Ethics in Government: Office of Government Ethics : Hearings Before the Subcommittee on Investigations of the Committee on Post Office and Civil Service, House of Representatives, Ninety-ninth Congress, Second Session, September 29 and 30, 1986

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Page 21 - Bjorkniaii the hornbook concept of loaned employee as being created as a matter of law where, as here, an employee of one entity (the general employer) performed agreed-upon duties for a second entity (the specific employer) in an employee-employer relationship to the specific employer. They also explained sections 3 and 9 distinctions of the TVA Act, the Federal Government position that only officers and employees can execute Government functions and make Government policy, and their view that Edgar's...
Page 15 - SWEC and that individual financially presented difficulties under section 208. (J-5, J-6, M-30) White then left Mason with Kelly and Wegner. Wegner explained in some more detail Kelly's relationship to SWEC and Kelly described his variable compensation arrangement with SWEC, including that his bonus and stock bonus were essentially discretionary with SWEC. Kelly said he would not be giving up the authority of his SWEC QA manager job (although he would delegate responsibility to SWEC subordinates)...
Page 21 - I understand that I may be considered to be an employee for other purposes" or "I understand that TVA may consider me to be an employee for other purposes." Edgar, Gallen, and Bjorkman left Sanger and Mason intermittently during the day to meet with White and Wegner. They returned to Sanger at various times asking if the problems could be avoided by TVA contracting the entire management of the plants to SWEC and if the Board would do so. Sanger talked about the different aspects of the first point;...
Page 23 - The issue was the status of White, Kelly, and others on liability for their personal actions while performing services for TVA. Sanger pointed out to White that the loan agreement for Mr. White's services provides: • • SWEC shall carry Workers' Compensation Insurance as required by applicable law, and / the compensation paid by TVA under this .' agreement includes the cost of such insurance. Exclusive of claims subject to • SWEC's workers' compensation insurance • coverage, TVA agrees to...
Page 16 - Kelly not a loaned employee, Kelly's TVA authority to order from SWEC eliminated or restricted), and how some such actions would have to be taken for the Board to have a basis for determining the conflict to be insubstantial under section 208. White told Mason that those kinds of actions would result in unworkable management arrangements and were unacceptable. Mason told White that Sanger and Willis had arranged to brief the TVA Board the next morning Co inform the members of any necessary determination.
Page 16 - It out yet. I'll leave you to It," and left." in" the" meeting. Mason asked if Kelly had to be a loaned employee to accomplish the necessary TVA work. All the SWEC people agreed that he would have to be in a position to make TVA decisions as a TVA manager. Mason asked if Kelly would have to use SWEC or order services from SWEC to do his TVA job. All the SWEC people said he would and that a recusal would not wprk.
Page 18 - Willis called. Sanger about 6:00 pm on February 6 and said that White and some of his aides wanted to meet with the. Board that night in Knoxville. Sanger was in his office and told Willis that he was available at any time. Willis said that he was going to schedule the meeting for 7:15 am o« Friday, February 7 and wanted Sanger present.
Page 22 - Board he would not under the circumstances ask the Board to make a determination contrary to the advice of the General Counsel. Willis did not report to Sanger or Mason on any other individual Board statements other than to say that Director Waters said to White he was glad the matter had been resolved and he was sorry that it took this much time and effort to get to this point. (J-5, J-6, M-30) During Sanger's and Mason's discussions with White's and SWEC's lawyers...
Page 17 - Co inform the members of any necessary determination. Mason was present in White's office when White called Willis to urge him to have the Board act to resolve the conflict, as White said he had to be able to bring to TVA Kelly and otlters in like circumstances and had to do 10 before his February 18 NRC meeting.
Page 19 - Floor conference room before 7:15 am, the appointed time. After some waiting, they were told that White and his aides would be late because each had been driving separate rental cars to the Chattanooga airport and all were not there in time to depart as scheduled. Upon the arrival of White and others, including Wegner, Edgar, Callen, Maison, Bjorkman, and at least one other SWEC person.

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