Here is an AG's Opinion On Subcontracts!
The legally binding commitment itself contains a conflict of interest section in which the participating business must warrant:
that it is not a member, officer, or employee of the Recipient, or its designees, or agents, a consultant, member of Recipient's governing body, or the governing body of the locality in which the program is situated, and that it has not and will not exercise and functions or responsibilities with respect to the project during his or her tenure, shall have no interest, direct or indirect, in any contract or subcontract, or in the proceeds thereof, for work to be performed in connection with the Project or in any activity, or benefit therefrom, which is part of this Project.
In the event Participating Business is in conflict with any of the provisions contained in the paragraph above, he or she has or will, before accepting any funds resulting from the Grant, obtain a waiver from the Secretary as to any such conflict. (Emphasis added).
This section would be violated in at least four of the contracts between the city and the participating businesses. In addition, this office has stated that dual agency creates a conflict similar to that of officials with pecuniary interests. Attorney General Opinion H-1309 (1978) states:
As you can see. Gene has just violated an AG's opinion
