HEADS ROLL AT LOS ALAMOS:

The corruption scandal at Los Alamos National Laboratory has finally forced the resignation of the lab director and his deputy. Until now, the only victims of the scandal were two former police officers who uncovered widespread thievery and corruption at the nation's premier nuclear weapons lab. The scandal may ultimately result in termination of the University of California's contract to manage the New Mexico laboratory.

Los Alamos Director John C Browne and his deputy, Joseph Salgado, resigned as the result of a "mutual decision" just after Christmas. The lab had been under increasing fire from Congress and the Energy Department after Albuquerque Journal reporter Adam Rankin broke the story of credit card abuse and misappropriation of lab funds, in October. Rankin kept the story alive by publishing repeated scoops on the corruption and cover-ups at the lab. The lab had hired two former police officers last year to investigate the allegations, but when they documented widespread abuses and a cover-up by senior lab officials, they were abruptly fired just before Thanksgiving.

The story was propelled to national prominence when Sharyl Attkisson of CBS News obtained exclusive interviews with the two officers, Glenn A. Walp and Steven L. Doran after they were fired. They told Attkisson that the more corruption they uncovered the harder the lab worked to cover it up. They were ordered not to cooperate with FBI or Energy Department investigations and then fired for doing so.

Their termination was definitely a factor in Browne's resignation. An Energy Department press release said the firings "reflect a systematic management failure, one for which the laboratory management must be held accountable." The Energy Department has also promised a review of the University of California's contract to manage the lab.

The University has run Los Alamos since its founding in 1943, but in recent years, it has faced mounting criticism for its own failures to effectively run Los Alamos and Livermore National Lab, the nation's two nuclear weapons design labs. Lab patrons like New Mexico Senator Pete Domenici have openly questioned the ability of the university to manage a sensitive national security facility like Los Alamos. In 1998, Domenici intervened to block the University's appointment of a new director at Los Alamos whom Domenici considered too inexperienced in national security affairs. Domenici then engineered the appointment of Browne, who has now resigned in disgrace.

But now the circumstances of the most recent renewal of the University's contract may also be scrutinized. The contract, worth $1.5 billion annually, was renewed well ahead of schedule by then Secretary Bill Richardson at the tail end of the Clinton administration. Richardson's actions were intended to forestall a change of management for the weapons labs that feared a new team might enforce stricter management practices and more accountability. But there is more than enough to justify firing the University now and hiring a better management team.

A related story in todays Oregonian...

Two fired Los Alamo investigators are rehired to help with lab inquiry

01/18/03

ROBERT GEHRKE

WASHINGTON -- Two investigators fired after sounding alarms about missing computers and alleged credit card fraud at Los Alamos National Laboratory were hired Friday to assist in an inquiry of lab practices.

Glenn Walp and Steven Doran were originally hired by the lab to investigate the handling of government property but were dismissed in November after reporting on alleged misuse of lab credit cards and $2.7 million in missing computers and other equipment.

On Friday, the University of California hired Walp and Doran to aid Richard Atkinson of the university in investigating the alleged malfeasance. They were also given back pay to last November, when they were terminated by the Los Alamos lab.

"Do I appreciate the gesture? Yes I do. Is this the big payoff? No way," said Doran in a phone interview. "As long as they're willing to continue to work to clean up the national laboratory I am behind them 1,000 percent. The second they discontinue that attitude, I'm history and the battle begins again."

Doran and Walp met for four hours Friday with university officials, including Senior Vice Presidents Bruce Darling and Joseph Mullinix, providing them with documents they had gathered. They plan to continue discussions by phone next week, Doran said.

Doran said university officials appear genuine in their desire to clean up the lab.

Ken Johnson, spokesman for the House Energy and Commerce Committee, which is investigating the conduct at Los Alamos, said the action by the university should send a signal to potential whistle-blowers that they can come forward with their stories without fear of being fired.

"This is an important moment in our investigation. I think it sends a clear signal to the university and to the employees at the lab that we are deadly serious about getting to the bottom of this," he said. "Finally someone at U.C. is starting to get it."

Earlier Friday, members of the House Energy and Commerce committee urged Atkinson to reinstate Doran and Walp and give them back pay, calling the university's treatment of the two men "appalling."

The Energy Department, the FBI and three congressional committees are investigating alleged instances of fraud and mismanagement at the lab, which include claims of $2.7 million in lost computers and equipment and $4.9 million in questionable or unaccounted-for credit card purchases. One of those claims was that one employee allegedly tried to buy a souped-up Ford Mustang with a lab card.

Lab officials say they've accounted for all but about $260,000 of those credit card buys.

In the late-1990s, the government bungled its investigation into alleged espionage involving lab scientist Wen Ho Lee. Lee was arrested and later pleaded guilty to one count of mishandling sensitive information.

In 2000, a set of hard drives with top-secret nuclear information vanished, only to be found later behind a copy machine.

Lab director John Browne resigned last month, and four other managers have resigned or been reassigned.

http://www.oregonlive.com/search/index.ssf?/base/exclude/1042898209299630.xml?oregonian

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