In May, Wendy Teramoto, chief of staff to U.S. Secretary of Commerce Wilbur Ross, was part of a significant trade deal with China that aimed to boost U.S. liquid natural gas exports. However, Teramoto also served as a board member for Navigator Holdings Ltd., a shipping company that could benefit from the agreement. This dual role raised ethical concerns, even though it was not illegal. Notably, Teramoto didn’t resign from Navigator until July 17, two months after the deal’s announcement.
Ross publicly praised Teramoto for her role in the trade negotiations, attributing much of the swift progress to her efforts. However, this situation has prompted experts to question the ethical implications of public officials holding financial interests in companies that may benefit from government policies.
Complicating matters further, investigative reports revealed that Ross is an investor in Navigator through offshore funds, and the company has partnerships with Russian firms, notably Sibur, linked to Russian President Vladimir Putin’s family. Despite these concerns, Ross maintained that he had no part in Navigator’s dealings with the Russian company, arguing that there were no legal restrictions preventing such partnerships.
Teramoto’s connections to the shipping industry run deep. She has worked alongside Ross for over two decades, holding directorships in various shipping firms, including Diamond S. Shipping and Nautical Bulk Holdings, which could also benefit from policies endorsed by the Commerce Department. Her potential conflict of interest is underscored by her ongoing ties to shipping companies, raising questions about her ability to act in the public interest.
Despite being appointed as chief of staff—a position that oversees numerous departments—Teramoto’s previous roles as a director of multiple companies pose ethical dilemmas. Ethics experts argue that her financial ties to organizations that could be affected by her work in government create a significant conflict, eroding public trust in her ability to prioritize national interests.
The Commerce Department did not provide clarity regarding the timing of Teramoto’s resignations or her dealings with Navigator, and she did not respond to inquiries about her financial disclosures. Critics argue that public officials, especially those in high-ranking positions like Teramoto, should not maintain links to any private entities that stand to gain from their decisions.
The ongoing scrutiny of Ross and Teramoto’s financial interests raises further concerns in light of the upcoming talks on energy exports between the U.S. and China. Ethical considerations surrounding conflicts of interest in the federal government highlight the need for transparency and accountability, especially when public officials’ personal interests might influence economic and trade policies.
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