The Watergate scandal not only shook American public opinion, but it also caused a great many changes at the highest echelons of power in the United States. One of the most significant consequences was Congress' creation of the Ethics in Government Act of 1978, on the strength of which the Office of the Special Prosecutor, later to become known as the Independent Counsel, was brought into being, having responsibility for conducting investigations in cases where the law is violated by high-ranking representatives of the executive branch of Government. Over a period of twenty years, the Office of the Special Prosecutor was repeatedly brought in to carry out investigations into politicians from the administrations of Ronald Reagan, George Bush and Bill Clinton. Nonetheless, in 1999 Congress decided against extending the licence on the basis of which the Office of the Special Prosecutor was able to operate. The article is an attempt at a comprehensive analysis of the theoretical and practical aspects of this institution within the American system of government. Through the arguments for and against the necessity for the Office of the Special Prosecutor to exist, the author endeavours to: - uncover the true motives for introducing the regulations of the Ethics in Government Act; - demonstrate the possible shortcomings within the Office's organisational structure and jurisdiction; - evaluate the usefulness of the institution of the Special Prosecutor within the political and legal systems of the United States of America; - predict the Office's future fate in the first years of the 21st century.