THE REVOLVING DOOR – STILL SPINNING – AT 10:37 A.M. ET:  The revolving door, federal officials going back and forth between industry and government, has been a problem for many decades because it raises serious questions of conflict of interest and the possible misuse of government information.  The problem is erupting  in the auto industry, as The Washington Post reports:

Dozens of former federal officials are playing leading roles in helping carmakers handle federal investigations of auto defects, including those for Toyota's runaway-acceleration problems.

A Washington Post analysis shows that as many as 33 former National Highway Traffic Safety Administration employees and Transportation Department appointees left those jobs in recent years and now work for automakers as lawyers, consultants and lobbyists and in other jobs that deal with government safety probes, recalls and regulations.

The reach of these former agency employees is broad. They are on staff rosters for every major automaker and every major automotive trade group, and they appear as expert witnesses and legal counsel for the industry in major class-action lawsuits over auto safety.

Several former Cabinet members have gone on to work for automakers. Last week, Toyota hired Rodney E. Slater, the transportation secretary under President Bill Clinton, to head its North American Quality Advisory Panel, which assists the company with quality and safety issues.

No law bans these officials from moving straight from government into industry. But critics of the revolving-door practice say that it has contributed to flaws in federal oversight and enforcement, and several members of Congress say legislation is needed to prevent former employees from conducting business with the agency for up to two years after leaving government jobs.

"The relationship is too cozy, and it is not an equal playing field," said Sen. Amy Klobuchar (D-Minn.), who is pushing for revolving-door reforms. "They need to insulate themselves a bit. People of our country expect there will be checks and balances and that someone will be looking out for them." Some former agency and department officials say the revolving-door practice is common in every industry and gives companies a fuller understanding of the federal government.

COMMENT:  The problem here is an obvious one.  Government employees, looking to have more lucrative employment after leaving government, might go easy on an industry they're supposed to regulate, in the hope of being hired. 

The same problem crops up in the Pentagon and in the Federal Aviation Agency.  Hearings are going to be held, and some corrective legislation will probably result. 

March 9, 2010