Stealth lobbying continues under the IRS’s radar

On March 22, 2012, Cause of Action  submitted a Freedom of Information Act request to the IRS, seeking information concerning the IRS’ oversight of coalition lobbying, specifically:
•  All documents referring or relating to the tax-exempt status of unincorporated coalitions residing at tax-exempt corporations, including reporting requirements concerning these coalitions’ lobbying activities
•  All documents referring or relating to the disclosure requirements of tax-exempt entities that sponsor or provide resources to a coalition, concerning the coalition’s lobbying and other activities
•  All documents referring or relating to those organizations for which the IRS has:
1.  Conducted a criminal investigation, civil audit, or examination, reviewed whistleblower-informant  claims, found abusive tax schemes and published alerts or abusive tax scheme investor lists concerning coalitions which lobby and/or “stealth” lobbyists from 2004 to the present
2.  For each identified, summarize the subsequent allegations and action by
the IRS, including penalties, fines, reports, memoranda or other assessments made against those investigated coalitions.
3.  Provide any documents reflecting coalitions’ response to any IRS criminal investigation, audit,
examination, whistleblower information claim, alert or publication.

On May 14, Susan Marks-Jensky of the IRS  responded to CoA’s request, stating “I found no documents specifically responsive to your request.”

This response highlights that the IRS has failed to require lobbying coalition’s to report their stealth activities and has refused to conduct oversight over tax-exempt corporations that sponsor coalition lobbying  without disclosing those activities. Moreover, the IRS, despite concerns by Congress and the media, has failed to conduct any investigations of lobbying coalition activities that may be inconsistent with the Internal Revenue Code.

Homeland Security Acting IG: “Carefully reviewing the allegations made” Re: ICE violations of Federal lobbying and appropriations laws

On January 25, 2012, Cause of Action requested that Acting DHS IG, Charles K. Edwards, investigate whether the U.S. Immigration and Customs Enforcement Agency (ICE) violated federal law by obtaining and subsequently disseminating a video that can be traced to Creative America Campaign, Inc. Creative America has demonstrable ties to special-interest groups that regularly use registered  lobbyists to advocate for passage of legislation that, directly or indirectly, is in ICE’s pecuniary interest.  Further, ICE has violated applicable federal law by using money appropriated by an act of Congress to produce sophisticated, self-aggrandizing  videos that amount to nothing more than propaganda. See CoA’s letter here.

On June 1, 2012, IG Edwards stated that the OIG is “carefully reviewing the allegations made” concerning “whether U.S. Immigration and Customs Enforcement (ICE) has violated Federal lobbying or appropriations law.”  See IG Edwards’ response here.

 

 

 

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

CoA Challenges Dept. of Energy In Lawsuit Over Burdensome Rulemaking Decision

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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.