In “An Independent Monitor for Boeing” (FCPA Compliance Report, 27 March 2020), K2 Intelligence FIN discusses what role an independent monitor could play as part of a government bailout for Boeing. According to the article, an independent monitor could be an effective approach to overseeing any monies provided to Boeing to ensure appropriate use of the funds. This was previously used on a larger scale with the U.S. Treasury’s Troubled Asset Relief Program (TARP) and its Special Inspector General (SIGTARP) created to oversee compliance with the post-financial crisis bailout in late 2008.
Though the Boeing bailout is considerably smaller in scale, there are key factors to consider for a successful independent monitor program, including:
- Ensuring the monitor is appointed prior to and is present during negotiations for the grant/receipt of any funds to ensure all parties are in agreement on terms and conditions from the outset.
- Level setting when it comes to transparency requirements of the host organization.
- Clarity around the degree to which any limits are placed upon the monitor.
- Clear and concise guidelines for dispute resolution, should the monitor and host entity find themselves at odds.