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New DoD Inspector General Cleans House
Insight Magazine ^ | 9-9-2002 | Scott L. Wheeler

Posted on 09/19/2002 6:17:30 PM PDT by blam

The Last Word
Posted Sept. 9, 2002
By Scott Wheeler

New DoD Inspector General Cleans House

An independent review of the Department of Defense Inspector General's Office (DoDIG) has determined that the new inspector general, Joseph E. Schmitz, inherited "serious problems" dating back four or five years, according to sources familiar with the executive summary of a report due to be released the week of Sept. 9 in response to an investigation by Insight. The DoDIG would not provide a copy of the confidential summary, but Insight has confirmed that the report contains evidence of "major problems" during the Clinton era, including "falsifying of investigative reports and falsifying audits."

The report is extremely critical of previous leadership and senior management at the DoDIG. Sources familiar with the eight-page summary, the independent review and the problems at the DoDIG tell Insight that already "several people have been fired or forced to retire as a result of the house cleaning by the new IG."

Actions taken by the new inspector general were said to have affected Robert Lieberman, the assistant inspector general in charge of the audit section who retired in August, and three others in the Defense Criminal Investigative Service (DCIS), including two Senior Executive Service (SES) members and one GS-15, who were fired and escorted from the IG office at 400 Army Navy Dr. in Arlington, Va., near the Pentagon.

For the moment, DoDIG denies that any "adverse personnel action" has been taken, but an insider who asks not to be identified tells Insight that the "two SESes and the GS-15 were indeed escorted from the building last week and barred from returning."

The timing of the firings corresponded with the arrival at the office of the eight-page summary, but there are conflicting accounts of whether it was directly related to the summary or a collateral matter. A source close to the investigation describes the dismissals of the three DCIS officials as disciplinary action for their attempted retaliation against a whistle-blower at DCIS.

The new inspector general, Schmitz, ordered the "bottom-up review," which began in April and concluded in July. The independent review was conducted by Alexandria-based Military Professionals Resources Inc.

Sen. Charles E. Grassley (R-Iowa), ranking member on the Senate Finance Committee, tells Insight: "The new inspector general, Mr. Joe Schmitz, has already started to clean house. Heads have started to roll with more to come." For Grassley, the independent review is vindication. "Based on what I've heard and seen, the Independent Review Team appears to be on the right track. The team appears to see the very same problems that I see and seems to be headed toward a hard-hitting final report," Grassley tells Insight.

The previous inspector general, Eleanor J. Hill, was selected by President Bill Clinton in 1995. Hill served until 1999 and left a controversial legacy [see "Controversial Staffer Clouds 9/11 Probe," Aug. 5] that included charges by the Air Force and senior civilian-defense officials that she covered up the Clinton administration's involvement in decontrolling weapons-technology transfers to the People's Republic of China.

Grassley, a staunch critic of the IG's office under Hill's leadership, tells Insight: "My three-year oversight investigations of the Inspector General's Office has uncovered a number of serious problems, including high-level misconduct and the falsification of investigative and audit reports."

Grassley uncovered one such falsified report in the spring of 2001. It began with a failed audit dated Nov. 12, 1998 [see "Government Fails Fiscal-Fitness Test," May 20; "Wasted Riches," Oct. 22, 2001; and "Rumsfeld Inherits Financial Mess," Sept. 3, 2001]. According to a May 22, 2001, letter from Grassley to Secretary of Defense Donald H. Rumsfeld, that audit contained "at least 47 known deficiencies."

During a "routine peer-review" inspection of the IG's audits, the reviewers asked to see the November 1998 audit of "DoD Use of Pseudo Social Security Numbers." According to the Grassley letter, "instead of submitting it and suffering the consequences, a decision was made to destroy all the original work papers and to re-create an entirely new set." While Hill had presided over the original failed audit, the falsified audit occurred after her departure in 1999.

The Grassley letter went on to say, "Senior IG officials apparently ordered the staff to sign and backdate the new working papers as if they had been prepared at the time of the original audit." Sources familiar with the investigation of the falsified audit papers tell Insight that Assistant IG Lieberman was involved and "that is what led to his retirement." The so-called "audit work-paper falsification" led to an internal investigation by the IG's office that is pending.

The DoDIG is an independent entity with audit authority responsible for searching out waste, fraud and abuse. Schmitz is a conservative who is known to have the enthusiastic support of Rumsfeld and the entire Bush team at the Pentagon.

Scott Wheeler is a reporter for Insight magazine


TOPICS: News/Current Events
KEYWORDS: 1998; 199811; 1999; 20010911; 911commission; audit; cleans; dod; dodig; dualbooks; eleanorhill; eleanorjhill; falsifiedrecords; falsifiedreport; general; grassley; house; inspector; lieberman; new; omissioncommission; robertlieberman; sept11; ss; ssnumbers
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To: duckbutt
Bump!
61 posted on 09/20/2002 10:12:17 AM PDT by Alamo-Girl
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To: duckbutt
Do you know if someone is following up on getting this info out to Rush, Sean, etc. Bill O'Reilly might also be a good one since some of the posts source World Net Daily.

They're wondering about leaks from the 'intelligence committee'?!
62 posted on 09/20/2002 12:14:42 PM PDT by windchime
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To: blam
A source close to the investigation describes the dismissals of the three DCIS officials as disciplinary action for their attempted retaliation against a whistle-blower at DCIS.....

The previous inspector general, Eleanor J. Hill, was selected by President Bill Clinton in 1995. Hill served until 1999 and left a controversial legacy [see "Controversial Staffer Clouds 9/11 Probe," Aug. 5] that included charges by the Air Force and senior civilian-defense officials that she covered up the Clinton administration's involvement in decontrolling weapons-technology transfers to the People's Republic of China.....

Grassley uncovered one such falsified report in the spring of 2001. It began with a failed audit dated Nov. 12, 1998 [see "Government Fails Fiscal-Fitness Test," May 20; "Wasted Riches," Oct. 22, 2001; and "Rumsfeld Inherits Financial Mess," Sept. 3, 2001]. According to a May 22, 2001, letter from Grassley to Secretary of Defense Donald H. Rumsfeld, that audit contained "at least 47 known deficiencies."....

During a "routine peer-review" inspection of the IG's audits, the reviewers asked to see the November 1998 audit of "DoD Use of Pseudo Social Security Numbers." According to the Grassley letter, "instead of submitting it and suffering the consequences, a decision was made to destroy all the original work papers and to re-create an entirely new set." While Hill had presided over the original failed audit, the falsified audit occurred after her departure in 1999.

There is simply no end to Clinton / Democrat corruption. I don't care how ignorant the simple-minded chattering class in this country is, the drumbeat needs to get loud enough so that even these idiots get a clue and stop voting along with the parasites for scumbag Democrats. Puke.

63 posted on 09/23/2002 5:52:55 PM PDT by Lancey Howard
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To: kcvl
Isn't it literally criminal what this disgusting pig Eleanor Hill tried to get away with? Why isn't she being prosecuted? Where is Ashcroft and the DoJ? I want to see some of these Clinton scumbags go to jail. Real jail.
64 posted on 09/23/2002 5:55:37 PM PDT by Lancey Howard
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To: kcvl
LOFL, nevermind.
I continued on and I see that Eleanor Hill's criminality and corruption landed her a job as "staff director of the joint Sept. 11 inquiry of the House and Senate intelligence committees". And I suppose Grassley and the rest of the Republicans just sit back and takes it like pussies.
Un-freakin'-believable.
65 posted on 09/23/2002 6:01:52 PM PDT by Lancey Howard
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To: Lancey Howard
(As I continue this conversation with myself....)

I continued on and I see that Eleanor Hill's criminality and corruption landed her a job as "staff director of the joint Sept. 11 inquiry of the House and Senate intelligence committees". And I suppose Grassley and the rest of the Republicans just sit back and takes it like pussies.

Okay, I am a little slow sometimes.... but I get it now.
This corrupt pig Eleanor Hill got the job as "staff director of the joint Sept. 11 inquiry of the House and Senate intelligence committees" BECAUSE she is corrupt and can be "counted on". Duh.

Good night.

66 posted on 09/23/2002 8:56:09 PM PDT by Lancey Howard
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