Posted on 06/18/2009 3:15:26 PM PDT by dervish
(p. 26) The decision by the Corporation and the U.S. Attorney to cut out OIG and agree to this Settlement Agreement was injurious to the Federal government as a whole and specifically to the Corporation and the hard-working and dedicated staff of the Office of Inspector General. First, the settlement sends the signal that acceptance of a grantee or its principal as “responsible” can be purchased in a monetary settlement, overriding all evidence of wrongdoing previously found to warrant a suspension, without the presentation of any contradicting evidence. Settlement Agreements are supposed to settle the liability of the grantee and its principals for past wrongdoing. The Federal government created the suspension process to insulate all parts of the Federal government from providing Federal funds to those whose past conduct, with respect to any one agency, demonstrates that they are not sufficiently responsible to be awarded Federal funds from that agency or any other in the future. Reimbursing the Federal government for past irresponsible conduct, when caught, does not by itself provide evidence of responsibility in the future to handle Federal funds in a proper manner.
Second, as discussed above, the Settlement Agreement, poorly drafted (except as it was drafted to favor Johnson), provides no protection of the Corporation’s interests. While papering it to appear, as the Sacramento Bee reported (Ex. 35), on April 9, 2009, that “Johnson and his nonprofit St. HOPE Academy have agreed to give back half of the $847,673 in federal grants it received,” in fact that is false. Johnson is paying nothing; while he advanced $72,836.50 to St. HOPE for St. HOPE to pay its obligation under the Settlement Agreement, Johnson has no obligation to pay one cent of the grant-half touted to be paid back to the Corporation, and he can very promptly even obtain reimbursement from St. HOPE of the amount he advanced to St. HOPE.
Moreover, as discussed above, St. HOPE’s financial condition is so precarious that it is unreasonable to count on St. HOPE to be able to make the ten years of payments provided by the Settlement Agreement.
'snip'
Likewise, as discussed above, Johnson’s agreement to take a course for accountants and bookkeepers -- but not an ethics course -- is more wallpapering to fool the public.
'snip'
That raises the third adverse impact of this Settlement Agreement. When the IG assumed the position of Inspector General, he told Corporation management and his staff that he believed the OIG existed to help the Corporation ensure that Congressional funds provided to it are in fact used for the Corporation’s specified (and good) purposes, and are not wasted or fraudulently taken. To accomplish that end, the IG believed, and has so acted since then, in having frequent direct communication with Corporation management, and, absent some unique circumstance (which has not occurred), keep Corporation management informed of OIG activities, findings and recommendations. Until this episode, Corporation management has done the same.
While OIG and the Corporation have not agreed on all issues, we have openly discussed them and neither has shut the other out in full disclosure of what is intended to be done and in seeking the other’s views before finalization.
What the Corporation did here in shutting OIG out of the finalization of an investigation and our audit section’s review which OIG had, as normal procedure, totally controlled, unnecessarily tore asunder the trust OIG had in Corporate management.
Yep, and Obama stepped right into the trap and fired the guy thereby insuring that the report would not and could not be hushed u. He also made it worse with his cronyism protection of KJ.
Light em up boys, meat is back on the menu.
bump a freakin’ looie
If 0 fires IGs [3 now at least], how can we trust 0 with all the billions he’s already passed out - or the billions [Trillions?] he wants to hand out under the guise of health care?????
Outstanding.
Start Impeachment inquiry NOW!
Today, we are all Gerald Walpin.
Go “GW” Go!!!!!
Ping for a bit of legal knowledge - Can’t private citizens sue and get judgments for misapplication of Federal funds - and recover a percentage?
I’d love to see a conservative lawyer take KJ and TOTUS to the rack for this fraud and coverup.
Someone else mentioned impeachment - the charge might be obstruction of justice.
False Claims Act - Qui Tam
In order for meat to be cooked, someone must stand near the fire.
What MSM source is gonna do that?
What politician is gonna do that?
The one who will get reelected.
PING
Thanks dervish.
Thanks dervish.
Thank you!
wow.
And, so, Walpin ends up dead. Not from old age, and not from illness, but from being conveniently struck by a car.
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