Former US Ambassador to China’s MD House, a Chinese Tycoon and Other Oy! News!

Posted: 2:14 am ET
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Gary Locke  was the United States ambassador to China from August 2011 until March 2014. He was the 21st Governor of Washington from 1997 to 2005 and served in the Obama administration as United States Secretary of Commerce from 2009 to 2011.

The Office of the Assistant Legal Adviser for Ethics and Financial Disclosure (L/EFD) “advises the Department and its employees on ethics laws and regulations applicable to Executive branch employees. These rules govern, inter alia, employee acceptance of gifts, participation in outside activities, avoidance of conflicts of interest, avoidance of appearance of partiality, and seeking and post-government employment.” L/EFD also manage the Department’s financial disclosure reporting program, including review and certification of the reports for Presidential Appointees and other OGE-278 and OGE-450 filers.

Via The Intercept:

Locke purchased the home, which has six bedrooms and five bathrooms, for $1,525,000 in 2009. The house went on the market June 20, 2013, and was initially listed for $1.75 million. By August, the house was marked down to $1.68 million, the price the Chen family paid in September. Zillow now estimates the home value at about $1.8 million.

Locke’s ethics statement for that year discloses that he sold his home in Bethesda but lists the transaction under “rents and royalties” rather than capital gains. He disclosed earning between $50,000 to $100,000 from the sale, though the Chen family paid $150,000 more than the price Locke paid in 2009.

Asked if the State Department reviewed the transaction, a spokesperson for the agency told us that “there is no requirement for any State Department official to clear the sale of his or her personal residence with ethics officials at the department, regardless of the value of the property. The department does not review or approve the terms of sale for an employee’s private residence.”

The sale nonetheless raised concerns among ethics experts.

“This is not appropriate,” said Richard Painter, a former White House chief ethics counsel from 2005 to 2007. “If I were the State Department’s legal adviser, I would be very unhappy with ambassadors selling their houses to foreign nationals of the country where they’re working without an independent appraisal to prove actual value.”

Craig Holman, the government ethics watchdog with Public Citizen, said the sale raised a number of flags. Locke, Holman said, was in a position to influence American policy decisions and needed to “steer clear of placing himself in a conflict of interest situation in which financial opportunities could be perceived as influencing his judgment.”

Locke’s financial disclosure statement, filed in 2009 for his Senate confirmation hearing to become secretary of commerce, reveals that he provided legal assistance to APIC prior to being nominated. In 2008, he provided legal consulting services to APIC and appeared at a ribbon-cutting ceremony for an APIC-owned biofuels refinery in Shantou, a city in southern China. The facility imports soybeans from the U.S. and Latin America.

Since retiring from public office in 2014, Locke is again serving as an adviser to the firm.

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