Grassley questions suspicious purchases made by Commerce officials

A Republican lawmaker is seeking answers from the Commerce Department on its management of a fund used to pay for expenses associated with civil and criminal investigations.

The asset forfeiture fund, managed by Commerce's National Oceanic and Atmospheric Administration, is in such "disarray" that an outside auditor was unable to correctly pinpoint the fund's balance, placing it somewhere between $8.4 million and $42 million, Sen. Charles Grassley, R-Iowa, wrote in a Feb. 2 letter to Commerce Secretary Gary Locke.

A July 2010 inspector general report listed some suspicious purchases by NOAA's Office of Law Enforcement, which has used the fund containing money collected through fines and penalties imposed on fishermen who violate regulations. The list includes the 2008 acquisition of a $300,000 luxury boat used in undercover operations and charges of more than $580,000 for international travel between 2005 and 2009. By law, officials can use the fund to pay for certain "expenses directly related to investigations and civil or criminal proceedings." But the IG found that the Office of Law Enforcement and Office of General Counsel broadly interpreted the law to pay for a variety of materials, services, travel and training. As much as $96 million could have gone through the fund during the last five years, according to the report.

The nature of the fund "has led to allegations of questionable conduct on the part of enforcement officers who had an incentive to impose exorbitant penalties and fines on fishermen," Grassley said.

The IG report recommended, along with input from NOAA and Commerce officials, that a central mechanism for tracking the fund was necessary to ensure transparency and accountability. More than a year ago, the department transferred management of the asset forfeiture fund to the comptroller general.

Commerce officials did not respond in time to a request for comment.