Tuesday, August 6, 2013

Conflicts of interests, it’s as simple as A-B-C: alcohol industry ties Gordian knot through “gifts”

Somewhere along the Alcohol Beverage Control (ABC) path to regulation of Virginia’s alcohol sales, employees of ABC became more of a fraternity brother to the alcohol industry than a neutral watchman or woman who ensures that the latter doesn’t violate any campus rules. In evidence of this point, it was recently reported that over $50,000 “in gifts and entertainment from 2008 to 2011” was given to employees of Virginia’s ABC by the alcohol industry. Do you see a conflict of interest?

The question begs the answer, “yes”. There is an undoubtable conflict of interest when a regulatory body begins accepting gifts from the institution that it’s meant to regulate, especially when the gifts add up to over $50,000.

In defence of their actions, the ABC stated that close to 80 percent of the total amount given by the alcohol industry covered travel reimbursements for conferences held by the national alcohol regulatory associations, where “agency leaders learn best practices,” according to The Daily Progress’s K. Burnell Evans.

From 2008 to 2011, the alcohol industry primarily paid for conference trips, but the gifts also included tickets for car races, comedy shows, a Washington Redskins game, and a “spa service.” One can only imagine what the last gift truly entailed.

Over a 24-month period, ABC employees accepted close to $7,000 in NASCAR tickets from Crown Royal, a manufacturer and distributor of whiskey. This “gift” is only one of many that includes nearly 525 ABC employees.

Del. David J. Toscano (D-Charlottesville) responded bluntly to this report: "What's the logic of that? Is this related to their work?" If so, then business for the ABC is far from good, it’s exceedingly well.
Not surprisingly, however, the ABC responded that yes, these entertainment gifts are related to their work. 

In their statement, the ABC said the following: "Sometimes supplier representatives visit the marketplace, and invite ABC personnel to join them for various events, sometimes including a NASCAR race.” The ABC went on to add that no strings are attached.

Aside from insulting the intelligence of every Virginian, it doesn’t take an ABC employee or alcohol industry official to know that these events are subtle ways of building friendly relationships with one another and in so doing, removing the objective relationship that should define that between a regulator and the regulated.

Or, another way of putting it is if there were no benefits of spending $50,000 worth in gifts and entertainment, do you think the alcohol industry would be paying this kind of money? Would you give away $50,000 with no expectation of a return, either now or in the future, if your primary goal is to make a profit? Probably not.


It’s time for every Virginian to call on their elected official to put an end to this conflict of interest between the alcohol industry and ABC employees. Otherwise, who knows, other conflicts of interest will spread to the Executive Mansion. Oh, wait…

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