McCain: Pentagon Needs New Ethics Rules

USA Today's investigation found that 80 percent of the retired generals and admirals who now serve as "senior mentors" for the military have financial ties to defense contractors. Not only are they not obligated to report those ties, the senior mentors are also exempt from ethics rules that apply to part-time federal employees because they are hired as independent contractors.
McCain told the newspaper that those paid by defense contractors should be barred from mentoring at war games that present a conflict of interest. Furthermore, he said, they should have to disclose their financial ties.
"I'm sure most of them would have no problem with that," he said. "The important thing is that they avoid the appearance of conflict."
McCain is the top Republican on the Senate Armed Services Committee. Two Democratic senators on the committee, Jack Reed of Rhode Island and Jim Webb of Virginia, also said there should be new disclosure rules. Rep. John Murtha (D-Penn.), chair of the defense subcommittee for the House Appropriations Committee, said he has asked the Defense Department to immediately provide his panel with justification and criteria for the work of the "senior mentor" program.
The ties between the public and private sectors go beyond the military. The Huffington Post points to a 2004 study that found 291 former high-ranking government officials serving as lobbyists, board members or executives at contracting firms that benefit from federal contracts worth hundreds of billions of dollars.