrictions and interviewed Office of Inspector General  officials at State, Treasury, and USAID to determine how the agencies  enforce the restrictions. We initially included State, Treasury, USAID, and  USTR in our scope because these agencies work on issues directly related  to country bilateral relations and were thus likely to have former senior  employees registered as foreign agents. We subsequently analyzed  employment information on the 29 foreign agents that we identified who  were former senior federal employees to determine if any additional  executive branch agencies had large numbers of former employees  registered as foreign agents. Most of the agencies had 1 or 2 such  individuals. Therefore, we did not include any additional agencies in our  review.
To identify the number of senior-level federal officials who registered as  foreign agents after leaving government service between calendar years  2000 and 2007, we obtained a list from Justice, which contained 4,113  names, of all individuals registered as foreign agents during those years.  We provided these names to the Office of Personnel Management (OPM)  to match against all executive branch senior federal employees in its  Central Personnel Data File (CPDF). As computerized name matching can  be difficult because of inconsistent use or spelling of titles, first names,  middle names and initials, hyphenated names, and suffixes between  different data sets, we asked OPM to make their initial match as broad as  possible, so that we could manually check a broad range of potential or  near matches. OPM provided us with a list of 183 individuals (of the nearly  8,000 senior employees who left government service between 2000 and  2007) containing both exact and near matches. In addition, we received  descriptive information on each of the 183 individuals, including date of  birth, year of departure from federal service, and former federal agency.
We manually reviewed the 183 names and eliminated 139 of them that  clearly were not matches, for example, ones where the last name was spelt  differently, or the first name was completely different. This procedure  narrowed the list to 44 individuals. Finally, we obtained the registration  statements for all 44 individuals from the FARA Registration Unit and  matched birth dates. From this process, we identified 29 former senior  federal officials that registered as foreign agents between calendar years  2000 and 2007. In addition, we compared the dates the former senior level  officials had registered with FARA against the dates on which they had  officially separated from the federal government, and identified those  officials whose registrations occurred less than 1 year after their  separations. The scope of our review did not include assessing compliance  with the post-government employment restrictions by any of the former 29  former senior federal level employees who registered as foreign agents.
We defined former senior federal officials as (1) federal employees paid on  the Executive Schedule and (2) federal employees whose pay was 86.5  percent of level II of the Executive Schedule.
To identify the key challenges the U.S. government faces in enforcing post- government employment restrictions and FARA requirements, we  reviewed past GAO reports and analyzed past legislation and other  documents on the issue. We also interviewed OGE, State, Treasury,  USAID, and USTR ethics officials; State, Treasury, and USAID Inspector  General officials; and officials of Justice’s FARA Registration Unit and its  Criminal Division to obtain their views on the challenges. We conducted  our work from September 2007 to June 2008 in accordance with generally  accepted government auditing standards. Those standards require that we  plan and perform the audit to obtain sufficient, appropriate evidence to  provide a reasonable basis for our findings and conclusions based on our  audit objectives. We believe that the evidence obtained provides a  reasonable basis for our findings and conclusions based on our audit  objectives.
section_title: Appendix II: FARA Exemptions
section_title: Appendix III: Activities Performed by Former Senior Federal Employees on Behalf of Foreign Entities
paragraphs: Engaged in political activities, as well as  monitoring and advising foreign principals  on U.S. policy-making process with regard  to the Republic of China, government of  India, state of Qatar and the Kurdish  Democratic Party of Iraq. Arranged  meetings between officials from the foreign  principals and U.S. officials.
Assisted in presenting information and  educational materials to U.S. government  policy-makers in order to maintain and  strengthen U.S.-Republic of Korea bilateral  relations.
Engaged in political activities relating to  monitoring and advising on U.S. policy- making process with regard to Kurdistan,  and arranging meetings between Kurdish  and U.S. officials.
Provided general media relations to  promote university to a worldwide  audience.
Promoted dialogue between the United  States and India on key issues of  democracy and peace.
Advised and assisted the government of  Argentina on economic restructuring  issues and worked to develop U.S.  government and international financial  institution support for providing economic  and financial assistance to Argentina.
Provided advice and assistance in  connection with maintaining and  strengthening Haiti’s relations with the U.S.  government.
Advised the embassy of India on U.S.  government policies and communicated  with U.S. government officials regarding  U.S. policy toward India.
Worked with the Taiwan Studies Institute  on advancing an appreciation of Taiwan’s  history, cultural uniqueness, democratic  political development and its  socioeconomic position in the world.
Worked to improve the climate of opinion  towards Hong Kong’s specific international  trade and other interests when Congress  and the executive branch were planning,  drafting, enacting and executing laws,  policies and administrative decisions that  could benefit or harm Hong Kong’s trade  relations with the United States.
Provided government relations services to  the Royal Embassy of Saudi Arabia. The  purpose of the government service was to  defend and advance the Royal Embassy of  Saudi Arabia’s international trade and  other interests before the government of  the United States, including both Congress  and the executive branch. Additionally, the  registrant worked to improve the climate of  opinion towards the Royal Embassy of  Saudi Arabia’s specific international trade  and other interests when Congress and the  executive branch were planning, drafting,  enacting and executing laws, policies, and  administrative decisions that could benefit  or harm the Royal Embassy of Saudi  Arabia’s trade relations with the United  States.
Provided, on an informal basis, advice to  the foreign principal regarding U.S. -  Moroccan relations and Morocco’s  business and cultural interests in the  United States.
Engaged in government relations activities  with U.S. Congress and executive branch  agencies on the Western Hemisphere  Travel Initiative.
Provided lobbying, consulting and  business development services in support  of Giat products.
Encouraged U.S. government officials to  increase their direct and indirect support of  development assistance to a key ally in the  war on terrorism, the Republic of Senegal.
Assisted the President and other senior  decision-makers of Tanzania, and the  Governor of Kaduna and his staff, during  their visits to the United States by  introducing them to appropriately senior  U.S. officials at the federal, state, or local  levels to discuss U.S. trade with, and  investment in, their countries.
Advised clients and provided government  relations and strategic communications  services including, contacting public  officials and representatives of the media,  the executive branch of the federal  government, and other organizations on  behalf of foreign principals.
Assisted in the representation of the  Philippines government in enhancing its  relations with the U.S. government and the  U.S. private sector.
Provided advice concerning allegations of  misconduct directed at President Sassou- Nguesso by creditors of the Republic of  Congo. Provided advocacy concerning the  activities of the creditors of the Republic of  Congo and issues of debt relief for the  Republic of Congo before international  organizations and departments of the U.S.  government.
Provided assistance to the Livingston  Group in the representation of the Bank of  the Netherlands Antilles before the U.S.  Congress and executive branch agencies.
Provided U.S. government relations  representation to the Republic of Cyprus,  particularly in relation to the Annan Plan for  the “Comprehensive Settlement of Cyprus  Problem” and the future political status of  Cyprus following the referendum on the  Annan Plan.
Bayelsa state  government (Nigeria)
Represented Bayelsa State in the U.S.  with the executive branch of the U.S.  government and the U.S. Congress. The  goal of this representation is to gain  support for Bayelsa and the Niger Delta  from the U.S. government.
Arranged for and accompanied  representatives of the Begin Center to  meetings with U.S. officials, Members of  Congress, and their staffs; provided  briefings; and served in a general capacity  as a liaison between the Begin Center and  the U.S. government.
Provided advice, expertise, and  assistance to aid the State Intelligence  Agency of the Republic of Indonesia.  Assisted in initiating a campaign of  outreach and information dissemination  about Indonesia’s political, economic, and  social development. Focused outreach  efforts on the U.S. Congress and identified  congressional member concerns relating to  Indonesia to develop tactics to approach  and engage selected Members and their  staffs.
Ministry of Foreign  Affairs (government of  Nicaragua); Ministry of  Development, Industry,  and Commerce  (government of  Nicaragua)
Worked on behalf of the Nicaraguan  government to expand support in the U.S.  Congress for the Dominican-Central  American Free Trade Agreement in 2005.  Specific activities included, researching  existing congressional support and  opposition to the trade agreement,  advising the ministry on how best to  approach meetings with executive and  legislative branch officials, and  coordinating meetings for the Nicaraguan  ambassador, and other Nicaraguan  government officials.
U.S. policy consultant  Provided advice with regard to immigration  application, granting of visa application for  the client, and facilitating admission into  the United States.
Provided advice on U.S.-Moroccan  relations as well as contacted U.S.  government officials and participated in  Moroccan delegation visits to the United  States.
Provided federal government affairs  assistance and strategic counsel with  regard to immigration matters, specifically  in seeking approval of a nonimmigrant visa  application for the client and facilitating  admission into the United States.
Kept the government of Equatorial Guinea  apprised of U.S. programs that could help  the government in areas such as defense,  malaria eradication, trafficking in persons,  democratic reform, human rights,  environmental and wildlife protections, and  police training. Assisted Guinean  government in developing and maintaining  a Web site and advised them on other  matters related to communication so that  U.S. audiences—government and the  general population—could gain a better  understanding of the country, decision- making policies, and programs.
Performed a comprehensive assessment  of the embassy’s needs and capabilities  and provided a series of recommended  actions to address various high-priority  issues. Provided an analysis of options  that the embassy could pursue to  effectively deliver messages regarding the  role Pakistan plays as an important  strategic partner of the United States.  Promoted the enhancement of the  Embassy’s dialogue with U.S. leaders and  government officials in order to promote a  better understanding of the country’s  recent political, social, and economic  developments, clarifying Pakistan’s role as  a key partner for the United States in  efforts to enhance security and stability in  a region of broad strategic importance.  Devised and implemented a  comprehensive strategy to communicate  and promote a more accurate and  balanced message regarding common  U.S.-Pakistan interests.
Advised the government of Guatemala on  effective measures to fight corruption, drug  trafficking, and related criminal activities.  The advisory work involved meeting with  U.S. embassy officials in Guatemala, State  Department officials, and as appropriate  other members of the administration and  U.S. Congress, to discuss the government  of Guatemala’s counter narcotics and  anticorruption programs.
Assisted Kazakhstan in its relations with  the U.S. government. Advised the foreign  principal on its relationship with the U.S.  government, including preparation of legal,  policy, economic and other materials for  presentation before the executive branch  and the Congress, and attendance at  meetings with U.S. government and  congressional officials.
Ministry of Finance  (government of  Bermuda)
Advised the Ministry of Finance on U.S.  government policy, legislative, tax, and  regulatory issues.
Government of Greece  U.S. policy consultant  Advised and counseled on public policy  issues. Monitoring and information  gathering related to bilateral issues. House  and Senate advocacy, including Member  and Senator meetings. Executive branch  monitoring, liaison, and advocacy.
U.S. policy consultant  Worked with members of the Sonora state  government to develop and implement a  plan to improve exchange of information  and coordination between the State of  Sonora and U.S. government agencies in  an effort to eliminate organized criminal  activities and terrorists along the border.  This assistance included arranging  meetings with key members of the U.S.  government; assisted in preparation and  plans; prepared briefings and documents;  and attended meetings between Sonora  government officials and U.S. officials.
Educated members of the U.S. Congress  and other audiences regarding the Free  Trade Agreement and Plan Colombia.
section_title: Appendix IV: Comments from the Office of Government Ethics
section_title: Appendix V: Comments from the Department of Justice
paragraphs: The following is GAO’s comment on DOJ’s letter dated July 16, 2008.
subsections: section_title: GAO Comment
paragraphs: Justice said that the GAO report is useful, however, it could not say at this  time whether GAO's suggested revisions to the FARA statute would be  helpful in addressing the articulated concerns or the extent to which they  actually might compromise FARA enforcement efforts. Justice provided no  information on how expanded authority might compromise FARA  enforcement efforts. Also, Justice said that it would look forward to  working with Congress if it chooses to move forward with legislation. Our  report notes that in a July 1991 testimony, Justice’s Deputy Assistant  Attorney General for the Criminal Division stated that the department  supported requiring individuals who use either legal or commercial  exemptions to notify the Attorney General to achieve greater compliance  with registration requirements. In addition, in 1991, Justice sought such  authority but was not successful because the proposed legislation was not  passed by Congress. We maintain that Congress consider the proposed  legislative changes to enhance Justice’s ability to ensure that the American  people know the identity of persons trying to influence U.S. government  policy.
section_title: Appendix VI: GAO Contact and Staff Acknowledgements
paragraphs: Jess Ford(202) 512-4128 or fordj@gao.gov.
subsections: section_title: Staff Acknowledgments
paragraphs: In addition to the individual named above, Zina Merritt (Assistant  Director); Ashley Alley, Joseph Carney, Martin de Alteriis, Cardell  Johnson, La Verne Tharpes, and Greg Wilmoth made key contributions to  this report.