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Agency investigations of a hotel room kickback scheme by Border Patrol agents in Arizona ignored information indicating that senior managers may have known about the situation, the Office of Special Counsel has reported.

Allegations by two whistleblowers that management officials knew of the fraud were ignored by agency investigators and contradictory statements by managers were not resolved, according to OSC, an independent agency that investigates and prosecutes whistleblower complaints.

OSC chief Scott Bloch concluded that while the Border Patrol's reports on the situation contained all the information required by law, the agency "failed to conduct a thorough investigation," and its findings were not reasonable.

"After extensive delays and two reports, the agency's response to the whistleblowers' disclosures remains inadequate," OSC concluded in a report Bloch sent late last week to President Bush. "In particular, the agency appears to have discounted without justification evidence implicating management and supervisory personnel in the wrongdoing identified by the whistleblowers."

The alleged fraud involved Border Patrol agents accused of accepting cash rebates, credits and other kickbacks from local lodging facilities while claiming the full per diem amount -- $55 for lodging in Douglas, Ariz. -- for reimbursement. The hotels or landlords would provide receipts reflecting payment of the full per diem.

The whistleblowers -- Larry E. Davenport, a retired senior patrol agent with 15 years' experience, and Willie A. Forester, a former supervisory Border Patrol agent with about 20 years' experience -- made the accusations in February 2001. The Justice Department's Office of Inspector General opened an investigation in September 2001, after Davenport and Forester reported their allegations to Rep. Jim Kolbe, R-Ariz.

In January 2003, the IG substantiated the whistleblowers' allegations, recommending that the Border Patrol, then part of the former Immigration and Naturalization Service, take disciplinary action against those accused of wrongdoing. In November, the Border Patrol's new parent agency, U.S. Customs and Border Protection, told OSC that it had decided against disciplining any of the employees.

CBP informed OSC that a human resources official at the Homeland Security Department had issued a memorandum recommending against disciplinary action. "We cannot afford to channel off our energies with an administrative burden that disciplining 75 individuals would entail," the memo stated.

OSC referred the case to then-Homeland Security Secretary Tom Ridge. As a result, CBP commissioned a second panel, which proposed 45 instances of disciplinary actions based on the IG's report. These included suspensions, firings and a demotion. Four of those punished were supervisors.

The report, however, did not recommend any action against higher-ranking management personnel. The panel reported it had found little evidence of their involvement after interviewing more than 25 employees at the Border Patrol's Douglas station.

The OSC report took issue with that conclusion. "It is simply not credible that 45 employees at a single Border Patrol station could engage in a pattern of conduct sufficiently egregious to warrant severe discipline without the knowledge of management," the report stated.

COMMENTS

• There is no way that Immigration management did not know about this fraud. This looks like a typical Immigration fiasco in which the managers allowed their subordinates to defraud the taxpayers, so that later on the managers can get away with whatever they want to do without the fear of someone blowing the whistle on them. This time Immigration management gambled and lost. The public and congress need to keep a close watch on this bunch because immigration enforcement and the billion dollar contracts that they control breed corruption. That is why the Justice Department couldn't wait to kick INS out and throw them into Homeland Security. How many times does the news have to report this type of corruption before someone takes action. After all this is not new, the FBI has arrested dozens of immigration agents for drug smuggling, alien smuggling, fraud, etc. Wake up America! GovExec.com reader Posted June 1, 2005 5:44 PM
• "In January 2003, the IG substantiated the whistleblowers' allegations, recommending that the Border Patrol, then part of the former Immigration and Naturalization Service, take disciplinary action against those accused of wrongdoing." "CBP informed OSC that a human resources official at the Homeland Security Department had issued a memorandum recommending against disciplinary action. "We cannot afford to channel off our energies with an administrative burden that disciplining 75 individuals would entail," the memo stated. " Here is a good example of how the 'most favored employee' works in government. This is why you do not want the pay for performance system proposed by Rummy at DoD and the services. Our evaluations currently are pass-fail. How does that support pay for performance? This entire matter is a joke just as closing all rental space in Northern Va is a joke. The top managers in DoD need to be replaced in total. taxpayer Posted June 1, 2005 6:38 AM