WhistleblowerSupporter

DSS and Boeing Continue Retribution Against DSS Security Specialist Despite DOD OIG Report

Thanks Old Navy Man for sending this.  It is a good follow up in one of the continuing stories I had been observing.  The Defense Security Service has truly reached the point of no salvation in this whistleblower supporter's opinion.  It just gets worse and worse.  I have a lot more I've been told or have been able to find out during my family emergency trips back east.  I'll be unrolling more stuff from this point forward.   Please do go to this link.  I see that POGO's Nick Schwellenbach included links to the DOD OIG's report concerning Mr. Conley's case from 2002-2008, where the DOD OIG validated and upheld Mr. Conley's concerns and that he has been fiercely retaliated against by DSS managers and it appears the director.  Mr. Conley has been on the receiving end of a vendetta for doing his job lawfully and trying to make sure a particular case was not covered up and would be prosecuted.  But because of the demonstrated actions of the defense contractor involved (Boeing) and the conflict of interest relationships certain managers in DSS have personally and professionally with Boeing,  and as it was discovered later, Boeing's relationships with other government managers and  defense agencies or activities, it has been a brutal uphill battle to assure integrity in the oversight process.  Start with reading all of this.  I will be publishing more later.    GFS

 

 

G Florence:
 
Please read this article    http://getinvolved.pogo.org/site/PageNavigator/dss_boeing_whistleblower.html

I just stumbled across this link to a very disturbing whistleblower article.  I did not see it posted at your site so I am forwarding it to you.  Please take the time read it.  I hope you will consider posting it with your comments.  This recent article is from the Project On Government Oversight.  As an old navy man I am incensed that the two government workers identified in this article have been persecuted by the Marine Corps, my Navy and the Defense Security Service for trying to do their jobs.  More people need to know what is going on in our government!
 
An Old Navy Man

Support Your Local “Occupy Your Town/City” Movement

I received an email today from someone who did not understand why I was not actively supporting the “Occupy” efforts across the country.  I’ve been watching news of these activities with interest. (The real news, not corporate owned media outlets who are NOT reporting it for the most part, and not accurately reporting it for the rest.)   A week or so ago I intended to go down and find out for myself what was going on, but work and several family disasters delayed my expedition down there.  Probably the same excuse, many of you have for not actively helping in some way or another.  

 

When you consider that the Occupy efforts appear to be a collaboration of committed individuals who have various concerns and complaints, many of which are caused by corporations, politicians, bureaucracy, greedy examples of those with more than most, etc.  The problems are social, economic, and political.  I can see my reader’s point

 

These are the same people who are helping to enable corporations and various hands and arms of government that are causing the very situations that are creating whistleblowers.  Greed, power mongering, cronyism, influence pedaling, unethical and criminal contracting activities, fraud, waste, abuse, and a host of other ills are examples.  Honorable people when confronted by this try to change it, report it, fix it and usually get the stuffing kicked out of them for their efforts in the climate we are dealing with in this country today. 

 

I agree that I should help promote the support of those who have the courage, determination and commitment to go be an active part of peaceful protest in events being staged across the nation.  Even if you cannot take part in the sign holding and waving, stop by and talk, find out why these people are down there and what they need to stay well and comfortable.  This is especially true in parts of the country that are now turning cold, wet and inhospitable.  My reader suggested donating supplies that are so critically needed like, warm coats, gloves, hats, food, especially things that can be cooked or heated under outdoor camping conditions.  Waterproof plastic storage boxes, tents, sleeping bags, cooking utensils, first aid supplies, those hand warmer sticks you can buy at sporting goods stores, and anything else that will keep up the volunteer’s spirits and energy.  

 

My reader reported that the Occupy Tacoma (in Washington State, south of Seattle, in a park on Pacific Avenue, downtown, at the cross street with the new bridge across the Puyallup River) is a neat and orderly effort showing a positively motivated cooperative of young and old that demonstrates a stellar example of the best of human effort.  They, who are giving the best they can to make a difference and to help the majority of us break out of our complacency and paralyzed condition, deserve our support and help. 

 

When those  with wealth and political control,  who continue to take and take and manipulate things to the detriment of the majority (working class and poor)  in this country are taken to task, and our society balances and rights itself again, we will also be reducing the number of whistleblowers, because there will be less crap and corruption to report,  and to fight against in our work places. 

 

Please take time this week or weekend and do what you can for your local “Occupy ____________” effort.  If you can report on your local Occupy activities, please comment here on this site; you are welcome to voice your observations and opinions. 

 

As for me, I am going to the coat closet, storage room and pantry right now! 

GFS

 

 

DSS Director Ignores DoD OIG Report and Recommendations: Why?

I hear through my sources that the DoD OIG completed a Title V investigation (Reprisal Office) and issued a report of findings in support of the federal employee whistleblower.  I have obtained a copy of this report from my sources in the DC area.  I am wading through it as we speak.  It would appear that Stanley Sims, DSS Director and Jay Freaude, DSS Counsel are purposefully refusing to acknowledge receipt of this report and responsibility to take constructive action to make the damaged employee whole, as directed by the DoD OIG. 

Is this how it will work?  Defense Security Service Director, Legal Department and Management will ignore investigative reports and pretend the investigation from DoD OIG simply does not exist and continue on their unethical and illegal path with impunity?  There are some very angry federal employees and civilian citizens regarding this cavalier attitude toward justice.  Not to mention questions about what appears to be DSS malfeasance in managing a federal agency and expenditure of taxpayer funds. 

If Defense Security Service oversight cannot be ethical in its own in-house matters, how can they be trusted to be ethical in doing their oversight job of policing government defense contracting and contractor corporations?

Anybody have more information or perspective? 

GFS

Judges have gone wild against Whistleblowers

Friends,

We continue our daily press releases. Please send them everywhere! We now have more than 500 web publications of the IAW caucus. We won't rest until we reach everyone.

I want to thank coalition member William Perry (Georgia Common Cause) for his quote supporting Judicial justice (a novel concept!) that was published by the AP.

 

We urge all members to attach responses to the OpEd articles. This makes the more visible. Also, we urge everyone to write articles supporting the meeting. We are on the countdown. Let's get this out!

Thank God the FBI is finally involved. 

http://www.opednews.com/articles/Citizens-United-Demand-Jud-by-Mark-Galen-110913-607.html

Citizens United Demand Judicial Reform Now! 

By Mark Galen (about the author)

 

Judges have gone wild against Whistleblowers

"Corruptio optimi pessima."  "Corruption of the best becomes the worst." 

Washington-Whistleblower advocacy groups have joined in an unprecedented cooperation to protect Judicial Integrity. These groups, including the International Association of Whistleblowers (IAW), the Atlanta Whistleblower Coalition and Georgians for Justice have joined to hold judges accountable a top priority.

In the end, judges are the gatekeepers who frequently deny whistleblowers access to courts. Regardless of laws passed, if courts are hostile to whistleblower rights, society suffers. Whistleblowers may be looking out for society, but who is looking out for whistleblowers?

Leaders of the movement agreed that this is the most difficult challenge that persons of conscience face. Court misconduct can be deadly. When judges permit hospitals or defense firms to cover up, then taxpayers and citizens are left unsafe, and people die. 

In the Godfather, Vito Corleone carried judges in his pockets "like so many nickels." What chance do average whistleblowers have when powerful corporations are pulling judicial puppet strings?

 In the most extreme example, Georgia judicial misconduct has led both the Wall Street Journal and Forbes to declare, "Georgia judges have gone wild." Prime examples include judicial misconduct and criminal conduct in the Georgia / Fulton County Superior Courts. As it stands, more than 24 Georgia Judges have had to resign for violations of ethics, and for even wrongful execution orders.

Just last week, the FBI agreed to intervene. Brian Lambkin, who heads the FBI office in Georgia, has announced this week that it was opening a large investigation into judicial corruption. Larkin elaborated:

"It impacts the everyday system. It's not just a dirty law enforcement officer that might be shaking you down," he said. "You're talking about people that you elect to an office to represent you who try to line their pockets."

 

The Associated Press GREG BLUESTEIN writes that the situation is serious:

Lamkin will personally sign off on the investigations.

"The reason is a corruption investigation can ruin reputations," he said. "These are not quick hits. We will use sophisticated techniques and undercover operations to really go after these. That's why the individuals that work these have to be patient."

 

Lamkin wouldn't say how large the team is, but he said he's assigned about 40 percent of the staff in the bureau's white-collar crimes unit to the mission.

The move was welcomed by government officials, who believed state and local funding cuts over the last few years have eroded other investigations.

"I just appreciate it. One of the frustrations you hear is that with the state budget cuts, you don't have the resources to hire more investigators," said state Rep. Joe Wilkinson , who chairs the House Ethics Committee . "This brings another much-needed level of scrutiny to the system."

Fulton County Sheriff Ted Jackson , who has asked the FBI to investigate deputies at the Fulton County Jail for wrongdoing, applauded the new oversight.

 

 

The Judicial Qualifications Commission nearly ran out of money in December to investigate judicial misconduct, but state lawmakers gave it a financial boost this year.

 

And the Georgia Ethics Commission , which investigates finance complaints and registers lobbyists, has been rocked by deep funding cuts even as it takes on more duties. The commission's director resigned after a dispute over the agency's budget and the status of several cases involving Gov. Nathan Deal . And it went from fielding three investigators in 2008 to none now, said William Perry , the director of Common Cause Georgia.

 

"Our state is cutting back on monitoring elected officials and their ethical behavior, so we welcome the fact that the federal government is stepping up," he said.

"We don't take this lightly," he said. "These are truly the types of investigations that are being done in the back room. And the circle of friends is very small. In order to penetrate that inner circle, you've got to have a strong and tenacious group to develop the intelligence."

 

By cutting fraudsters off from special favors from judges, we can and must protect the United States. People's lives are at stake. No more profit before patients. We urge newspapers everywhere to reprint this article, and for all citizens to join this campaign. We need everyone! No federal dollars without real accountability. Good faith is the essential prerequisite for public support.

Do we want Vito Corleone to control US justice? Are citizens finally going to unite for justice for all?

 

 

 

The IAW urge all citizens to reprint this article everywhere, and to join the fight for better hospital safety.

Calling all citizens who can describe judicial misconduct. Come to our meeting. Tell us your story. Judicial misconduct cannot be allowed to stand!

Now, do not allow more misconduct. Stand up!

Please contact the following immediately:

 

 

 

FOR IMMEDIATE RELEASE

http://internationalwhistleblower.org/

--

In Our Words: United Whistleblower Speak Sept 18, 2011

Please contact me for further information. Our website shows our agenda, our participants, and our goals:

http://internationalwhistleblower.org/

We plan to release further press releases very frequently this week

http://www.opednews.com/articles/5th-Annual-Whistleblower-C-by-James-Murtagh-110831-261.html

Dr. James John Murtagh, FCCP

Co-chair, IAW

404 626 4520

 

 

 

In Our Words: United Whistleblower Speak Sept 18, 2011:

 

"Americans must be free to practice their trade and to tell the public the

truth." http://internationalwhistleblower.org/

 

WASHINGTON, DC – This September 18, the whistleblowers and persons of

conscience will hold the fifth annual gathering on Capitol Hill. As the

Nation's budget crisis continues to grow, lawmakers must look to corporate

and federal whistleblowers to stop out of control spending. The united

message is the nation’s top priority must be to protect whistleblowers so that

truth-tellers can protect the public, the public’s health, and our national

security.

 

Five years of concentrated advocacy led to this meeting. Dr. Jeffrey Wigand

(aka, “The Insider”) helped to found, guide and shape the International Association of

Whistleblowers (IAW). Other Advisors include Coleen Rowley, Reuben Guttman and

Cyrus Mehri. Our ranks are growing stronger everyday.

 

America knows what is said about whistleblowers. This conference is a chance to hear from the whistleblowers in their own words. A spectrum of statements include:

• NSA whistleblower Thomas Drake, recently revealed on 60 Minutes that 9/11 could have been prevented. The IAW demands an end to counter-productive policies that make America more vulnerable to future attacks:

 

"If recent history is any guide, coming forward with the truth and blowing the

whistle on evidence of gross waste, fraud, abuse, wrongdoing, corruption,

malfeasance, illegalities or dangers to public health and safety within public or

private institutions is increasingly viewed as a criminal act. In so doing,

whistleblowers not only risk their personal lives and professional careers they are

often relentlessly and maliciously dismissed, victimized, hounded and even

prosecuted out of reprisal, retribution, and retaliation for speaking truth to power – a clear and distinct 'shoot the messenger' syndrome. Whistleblowers are often the only witness to wrongdoing where they work. Existing laws are simply not sufficient to protect whistleblowers. http://www.whistleblower.org/blog/31/1128

• Navy whistleblower Kirk Wiebe vigorously supports the IAW message:

 

Whistleblowers are not a threat to government or to any organization, rather they

seek to ensure integrity of service to the people they serve. The IAW Conference

provides an excellent platform for whistleblowers to find their voice and to meet

one another in a positive environment of mutual support.

http://www.whistleblower.org/blog

 

NSA whistleblower Randy Kelly amplifies:

 

These are sad and dark days in the history of America. The American taxpayer has little or no confidence in our elected officials or government in general. The

American people should be outraged at the level of corruption and criminal activity within the federal government and politics in this country. It is easy to understand why many members of the Senate and of the House of Representatives do not want any level of whistleblower reform. Too many politicians fear they themselves will become publically exposed as to the atrocities they condone by being unwilling to take any action against the prevalence of fraud, waste and abuse within all levels and sectors of our government. All honest citizens are affected by government fraud, waste and abuse. These are intentional and criminal acts that benefit but a few. And, they are taking place to the detriment of, and at the expense of, the honest and hard working citizens of this country. It is the 'whistleblowers' that are trying to right the wrongs. Yet the term 'whistleblower' remains painted with a dark and sinister image. The American people must come to realize that the 'whistleblowers' of this country are some of the true patriots of America. Now, more than ever, whistleblowers need the understanding and support of the American people!

• Bill Binney points out the Constitutional issue:

 

When our Constitutional form of government does not function, that is, when

Congress does not have effective oversight of the agencies of the executive branch, those agencies set their own agenda and spend money accordingly. That is exactly what has happened at my former agency (NSA). Over the past 30 years, my former agency has made acquiring money the main objective - not solving operational problems. Their vision statement over these years has evolved into "Keep the problem going, so the money keeps flowing." In other words, don't solve the problem use the problem to keep getting more and more money.  This is and has been a disservice to our people and country. In effect, these agencies are trading our security for money.

• Mike McCray, co-chair of the IAW agrees:

 

Starting today, every agency and department should know that this administration stands on the side not of those who seek to withhold information, but those who seek to make it known.  We encourage all 264 organizations and corporations that signed the Whistleblower letter to join us! We are already bonded by a shared principle that "whistleblower protection is a foundation for any change in which the public can believe. It does not matter whether

the issue is economic recovery, prescription drug safety, environmental protection, infrastructure spending, national health insurance, or foreign policy."

 

The IAW is independent, transpartisan, and non-aligned. It is united by a single principle: that Americans deserve to be protected by the truth. Only truth-telling patriots with extraordinary courage to tell truth to power can stop the barrage of preventable disasters that beset America. We are uniting to lobby Congress, and we will be heard. Every whistleblower will tell their story, and will be interviewed for U-tube. An extraordinary archive of these American and International stories will be collected.

 

All citizens who want to make America truly stronger are invited to:

 

Contact today Atlanta Whistleblower

Phone: 404 626 4520

INTERNATIONAL

ASSOCIATION

OF WHISTLEBLOWERS

(IAW) CAUCUS IN WASHINGTON DC

September 18, 2011

 

DC Public Library

Martin Luther King Jr. branch,

RoomA-5,

901 G Street, NW

Washington, DC 20001

(202) 727-0321

 

Please post additional comments to:

http://www.opednews.com/articles/In-Our-Words-United-Whist-by-Carol-Czarkowski-110911-240.html

ATTENTION! SEC ADOPTS NEW WHISTLEBLOWER RULES

I attended one of these sessions recently.  You do not have to be an attorney to attend.  I recommend that you all attend and read Mr. Kohn's new book.  It is written to make the complexities understandable even for people who are not attorney's.    Your fee includes a copy of Mr. Kohn's new book and handouts.  He was very open to answering participant questions.  GFS

 

 *******

 

On May 25th, the Securities and Exchange Commission (SEC) adopted whistleblower rules that fundamentally changed and enhanced the right of employees to obtain legal protection and large financial rewards (see Washington Post article).  The National Whistleblowers Center and its legal staff were extensively involved in this process, providing the SEC with nine formal rulemaking submissions and personally meeting one-on-one with each of the five SEC commissioners.  Many of the NWC's proposals were adopted by the SEC, and the Final Rules cited to NWC formal comments forty-four times.  The new regulations will prove an invaluable asset in the representation of corporate whistleblowers, and the new regulations if properly utilized will prove to be an invaluable asset in successfully representing employees and preventing corporate fraud.

 

As a result, the National Whistleblowers Center is conducting a series of nationwide seminars that will focus on the new SEC regulations, and the historic whistleblower protections contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The seminars will explain the new anti-retaliation rules governing corporate employees and the financial reward provisions.  These rules require the SEC to pay large financial awards to qualified whistleblowers for which there is no cap and can result in multiple millions of dollars in recoveries.

 

 

 

 

Dodd-Frank Act

3-hour CLE Seminar

NEW Corporate Whistleblower Protections and Reward Provisions

 

 

On July 21, 2010, Congress enacted the Dodd-Frank Act. Corporate whistleblowing was forever changed. The Act established the right of whistleblowers to obtain multi-million dollar rewards for reporting violations of Securities and Commodities Exchange Acts. These "qui tam" provisions were modeled on the False Claims Act -- a law that already has resulted in whistleblowers obtaining over $2.7 billion dollars in rewards for reporting federal contracting and procurement violations to the Justice Department. Dodd-Frank also enhanced employment protections available to whistleblowers. Retaliatory discharge cases can now be filed directly in federal court, with the right to a jury trial. Under Dodd-Frank, mandatory arbitration agreements cannot be enforced.

$150 ATTORNEY REFERRAL SERVICE MEMBERS

($95 For Early Bird Special!)

 

$295 ATTORNEYS

($150 For Early Bird Special!)

 

$75 WHISTLEBLOWERS

 

Call (202) 342-1903 for Early Sign-up or ARS Discount Codes

 

To REGISTER visit our UPCOMING EVENTS page

Locations:

 

Washington, DC -- June 10th, 2011 (Teleconference Available)

         National Whistleblowers Center

         3238 P Street NW

         Washington, DC 20007

 

         Register on or before June 7th for Early Bird Special

 

         Contact Seminar Director Estelle Kohn at [email protected] or Associate

         Seminar Director Philip Barrett at [email protected] or call

         (202) 342-1903 to register

 

Denver, CO -- June 23rd, 2011

         The Browne Palace Hotel & Spa

         321 17th Street

         Denver, CO 80202

 

         Register on or before June 10th for Early Bird Special

 

San Francisco, CA -- June 27th, 2011

         TURN-The Utility Reform Network

         115 Sansome Street, Suite 900

         San Francisco, CA 94104

 

         Register on or before June 10th for Early Bird Special

 

Los Angeles, CA -- June 28th, 2011

         Carlsmith Ball LLP

         444 South Flower Street, 9th Floor

         Los Angeles, CA 90071-2901

 

         Register on or before June 10th for Early Bird Special

 

New York, NY -- July 25th, 2011

         New York Marriott Downtown

         85 West Street at Albany Street

         New York, NY 10006

 

         Register on or before July 15th for Early Bird Special

 

CURRICULUM:

Learn how to use the new corporate whistleblower laws and regulations to effectively represent employees, combat fraud and qualify for large whistleblower rewards. Gain insight into how whistleblower protections laws can be integrated into your law practice as powerful legal tools for maximizing your client's ability to have their case heard before a jury and obtain entitlement to large monetary damage awards and rewards.

 

FACULTY:

Stephen M. Kohn, Esq. is the Executive Director of the National Whistleblowers Center and one of the nations leading advocates on whistleblower law.  Mr. Kohn will present this unique seminar on the latest whistleblower laws and rewards provisions. Mr. Kohn has represented numerous high profile whistleblowers for over 27 years. He has authored seven books on whistleblower law, including the recently published The Whistleblower's Handbook: A Step-by-Step Guide to Doing What's Right and Protecting Yourself (Lyons Press, 2011). Mr. Kohn was the principal author of the NWC's rulemaking petitions and personally met with all five SEC Commissioners and the responsible Commission staff.

 

To Register or For More Information:

Please visit our UPCOMING EVENTS page or contact Estelle Kohn or Philip Barrett by phone: (202) 342-1903 or email: [email protected] or [email protected].  

If you cannot make the seminar, you can purchase the course materials, The Whistleblower's Handbook, online for $16.95 plus shipping. 

John M. Cole Blows the Whistle on the FBI

The book I mentioned in another post is While America Sleeps: An FBI Whistleblower's Story, by John M. Cole.

John Cole speaks of his observations and experiences working for the FBI in the counterintelligence and counterterrorism arena, where he worked as a Counterintelligence program manager and other positions while employed nineteen years by the FBI. His story intersects with other noted whistleblowers such as Sibel Edmunds.

I am quite struck with the similarities of what Cole describes occurring in the FBI to what has been going on in other government agencies as well. It is disturbingly parallel. I will be discussing some of his observations and how they are parallel with other agencies here. I will add to this post over the next couple of weeks. Please keep checking in. You may sign up to receive updates by email on my blog.

For those of you who would like to purchase the book, you may find it on Amazon.com.

While America Sleeps: An FBI Whistleblower's Story, by John M. Cole.

ISBN: 978-1-60749-747-9

Published by PUBLISHAMERICA, LLLP

Publisher's web address: www.publishamerica.com, Baltimore MD

Printed in the United States of America. 2009

Failing Inspector Generals Do Not Go Unnoticed

This was sent in today by a reader.  Thank you Old Navy Man, again.  -GFS

 

G. Florence

Federal government agency officials are going to do everything they can to ensure that these Inspector General reports are marginalized, or that they never come to the attention of the taxpaying public.  More times than not, these cases involve the misconduct of federal officials, acts of retaliation against whistleblowers trying to do the right thing, and the fraud and the waste and the abuse of taxpayer dollars.  Cover up and minimization of Inspector General investigations within the Department of Defense is rampant.  But don’t take my word for it, check the case statistics! 

An Old Navy Man

 

Watch Blog

POGO: The Case of the Missing Inspector General Reports

Posted at 10:28 am, November 4th, 2010

By Michael Smallberg,  (cross-posted with the Project On Government Oversight)

Inspector General (IG) investigations expose some of the most egregious examples of misconduct by federal officials—everything from whistleblower retaliation to the abuse of taxpayer dollars—and the public has every right to see the (non-classified, non-redacted) results of these investigations. Yet in many cases, agencies have been known to over-redact, delay, or completely block the release of IG investigative reports. As we discussed in our 2008 report on IG independence, restricting public access to these reports undermines the important work performed by IGs, and creates a significant barrier to holding agency officials accountable.

A few weeks ago, Senators Charles Grassley (R-IA) and Tom Coburn (R-OK) released letters from 13 IGs describing how their agencies have interfered with investigations. Among other things, the senators asked the IGs to provide “biannual reports on all closed investigations, evaluations, and audits conducted by your office that were not disclosed to the public.”

As the senators continue their review, we hope they take a close look at the Securities and Exchange Commission (SEC), which has a troubling history of withholding records from the public, including investigative reports issued by the IG.

On the SEC IG’s website, you won’t find any investigative reports issued prior to 2009, and there are only eight reports posted since then. Yet the IG’s semiannual reports to Congress describe dozens of investigative reports that have been issued to SEC management over the past two years.

To be fair, most of the SEC IG’s audit and evaluation reports dating back to 1994 have been posted online. But when it comes to investigative reports—in which the OIG’s Office of Investigations looks into “allegations of violations of statutes, rules and regulations, and other misconduct by Commission staff and contractors—very few have ever been released to the public.

After reviewing the IG’s semiannual reports, we’ve counted at least 27 investigative reports issued since 2009 that have not been posted online. These reports cover everything from insider trading by SEC employees to botched investigations of fraudulent companies. There are at least two reports—one on the SEC’s bungled investigation of Allied Capital, and one on allegations of whistleblower retaliation at the SEC’s Ft. Worth Regional Office—that have been redacted and released, but are nowhere to be found on the SEC or IG’s websites.

Even when the IG’s reports are released to the public, the SEC can still diminish their impact. In the case of the Allied report, for example, the SEC redacted the name of the official who became a registered lobbyist for Allied after he left the SEC and illegally attempted to access hedge fund manager David Einhorn’s telephone records, even though his name had already been disclosed in Einhorn’s book and various media reports.*

The SEC also has a troubling history of releasing IG reports on slow news days. As reported by the AP, the IG identified this problem in its latest report on the timing of the SEC’s charges filed against Goldman Sachs (the IG was investigating whether the timing was politically motivated or intended to overshadow the release of another IG report on the SEC’s botched investigation of the Stanford Ponzi scheme):

[SEC Office of General Counsel Attorney] sent an email to a personal friend on the day that the Goldman action was announced and the OIG Stanford Report was released, stating about these two matters, “What a coincidence that those two stories came out today. ”

…These suspicions were likely fueled by the recent history of the SEC releasing OIG reports that criticized the agency on “slow” news days… The SEC released the OIG’s 457-page Report of Investigation (“ROI”) concerning the failure of the SEC to uncover Bernard Madoff’s Ponzi Scheme after 5:00 p.m. on September 4, 2009, the Friday before a three-day holiday weekend….The SEC then released the hundreds of exhibits supporting the OIG’s ROI concerning Madoff late on Friday, October 30, 2009.

…In addition, the OIG ROI concerning the SEC’s failure to vigorously pursue Enforcement action against W. Holding Company, Inc., and Bear Sterns & Co., Inc., was made public on Friday, October 10, 2008….Consistent with this pattern, on the same Friday that the OIG Stanford Report was publicly released and the Goldman action was announced, April 16, 2010, the SEC also publicly released the OIG’s ROI concerning the SEC’s failure to timely investigate allegations of financial fraud at Metromedia International Group, Inc., which had been submitted to the SEC by the OIG almost two months earlier.

As the report suggests, it’s the agency—specifically, the Office of General Counsel—that’s in charge of redacting IG investigative reports, and the reports can only be released through a vote by the SEC commissioners. The IG elaborated on this issue at a September hearing before the Senate Banking Committee, stating that his office does not have the authority to make decisions on nonpublic information by itself, even though it has asked for such authority.

In recent testimony before the House Financial Services Committee, POGO’s Angela Canterbury recommended that “[d]eterminations of FOIA exemption applicability to OIG reports, particularly regarding investigations, should be independently reviewed by the FOIA office or a FOIA officer within the OIG, not by the Chair or OGC.”

We’re hopeful that the next Congress will be receptive to strengthening IG offices across the government.

– Michael Smallberg

 http://blog.niemanwatchdog.org/?p=1737

Comments Regarding “Declining DCAA Role in Oversight of Tens of Billions of Pentagon Contract Dollars

Here are some comments left on one of the articles I posted earlier today.  You will want to check the original article and additional comments.  See link at bottom of this post.  And thanks again, Old Navy Man.  GFS

 

G. Florence-

 

It’s not just ‘An Old Navy Man’ that believes there’s a problem.  See comments below.

 

Good investigative reporting on the part of Mr. Schwellenbach!

 

An Old Navy Man

 

 

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Comments

Joe   It is a shame that the only reason that DCAA gave away proposal audits under the stated PGI threshold is so that we can put more time in working paper documentation. Not that our audits will be any better or that we will question more cost. No, just the opposite. We gave away millions of dollars of proposal work just to have more time to document our work. Such as waste of effort. This is definately contrary to Secretary Gates efficiency initiative. I am dispoointed that Fitzgerald did not have a backbone and went along with AT&L on this one. Stephenson never would have given away work just to have more time for those picture perfect working papers. What's next, $500 million and $50 million. Before we know it, Fitzgerald will have each auditor completing only one audit per year. I imagine that Policy is already examining how to raise the desk review incurred cost threshold to $100 million per year. Here's a clue how to deal with the gap between the audit work that needs to be accomplished and the current funding, provide DCAA more funds. Simple, issue solved. DCAA saves dollar for dollar more than it costs, period. So why won't Comptroller Hale provide DCAA more money? Oh I get it, he does not want oversight of contractors and neither does our lobbyist Deputy Secretary of Defense. I get it now. We need a change of administration and fast!

Posted on: Oct 30, 2010 at 05:54 PM

Carol   The blog comments are 100% on the mark. In essence, pricing evaluations by DCMA for FFP under $10 million and cost type over $100 million will become nothing more than a rate check. DCMA is not staffed to perform a full price analysis of proposals under these thresholds. This represents a high volume of proposals. Rather DCMA will call DCAA for the latest rates and that will be the extent of the price analysis. It will not matter than the rates are 2-3 years old or perhaps no rate information. The message was been sent by AT&L, pricing actions under these thresholds are immaterial and become a blank check for contractors. I am curious about the independence comment made by Frank. I thought that the Defense Business Board in its October 2008 report stated that DCAA should perform any audits it felt necessary regardless of the DPAP guidance, FAR, DFARS, CAS, etc. How can DPAP decide the audits to be performed by DCAA? This seems to be an independence issue. The PGI guidance was not revised due to a change in law or other legal statute. Perhaps Fitzgerald is confusing Army Audit with DCAA where in Army Audit the Secretary of the Army may decide the audits that are performed. But in DCAA, the responsibility is on the DCAA Director to decide the audits that are necessary, no one else has that responsibility. I believe we have a GAGAS noncompliance. POGO, could you research the independence issue. This could be very serious.

Posted on: Oct 30, 2010 at 08:02 AM

John    Agree with Frank and Mike. The Pentagon has wanted DCAA to get out of the forward pricing audit business for years. Contracting officials want to place as much money on contract as possible and do not want to have to address audit findings while negotiating contracts. However, I would argue that the new thresholds really do not matter because many forward pricing reports are issued too late to be of use to the contracting officer and many others are never issued because the supervisor, manager, region, QA reviewers have an issue with the working papers such as the entrance conference was not thoroughly documented or the sample was too small. All the while, real dollars are wasted especially on FFP contracts. Assignments are cancelled all the time. I recall a time when the FAO had a prepare a detailed explanation for the region when it cancelled an assignment. Now we cancel more assignments that we complete. POGO, you should ask for the number of cancelled assignments for the last five years, you should see a significant increase in FY 2010. Not to mention the millions that have gone unaudited and thousands of audit hours wasted. I guess Army Audit has a very liberal cancellation policy.

Posted on: Oct 29, 2010 at 07:42 PM

Jan   Here's the next scandle, DCAA spends twice as much to do 25%of the audits. Overpayments and fraud triple due to no oversight. GAO and IG find DCAA's audit working papers are perfect, but gig DCAA for performing marginal analytical procedures. Wake-up Fitzgerald, you have many hearings in your future so start practicing the opening statement on how the Pentagon made you do it and how important it is to ensure that all the i's are dotted and t's are crossed. Oh, and do not forget, you are responsible for DCAA and cannot use the Pentagon or anyone else as an excuse. The independence issue is squarely on you. Keep in mind that Under Secretary Hale and Deputy Lynn will not be around forever to protect you.

Posted on: Oct 29, 2010 at 07:01 PM

Mike   This action is very short-sighted by Director Fitzgerald. The ratio of questioned cost to dollars examined on the smaller dollar pricing actions is generally greater than the larger dollars especially the fixed price effort. These are generally smaller, less experienced contractors that do not have adequate pricing systems in place and are not knowledgeable of the FAR and CAS. Last month my office issued a report on a FFP $8 million proposal. We questioned half of the proposed amount ($4 million) because the contractor charged all indirect costs to the Government contract and none to its commercial customers. Reason, the commercial customer would not pay for the indirect costs, but they tried to get the Government to pay it. The CO sustained 100% and reduced the negotiated price accordingly. DCMA does not know contractor accounting records at the level of detail as DCAA and would not have had this finding in their price evaluation. Result, $4 million down the drain. POGO stay with this one, it has scandle written all over it.

Posted on: Oct 29, 2010 at 06:10 PM

Frank   It is an impairment to DCAA's independence for the Pentagon to dictate the audits that DCAA will perform. If there is a risk such as an inadequate estimating system, history of overbillings, or even fraud referrals, DCAA should be able to perform the pricing audits. This is just the Pentagon's way of reducing the oversight of contractors. DCMA is not equipped to handle the significant workload associated with pre-award pricing effort on cost-type contracts under $100 million and fixed-price under $10 million.

Posted on: Oct 29, 2010 at 0 http://pogoblog.typepad.com/pogo/2010/10/declining-dcaa-role-in-oversight-of-tens-of-billions-of-pentagon-contract-dollars.html6:02 PM

http://pogoblog.typepad.com/pogo/2010/10/declining-dcaa-role-in-oversight-of-tens-of-billions-of-pentagon-contract-dollars.html

 

DoD Auditors Auditing Less.

Here is another article and comment sent from a reader.  Thank you again, Old Navy Man.  And GFS

 

 

G. Florence-

 

Reduce government, and you reduce defense contractor oversight.

 

An Old Navy Man

 

  

WashingtonTechnology

 

DOD auditors raise the limit on what they'll examine

Watchdog group cries foul over what they see as reduced oversight

By Alice Lipowicz

Oct 29, 2010

 

The Defense Department has reduced the scope of contracts audited by the Defense Contract Audit Agency, according to a DCAA memo released today by the Project on Government Oversight, a watchdog group.

According to the memo, contracting officers' requests for DCAA reviews of contractor cost data must meet a threshold of $10 million for fixed-price proposals and $100 million for cost-type proposals, unless there are exceptional circumstances.

Previously, the threshold was $700,000 for fixed-price proposals and $10 million for cost-type proposals, POGO officials said in a post published on the organization's website.

Approximately $92 billion in annual DOD contracts will be affected by the new thresholds, POGO estimated, calling it a radical reduction in contract oversight by DCAA.

“POGO has long feared contractors and their government allies would block DCAA from exposing contractor ripoffs,” Nick Schwellenbach, POGO’s director of investigations, said today.“Why are billions of dollars being put at risk when [Defense] Secretary [Robert] Gates is demanding cost savings?”

DCAA officials were not immediately available for comment.

 

 http://washingtontechnology.com/articles/2010/10/29/dcaa-audits-contractor.aspx