Credibility, fairness of former HHS inspector general questioned

Questionable actions by a former Health and Human Services Department inspector general potentially undermined the credibility of the office and fostered low morale among some employees, according to a new report from the General Accounting Office.

Janet Rehnquist became the inspector general at HHS in September 2001, but resigned on June 1 amid accusations she delayed audits at the request of members of Congress, and arbitrarily transferred and forced the retirements of several senior employees in the agency's watchdog office. Sens. Chuck Grassley, R-Iowa, Max Baucus, D-Mont., and John Breaux, D-La., asked GAO to investigate the allegations against Rehnquist to determine her impartiality, as well as the level of productivity and morale in the office. Inspectors general investigate waste, fraud and abuse in federal agencies.

"During her tenure, the inspector general took a number of actions that damaged her credibility and ultimately created an atmosphere of anxiety and distrust within certain segments of the OIG," the report (03-685) said.

"Concerns regarding her independence-including those arising from her decision to delay a politically sensitive audit and her intervention in ongoing cases in response to external requests-and personnel changes she initiated among senior management, disillusioned members of her senior staff, headquarters employees, and employees working in two OIG units," according to the report.

According to GAO, inspectors general should be cognizant of how their actions may be perceived and decisions by Rehnquist to delay various audits, including one of Florida's pension fund that was delayed until after the re-election of Gov. Jeb Bush, damaged her credibility as an impartial, nonpartisan government watchdog.

Questionable staff changes also led staffers to view Rehnquist as unfair, GAO found. In 13 months at least 20 senior managers retired, resigned or were reassigned, according to GAO. Most of the employees had worked for the government for more than 25 years. GAO described eight of the personnel changes as "troubling" and possibly involuntary.

"Some of the employees we interviewed were skeptical that these changes were necessary and asserted that they actually damaged the organization's effectiveness," the report said. "The abruptness of these changes and the lack of any overall explanation for them heightened employees' mistrust."

In a written response, Rehnquist disagreed with GAO's findings, contending that her actions were appropriate.