Posted on 01/04/2011 10:40:37 AM PST by jazusamo
The United States Court of Appeals for the District of Columbia has rejected fired AmeriCorps inspector general Gerald Walpin's lawsuit seeking reinstatement to his job. In a ruling issued Tuesday morning, the three-judge panel -- one appointed by the first President Bush, another appointed by President Clinton, and the third appointed by the second President Bush -- agreed with a lower-court ruling that Walpin does not have a "clear and indisputable right" to his former job.
In June 2009, Walpin was the inspector general for the Corporation for National and Community Service, which oversees the AmeriCorps service program. He had been aggressively investigating the misuse of $800,000 in AmeriCorps grant money given to a program run by Kevin Johnson, the mayor of Sacramento, California who also happens to be a prominent Obama supporter. As a result of Walpin's investigation, Johnson was, for a while, suspended from receiving any new federal grants. Later, an acting U.S. attorney who was seeking a post in the Obama administration refused to pursue the Johnson matter. Inside the Corporation, Walpin expressed his unhappiness with that decision and his desire to continue investigating corruption in Sacramento.
On June 10, 2009, Walpin received a call from the White House counsel's office in which he was given one hour to resign or be fired. He chose not to resign and was fired. The action alarmed Republicans on Capitol Hill, particularly Sen. Charles Grassley, because it appeared to violate a law designed to protect the independence of inspectors general by requiring the president to give Congress 30 days' notice, plus an explanation, before firing an IG.
Later, the White House told Congress that Walpin had not been summarily fired; he had been placed on "administrative leave" for 30 days and then fired And as a reason for the firing, the White House told lawmakers that the president no longer had the "fullest confidence" in Walpin.
Walpin sued, arguing that his removal clearly violated the law. In June of 2010, Walpin lost his case before U.S. District Court in Washington. Now, he has lost before the Court of Appeals. The three-judge panel ruled that the White House's decision to place Walpin on administrative leave for 30 days (after telling him he was fired) did not violate the law. Further, the judges ruled that Obama's explanation that he no longer had "fullest confidence" in Walpin "satisfies the minimal statutory mandate that the president communicate to the Congress his 'reasons' for removal."
It is an across-the-board defeat for Walpin. But it is also a clear danger sign for the independence of inspectors general. The court's decision effectively means that the president can remove future inspectors general immediately, without notice to Congress, simply by placing an inspector general on immediate administrative leave, following by formal firing 30 days later. Also, the president can simply tell Congress he did it because he no longer has confidence in the inspector general.
Such a scenario is not what the bipartisan group of lawmakers had in mind when they crafted the protections for inspectors general. Whether they will strengthen the law as a result of the Walpin case remains to be seen. .
An IG had better not report corruption if that corrupt person is the friend of a RAT president or that presidents wife.
The list, ping
Let me know if you would like to be on or off the ping list
Just what we need more of: toothless watchdogs.
This is a very interesting and significant case/situation. It makes me wonder if Walpin’s position was so shallow/weak or if the courts/judges are now so corrupted for the powers that be.
This is a very interesting and significant case/situation. It makes me wonder if Walpin’s position was so shallow/weak or if the courts/judges are now so corrupted for the powers that be.
Obama may be a corruptocrat, but he's state-run media's corruptocrat.
Walpin defeat means president can fire IGs at will
UPDATE, 1:55 PM Friday:
There are a number of new developments since my post above was published. First, the White House is confirming that it decided to fire IG Walpin because of the Kevin Johnson/St. HOPE affair. In a letter sent Thursday night to Sen. Charles Grassley, White House counsel Gregory Craig cited a complaint lodged by the acting U.S. attorney in Sacramento, Lawrence Brown, accusing Walpin of misconduct in the St. Hope investigation. “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 (CIGIE),” Craig wrote. “We are 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.” This is the White House’s first public statement of its reason for firing Walpin.
In the referral which Craig mentioned, which was sent April 29, Lawrence Brown accused Walpin of conducting a biased investigation and seeking “to act as the investigator, advocate, judge, jury and town crier.” Brown was particularly angry that Walpin’s office had talked with the press at various times in the St. HOPE investigation. Brown asked AmeriCorps to investigate Walpin’s behavior. In a stinging response, Walpin wrote that several of Brown’s points were flat-out wrong.
More importantly, Walpin’s response sheds light on the process by which St. Hope will allegedly return to the government about half of the $850,000 grant it received from AmeriCorps. Walpin accused the U.S. attorney’s office of undermining Walpin’s attempt at “suspension and debarment” — that is, from taking action that prevents an organization that has engaged in misconduct from receiving any other federal money.
According to Walpin, the U.S. attorney’s office resisted efforts to get St. HOPE to repay the money. Even though AmeriCorps inspector general officials had found “six specific instances of diversion and misuse of [AmeriCorps] grant funds,” and even though Kevin Johnson never “submitted a single fact to dispute those findings,” the U.S. attorney, according to Walpin, insisted that the settlement agreement forbid suspension or debarment.
Further, according to Walpin, even with the settlement agreement as it now exists, there is little hope the government will ever get any of its money back. “As St. HOPE is insolvent, the absence of any obligation imposed on…[Kevin Johnson], and the absence of any guarantee or security to ensure payment, makes the settlement a farce,” Walpin wrote.
“Mr. Brown knows,” Walpin concluded, “that the settlement agreement was carefully drafted so that no obligation is imposed on Mr. Johnson to pay to [AmeriCorps] a single penny of the amount supposedly to be paid to [AmeriCorps] by St. HOPE.”
Walpin’s response has led congressional investigators to want to know more about Brown, the acting U.S. attorney. I referred to him earlier as a “Bush holdover.” That’s not entirely accurate. Brown is now the acting U.S. attorney, and he was in the office during the Bush years, but he is a career official, not a Bush appointee. In the days to come, congressional investigators will be weighing Brown’s claims versus Walpin’s. A lot is going on with the story, and it is happening very quickly.
UPDATE, 4:55 PM Friday:
On Wednesday night, after the White House counsel’s office called AmeriCorps inspector general Gerald Walpin on his cell phone to tell him he had one hour to resign or be fired, Walpin sent an extensive e-mail account of the call to the man who had phoned him, Norman Eisen, the Special Counsel to the President for Ethics and Government Reform. In the e-mail, Walpin explained that he would not make a decision in such a short period of time. He also noted that Eisen had said any appearance of a connection between Walpin’s firing and recent conflicts over Walpin’s handing of high-profile investigations was “coincidence.” Here is the whole e-mail, sent from Walpin to Eisen at 7:32 p.m. on June 10:
My email responds to your telephone call to me while I was in a car driving on a highway, at about 5:20 p.m. I have now reached a destination and therefore can write you this email.
In your telephone call, you informed me that the President wishes me to resign my post as IG of CNCS [Corporation for National and Community Service, which includes AmeriCorps]. You told me that I could take no more than an hour to make a decision.
As you know, 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.
I take 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. As you are aware, I have just issued two reports highly critical of the actions of CNCS, which is presently under the direction of the President’s appointee and, I am advised, someone with a meaningful relationship with the President.
Chairman Solomont and I have had significant disagreements about the findings and conclusions contained in these reports. 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.
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.
I suspect 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.
Gerald Walpin
Below are my original posts and updates from Thursday night:
Some strange and potentially suspicious events tonight concerning the Obama White House and the AmeriCorps program. I’ve been told that on Wednesday night the AmeriCorps inspector general, Gerald Walpin, received a call from the White House counsel’s office telling him that he had one hour to either resign or be fired. The White House did not cite a reason. “The answer that was given was that it’s just time to move on,” one Senate source told me tonight. “The president would like to have someone else in that position.”
Inspectors General are part of every federal department. They are given the responsibility of independently investigating allegations of waste, fraud, and corruption in the government, without fear of interference by political appointees or the White House. Last year Congress passed the Inspectors General Reform Act, which added new protections for IGs, including a measure requiring the president to give Congress 30 days prior notice before dismissing an IG. The president must also give Congress an explanation of why the action is needed. Then-Sen. Barack Obama was one of the co-sponsors of the Act.
Now, there is the hurried attempt to dismiss Walpin, without the required notice or cause. After last night’s call, Walpin got in touch with Congress, and it appears the White House has backed off, at least for now. This afternoon, Republican Sen. Charles Grassley, who is something of a guardian angel for inspectors general, fired off a letter to the White House about the affair.
“I was troubled to learn that last night your staff reportedly issued an ultimatum to the AmeriCorps Inspector General Gerald Walpin that he had one hour to resign or be terminated,” Grassley wrote. “As you know, Inspectors General were created by Congress as a means to combat waste, fraud, and abuse and to be independent watchdogs ensuring that federal agencies were held accountable for their actions. Inspectors General were designed to have a dual role reporting to both the President and Congress so that they would be free from undue political pressure. This independence is the hallmark of all Inspectors General and is essential so they may operate independently, without political pressure or interference from agencies attempting to keep their failings from public scrutiny.”
Grassley said he was “deeply troubled” by the Walpin matter and closed by asking the president “to review the Inspector General Reform Act you cosponsored and to follow the letter of the law should you have cause to remove any Inspector General.”
UPDATE 1: I’ve been trying to discover the real reason for Obama’s move, and it’s still not clear. I’m told that it could be a combination of the normal tensions that surround any inspector general’s office, or the president’s desire to get his own people in IG positions, or a dispute over a particular investigation. “Bottom line,” one source wrote, “getting rid of a tough, Republican-appointed IG who has been aggressively going after waste and fraud gives Obama a chance to replace that IG with a more compliant team player.”
I’m also told that a number of inspectors general around the government have been expressing concerns to Congress recently about threats to their independence.
UPDATE 2: More information now, from the Associated Press. The White House is going ahead with firing Walpin. The firing apparently stems from Walpin’s investigation of a non-profit group, St. HOPE Academy, run by Kevin Johnson, the former NBA star who is now mayor of Sacramento, California (and a big Obama supporter). “[Walpin] found that Johnson, a former all-star point guard for the Phoenix Suns, had used AmeriCorps grants to pay volunteers to engage in school-board political activities, run personal errands for Johnson and even wash his car,” the AP reports. In April, the U.S. attorney declined to file any criminal charges in the matter and criticized Walpin’s investigation. But at the same time Johnson and St. HOPE agreed to repay about half of the $850,000 it had received from AmeriCorps.
Bottom line: The AmeriCorps IG accuses prominent Obama supporter of misusing AmeriCorps grant money. Prominent Obama supporter has to pay back more than $400,000 of that grant money. Obama fires AmeriCorps IG.
There is something inherently unjust about this.
I don't know if this is a case of a poorly written law or judicial activism but this action by Obama goes against the intent of that law.
There is no justice versus the bureaucracy.
Indeed. Can't say Walpin was using his head while all this was transpiring. Didn't he figure he'd be p!$$ing of some of the wrong people?
Report Kevin Johnson to the IRS, for unreported income ($800,000) and use the 1040X to stake a claim for the reward.
After all, the IRS and this adminstration are mad at rich people and would like to redistribute that money...
Disgusting!
From what I’ve read about Walpin from the start is that he is an honest and honorable person. He probably didn’t worry about ticking anyone off because he was doing his job but I don’t know if he was aware of the fact that Kevin Johnson was tight with the Obama’s.
bookmark.
The Federal Judiciary: Siding with Liberal Expansionism for over a century.
This is just one of hundreds of decisions by courts proving Obama is a dictator, and the Constitution is to him just a piece of meaningless paper. I hope this makes everyone as angry as it does me.
Holder should have his nuts wired to a field generator for this. Walpin is an honorable man, just doing his job.
Mixed emotions on this for me. The watchdog role is Congress’s, its a bastardization of the Constitution to have “independent” inspectors within the same executive branch. IG’s are fine, but in the end they serve at the pleasure of the Chief Exec. If the Chief Exec is corrupt this is what results. BUT also, if the IG is corrupt or insubordinate to an honest Chief Exec, this is what should be — that such a rogue IG should be fired.
Nevertheless, while the firing of Walpin is best viewed as legit, I also hold that the circumstances of corruption he uncovered that led to his dismissal constitute an impeachable offense. But again, that crime, out of the President’s Office, is to CONGRESS, not an IG, to act upon. It is beyond the authority of the IG.
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