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The questions about public officials are for compliance with "pay-to-play" laws. These are to prevent asset managers bribing politicians to get business with states/municipalities and pension funds. The laws often require that employee relationships with public officials be reported to regulators.
You ask how they'd check on what you reported. Generally, they don't, but if there were some flap and you were found to have not disclosed a material relationship, you'd be fined/fired/jailed.
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