Greentech Media: Lawsuit Accuses Bloom Energy, Delaware of Cronyism

Read the full story here. GreenTech Media

“The lawsuit was filed by Cause of Action, which describes itself as a group dedicated to fighting waste, fraud and mismanagement in the federal government. The complaint (PDF) also names Fuel Cell Energy, a Danbury, Conn.-based fuel cell maker and competitor to Bloom Energy, as a plaintiff, Cause of Action spokeswoman Mary Beth Hutchins said in a Wednesday interview. It also names an individual, John Nichols, who is a customer of Delmarva Power & Light, the utility that’s working with Bloom.

“Our desire is that the court will issue a summary judgment” halting the Bloom deal from going forward, Hutchins said. “Our allegation is that the governor and the public service commission have essentially engaged in cronyism.”…Cause of Action’s lawsuit accuses the state of creating a “system of discriminatory eligibility requirements, subsidies, and energy-portfolio-standards multipliers that benefit Bloom,” when it rewrote its renewable portfolio standards act in late 2011. Cause of Action has also filed two Freedom of Information Act requests to examine public comments and economic studies submitted in support of the tariff…”

National Journal: Watchdog Group Says IRS Not Monitoring Lobbying Coalitions

Read the full story here. National Journal

“The pro-transparency group Cause of Action is calling on a Treasury Department inspector general to investigate why, according to the group, the Internal Revenue Service is not overseeing lobbying coalitions.

CoA argues that these loose coalitions are spending money on lobbying but because they are not incorporated, they don’t have disclosure requirements or pay taxes. Saying that it wanted to “provide the public with a better understanding of the rules that apply to coalitions and to ensure that lobbying entities are paying taxes and are in compliance with IRS regulations,” CoA wrote the IRS in March asking for documentation showing how the agency monitors tax-exempt organizations’ lobbying ties.

“Cause of Action is concerned about the risk that lobbying coalitions are exercising political influence without paying taxes under the Internal Revenue Code,” CoA wrote in its request for documents. “In order to avoid the disclosure requirements of the Lobbying Disclosure Act, many organizations are simply not incorporating…”

KMED: Bill Meyer Discusses Whistleblower Protection with Dan Epstein

Jump to minute 21:00 to hear Dan Epstein discuss whistleblower protection.

Dan Epstein – Bill Meyer Show – May 23, 2012

G Gordon Liddy Discusses Whistleblower Protection with Dan Epstein

Dan Epstein – G Gordon Liddy – May 24, 2012

Free Beacon: CoA sues Federal Trade Commission over FOIA denials

Read the full story here. Freebeacon

“A government watchdog group has filed a court complaint against the Federal Trade Commission, claiming the agency arbitrarily denied its public records requests while granting those of liberal organizations.

Cause of Action, a non-profit organization that promotes government transparency, filed an injunction for relief Friday in the United States District Court of the District of Columbia, requesting the court to force the agency to disclose records it has so far withheld. Cause of Action filed the complaint after filing three separate Freedom of Information Act requests and sparring with the agency for nearly nine months.

“For an administration that has publicly committed itself to transparency, the Federal Trade Commission’s refusal to produce documents in response to Cause of Action’s several month-long FOIA investigation reeks of arbitrariness,” Cause of Action executive director Dan Epstein said in a statement to the Free Beacon. “As we state in our complaint, the FTC has wrongfully withheld requested agency records and has repeatedly denied our appeals.”

Roll Call: Epstein: Culture Must Protect Fed Whistle-Blowers

Epstein: Culture Must Protect Fed Whistle-Blowers

By Dan Epstein
Special to Roll Call

Hollywood glorifies them, the media lauds them as heroes, and Members of Congress wave bills around asserting to protect them, but are federal whistle-blowers being retaliated against by their own agencies?

The recent General Service Administration and Secret Service scandals have shone a light on the lack of protection for whistle-blowers, despite laws in place that should safeguard them. GSA employees are afraid of retaliation, according to Inspector General Brian Miller. Administrator Jeff Neely threatened that his employees would be “squashed like a bug” if they spoke out against spending abuses.

Yet some insiders are choosing to brave the storm and stand up to the government to expose fraud and waste. The Senate Homeland Security and Governmental Affairs Committee received calls from agency insiders providing tips for the panel’s probe of the misbehavior of Secret Service agents in Colombia. Numerous federal agency insiders are contacting government watchdogs with information concerning waste, fraud and mismanagement. Are these signs that something is truly rotten in Washington, D.C., or only symbolic of a vain hunt for government carrion?

In the current administration, whistle-blowers should know the policies and procedures in place that offer them protection. As virtually his first act in office, President Barack Obama issued an ethics pledge to all executive branch appointees mandating that, “the head of every executive agency shall, in consultation with the Director of the Office of Government Ethics, establish such rules or procedures … as are necessary or appropriate to ensure that every appointee in the agency signs the pledge upon assuming the appointed office.”

Because of the president’s stated commitment to ethics, Cause of Action asked the Office of Government Ethics to disclose whether the GSA violated the Standards of Ethical Conduct for Employees of the Executive Branch.

Neely’s Las Vegas boondoggle was clearly wasteful, but it may also signify something deeply unethical about federal employee conduct.

A system of accountability is only as effective as the employees charged with its use. Cause of Action continues to await disclosure by the Office of Government Ethics of any documents that may reveal violations of ethics rules by the GSA as well as disclosure by the Office of Special Counsel of complaints made against the GSA by current or former employees who were silenced or retaliated against for blowing the whistle.

The president entered office promising to “strengthen whistle-blower laws to protect federal workers who expose waste, fraud and abuse of authority in government.”

Although little-known even on Capitol Hill, the Council of Inspectors General on Integrity and Efficiency exists to oversee and evaluate federal agencies in their accountability, including their maintenance of procedures designed to protect federal whistle-blowers. Jeffrey Zients, chairman of the council and acting director of the Office of Management and Budget, has been asked to conduct an agency-wide audit, evaluation and investigation to assess the state of whistle-blower protection within the federal government and respond to those violations of ethical rules and whistle-blower laws that have occurred.

Effective government cannot take place if whistle-blowers are threatened into silence. With the recent scandals that have come to light, it is time to determine whether agencies are committed to protecting whistle-blowers. If the government fails to defend those employees who blow the whistle on waste or fraud, then the government effectively endorses a culture of reckless spending and unaccountability.

As economic growth has slowed in an already economically embattled America, now is the key time to commit to government efficiency. As several Members of Congress recently pointed out, “Cutting the fat and tightening the belt are things that all American families do. It’s wrong if the federal government refuses to do the same.”

Investigating and exposing waste in the government not only has the salutary effect of increasing accountability, but it has a concomitant influence on the government’s culture of spending. While requests were made to 32 federal agencies for records on spending on commemorative coins and awards, one might label gift spending as negligible compared to, say, Department of Defense contracts yielding illegal kickbacks. Conceded, but spending taxpayer dollars on commemorative items reveals just how numb our tax-dollar-funded federal employees have become to the idea of self-stewardship.

Callousness toward wasteful spending and a corresponding vitriol toward whistle-blowers has become epidemic in Washington. A first step to curing Washington of its culture of waste is to treat the illness by promoting and maintaining a culture that protects whistle-blowers. Only then will the president’s ethics pledge avoid what taxpayer-funded commemorative coins have turned out to be: of empty value.


U.S. News & World Report: Federal Budget Office Asks All Agencies to Cut Conference, Travel Costs

Federal Budget Office Asks All Agencies to Cut Conference, Travel Costs

May 14, 2012

Since news of the General Services Administration’s $820,000 party in Las Vegas broke, the White House announced its putting the kibosh on the good times that have previously rolled on the taxpayers’ dime.

“One of the Federal government’s most fundamental responsibilities is to serve as a careful steward of taxpayer dollars to make sure that every dollar is well spent and directed toward areas of high returns,” says a memo released by the Office of Management and Budget. [Washington Whispers: GSA Heads Slammed During Congressional Hearing]

The OMB is asking government agencies to cut travel expenses by 30 percent before 2013, part of the plan which it estimates will save the government $1.2 billion.

The new guidelines also outline additional safeguards to protect against wasteful spending. Within each agency, the deputy secretary is now required to scrutinize budgets for conferences in which an agency anticipates to spend more than $100,000.

“I think it is clear that this is a direct response to the GSA,” says Dan Epstein, the Executive Director of Cause of Action, a group committed to tracking government spending and abuses, “It outlines conferences and travel…It is rather telling.”

The OMB’s new restrictions also prohibit federal agencies from spending more than $500,000 on conferences unless the head of the agency approves it, a safeguard that may have prevented the GSA abuses.

During congressional oversight hearings on the GSA incident, former GSA Chief Martha Johnson, who resigned over the incident, says she wasn’t aware of the excessive spending underway until after the lavish gifts and dinners were already purchased.