Advertisement

Dispute grows over TARP chief's powers

The independence of the bailout overseer is at issue as a GOP senator demands data from the White House.

June 18, 2009|Tom Hamburger and Peter Wallsten

Eventually, Barofsky received all the documents he had requested, according to a person familiar with the dispute who requested anonymity so that he could speak without authorization. But the larger dispute over Barofsky's power has not been resolved, the source said.

A White House spokesman declined to comment, referring questions to the Treasury. Department spokesman Andrew Williams said late Wednesday that the agency would read Grassley's letter and respond to the senator before commenting publicly.


Advertisement

Grassley is concerned about whether the independence of government watchdogs is at risk. Their jobs exist to find waste, fraud and abuse, he notes.

Last week, the White House terminated Walpin, inspector general of the Corporation for National and Community Service, which includes AmeriCorps. Walpin's office investigated Johnson's nonprofit education program, the St. HOPE Academy, and determined that it had misused federal funds.

Johnson and the academy agreed to repay nearly $424,000 in federal grants to settle the matter. The U.S. attorney declined to file charges.

Grassley complained in a letter late Wednesday to the Obama administration that White House lawyer Norman Eisen "refused to answer several direct questions" from Grassley's staff about the reasoning behind the dismissal.

Eisen told lawmakers in a brief letter this week that Walpin had been fired after a May 20 meeting in which he was "confused, disoriented [and] unable to answer questions." The letter accused Walpin of working from his New York home and said he was "engaged in other troubling and inappropriate conduct."

Walpin denies the allegations and blames politics for his firing.

Grassley, in his letter, laid out a series of questions, such as how many witnesses were interviewed as part of the White House review, whether Walpin's staff was consulted, and whether Walpin was asked directly about the allegations during the May 20 meeting.

Separately, this week, the International Trade Commission told its acting inspector general that her contract would not be renewed. The trade agency is not subject to White House authority.

Grassley had become concerned about Judith Gwynn's independence because of a report this year that an agency employee had forcibly taken documents away from her as she tried to conduct an audit.

"It is difficult to understand why the ITC would not have taken action to ensure that the ITC inspector general had the information necessary to do the job," Grassley wrote on Tuesday.

Less than three hours after Grassley's letter was e-mailed to the agency, Gwynn was told that her contract would not be renewed. The contract is due to expire next month.

The chairwoman of the trade commission, a Democrat appointed by President George W. Bush, did not comment. Calls to the agency's representative were not returned.

Gwynn was named acting inspector general in early 2008, and her six-month contract had been extended two times.

--

tom.hamburger@latimes.com

peter.wallsten@latimes.com

Los Angeles Times Articles
|