Friday, June 19, 2009

Hope Change Transperency

The Obama swept into the White house waving a banner of hope and change. He promised to be open and transparent. He said that business as usual in Washington was over while he was president. Well it seems that this may not be true. Its turns out that the Obama has just had an Inspector General fired for doing his job. Further he was fired in a manner that broke a law that the Obama himself had co sponsored. In explaining the Obamas law breaking his aids called it an act of political courage. I think that's like calling a bully's beating, self defense.

Here is the story. Inspector General Gerald Walpin was investigating how $850,000 was spent by St Hope run by former NBA star and Obama supporter Kevin Johnson. St. HOPE had received an $850,000 AmeriCorps grant, which was supposed to go for three purposes: tutoring for Sacramento-area students; the redevelopment of several buildings; and theater and art programs. Mr. Walpin's investigators discovered that the money had been used instead to pad staff salaries, meddle politically in a school-board election, and have AmeriCorps members perform personal services for Mr. Johnson, including washing his car.

At the end of May, Mr. Walpin's office recommended that Mr. Johnson, an assistant and St. HOPE itself be "suspended" from receiving federal funds. The Corporation's official charged with suspensions agreed, and in September the suspension letters went out. Mr. Walpin's office also sent a civil and/or criminal referral to the U.S. Attorney for the Eastern District of California. Well Mr Johnson became Mayor of Sacramento and it now looked like that city would not be allowed to receive stimulus funds due to Mr Johnsons suspension. A political pressure cooker began and massive pressure was place on all to fix this issue. Mr. Walpin agreed that Mr. Johnson should pay back money but objected to lifting the suspension. He noted that Mr. Johnson has never officially responded to the Corporation's findings and that the entire point of suspension is to keep federal funds from individuals shown to have misused them.

Enter US Attorney Lawrence Brown, his office produced a settlement draft that significantly watered down any financial repayment and cleared Mr. Johnson to receive federal funds. Surprised and concerned about the St. HOPE mess, Mr. Walpin wrote a 29-page report, signed by two other senior members of his office, and submitted it in April to Congress. Last Wednesday, he got a phone call from a White House lawyer telling him to resign within an hour or be fired. IG Walpin He says the phone call firing him came from Norman Eisen, the Special Counsel to the President for Ethics and Government Reform, who said the President felt it was time for Mr. Walpin to "move on," and that it was "pure coincidence" he was asked to leave during the St. HOPE controversy.

Here is where it gets interesting, last year Congress passed the Inspectors General Reform Act, which requires the President to give Congress 30 days notice, plus a reason, before firing an inspector general. A co-sponsor of that bill was none other than Senator Obama. Having failed to pressure Mr. Walpin into resigning (which in itself might violate the law), the Administration was forced to say he'd be terminated in 30 days, and to tell Congress its reasons. This law was totally ignored. Political courage or business as usual?
Daniel J Hoban

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