Ethics commission weighs in on whiskey barrel employment
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The State Ethics Commission has blocked an outside employment opportunity for a state employee involving whiskey barrels.
The chief operating officer and chief of staff for the Indiana Destination Development Corp. (IDDC) requested a formal ethics opinion involving a new job. His name is not in the opinion, but is on IDDC’s website. He is David Holt.
“I just wanted to do what was right. I had an opportunity, and so I asked,” Holt told the Indiana Capital Chronicle. “I kind of knew the opportunity would be turned down and so I moved on.”
IDDC is the state’s marketing arm. It helps promote destination assets around Indiana, from sports facilities and music venues to zoos and amusement parks.
The opinion was crafted by Regan Perrodin, director of the State Ethics Commission. It explained the Holt regularly meets with venues and others to discuss how IDDC can help with promotions to attract out-of-state visitors.
The tourism agency often offers two methods of assistance to these venues: a calendar of events and ticket giveaways.
The opinion said while meeting with distilleries, Holt learned they are having trouble getting whiskey barrels at a good price as many larger distilleries in Tennessee and Kentucky buy them up.
Holt casually mentioned this to a family friend while outside work. The friend said the hardwood company he worked for had a relationship with companies that make barrels in Kentucky. The company proposed that Holt could work on his own time to help the distilleries with this problem.
In this potential role, Holt would get the distilleries or the distillery guild a locked-in price for each barrel if they have enough volume for the barrels. He would act as a “middleman” between the distillery or guild and his friend’s hardwood company. The company was already picking up goods from the cooperage company in Kentucky, so it would bring the barrels to Indiana and deliver them to the distilleries.
Holt would be paid by the friend’s hardwood company, according to the opinion.
The commission found the arrangement would constitute a conflict of interest.
It specified that Holt would be using information that he learned during his state duties to make a profit. It also found he would using his official position to secure unwarranted privileges or exemptions of substantial value that are not available to similarly situated individuals outside state government.
The Indiana Capital Chronicle is an independent, not-for-profit news organization that covers state government, policy and elections.