As Elon Musk is set to shake things up with his new Department of Government Effectiveness (DOGE), conflict of interest laws and ethical considerations will come into play. Given his vast business empire, including Tesla, SpaceX and other companies, its involvement in government will likely trigger the same concerns that surrounded former President Donald Trump’s business interests when he took office in 2017.

Legal Framework: Conflict of Interest and Ethics in the US Government

U.S. conflict of interest laws are designed to prevent government officials from using their public office for personal financial gain or engaging in actions that could undermine the public trust. These laws are enforced through a combination of federal laws, including the Government Ethics Act of 1978, the Office of Government Ethics (OGE) Stock Act, and regulations.

For high-ranking government officials, such as cabinet members or those appointed to key positions like head of a new government agency, these laws ensure that personal financial interests do not interfere with their decision-making. A key provision is the revolving door rule, which prevents individuals from leaving their government positions to immediately engage in lobbying or lobbying-related activities on issues they handled while in office. There are also restrictions on investments that might conflict with their official duties, and officials are required to divest themselves of certain holdings or place them in blind trusts.

Given Musk’s business involvements, these laws will likely require some level of separation between his role in government and his private businesses. Since Trump has made it clear that DOGE is an external advisory department, this could save Musk and Vivek Ramaswamy from having to divest their companies and place them in a blind trust, or withdraw from active management. In 2017, Trump had to divest himself of his businesses by transferring them to his sons or placing them in a trust during his presidency. Musk will need to navigate these regulations carefully.

Will Musk have to get out of his companies?

The specific details of how Musk would structure his involvement in DOGE would depend on his role, whether that role would become a formal government position or whether he could serve as an informal advisor. If he officially joins the government, Musk will likely have to step back from the day-to-day management of these companies to avoid conflicts, or he may be forced to disengage from them altogether. Conflict of interest rules will require him to manage his interests in Tesla, SpaceX and other companies.

For example, if Musk’s DOGE ends up being part of the government and he takes on an official position like Cabinet Secretary or holds an official title, divestment would likely be a requirement under US conflict of interest laws. interests. This involves avoiding the perception or reality of decisions made for personal financial gain. Conflict of interest provisions also extend to major financial interests; Musk’s stake in companies like Tesla and SpaceX could create bias if, for example, he made regulatory decisions affecting the automotive or space sectors. These same regulations prevented Trump from maintaining control of his businesses while in office, with his family charged with running the Trump Organization.

There is also the possibility of placing his assets in a blind trust, which would prevent Musk from having any knowledge or control over his companies’ operations while he is in government. This route is commonly taken by politicians and civil servants to demonstrate transparency and avoid conflict.

Will Musk join the government or be a consultant?

Although the details of Musk’s potential involvement in the US government through DOGE have not been fully formalized, there is a significant distinction between joining the government as a formally appointed person and serving as an informal consultant or advisor.

If ethics rules equate his position with a formal government role as head of DOGE, his duties would likely be time-consuming and focused on government affairs, especially if they were charged with streamlining federal agencies and reducing regulations.

In this scenario, Musk would face pressure to maintain an arm’s-length relationship with his companies. On the other hand, if he acts as an informal consultant or advisor, he may not have to completely disengage from his businesses, but will still have to adhere to ethical guidelines that ensure that no conflicts arise from his commercial relationships.

Political reaction and public perception

Another factor to consider is the political and public backlash that could result from Musk’s high-level government role. Although his supporters appreciate his bold vision for government efficiency, others might view his involvement as another example of corporate influence infiltrating the political system. Musk’s considerable wealth and power already make him a controversial figure in the public eye, and his appointment to a high-level government post could intensify criticism of the relationship between big business and politics.

The Trump administration has faced similar scrutiny, with critics alleging its business interests led to conflicts of interest and unethical decision-making. If Musk follows a similar path and attempts to influence government decisions related to his business empire – such as issues related to space exploration, electric vehicles or energy policies – he risks fueling accusations that the government is directed to benefit the personal interests of an individual. interests.

Time commitments and practicality

Musk’s time commitment to DOGE will also be a critical factor. His schedule as CEO of several companies already demands almost all of his time, leaving little room for outside responsibilities. Musk is known for working extreme hours, often tweeting about his 80-100 hour work weeks, but running a high-level government position like DOGE would likely require a full-time commitment. From overseeing bureaucratic restructuring to liaising with political leaders, a role within DOGE would be tedious.

So even if Musk chooses to continue overseeing his companies while in government, the time demands of both roles could create problems. Musk may need to reduce his direct involvement in Tesla, SpaceX and other companies or delegate more authority to trusted lieutenants. The level of scrutiny placed on his government role could also require him to be more transparent and avoid any appearance of overreaching.

The need for transparency and respect for ethics

Either way, transparency and compliance with ethical laws will be key to Musk’s potential role within DOGE. Just as Trump faced significant challenges in running his business empire during his time in office, Musk will have to navigate these same ethical minefields, ensuring he does not exploit his government position for his gain personal or that of its companies.

Musk will also need to be open to audits and investigations into possible conflicts of interest, particularly given the public interest in his wealth and businesses. The Office of Government Ethics (OGE) is responsible for overseeing these matters and ensuring that individuals in high-level government positions do not engage in activities that could undermine public trust.

The prospect of Elon Musk playing a role in the US government, whether as an official appointee or a consultant, raises important questions about conflicts of interest, time management and public perception. Given his vast business empire, Musk will need to carefully navigate U.S. conflict of interest laws to ensure his role within DOGE does not create ethical or legal issues. Whether he retires from his businesses altogether or finds a way to balance the two roles will have significant implications for his effectiveness in government and how he is perceived by the public.

(Rohit Sharma is an award-winning journalist residing in Washington DC)

(The opinions expressed in this opinion article are those of the author)