For those of you interested, to follow is the NIH memo on Nepotism.  The
memo was not dated, but I received the FOIL response in June 93,
and the memo was referred to as "recent"
* Elizabeth (Liz) Mazzella             xxxxxx@ALBNYDH2.BITNET  *
* Director, Technology Transfer & Contract Programs           *
* Health Research, Inc. (A Non-Profit Corp.) Albany NY 12209  *
* Voice: (518) 431-1200                    Fax: (518)431-1234 *
*** Forwarding note from CMH04   --ALBNYDH2 11/22/94 10:56 ***
To: EAM01   --ALBNYDH2

Subject: FOIA Request Case Number 14853

After a review of personnel instructions, to my knowledge there
are no internal guides or instructions on nepotism.  The Director,
NIH recently distributed the attached memorandum to the IDC Directors
and the OD Staff.  While this memo does not constitute additional guidance, it
is related to the issue of nepotism.

ATTACHMENT:

TO:    ICD Directors, OD Staff

FROM:  Director, NIH

SUBJ:  Nepotism

Recent statements by NIH employees have charged NIH officials with
employing or advocating the employment of relatives, commonly referred
to as nepotism.  The practice of nepotism is prohibited by law and
regulation and will not be tolerated at the NIH.  This issue requires
your personal attention.

The prohibition of nepotism applies to the appointment, employment,
promotion, or advancement of a relative, or the advocacy of such an
action, by any public official in a position to make or recommend
these personnel decisions.  Relatives include not only immediate family
members but also in-laws, aunts and uncles, nieces and nephews, first
cousins, and step-relations.  In addition, a subordinate of a
supervisor may not make a personnel decision concerning a relative of
the supervisor; such a decision must be made at a higher management
level.

In addition, the Standards of Ethical Conduct for Employees of the
Executive Branch require that all employees take appropriate steps
to avoid any appearance of loss of impartiality when performing their
official duties.  Unless they have prior authorization, employees should not
participate in a matter that would affect the financial interests of a
member of his or her household, whether or not the member is a relative,
if a reasonable person with knowledge of the relevant facts would question
the employee's impartiality in the matter.  Personnel decisions are among
those official duties that would affect an individual's financial interests.

I would like you to review your organization to ensure that nepotism does
not exist.  Any direct or indirect supervisory relationship between
relatives or members of the same household should be eliminated.  Where it
is not feasible to transfer an employee from the organizational supervision
of a relative or household member, all personnel decisions regarding the
lower-level employee must be made at a management level higher than the
supervisor involved.

Please provide a report of your review to Stephen Benowitz, Director,
Division of Personnel Management, by June 4.  Report any instances
where these supervisory situations exist, either, directly or indirectly,
and the steps taken on being taken to resolve any conflict of interest.
If you do not have any conflicts to report, please submit a report to
that effect.

If you have any questions, please call Mr. Benowitz on 496-3592

Bernadine Healy, MD

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HEALTH RESEARCH, INC.