More ethics rules issued for NC treasurer workers

State Treasurer Janet Cowell unveiled new rules Friday banning employees from taking gifts from companies that do substantial business with the agency and setting a limit on charitable solicitations.

The rules come after former chief investment officer Patricia Gerrick said she was offered favors from investment firms while employed under Cowell predecessor Richard Moore, but that she didn't accept them.

Gerrick also said investment managers made donations in her honor to a charity where she was a board member but that she never solicited or advised people to do so.

Cowell fired Gerrick in September after five years managing North Carolina's pension funds, which are valued at more than $60 billion. Gerrick received a $340,000 annual salary, making her one of the highest-paid workers in state government.

Cowell won't say why Gerrick was let go, citing said personnel confidentiality laws. She didn't mention Gerrick in a news release announcing the latest in new policies that Cowell said will bring more transparency to the Department of State Treasurer during a period of mistrust in government and financial institutions.

"One of my top priorities has always been restoring that trust by putting into place policies and processes that hold the Department of State Treasurer accountable to a high ethical standard," Cowell said in a statement.

The previous gift ban had applied only to "covered persons," meaning the treasurer and top policy-making employees hired by Cowell. Now it applies to all employees, imitating a similar ban by Gov. Beverly Perdue this fall within Cabinet-level agencies. Gifts or favors can't be accepted from direct contractors to the agency performing more than $10,000 worth of business annually, or from contractors seeking work.

Cowell and her top-level lieutenants also can't solicit charitable contributions of more than $150 from contractors or vendors with similar levels of business. There was no solicitation policy in place before now, Cowell spokeswoman Heather Franco said.

Cowell already has instituted travel reimbursement rule changes that require payments by outside investment managers be disclosed on ethics forms.

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On the Net:

N.C. Treasurer Department transparency section:

http://www.nctreasurer.com/DSTHome/OfficeOfTheTreasurer/Transparency/TransparencyHome.htm