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OPINION

Editorial: The ABC headache

Tuesday, January 12, 2010
(Updated 3:05 am)

An expensive dinner with a big bar bill in Charlotte produced a throbbing headache for the N.C. Alcoholic Beverage Control Commission.

It will take more than an ice pack or aspirin to ease the pain. The commission needs to find a cure that corrects the behavior that led to the hangover.

To its credit, it has launched a statewide investigation into practices that might violate state laws or ABC regulations and will discuss an ethics policy at its monthly meeting Wednesday.

The Charlotte bash was heard across the state. On Nov. 18, the liquor company Diageo hosted a dinner for 28 Mecklenburg County ABC Board members, employees and guests at a cost of $12,700. The bar tab was $4,900, The Charlotte Observer reported. When word got out, board members reimbursed the company. Accepting gifts from industry representatives is prohibited by state law.

A Diageo marketing director told investigators he also bought meals for ABC employees in several other cities. That claim is being examined.

One of the cities named was Greensboro. Katie Alley, the Greensboro ABC general manager, said Monday it is not true. She did say that, on rare occasions, liquor company sales representatives "take us to lunch. Sometimes they pay, sometimes I pay."

A lunch is permitted, Alley said.

The state ABC Commission, however, has issued advisories over the years that suggest it's not a good idea.

"In the past, the receipt of unsolicited meals has been deemed an accepted business practice and excluded from the definition of 'gifts,'" a 1996 memo from state ABC Administrator Michael Herring to local boards noted. But, Herring added, "it is never inappropriate, and frequently prudent, to decline any gift offered by an industry member."

Unfortunately, that language was less than explicit, and specific rules were left to local ABC boards. Another advisory issued in 2003 addressed the impression that some ABC officials could be "wined and dined" by the industry, stating "that is a perception that must be corrected."

Some recipients of that memo apparently didn't take it seriously.

Now the state ABC Commission has to try again. It should adopt an ethics policy that applies uniformly to systems all across the state, so that if it's wrong for ABC employees in Asheville to let liquor salesmen buy them lunch, it's wrong for ABC employees in Wilmington to do the same.

A December 2008 report by the Program Evaluation Division of the N.C. General Assembly said state laws prevent the state ABC commission from effectively and efficiently managing the system. It isn't a matter of money. North Carolina ranks sixth in the nation in liquor revenue but only 48th in per-capita consumption. That shows efficiency. It's a matter of consistent personnel policies. If the commission wants to avoid more headaches and queasy stomachs, it should set clear ethical standards and make sure everyone meets them.

Comments

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Panacea

January 12, 2010 - 7:40 am EST

It's the typical "I won't get caught" mentality.

Fire the worst transgressors and reprimand the rest. That'll fix the problem.

notoriousBLOG

January 12, 2010 - 8:36 am EST

They are state employees, they are simply behaving as you would expect them to. You go to work for the government to get all that you can, you don't go to work for the government because you are a righteous do-gooder. They are no different than their peers in other departments or in the legislative branches, if you don't get caught doing it then it's alright. There is always going to be that attitude of "they owe it to me".

Panacea

January 12, 2010 - 9:14 am EST

And yet you see the same behavior in the private sector, such as AIG going on a "retreat" in Las Vegas right after taxpayers bailed them out. It's unacceptable anywhere. The issue isn't state employees are all parasites. It's that some state employees, because there isn't enough oversight and good leadership, take advantage. Happens in big corporations, too.

Shareholders should demand accountability from Wall Street execs same as we should demand accountability from unethical state/federal employees. Follow the law, or find another job.

notoriousBLOG

January 12, 2010 - 9:48 am EST

Good point, except that you do have the right to not invest in a corporation or not buy their products. Last time I checked I do not have a right to not pay my taxes unless I want to have the state take away my property or rights.

Panacea

January 12, 2010 - 4:10 pm EST

I would agree that state workers should be held to a higher standard due to the position of trust they are given.

I simply disagree that all state workers are by nature pigs at a trough. That is not true.

igliigli

January 12, 2010 - 7:10 pm EST

Where is the N&R's outrage over UNC coaches? They are also state employees and accept millions from shoe manufacturers.

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