Over and Doan With

On Tuesday, it was reported that Lurita Doan, embattled head of the General Services Administration, was forced to resign by the White House. She made the announcement to colleagues in an e-mail. The GSA issued a press release the next day.

Doan was appointed GSA Administrator in May 2006 and almost immediately began attracting controversy. She landed on POGO's radar within a matter of weeks with a high-ranking agency appointment that reeked of cronyism. Months later, we learned of her dislike for inspectors general, whom she reportedly compared to terrorists.

Things really started going downhill for Doan in 2007 with allegations of procurement improprieties and an Office of Special Counsel determination that she violated the Hatch Act by improperly using GSA resources to help elect Republicans. Doan's March 2007 appearance before the House Oversight and Government Reform Committee bordered on the absurd, with repeated claims of having "no recollection" of the meeting at which the Hatch Act violation occurred, except that there were "cookies on the table." Her performance at that and a subsequent hearing, combined with allegations that Doan tried to intimidate employees who were cooperating with the Committee's investigation, led an exasperated Rep. Henry Waxman (D-Calif.) to call for her resignation:

Nevertheless, Doan remained on the job, looking like she would ride out the remainder of Bush's second term. But this week, she was summoned to the White House and given the axe. The question everyone is asking is: why now?

There is speculation that Doan's departure has something to do with the recent exoneration of her agency's inspector general, Brian Miller. Miller was recently cleared of misconduct allegations in two separate whistleblower investigations, much to the displeasure of Doan. It may be that Doan's ongoing public spat with Miller, on top of all of her other problems, was the straw that broke the camel's back.

What's next for Lurita Doan? It seems likely we have not seen or heard the last of Doan, who was once a very successful government contractor and deep-pocketed GOP donor. POGO will be watching.

-- Neil Gordon

Flawed Thunderbirds Contract Tainted with Improper Influence

Back in May 2006, POGO posted a blog entry about the Air Force improperly steering a $50 million contract to produce large-scale video shows during Thunderbirds Air Demonstration Squadron performances to a company connected to senior Air Force officers. POGO noted that the Department of Defense Inspector General and FBI were investigating the contract, which the Air Force voluntarily terminated after a competing bidder filed a protest.

Almost two years later, the DoD IG has finally released its findings in a redacted 251-page report. The report concludes that Air Force Maj. Gen. Stephen M. Goldfein and others went to improper lengths to steer the contract to Strategic Message Solutions (SMS), an inexperienced and ill-equipped company that tendered a bid twice as expensive as a competing vendor's. SMS also had close contacts with senior Air Force officers and members of the Thunderbirds. The report highlights an Air Force contracting process fraught with improper influence, irregular procedures, glaring conflicts of interest, and an award decision that "did not represent the best value for the Air Force." As it happened, the Thunderbirds fiasco occurred shortly after another major procurement scandal that sent Air Force acquisition chief Darleen Druyun to prison.

The U.S. Attorney's Office in Nevada, home of Nellis Air Force Base and the Thunderbirds, declined to prosecute the case. Goldfein, who is now Vice Director of the Pentagon's Joint Staff, and four other officers not named in the report received administrative punishments.

There has been talk around Washington that IGs, Congress, the GAO, and watchdogs have demoralized government employees and are causing them to leave government service. It's funny that POGO hears from many government employees who support our efforts, who state that their frustration results from government scandals rather than the reporting of them, and who have tried to fix the system from within only to be labeled as troublemakers and the enemy (where is Bunny Greenhouse now?). Taxpayers are also demoralized and many see the federal government transforming into nothing more than a corporate machine that protects special interests rather than the public's interest. The award of the Thunderbirds contract highlights many problems--actual and apparent conflicts of interest, concerns with the revolving door, improper influence in contracting, flawed deals, and wasted money. I would love to see how anyone can blame the DoD IG for conducting its investigation and exposing a deal that wasn't benefiting taxpayers.

-- Neil Gordon and Scott Amey

Conflicts of Interest Rules Causing Conflicts

Personal and organizational conflicts of interests are red hot topics circulating around the federal government right now. (Organizational conflicts are created when a contractor has other activities or relationships with the government that could lead to partiality or an unfair competitive advantage--see FAR Subpart 9.5).

The GAO recently released three reports--GAO-08-169, GAO-08-572T & GAO-08-360--that discuss concerns with potential conflicts of interest when the government relies (or in some instances over-relies) on contractor employees. For example, government officials are governed under different rules than contractor employees, even those who work side by side. Additionally, some contractors have been questioned about their impartiality in awarding government contracts and making policy determinations.

In one recent case, the Calyptus Consulting Group was hired by GSA to help with past-performance evaluations on the Alliant IT contract. According to news reports, Calyptus evaluated the performance of two of its clients, Lockheed and Raytheon, raising questions of organizational conflict. That contract award was protested, and the Court of Federal Claims has set aside the awards in question and ordered appropriate injunctive relief.

Although there are rules aimed at preventing contractor employees from doing work that must be performed by public servants, ethics rules are very lax and require a high degree of self reporting. In an effort to head off any legislative action, the executive branch has been very active in proposing new ethics rules and requirements. As POGO has noted, however, these rules do not go far enough. Additionally, someone inside the government added a material exemption that has caused Members of Congress to question the government's commitment to holding contractors accountable.

Just yesterday, the FAR Councils put out two advanced notices seeking comments on whether additional personal and organizational conflict of interest regulations are needed to protect the integrity of the contracting process.

In what some are calling a warning shot to the executive branch, Sen. Joe Lieberman (D-CT) urged federal agencies "to step up efforts to guard against conflicts that could cost taxpayers millions of dollars a year."

All of these efforts have been made in response to the dramatic increase in federal contract spending, increased reliance on contractors to perform work once performed by government employees, and a call for greater contractor accountability. POGO will follow all of the bills and regulations, and we will counter any industry efforts to keep the status quo.

-- Scott Amey

DOJ Issues Guidelines on Corporate Monitors

The Department of Justice recently issued new guidelines for the selection of corporate monitors in deferred prosecution agreements with companies accused of breaking the law.

A March 7 memo drafted by former acting deputy attorney general Craig Morford sets forth nine basic principles governing the selection and scope of duties of corporate monitors. From now on, prosecutors will be required to consult with U.S. attorneys, the Criminal Division, and the Office of the Deputy Attorney General before selecting monitors, who must be selected from a pool of at least three candidates. The selection must be based on merit, with an emphasis on avoiding potential or actual conflicts of interest. Finally, the government must "obtain a commitment" from the company that it will not employ or be affiliated with the monitor for at least one year after the monitorship ends. (The memo does not mention the fact that corporate monitors are paid--often quite handsomely--by the company. In fact, the guidelines are completely silent on the issue of monitor compensation, even though it was this very issue that caused a public outcry and spurred Justice to act.)

Readers of this blog might be familiar with the events leading up to the new guidelines. As POGO noted last December and again in January, U.S. Attorney Christopher Christie raised eyebrows last year with his selection of his former boss, ex-Attorney General John Ashcroft, to be the monitor of a medical supply company Christie's office prosecuted for fraud. The arrangement will net Ashcroft and his consulting firm up to $52 million.

Hearings on this issue continue in Congress. Ashcroft was scheduled to testify today before the House Judiciary Subcommittee on Commercial and Administrative Law. In addition, both the House and Senate Judiciary Committees have requested a GAO inquiry into deferred prosecution agreements and corporate monitor appointments, and lawmakers have sent letters of inquiry to Attorney General Michael Mukasey.

POGO welcomes the additional oversight of corporate monitors and deferred prosecution agreements, but we hope it doesn't draw attention away from a more important goal: keeping corporations from breaking the law in the first place.

-- Neil Gordon

35 Ways to Say "Corrupt": Rep. Renzi Indicted for Insurance Fraud and Shady Land Deals

Hats off to our friends at Taxpayers for Common Sense (TCS), who helped uncover and publicize the dubious land exchange that led to Rep. Rick Renzi's (R-AZ) recent indictment.  In case you missed the news over the weekend, Rep. Renzi was indicted late last week by a federal grand jury on 35 counts of corruption.  As reported by the New York Times and Washington Post, Rep. Renzi was under investigation for stealing money from his insurance company's clients and orchestrating a federal land swap that benefited himself and a former business partner, among other crimes. 

As a Member of the House Natural Resources Committee, Rep. Renzi essentially forced his constituents to purchase land owned by his former business partner, James Sandlin, who owed Rep. Renzi money from a previous land swap.  According to the indictment, Rep. Renzi received $733,000 from Sandlin for helping to engineer the deal, and in the process, "deprived the citizens of Arizona of his honest services as a United States elected representative." 

TCS has frequently criticized this type of legislated land exchange, which leaves little room for public oversight and tends to benefit private interests. 

-- Michael Smallberg

Hon, I'll Be Late for Dinner

The Department of Transportation IG has announced that it will be conducting an audit of the Transportation Technology Innovation and Demonstration (TTID) program, whose objectives include providing more comprehensive real-time traffic information to federal, state, and local governments and travelers.

Questions have been raised by POGO, as well as by Senator Hatch (R-UT) and Representative Weiner (D-NY), about the program's integrity--specifically, the virtual lock that Traffic.com has on the contract, even though legislative changes made back in 2005 by Hatch and Weiner were supposed to open up the program to competition.  POGO has questioned the federal oversight of the program and whether it is benefiting one company rather than the public.  On October 15^th we wrote to USDOT Secretary Peters urging an investigation into the management and oversight of the program, and we're pleased that the IG has now announced its audit.

The TTID program was designed to help ease traffic congestion in U.S. cities by assisting in the deployment of an expanded transportation surveillance infrastructure, and by providing traffic data from newly deployed sensors to government transportation agencies and commercial traveler information providers.

Sounds confusing, but if it helps get me home from work faster, I'm all for it.  Unfortunately, the virtual stranglehold that Traffic.com has on the really useful real-time data in this program makes me think that it is an example of a contractor lining its pockets rather than promoting the public good.

Traffic.com has spent money on lobbying Congress (2001-2005 and 2005-2006), and is linked to many former senior level Executive and Legislative Branch officials.  I realize that lobbying and knowing people isn't illegal, but neither is having checks and balances in our government system and questioning public servants.

-- Scott Amey

Corporate Monitor Investigation Picks Up Steam

If a tree falls in the forest and the New York Times doesn’t report it, does it make a sound?

POGO ponders this in light of the recent brouhaha over deferred prosecution agreements, specifically the one implemented in New Jersey by U.S. Attorney Christopher Christie, in which his former boss, John Ashcroft, was awarded a multi-million dollar corporate monitor contract. Readers of this blog might remember POGO weighing in on this last month, but it was this January 10 article in the “Gray Lady” that really kicked up the dust and brought this issue to the forefront.

Last September, Christie appointed his ex-boss, former Attorney General John Ashcroft, to be the corporate monitor of a company involved in a deferred prosecution agreement with Christie’s office. Ashcroft’s consulting firm stands to earn up to $52 million on what essentially amounts to a sole source contract drawn up entirely at Christie’s discretion. The company, Zimmer Holdings, must pay for Ashcroft’s services or else face prosecution. The public might not have learned about the fee arrangement (and the entire matter might have gone largely unnoticed in the first place) had Zimmer Holdings not disclosed it in an SEC filing.

On Wednesday, the chairmen of the Senate and House Judiciary Committees – Sen. Patrick Leahy (D-Vt.) and Rep. John Conyers (D-Mich.) – requested a GAO inquiry into deferred prosecution agreements and corporate monitor appointments. This action follows letters of inquiry Conyers and other lawmakers sent to Attorney General Michael Mukasey on these issues. According to the Times article, the Department of Justice is conducting its own investigation in order to come up with formal procedures for the selection of corporate monitors.

POGO supports efforts to add more transparency and oversight to these relatively new prosecutorial tools. However, we hope one especially important issue does not get overlooked. According to the Newark Star-Ledger, Christie did not impose criminal fines on Zimmer Holdings because he knew it would be paying substantial monitoring fees. The company is still being punished, but is the public getting short-changed if ill-gotten gains go to a corporate monitor – especially one who has connections to the prosecutor – instead of the government?

– Neil Gordon

John Ashcroft Lands Lucrative Corporate Monitor Gig Courtesy of Former Employee

Are federal prosecutors using corporate crime prosecutions to reward cronies?

That seems to be the case in New Jersey, where U.S. Attorney Christopher Christie appointed his ex-boss, former Attorney General John Ashcroft, to be the corporate monitor of a company involved in a $311 million deferred prosecution agreement (pdf) with Christie’s office. The company in question, Zimmer Holdings, along with several other medical equipment manufacturers, was accused of paying kickbacks to get doctors to use their artificial hip and knee reconstruction and replacement products.

Ashcroft’s consulting firm, the Ashcroft Group LLC, will earn between $29 million and $52 million (paid by Zimmer Holdings) to serve as a corporate watchdog for 18 months. It will oversee Zimmer Holdings, making sure it does not engage in misconduct and helping it adopt corporate reforms. As head of the Department of Justice, Ashcroft was Christie’s boss from 2002 to 2005. Christie also served on an advisory panel that consulted regularly with the Attorney General.

Two members of the New Jersey Congressional delegation, Reps. Bill Pascrell, Jr. (D) and Frank Pallone, Jr. (D), have expressed concern over the deal and are seeking hearings on deferred prosecution agreements and the process by which corporate monitors are appointed. What particularly worries Reps. Pascrell and Pallone is the lack of transparency and oversight.

Deferred prosecution agreements (and a variant called non-prosecution agreements) are a new weapon gaining in popularity among federal prosecutors. They are starting to show up in POGO’s Federal Contractor Misconduct Database. Deferred prosecution agreements usually involve court involvement or oversight. However, the deal arranged in the Zimmer Holdings matter was crafted entirely at Christie’s discretion. The companies under investigation faced a difficult choice: either agree to Christie’s terms and pay the substantial fees charged by the monitors that he appointed, or face prosecution. Also, fee arrangements for corporate monitors are usually secret; Zimmer Holdings took the rare step of disclosing its compensation arrangement with Ashcroft in an SEC filing.

Christie said he had nothing to do with arranging Ashcroft’s fee, which he justified as a “real bargain” for taxpayers. However, Christie used the hefty monitoring fees the companies agreed to pay as an excuse not to impose any criminal fines. Is it really a “bargain” if, instead of paying back the government, companies who cheat the public are instead forced to enrich the lucky few who have connections to a U.S. Attorney?

-- Neil Gordon

Office of Special Counsel Update Part I

Tin cup in hand, Special Counsel Scott Bloch appealed to the news media this week to cover his plight. His story? Neither the Congress nor the Office of Management and Budget would give the Office of Special Counsel (OSC) the $3 million in additional funding Bloch claims is needed to finish off his investigation into Karl Rove’s secret email accounts and White House political briefings that may have violated the Hatch Act. 

Meanwhile, at today’s meeting of the Subcommittee on Federal Workforce, Postal Service, and the District of Columbia, it is expected that legislation to reauthorize the Office of Special Counsel (and the Merit Systems Protection Agency) will pass with bipartisan support. That legislation represents a last ditch attempt to reform the dysfunctional OSC, including provisions which:

• Shorten the usual reauthorization period from five years to three years, an obvious expression of Congressional displeasure with the OSC;    
• Allow OSC employees to “blow the whistle” on the Special Counsel by appealing to the President’s Council on Integrity and Efficiency;    
• Restore some democratic participation and transparency by requiring that the OSC publish regulations on how it pursues whistleblower and other investigations into personnel violations;    
• Mandate that the Special Counsel “has professional experience that demonstrates an understanding of and a commitment to protecting the merit based civil service”;    
• Require the OSC to make alternative dispute resolution available in Washington, DC again, something which had been shipped to the federal employee powerhouse of Detroit in one of Bloch’s “reorganizations;” and    
• Greatly expand disclosure requirements in order to shed light on the OSC’s activities and prevent gaming of the numbers.

Subcommittee Chairman Danny Davis should be congratulated for taking on this set of substantive reforms to improve the OSC, some of which POGO argued for when we testified a few months back. These reforms are wonderful but will not fix the “leadership problem” at the OSC. What leadership problems you ask? Read it and weep:

• OSC’s whistleblower awardee criticizes OSC’s performance;    
• Inappropriate fashion advice for women with short skirts;    
• Politically convenient leaks from the OSC;    
• The mutual investigation society between the OSC and the White House;    
• Religious beliefs which interfere with professional judgment;    
• Abysmal performance and unfulfilled promises;    
• Disparaging remarks about members of Congress and offers to “go outside”;    
• Investigations into the Special Counsel’s violation of laws he is supposed to enforce;    
• Efforts to intimidate witnesses and interfere with those investigations;  
• Calls for Bloch’s resignation or the abolition of the entire OSC from leading groups working with whistleblowers (POGO, PEER, GAP);  
• Cronyism that would make Brownie proud including Bloch’s dubious hiring of his son’s former headmaster.

-- Beth Daley

Greenwire Breaks Story on Griles “Community Service”

Dan Berman at Greenwire broke an important story yesterday regarding former Interior Department official Steven Griles, who plead guilty earlier this year in the Jack Abramoff lobbying scandal. Griles has asked the Judge (pdf) in his case that he be allowed to perform “community service” as a part of his sentence. The problem is, one of the two organizations with which he wants to do community service – the American Recreation Coalition (ARC) -- is actually a heavy-hitter lobby organization which apparently benefited from Griles’ time at Interior.

Environmentalists have complained about Griles’ coziness with organizations like ARC, which advocates the use of snowmobiles in national parks. Here’s Griles speaking at an event of the organization and here he is again partying up with ARC and some other industry buddies. With Griles’ proposed sentence, he’ll probably be back on the party circuit with his industry buddies. Is this really punishment?

Read the full Greenwire story, reprinted with their permission, below the fold.

-- Beth Daley

ETHICS: Griles seeks community service with motorized-recreation group

Dan Berman, Greenwire senior reporter

An organization with connections to the Interior Department, motorized recreation industry and the Walt Disney Co. is holding a position open for former Interior Deputy Secretary J. Steven Griles if he's sentenced to community service for lying to Congress in the Jack Abramoff investigation.

Griles, 59, wants three months home confinement, 500 hours of community service and a "reasonable" $15,000 fine when he is sentenced June 26. Half the community service would be with "WOW - Wonderful Outdoor World," in the position of national counselor and strategic planning coordinator. In that post, Griles would raise money, develop new public and private partnerships and conduct outreach to the government and media.

The request was part of a voluminous filing with Judge Ellen Huvelle of the U.S. District Court for the District of Columbia. The package includes 91 letters supporting Griles from former Interior Secretary Gale Norton, two Reagan-era secretaries, Idaho Gov. Butch Otter (R), Rep. Barbara Cubin (R-Wyo.), coal industry executives and a possible Senate nominee from Wyoming, among others.

"It's a small world after all," said Jeff Ruch, executive director of Public Employees for Environmental Responsibility. "The idea that Steve Griles would consider this community service suggests the line in his mind of corporate service and community service doesn't exist."

The other half of Griles' community service would be with Operation Coaches and Warriors, which assists injured veterans of the Iraq war.

"A prison sentence is not needed to punish Mr. Griles and ensure that his crime will never be repeated," Griles' statement reads. "The prospects of resulting public service after this conviction are dim if not nonexistent. It is equally unlikely that Mr. Griles will ever be able to pursue a career as a lobbyist as he has been convicted of obstructing the same body he would be lobbying for clients."

In March, Griles pleaded guilty to withholding information from the Senate Indian Affairs Committee in 2005 about his meeting Abramoff through Italia Federici, president of the Council of Republicans for Environmental Advocacy. Griles was dating Federici at the time (Greenwire, March 23).

The felony charge could land Griles in prison for a maximum five years and carry a $250,000 fine. Justice Department attorneys recommended a 10-month sentence. Half of that would be served in a federal prison, according to DOJ's nonbinding recommendation to the court.

WOW agreement with Interior

If the sentence recommendation is accepted, Griles would work for an organization with close ties to the Interior Department.

In 2003, Interior, U.S. EPA, the Army Corps of Engineers, the American Recreation Coalition and Disney signed a memorandum of understanding, agreeing to "work together in partnership on issues of common interest and to jointly plan and implement mutually beneficial programs and activities."

As deputy secretary at the time, Griles directly oversaw the four Interior agencies who signed the document.

The National Park Service is a current sponsor of Wonderful Outdoor World, as are the Forest Service, Disney, the Coleman Co. and others, but WOW is spearheaded by the American Recreation Coalition, an organization that promotes access for recreation on public lands.

In a letter to Judge Huvelle, Derrick Crandall, the longtime head of the American Recreation Coalition, said Griles has already assisted in developing ways to "dramatically augment WOW beginning this summer."

Crandall also noted he worked with Griles on expanding the mission of the Bureau of Land Management, "supporting both recreation and wildlife programs," and on expanding the Take Pride in America program.

According to Griles' statement with the court, WOW is seeking to expand its operations and program offerings and needs a man such as the former deputy Interior secretary. "WOW needs an individual with Mr. Griles' management expertise and knowledge of the outdoors," the statement says.

WOW is seeking a candidate who could raise at least $500,000 in contributions -- either in-kind or in cash, according to court documents.

"Unlike other camping and recreation programs, WOW brings the wonders and excitement of camping and the environment directly into the neighborhoods and communities of the children most in need," according to Disney's Web site. "This innovative new approach provides young people with the basic skills and encouragement to enjoy further outdoor experiences."

In developing his sentence, Griles asks Huvelle to, "consider his 24 years of public service, his longstanding and demonstrated commitment to volunteerism and the community, and his reputation for integrity and honesty."

Prison time may also deter others from testifying before Congress and cooperating with the legislative branch, Griles argues, noting fears of being embarrassed or ambushed under the media glare. For instance, Indian Affairs Committee staff withheld documents from him before he testified in November 2005, Griles argues, limiting his ability to prepare and refresh his memory of various events.

"I can't believe a judge will look at this and say, 'Oh, what a great idea,'" said Beth Daley of Project on Government Oversight. "He's basically going back to being a lobbyist for his community."

Letters of support

The 91 letters supporting Griles reflect his friendships and contacts made through an extensive career in government and industry, including three former Interior secretaries and a litany of senior former government officials and industry executives.

"The reality of Steve Griles is in many ways different from the public perception," wrote former Interior Secretary Gale Norton. "His powerful size and bearing seem intimidating, but those who know him realize he is a compassionate and caring person. He helped co-workers who were struggling. He was encouraging and upbeat when people got discouraged."

Norton noted she and Griles had a very positive working relationship while at Interior. "Many men would have difficulty working with a woman as a superior, especially a woman he had once outranked," Norton wrote. "Steve instead was supportive and encouraging. We had one of the best, if not the best, working relationships of any secretary and deputy secretary in the administration" (emphasis original).

Several writers noted Griles sacrificed higher pay in the private sector to return to Interior in 2001 as Norton's deputy and noted his insistence on reimbursing costs for dinners, drinks or entertainment so as not to allow an appearance of impropriety.

Idaho Gov. Butch Otter (R) wrote about riding horses with Griles in Idaho and Washington's Rock Creek Park. "We have shared many trails, and I have come to recognize that he is a genuine man who is proud of his service to the people of our nation," Otter wrote.

Rep. Barbara Cubin (R-Wyo.) noted Griles' help on coal miners health legislation and reauthorization of the abandoned mine lands program last year. "His voice now strains under the sorrow and regret he bears for his infraction. I believe a sentence of community service will benefit this nation much more than will his imprisonment."

Tom Sansonetti, former assistant attorney general for the environment and natural resources division, and a rumored nominee to replace the late Wyoming Republican Sen. Craig Thomas, also supports Griles.

"Steve is the consummate public servant," Sansonetti wrote. "He took on huge, complicated, and often unpopular, tasks for Secretary Norton within the Interior building, such as the complex and high-profiled Cobell case involving the management of Indian Trust Fund monies."

Sansonetti's successor was Sue Ellen Wooldridge, who married Griles on March 26. Wooldridge resigned in January amid news reports she purchased a South Carolina vacation home with Griles and a ConocoPhillips lobbyist, months before DOJ and the company agreed to settle charges it violated the Clean Air Act.

Among the other 91 requests for leniency include letters from Reagan-era Interior secretaries Don Hodel and William Clark; Craig Manson, former assistant Interior secretary for fish, wildlife and parks; Dan Kish, senior adviser to House Natural Resources Committee ranking member Don Young (R-Alaska); Bill Horn, a Reagan-era assistant Interior secretary and lobbyist; former U.S. EPA acting Administrator Marianne Horinko; Assistant Secretary of the Army for Civil Works John Paul Woodley; James Cason, Interior associate deputy secretary; Ann Klee, former U.S. EPA general counsel and former counselor to Norton; Bennett Raley, former assistant Interior secretary for water and science; and Dale Hall, director of the Fish and Wildlife Service.

"It is worth noting that in a city where supporters of persons touched by political scandal scurry away, dozens and dozens of Mr. Griles' supporters from throughout his life have come forward to ensure that the court has an accurate and full view of who Mr. Griles really is," Griles' statement reads.

Click here to view Griles' sentencing request.

Click here to view Rep. Barbara Cubin's letter.

Click here to view Gov. Butch Otter's letter.

Click here to view Gale Norton's letter.

Click here to view Tom Sansonetti's letter.

Click here to view Derrick Crandall's letter.

Click here to view the 2003 memorandum of understanding between the federal government, Disney and ARC.

Oil Industry Scofflaws Honored by Interior Department

On April 17, the Department of Interior's Minerals Management Service (MMS) hosts its big annual bash attended by as many as 700 (mostly) oil company executives  where awards are given. It’s a fabulous opportunity for everyone to pat themselves on the back.

Why the government spends taxpayer time and money to throw a big schmooze party for big oil in Houston, TX is a question for all of us to ponder. For more than a year now, the Congress and the public have learned from a series of stories in the news media that all is not right at the MMS. Whistleblowers and the Congress have expressed concern that the agency is too cozy with the oil industry, particularly over the issue of whether the agency is collecting all the drilling fees owed to taxpayers and Native Americans. Tomorrow’s big schmooze-o-rama only feeds into these concerns.

One bad-boy company set to be honored is the infamous Anadarko. One of the largest holders of federal offshore leases in the Gulf of Mexico, Anadarko (then Kerr-McGee) filed suit against MMS in 2006, arguing that it should not have to pay any royalties on offshore leases issued under the Deep Water Royalty Relief Act of 1995. This is a brazen and aggressive legal strategy. If Anadarko wins, the federal government could lose up to $60 billion in royalties. In January 2007, a jury agreed with former MMS auditor Bobby Maxwell that Kerr McGee (now Anadarko) underpaid the government by $7.5 million.

“Corporate Leadership Awards” will also be bestowed upon five Chevron executives. Chevron is another holdout on the issue of paying royalties, specifically on 1998 to 1999 federal offshore leases for which MMS failed to include price thresholds, which require oil companies to pay when the price of oil reaches a certain level.

Two companies – Shell and ConocoPhillips -- have been repeat offenders in the arena of paying what they owe the government and Native Americans in drilling fees, known as royalties. Yet, they are being honored as “Mineral Revenues Stewardship Award Winners.” Go figure.

Shell Exploration and Production

Shell has paid far more in settlements with the Justice Department over royalty underpayments than any other oil company. Earlier this year, former Interior Department Secretary Gail Norton waltzed through the revolving door to set up shop working for Shell again.

2006 - Shell is the subject of two False Claims Act lawsuit filed by two MMS auditors who allege that the company inappropriately deducted $19 million in transportation costs from royalties paid the government.

2003 - Shell agrees to $49 million settlement over unauthorized flaring or venting of gas and failure to properly pay/report royalties.

2001 - Shell agrees to $110 million settlement for oil royalty underpayments in response to a False Claims Act lawsuit filed by whistleblowers and POGO.

2000 - Shell agrees to $56 million settlement in gas royalty underpayments.

ConocoPhillips

Similarly, ConocoPhillips is a repeat offender:

2005 - ConocoPhillips agrees to $21.7 million settlement with MMS over valuation of coalbed methane.

2004 - Burlington Resources (now ConocoPhillips) discloses in a Securities and Exchange Commission filing that underpaid an estimated $76 million (pdf) in gas royalties per pending False Claims Act litigation filed by Jack Grynberg.

2000 - ConocoPhillips agrees to $26 million settlement with Justice Department over oil royalty underpayments.

2000 - Burlington Resources (now ConocoPhillips) agrees to $8.5 million settlement with Justice Department over oil royalty underpayments.

-- Beth Daley

GSA Head to Staff: “Find Opportunities to Help Republican Political Candidates”

Today House Oversight and Government Reform Chairman Henry Waxman put to rest recent reports that GSA Administrator Lurita Doan may have been acting in good faith when she steered a $20,000 contract to an old friend. According to a release from Waxman’s office, "Ms. Fraser used her professional connections to advance Doan’s nomination to GSA and to provide personal favors, and that Ms. Fraser continued to provide services with the expectation of payment to Ms. Doan after she became GSA Administrator.” Kudos to Washington Post reporters Robert O’Harrow and Scott Higham for first exposing the Doan scandal.

Besides being caught with her hand in the cookie jar, Doan apparently urged her staff at GSA “to find opportunities to help Republican political candidates.” That has been referred to the GSA Inspector General and the U.S. Office of Special Counsel for investigation under the Hatch Act which prohibits government resources from being used to advance political agendas. There is no love lost between the Inspector General (IG) and Doan, who recently attempted cutting the IG’s budget, comparing their work to “terrorism.” Don’t expect much from the Office of Special Counsel which has a reputation for protecting Administration appointees and is under investigation itself for cronyism.

As if that wasn’t enough, Doan intervened to help Sun Microsystems overcome a dispute with GSA and the “federal taxpayers could pay millions more for the IT services provided by Sun Microsystems.”

With all kinds of things to interfere with, when does Doan have time in the day to do her job of running the government’s largest buying agency?

It turns out that putting a contractor in charge of the government’s buying arm might not have been a good idea after all. Lurita Doan personifies a breed of political appointee who treats the federal government like their personal ATM machine.

-- Beth Daley

Is This a Stickup?

Climb aboard, the train is leaving the station! Family members are being hired up by railroad interests facing an overhaul of rail safety rules.

"Like every other industry, we felt it was important to have representatives from both the Democratic and Republican side," said Peggy Nasir, spokeswoman for the Association of American Railroads, which hired Shuster, Lipinski, and Sante and Michael Esposito. "We are meeting all the standards we need to meet for lobbying."

The lobbyist hires to which Nasir is referring are: Former Representative Bud Shuster of transportation pork barrel fame and father of sitting Congressman Bill Shuster (R-PA) on the House railroads subcommittee, Former Representative William Lipinski and father of sitting Congressman Daniel Lipinski (D-IL) also on the subcommittee, and the father and brother of majority staff director of the subcommittee, Jennifer Esposito.

An investigation by USA Today last year found that “in 2005 alone, appropriations bills contained about $750 million for projects championed by lobbyists whose relatives were involved in writing the spending bills.” That’s a lotta dough! And makes a few of us wonder, is this a stickup?

-- Beth Daley

Over 1,000 Gov Employees Snared by FBI for Corruption

Wow.  The magnitude of public corruption uncovered by the FBI so far is astounding.  Part of FBI Director Robert Mueller's prepared statement before the Senate Judiciary Committee:

Public corruption is a betrayal of the public’s sacred trust. It erodes public confidence and undermines the strength of our democracy. Unchecked, it threatens our government and our way of life. That is why it is our top criminal investigative priority.

Over the last two years, the FBI has convicted more than 1,060 government employees involved in corrupt activities, to include 177 federal officials, 158 state officials, 360 local officials, and more than 365 police officers. In FY 2005 alone, the Public Corruption Program saw a 25% increase in public corruption cases investigated, resulting in 890 indictments, 759 convictions, and 2,118 cases still pending. There are 622 agents currently working public corruption matters, an increase of 264 since 2002.

As you may know, we've followed some of these cases here on the POGO blog. 

-- Nick Schwellenbach

Mass. politics right back in the Big Dig

On the campaign trail (pdf), candidate for the Massachusetts Governor Deval Patrick stated that he wanted to remove politics from the Big Dig and have a special investigator review the billion dollar project that has cost one automobile passenger her life.

On November 22, 2006, Massachusetts Governor-elect Deval Patrick announced the creation of his transition working groups (pdf).  His transportation working group includes many industry heavy hitters, especially people who are heavily invested in the highway system.   A few transportation transition team members who raise a red flag:

Richard A. Dimino serves as the president and CEO of the Artery Business Committee (ABC), a group involved with the oversight and development of the Big Dig.

Jane Garvey is the executive vice president and chairman of APCO’s transportation practice (APCO Worldwide is a global communication consultancy).  Ms. Garvey is the former head of the Federal Aviation Administration (FAA) and the former acting administrator of the Federal Highway Administration (FHWA), which has conducted little, or no, federal oversight of the Big Dig.  Prior to her work for the federal government, Ms. Garvey was the director of Logan International Airport and the commissioner of the Massachusetts Department of Public Works.  (She was in charge of the FAA during the 9/11 attacks and, according to the 9/11 Commission Report, ''She was unaware of a great amount of hijacking threat information from her own intelligence unit, which, in turn, was not deeply involved in the agency's policymaking process.")

Fred Salvucci is a senior lecturer and research associate at MIT.  His legacy, however, will be his work as a former Massachusetts secretary of transportation, with particular emphasis on the development of the financial and political support for the Central Artery/Tunnel Project.  Some critics blame Mr. Salvucci for the Big Dig’s runaway costs and the lack of proper oversight, which resulted in privately hired consultants overseeing the project – a move that isolated many Massachusetts state engineers.

Recently, Massachusetts filed a lawsuit against the project’s primary contractor Bechtel/Parsons Brinckerhoff, as well as other contractors, manufacturers, designers, and distributors that are linked to the tragic death that occurred in July.

It remains to be seen, however, if Governor Patrick will do the right thing and conduct a comprehensive investigation into the Big Dig’s quality, safety, and finances.  Based on some of the appointments to his transportation work group, there is doubt that the citizens of Massachusetts and Interstate travelers will receive genuine accountability.  Hopefully Governor Patrick will obtain the advice that he needs to terminate over 20 years of government acquiescence to irresponsible contractors and political cronies.

-- Scott Amey

New Turn in FBI Investigation into Weldon

Former Representative Curt Weldon tried to cut U.S. aid to Moldova in a ploy to regain $2.5 million that a family friend lost in an investment deal gone bad, according to  a little-noticed article in the Philadelphia Inquirer. Weldon used his perch to personally help his friend – John J. Gallagher – on several other occasions. Gallagher, in turn, appears to have helped Weldon’s daughter Karen Weldon find clients in Russia. Gallagher’s relationship to the Weldon’s has apparently become a topic of the FBI’s corruption investigation. The Inquirer article follows a New York Times piece a few weeks ago on Weldon’s efforts to help Italian arms makers get U.S. defense contracts. Corruption of the kind being investigated in the Weldon case has is part of a larger effort which has revealed that “wrongdoing by public officials at all levels of government is deeply rooted and widespread.”

In January, the public will find out how the Democratic-run Congress intends to address this with new ethics legislation. Meanwhile, House Majority Speaker Nancy Pelosi’s former chief of staff turned lobbyist warned that big business is in trouble with the Democrats…that is unless they “ramp up their public relations efforts.” Gee, that sounds like a not-so-nuanced pitch for business.

-- Beth Daley

New Study: US More Corrupt, "No Room for Complacency"

A new study finds that U.S. corruption has dramatically worsened in the past two years. Also, that Iraq has plunged to the bottom of the list and now ranks at 160 out of 163 countries in terms of corruption. According to highlights from the just-released Corruption Perceptions Index (CPI):

"Countries with a significant worsening in perceived levels of corruption include: Brazil, Cuba, Israel, Jordan, Laos, Seychelles, Trinidad and Tobago, Tunisia and the United States...While the industrialised countries score relatively high on the CPI 2006, we continue to see major corruption scandals in many of these countries. Although corruption in this context may have less of an impact on poverty and development than in developing countries, these scandals demonstrate that there is no room for complacency."

Although the study is interesting, it leaves much to be desired with its recommendations. Emphasis is put on the role of professional societies in policing corruption among their members with sanctions and stronger anti-corruption codes. Professional societies are usually the last to reign in bad behavior, especially if it lines its members pockets. For example, less than 4% of complaints (pdf) filed against lawyers in the U.S. resulted in discipline.

Transparency International, which authored the ambitious study released yesterday, has done excellent research in the past which made the case for the kinds of measures and recommendations which would seriously tackle corruption.

 

-- Beth Daley

Experience Matters: President Bush Fails to Learn from Katrina

President George Bush seems not to have learned one of the biggest lessons of Hurricane Katrina: the head of the Federal Emergency Management Agency (FEMA) should be experienced.  Upon signing H.R. 5441, the "Department of Homeland Security Appropriations Act, 2007," Bush signaled that he might not abide by the requirement that the next Director of FEMA have at least five years of related experience. 

In his released signing statement, Bush protested that Congress cannot set limits on who he nominates.  "[The bill] purports to limit the qualifications of the pool of persons from whom the President may select the appointee in a manner that rules out a large portion of those persons best qualified by experience and knowledge to fill the office," said Bush. 

Apparently, Bush discerned that individuals with five years of executive leadership and management experience--coupled with significant experience in crisis management--are not the people best qualified by experience and knowledge to fill the office.  The provision would prevent the President from drawing further nominations from the skilled applicants from the Arabian Horse Association.

As Think Progress put it (best), Bush has "asserted his constitutional right to continue to install incompetent FEMA administrators." 

On Thursday, a bi-partisan group of U.S. Senators sent a letter to the President expressing "dismay" at the signing statement.  The letter points out that the minimum qualifications outlined are not unprecedented.  "Congress has established qualifications for numerous executive positions, such as the Solictor General and the Director of the Fish and Wildlife Service," wrote the Senators. "The bottom line is that we need FEMA leadership that meets high standards."

-- Mandy Smithberger

Safavian Found Guilty

It's all over the news, but in case you missed it: a jury found the first person in connection with the Jack Abramoff case to be put on trial, David H. Safavian, guilty of four felony charges against him.  The Washington Post reports that:

The jury found Safavian guilty of three counts of making false statements -- to the GSA Office of Inspector General, a GSA ethics official and the Senate Indian Affairs Committee -- and one count of obstructing the GSA inspector general's investigation. He was acquitted of another charge of obstructing an investigation by the Indian Affairs Committee.

Safavian tried to help Abramoff acquire a General Service Administration properties, but didn't get very far. 

The seemingly endless number of corruption cases the public has seen in the last year from Duke Cunningham to William Jefferson casts serious doubt on the integrity of our government.  Though most government employees do their jobs well, many must feel demoralized when the system allows corruption to grow rampant in their midst.

-- Nick Schwellenbach

David Safavian Retreads

The trial of David Safavian, former head of the White House Office of Federal Procurement Policy, and the first prosecution in the expanding Abramoff scandal started today. According to AP:

“[Justice Department] prosecutor Peter Zeidenberg told a jury that David Safavian provided substantial amounts of information about government-controlled properties that the lobbyist wanted for himself or his clients.”

Safavian’s attorney continues to defend her client:

“Safavian's lawyers plan to depict the Justice Department as overreaching in bringing charges against the procurement official who is a longtime friend of Abramoff.”

These previous POGO blog entries feature original documents and information surfaced in the past on the Safavian story:

Which Came First? The Client or the Legislation?

Safavian’s financial disclosure forms say that he was on a “leave of absence” from lobbying firm Janus-Merritt Strategies when he worked as Chief of Staff for Representative Christopher Cannon. Some of Safavian’s “former” clients may have benefited from Cannon’s help.

Safavian’s Wife’s Recusal Policy

After Safavian was nominated to head the Office of Federal Procurement Policy, his wife recused herself from procurement issues despite the fact that she was Chief Counsel for Oversight and Investigations of a congressional committee with jurisdiction over contracting.

Safavian the Lobbyist

Background on Safavian’s lobbying career, links to his lobbying disclosure forms.

The Irony

April 25, 2005 memo from Safavian which mentions training his agency can provide in “ethics.”

Industry and Incompetence In Charge at Mine Safety Agency

Being qualified and effective at your job apparently seems to be a quaint and outdated notion in the world of political appointments to our federal government. Exhibit A is a floor speech today by Representative Nick Rahall (below) concerning the appointment of John Correll to direct the Office of Surface Mining Reclamation and Enforcement at the Department of Interior. Correll “has been responsible for management of all aspects” of the Mine Safety and Health Administration.  Mine Safety and Health Administration – yes, that Mine Safety and Health Administration (MSHA) which was the focus of public and Congressional ire after it was discovered that the Sago Mine where 14 miners perished had received 208 MSHA citations in the previous year. It’s hard to imagine the family members of mine workers who perished will be happy about this appointment. Particularly since Correll held management positions at Amax Mining and Peabody Coal Co (pdf).

-- Beth Daley

Remarks of U.S. Rep. Nick J. Rahall, II

on the Rule governing

H.R. 5386 - Interior, Environment & Related Agencies Appropriations Act for FY07

May 18, 2006

            Mr. Speaker, I rise to address that portion of the pending appropriations bill concerning the Office of Surface Mining and, specifically, the Abandoned Mine Reclamation Fund.

            The amount made available under this measure to combat the health and safety threats abandoned coal mines pose to coalfield residents is essentially flat-lined from the current fiscal year at $167.8 million.

            I certainly understand the budget constraints we are operating under, yet, I would observe that the unexpended balance in the AML Trust Fund is approaching $2 billion.  It is my hope that as this measure moves into conference, further efforts will be made to increase this particular appropriation.

            With respect to the Office of Surface Mining, I would observe that, yesterday, news emerged of the President’s intention to nominate John R. Correll to serve as the agency’s director.

            I have not met the gentleman, and I look forward to doing so.  But what immediately catches the eye is that since 2002, Mr. Correll served as the Deputy Assistant Secretary of Labor and was responsible, according to the Administration’s press release yesterday, of all aspects of the Mine Safety and Health Administration.

            It is no secret that 26 coal miners have perished this year, a rate that this Nation has not witnessed in recent memory.  It is also no secret that many of these fatalities could have been avoided if MSHA had been doing its job.

            

            Mr. Correll has been part of the leadership at MSHA during a time when the policy floor fell out.  Under his leadership the philosophy at MSHA changed from one of oversight and compliance to one of partnership and complicity.

             Rulemakings were abandoned. Opportunities to improve coal miner safety were closeted away.  And Mr. Correll and others within the Bush Labor Department advocated partnering with industry to address safety concerns, rather than to enforce the law. 

            In fact, in 1998, Mr. Correll testified before the House Committee on Education and the Workforce’s Subcommittee on Workforce Protection advocating fewer inspections, incentives over penalties, and cooperation over regulation.         

            While other Nations soared ahead in mine safety, incorporating new technologies to ensure and improve protections for their most precious mining resource -- their workers – this Nation, through a cultural shift at MSHA, remained in the dust.  It has been a shameful record that I would loath to see carried over to OSM.   

            The health and safety of the residents in our mining communities should not be gambled on in the way that the health and safety of our mineworkers has been.

            It is time that concern, compassion and correctness take precedence over loyalty in this Administration.

   

            So it is passing strange, to say the least, that the Bush Administration would nominate as OSM Director a person who presided over MSHA during the worst rash of coal miner fatalities in recent times.  One must wonder if this person will bring this same philosophy to overseeing the environmental protection of coalfield citizens.

No Recess for Cronyism

Over on the White House website, you can view a list of what the Washington Post today described as "a raft of controversial recess appointments."  Among the disputed appointments by President Bush, which bypass Senate scrutiny and approval until a new Congress reconvenes in January 2007, are:

• Julie Myer's appointment as head of the Immigration and Customs Enforcement (ICE) agency with the Department of Homeland Security (DHS).  Julie Myers is the wife of John F. Wood, the chief of staff to DHS Secretary Micheal Chertoff, and niece of former Joint Chiefs of Staff chairman Richard B. Myers.  Though she has a background in law enforcement, she is criticized by many as lacking any real experience in immigration matters--one of the core issues at ICE--and having little experiece of managing a large-scale bureacracy.
• Tracy A. Henke's appointment as Executive Director of the Office of State and Local Government Coordination and Preparedness at DHS.  The Post says that "She had been accused in her politically appointed post at the Justice Department of demanding that information about racial disparities in police treatment of blacks in traffic cases be deleted from a news release."
• Ellen R. Sauerbrey's appointment as Assistant Secretary of State on Population, Refugees, and Migration.  A New York Times editorial says that Sauerbrey "has zero experience in emergency management and refugee resettlement." 

In Sauerbrey's case, her only "qualification" seem to be her loyalty to the Bush Administration--in 2000 she was the Maryland state chairman of Bush's presidential campaign.

Gordon England's appointment as Deputy Secretary of Defense, had been previously held up by Republican Senator Olympia Snowe of Maine "because of his role in recommending the closure of a naval shipyard in her state."  However, POGO thinks there is a better reason to question his appointment to a position that deals with day-to-day operations and budget decisions.  England has been a top executive at both General Dynamics and at Lockheed; both companies are huge defense contractors.  Over at the Pentagon, it's sometimes hard to know where the national interest stops and the private interests of contractors begins since the personnel and mindsets are so intertwined.  With the Darleen Druyun scandal still only a recent memory, the revolving door between industry and the Pentagon should be a cause for concern.  Apparently it's not for the Administration.

BARDA: A Breeding Ground for Another Brownie?

Effects Measure (a public health poli