From the OIG handbook:
To ensure the independence of the OIG, the Inspector General reports to and is under the general supervision of the agency head (at the Corporation, the Chief Executive Officer). The Corporation’s Inspector General may only be removed from office by the President, who must communicate reasons for the removal to both Houses of Congress.
It begs to differ to why Sen. Grassley is all up in arms of the firing of Walpin when a GOP USA appointee criticizing a GOP IG appointee and two committee members from both parties are in agreement of Walpin's removal. What if McCain [if he were President] fired Walpin? Would Grassley be upset?
ABC News blog:
Just a few hours before, at around 5:20 pm, Walpin -- , Inspector General of the Corporation for National and Community Service (CNCS) -- was driving on a highway when he had received a phone call from Norm Eisen, special counsel to the president for ethics and government reform, informing him that President Obama no longer had confidence in him and wanted him to resign.
Walpin had an hour to make up his mind as to whether he was going to resign or have the president seek his suspension and termination, as indicated in email from Walpin to Eisen obtained by ABC News.
In that email, as well as other documents surrounding Walpin's termination obtained by ABC News, a picture emerges of an ambitious and aggressive inspector general whose actions repeatedly offended officials of the US Attorney's office, to the point that the Republican-appointee in the US Attorney's office filed an official complain against the Republican-appointed Inspector General.
Walpin -- appointed to his job under President George W. Bush -- wrote to Eisen that "Congress intended the Inspector General of CNCS to have the utmost independence of judgment in his deliberations respecting the propriety of the agency's conduct and the actions of its officers. That is why the relevant statute provides that the President may remove the IG only if he supplies the Congress with a statement of his reasons--which is quite a different matter than executive branch officials who serve at his pleasure and can therefore be removed for any reason and without notification to Congress."
Walpin told Eisen that he took "this statutorily-mandated independence of my office very seriously, and, under the present circumstances, I simply cannot make a decision to respect or decline what you have said were the President's wishes within an hour or indeed any such short time."
Walpin had just issued two reports that were very critical of the actions taken by the Corporation for National and Community Service.
"It would do a disservice to the independent scheme that Congress has mandated--and could potentially raise questions about my own integrity--if I were to render what would seem to many a very hasty response to your request," Walpin wrote. "I heard your statement that this request that you communicated on behalf of the President and the timing of our reports and disagreement with the CNCS Board and management are 'coincidence,' as you put it on the phone, but I would suggest there is a high likelihood that others may see it otherwise."
Walpin said that he suspected that "when presented with the circumstances I have just discussed, the President will see the propriety of providing me additional time to reflect on his request. If however he believes that my departure is a matter of urgency, then he will have to take the appropriate steps toward ordering my removal, without my agreement."
The latter scenario is the one that played out, with President Obama informing congressional leaders of his decision in a letter stating that “it is vital that I have the fullest confidence in the appointees serving as Inspectors General. That is no longer the case with regard to this Inspector general.”
In a follow-up letter, White House counsel Greg Craig -- responding to a letter of concern about Walpin’s termination from Sen. Chuck Grassley, R-Iowa -- noted that Lawrence Brown, the “Acting United States Attorney for the Eastern District of California, a career prosecutor who was appointed to his post during the Bush Administration, has referred Mr. Walpin’s conduct for review by the Integrity Committee of the Council of Inspectors General on Integrity and Efficiency.”
Craig said that the White House was “aware of the circumstances leading to that referral and of Mr. Walpin’s conduct throughout his tenure and can assure you that that the president’s decision was carefully considered.” He noted that Walpin’s termination “is fully supported by the Chair of the Corporation (a Democrat) and the Vice-Chair (a Republican).”
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