Friday, June 12, 2009

Obama ousts Inspector General who investigated friend.

Obama ousts AmeriCorps' IG who investigated friend Associated Press
WASHINGTON – President Barack Obama says he has lost confidence in the inspector general who investigates AmeriCorps and other national service programs and has told Congress he is removing him from the position. Obama's move follows an investigation by IG Gerald Walpin finding misuse of federal grants by a nonprofit education group led by Sacramento Mayor Kevin Johnson, who is an Obama supporter and former NBA basketball star. Walpin was criticized by the acting U.S. attorney in Sacramento for the way he handled the investigation of Johnson and St. HOPE Academy, a nonprofit group that received hundreds of thousands of dollars in federal grants from the Corporation for National and Community Service, which runs the AmeriCorps program.
St. HOPE Academy ended up repaying more than $400,000 in government funds.
http://tinyurl.com/lrlrp9
Ousted AmeriCorps watchdog defends waste probe
...Walpin defended his work on Friday. "I know that I and my office acted with the highest integrity as an independent inspector general should act," he said.Obama's move follows an investigation by Walpin finding misuse of federal grants by a nonprofit education group led by Sacramento Mayor Kevin Johnson, who is an Obama supporter and former NBA basketball star. Johnson and a nonprofit education academy he founded ultimately agree to repay half of $847,000 in grants it had received from AmeriCorps. ...Walpin said he gave the integrity committee "a full and complete response" that was also signed by several people who worked on the case. "I have no question but that we acted totally properly," he said in the interview. Grassley had written Obama a letter pointing to a law requiring that Congress be given the reasons an inspector general is fired. He cited a Senate report saying the requirement is designed to ensure that inspectors general are not removed for political reasons.Grassley said Walpin had identified millions of dollars in AmeriCorps funds that were wasted or misspent and "it appears he has been doing a good job."The inspector general 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...Johnson agreed to immediately repay $73,000 in past grants. The academy was given 10 years to repay the remaining $350,000....prosecutors determined there was no fraud, but rather a culture of "sloppiness" in St. HOPE's record-keeping.
Kevin Hiestand, chairman of the board of St. HOPE Academy, said in a statement it was "about time" Walpin was removed. "Mr. Walpin's allegations were meritless and clearly motivated by matters beyond an honest assessment of our program," he said.
****Er, why then did you agree to return HALF the money you received as a settlement?****...

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