Saturday, June 13, 2009

Obama ousts AmeriCorp IG


Time:

(WASHINGTON) — President Barack Obama says he has lost confidence in the inspector general who investigates AmeriCorps and other national service programs and has told Congress he is removing him from the position.

Obama's move follows an investigation by IG Gerald Walpin finding misuse of federal grants by a nonprofit education group led by Sacramento Mayor Kevin Johnson, who is an Obama supporter and former NBA basketball star. (Read "Obama's Inaugural Internet Call to Service")

Walpin was criticized by the acting U.S. attorney in Sacramento for the way he handled the investigation of Johnson and St. HOPE Academy, a nonprofit group that received hundreds of thousands of dollars in federal grants from the Corporation for National and Community Service, which runs the AmeriCorps program.

Here is the timeline to this story. Hat tip to TPM:


- In April 2008, federal agents (meaning Walpin's IG office, it seems, though the reporting is unclear) began investigating the use of federal grant money by the St. HOPE Academy, a Sacramento non-profit then run by Johnson.

- The following month, local law enforcement announced that no criminal case could be made against Johnson, but the federal probe continued.

- In June, Johnson beat the incumbent mayor, Heather Fargo, in the Democratic primary. But because he didn't win 50 percent of the vote, he would have to face her again in a runoff in November.

- Later that month, the Bee reported that the federal investigation into St. HOPE had expanded to look at the possible misuse of $807,000 in AmeriCorps funds.

- In September, the federal probe was turned over to the U.S. attorney's office in Sacramento.

- Later that month, Walpin, on behalf of CNCS, released the findings of the federal probe, which it appears he had led. Walpin found that St. HOPE had improperly used hundreds of thousands of dollars in grant money, by using AmeriCorps volunteers to run errands for Johnson, wash his car, and do political work relating to a local school board race. Saying he had found "potential criminal violations," Walpin recommended that while the US attorney's office's investigation was ongoing, Johnson and another St. HOPE official be barred from receiving federal money. But as the Bee would later note in an editorial, "Walpin decided to act before any legal body determined whether irregularities in the administration of grants from 2004-2007 reflected inadvertent errors and ignorance of regulations or actual fraud."

- Nonetheless, days later, a "debarment official" at CNCS followed up on Walpin's recommendation, taking the rare step of issuing a letter suspending Johnson and the other official from receiving federal funds. Walpin touted the news in "huge red headlines" on his IG website, according to the Bee.

- The Bee would later find that, since its inception in 1994, the NCSC had suspended only two other organizations and three other people, and that the irregularities at St. HOPE were similar to those found at other nonprofits that were not suspended.

- Johnson's camp called the findings "relatively minor issues," and called Walpin, who was appointed to his post by President Bush, a "right-wing Republican." Johnson's campaign cited a 2005 incident in which Walpin had introduced Mitt Romney at a meeting of the conservative Federalist Society -- on whose board Walpin sits -- by saying that Romney served as governor of a state, Massachusetts, run by the "modern-day KKK ... the Kennedy-Kerry Klan."

- On November 4, Johnson won the mayor's race 57-42 over Fargo.

- Two days later, US attorney McGregor Scott, a Bush appointee, announced that the investigation into the misuse of funds did not warrant criminal charges. Scott said he had asked Walpin's office to go back and conduct a line-by-line audit to help determine whether civil charges should be filed, implying that Walpin's probe had been insufficiently detailed.

- In March, 2009, a government consulting expert hired by the city of Sacramento concluded that Johnson's continuing disbarment from receiving federal funds was likely to prevent the city from getting federal stimulus dollars -- a finding Johnson quickly disputed.

- In April, the US Attorney's office announced a settlement with Johnson, which would involve Johnson, St. HOPE, and the other official repaying over $400,000 in grants it received, and would allow him to again receive federal money.

- That same month, the new acting US attorney, Lawrence Brown wrote a letter to a federal oversight body for inspectors general, asking it to review Walpin's work on the St. HOPE investigation. According to the AP, Brown wrote: "We also highlighted numerous questions and further investigation they needed to conduct, including the fact that they had not done an audit to establish how much AmeriCorps money was actually misspent."

- Then in May, Walpin submitted a "Special Report to Congress" that called the settlement "a farce" and declared that claiming it was in the government's interest "is an attempt to pull the wool over the public's eyes."

- And now we hear that Obama has decided to get rid of Walpin. In a letter to Sen. Charles Grassley (R-IA), White House Counsel Greg Craig referred to Brown's letter criticizing Walpin, and wrote, according to the AP: "We are aware of the circumstances leading to that referral and of Mr. Walpin's conduct throughout his tenure and can assure you that the president's decision was carefully considered."

You can read a special IG report to Congress here. In the report, investigators were looking into accusations that Johnson made "sexual advances toward two Hood Corps volunteers (one of whom was a minor at the time), that he violated program guidelines by requiring employees to participate in religious services and mandatory "Boot Camp" style fitness training, and that he required employees to campaign for Sacramento City School Board candidates" The young woman who accused Johnson of sexual advantages recanted the story according to the report.

Here is my take on the firing of AmeriCorp IG by Obama. This smells more of a politicization against Mayor Johnson. First, there was no criminal case against Johnson before he became Mayor. When he won the Mayorship, an investigation into Johnson began again. I believe in order to stick the charges against Johnson more deeper that Johnson's past scandal had to surface. This isn't the first sexual harassment charges that Mayor Johnson had faced. Major Johnson faced sexual assault and sexual harrassment allegations which ends with no criminal charges and a settlement. Click here. I am not saying that the Mayor Johnson did any wrongdoing in his past sexual harassment allegations but I see a pattern of digging into Mayor Johnson's past allegations into the AmeriCorp investigation. Although Senator Grassley is concerned to whether IG Walpin's firing by Obama was politically motivated, I would like to ask Senator Grassley: where was his outcry to demand answers and the removal of former AG Alberto Gonzales into the U.S. Attorney firings. Did Grassley send a letter to Bush questioning Gonzales' role in the politicization of firing U.S. Attorneys and insert of hiring interim U.S. Attorneys with an indefinite termof appointment without a Senate confirmation according to the revised Patriot Act?

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