Who is watching the watchdogs?

Recently, Cause of Action sent a letter to Congressman Darrell Issa, chairman of the House Oversight Committee. In it, we address specific questions that we have about the efficacy and efficiency of the Office of Special Counsel (OSC).

Over the past few months, Cause of Action has been investigating the events leading up to and surrounding the Hatch Act violation by Department of Health and Human Services Secretary Kathleen Sebelius. Though OSC’s investigation concluded that Secretary Sebelius was guilty of a Hatch Act violation, Cause of Action was concerned that not enough had been done. We were concerned that Sebelius, who was the highest ranking executive branch employee ever to have been found guilty of violating the Hatch Act, had been essentially let off the hook without any real form of punishment and curious about how that had come about.

In essence, OSC is an independent arm of the executive branch that acts as a watchdog for federal employees through investigations and prosecution. Among many other things, the OSC investigates allegations of Prohibited Personnel Practices such as waste of funds, mismanagement, and abusive practices by those in power, as well as Hatch Act violations.

What we found over the course of our investigation was that aside from providing gross misinformation in their report, that OSC ignored other potential violations of the law by both Sebelius and her aide, and that they also failed to report FEC violations—all things that should have been easily uncovered during the course of their investigation.

Our investigation also found that when Sebelius attended a function for Senator Sherrod Brown, she was prepped by HHS staffers and also used HHS funds for her travel. Even though the funds were ultimately reimbursed by the Brown campaign, this raises serious questions not only about Sebelius’ use of taxpayer funds, but also about the efficacy of an OSC investigation.

The HHS debacle aside, OSC also failed to investigate an event at the White House, sponsored by the Democratic National Committee, despite receipt of a letter sent from Chairman Issa to the OSC.

The question is: how effective is the OSC at dissuading employees of the federal government from engaging in Prohibited Personnel Practices if they never conduct thorough investigations? Further, when violations are found, what message does it send to federal employees when investigations do not yield meaningful punishment?

The culture of waste, fraud, cronyism and corruption that seems to have permeated the federal government needs to stop, and without a proper watchdog, who is there to do it?

See the letter to Congressman Issa and our press release for more information.

Tuesday February 5, 2013 Morning News

The judge in our Drakes Bay Oyster company lawsuit issued a ruling on the motion for preliminary injunction yesterday. The Associated Press reports:

A federal judge on Monday denied a Northern California oyster farm’s request to have its removal from Point Reyes National Seashore overturned, and ruled against allowing it to continue doing business in the park while its lawsuit is being heard in court. The judge denied owner Kevin Lunny’s request to void Interior Secretary Ken Salazar’s refusal to renew the historic oyster farm’s lease for another 10 years. The rulings dealt a blow to the popular Drakes Bay Oyster Co.’s last-ditch effort to remain in business beyond its March 15 eviction date. 

[UPDATE] Be sure to read our response to the judge’s ruling.

President Obama is starting to vet replacements for cabinet members. More from Reuters:

A California-based hospital company says it will not comply with at least two National Labor Relations Board rulings from the past year after a federal court invalidated three of President Barack Obama’s recess appointments to the NLRB last week. 

A DOJ memo detailing legal justification for drone strikes, even on American citizens, was leaked. The New York Times has this story:

Obama administration lawyers have asserted that it would be lawful to kill a United States citizen if “an informed, high-level official” of the government decided that the target was a ranking figure in Al Qaeda who posed “an imminent threat of violent attack against the United States” and if his capture was not feasible, according to a 16-page document made public on Monday.

Press Release: Cause of Action Exposes Negligence and New Hatch Act Concerns at Office of Special Counsel

 

Cause of Action Exposes Negligence and New Hatch Act Concerns at Office of Special Counsel

Board Designated with Investigating Hatch Act Violations is Rife with Problems

 WASHINGTON – Cause of Action (CoA), a government accountability organization, sent a letter to Chairman Darrell Issa of the House Oversight Committee on Monday outlining new discoveries about Hatch Act violations and internal problems at the Office of Special Counsel (OSC) that warrant investigation.

The letter follows an OSC complaint filed on January 29, 2012 by Cause of Action requesting an investigation into AJ Pearlman, an aide to Secretary Kathleen Sebelius, who committed a Hatch Act violation while accompanying the Secretary during a February 2012 trip. Cause of Action filed the complaint in concert with a complaint to the Federal Election Commission (FEC) concerning the Democratic National Committee’s reimbursement to the government for Secretary Sebelius’s political activity.

What Cause of Action is now revealing is a breakdown of accountability at the OSC on multiple levels:

  • OSC’s Investigation into HHS Secretary Kathleen Sebelius Failed to Disclose a Potential Hatch Act Violation by Sebelius’s Aide AJ Pearlman
  • OSC Did Not Consider that Secretary Sebelius and Her Staff’s Support of Senator Sherrod Brown may Raise Hatch Act Concerns
  • OSC Failed to Investigate Potential Hatch Act Violations Arising from an Event at The White House Sponsored by the Democratic National Committee (DNC)
  • OSC Has Launched a Hatch Act Investigation into Secretary of the Interior Kenneth Salazar, but Will they Conclude that Investigation Before He Leaves Office in March 2013?
  • OSC Lacks Clear Guidelines for Appropriate Disciplinary Action against Federal Employees that Violate the Hatch Act
  • OSC’s Special Counsel Carolyn Lerner Used a Non-government E-mail Account to Conduct Agency Business

Executive Director of Cause of Action Dan Epstein explained the consequences of Cause of Action’s findings:

“The Office of Special Counsel exists, in part, to hold federal government employees to the standards of the law, yet we have found a breakdown of responsibility, ethics, and duty within their own agency.  As the primary Congressional body with jurisdiction over OSC, we are presenting our findings to the House Oversight Committee for their review.  Taxpayer dollars are funding an agency who is failing to execute its duties, and we intend to hold them accountable. The ripple effects of their failures mean that numerous agency employees are potentially getting away with breaking the law.”

The letter and the exhibits can be found here.

 

To schedule an interview with Cause of Action’s Communications Director Mary Beth Hutchins, contact Jamie Morris, jamie.morris@causeofaction.org.

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Statement from Drakes Bay Oyster Company in Response to Denial of Preliminary Injunction

Drakes Bay Oyster Company and Legal Team Respond to Federal Court Decision to Deny Request for Preliminary Injunction

 

WASHINGTON – Cause of Action (COA), a government accountability group working on behalf of Drakes Bay Oyster Company (DBOC) and owner Kevin Lunny, responded to Judge Gonzalez Rogers’s decision to deny an injunction for Drakes Bay Oyster Company, which would have allowed the company to remain open for the duration of the trial, Drakes Bay Oyster Company v. Salazar, et al. Following a November 2012 decision by Secretary of the Interior Kenneth Salazar which will shut down the oyster farm on February 28, DBOC filed a lawsuit against Salazar, the National Park Service, and the Department of the Interior for violating the law and not adhering to sound science.

 

Amber Abbasi, Cause of Action’s Chief Counsel for Regulatory Affairs, offered this response on behalf of the legal team representing DBOC, which includes pro-bono attorney services from Stoel Rives, LLP; SSL Law Firm, LLP; and Briscoe Ivester & Bazel, LLP:

 

“We are disappointed in the judge’s decision to deny our request for a preliminary injunction. Without this injunction, not only will a small business close, but families will be forced out of their homes, and the community will lose a sustainable farming resource.  The Lunnys are weighing their options for next steps and will make their decision known in the coming days.”

The judge’s decision can be found here.

About Cause of Action:

Cause of Action is a nonprofit, nonpartisan organization that uses investigative, legal, and communications tools to educate the public on how government accountability and transparency protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.

 

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Monday, February 4, 2013 Morning News

Secretary of Energy Steven Chu has announced his resignation, joining the ranks of other members of the president’s cabinet to step down after his first term in office. The Daily Caller has the latest:

Secretary of Energy Steven Chu announced on Friday that he would leave the Obama administration sometime after February and planned to return to academic life in California after serving four years and coming under harsh criticism from Republicans.

The Republican Oversight Committee has been seeking documents related to potential contract-rigging at USAID. More from the Washington Post:

Rep. Darrell Issa (R-Calif.) has threatened to subpoena the nation’s foreign aid agency if it doesn’t hand over documents and information relating to alleged wrongdoing by top agency officials…The oversight committee is examining an inspector general’s investigation into possible contract-rigging by the agency’s general counsel and allegations that USAID’s second-ranking executive interfered with the probe.

Retired monkeys living it up on federal tab in Louisiana ‘Chimp Haven’

COA Challenges DOE’s Proposed Settlement in Energy Efficiency Standards Case

FOR IMMEDIATE RELEASE                                                                                                 CONTACT:        Mary Beth Hutchins, 202-400-2721

FEBRUARY 1, 2013

Jamie Morris, 202-499-2425

Cause of Action Challenges DOE’s Proposed Settlement in Energy Efficiency Standards Case

HARDI moves to substitute in the case that would affect numerous American businesses

WASHINGTON – Cause of Action (CoA), a government accountability organization, recently  filed a Motion to Substitute as Petitioner on behalf of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), following the Department of Energy’s proposed settlement with the American Public Gas Association (APGA)  of a court challenge to the agency’s rogue move to impose unreasonable energy efficiency standards on distributors, installers, and users of residential heating and cooling products in the United States.

On May 29, 2012, CoA filed a brief on behalf of HARDI in a lawsuit against the DOE following the agency’s unprecedented move to issue new energy efficiency standards without heeding input from industry members and others in the public. Agency practice typically dictates that even if one adverse public comment is received, the agency will withdraw a proposed direct final rule and use the notice-and-comment process. The DOE ignored more than 30 adverse comments concerning the direct final rule at issue here.

“The proposed settlement between the APGA and the DOE leaves two-thirds of the energy-conservation standards at issue in the lawsuit intact,” said Dan Epstein, executive director of Cause of Action. “If HARDI is not granted permission to substitute as a Petitioner in this case HARDI and other small business members will be denied the opportunity to fight DOE’s abuse of its limited direct final rulemaking authority.”

“HARDI does not believe that the APGA/DOE settlement addresses all of our concerns, therefore we are asking the Court to allow us to substitute in for APGA and continue our concerns as they relate to abuses of the Direct Final Rule Process and central air conditioners,” Jon Melchi, Director of Government Affairs at HARDI, said in a press release from the organization.

The proposed settlement is limited to standards for non-weatherized gas furnaces and fails to address or resolve HARDI’s remaining claims.

Continued Epstein, “Only judicial review can effectively curb DOE’s abuse of the direct final rulemaking process.”

About HARDI:

Heating, Air-conditioning and Refrigeration Distributors International (HARDI) represents more than 460 wholesale companies and 300 manufacturing associates as well as nearly 125 manufacturer representatives. HARDI members represent an estimated 85 percent of the dollar value of the HVACR products sold through distribution.

 

About Cause of Action:

Cause of Action a nonprofit, nonpartisan government accountability organization that investigates, exposes, and fights job-killing federal government regulations, waste, fraud, and cronyism.  Cause of Action, uses investigative, legal, and communications tools to educate the public on how transparency and accountability protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.

 

For more information or to speak with Dan Epstein, Executive Director of Cause of Action, contactMary Beth Hutchins, mary.beth@causeofaction.org or Jamie Morris, jamie.morris@causeofaction.org, 202-499-4232

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COA Responds to Energy Sec. Chu’s Resignation

Cause of Action, a government accountability group currently engaged in two lawsuits against the Department of Energy, issued the following response to Secretary Chu’s resignation announcement today:

Executive Director Dan Epstein:

“Secretary Chu is leaving behind a Department of Energy that has violated the rulemaking process, stolen technology from small businesses and given it to government-backed corporations, and shown political favoritism in awarding loans and loan guarantees. Instead of a reputation of accountability and transparency, Secretary Chu’s reputation has been tarnished by the corruption and cronyism of this Administration.”

For more information on Cause of Action’s work related to the Department of Energy, click here

For further comment, please feel free to contact  202-400-2721.