Interesting post. Presumably, Walpin was a holdover from the previous administration?
Obama decided to allow Walpin to stay, I suppose because Walpin might be deemed as an "open-minded" Conservative by Team Obama -- exemplified by his support for Sotomayor.
However, to avoid an ugly scene in DC, IGs are normally asked to resign. If not, they could be fired with impudence -- at least that was the case UNTIL Oct 2008. For example, Bush fired Clark Kent Ervin, formerly the Inspector General at the Department of Homeland Security, in October 2005. Ervin was made acting Inspector General in 2003, "officially" installed in December 2002, as one of Bush’s recess appointments named to the post while Congress was out of session.
However, according to Government Computer News, a former Department of Homeland Security official who wished to remain anonymous, said the White House and Dept of Homeland Security wanted Ervin gone because "He has not been a friend of the department." Bush got frowns from the Left (and Right), but a President could legally fire an IG without any real oversight.
That is, until October 2008.
It was then the law changed so an IG investigation could NOT be HALTED midstream because of an "unfriendly report", and without oversight of another body of government (i.e., Congress):
PUBLIC LAW 110-409 [H.R. 928]
OCT. 14, 2008
INSPECTOR GENERAL REFORM ACT OF 2008
http://www.ignet.gov/pande/leg/pl110-409.htm
[*3] SEC. 3. REMOVAL OF INSPECTORS GENERAL.
(a) Establishments.—Section 3(b) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking the second sentence and inserting “If an Inspector General is removed from office or is transferred to another position or location within an establishment, the President shall communicate in writing the reasons for any such removal or transfer to both Houses of Congress, not later than 30 days before the removal or transfer. Nothing in this subsection shall prohibit a personnel action otherwise authorized by law, other than transfer or removal.”So, yeah -- I think there's some potential hazard for Team Obama ... as long as his "loyal opposition", and Walpin, wish to pursue it.
After being called "Confused" and "Disoriented", I can't see why Walpin would just quietly go away. IMO, he seems like a guy that would fight to uphold the integrity of the IG process.