STATUTORY INSPECTOR GENERAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00004R001000150018-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 22
• Document Creation Date: December 22, 2016
• Document Release Date: January 5, 2012
• Sequence Number: 18
• Publication Date: November 2, 1987
• Content Type: MEMO

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F1L LC(
OCA 87-5562
2 November 1987
NOTE FOR:
FROM:
SUBJECT:
Dave Gries
Statutory Inspector General
STAT
Attached at Tab A are talking points that explain our reasons
for opposing legislation to create a statutory Inspector General.
Senator Specter has introduced such legislation, and the
Iran/Contra Committee may endorse the concept.
Attached at Tab B is a copy of the portion of the Specter
bill dealing with a statutory Inspector General. I have also
attached at Tab C a copy of the Inspector General Act of 1978
that creates a statutory Inspector General for a variety of other
agencies and departments. You will note that the Act of 1978
gives the Inspector General broader powers and responsibilities
than are contained in the Specter bill. There is no legislation
at this point which would add CIA to the list of agencies subject
to the Act of 1978.
Attachments
as stated
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FROM: Dave Gries
SUBJECT: Statutory Inspector General
OCA 87-5562
2 November 1987
OCA NLE
Attached at Tab A are talking points that explain our reasons
for opposing legislation to create a statutory Inspector General.
Senator Specter has introduced such legislation, and the
Iran/Contra Committee may endorse the concept.
Attached at Tab B is a coFy of the portion of the Specter
bill dealing with a statutory Inspector General. I have also
attached at Tab C a copy of the Inspector General Act of 1978
that creates a statutory Inspector General for a variety of other
agencies and departments. You will note that the Act of 1978
gives the Inspector General broader powers and responsibilities
than are contained in the Specter bill. There is no lecislation
at this point which would add CIA to the list of agencis subject
to the Act of 1978.
Attachments
as stated
Distribution:
Original - Addressee w/attachments
1 - EXDIR it it
1 - DD:, I " 11
1 - Executive Registry "
I - D/OC-A It ft
1 - OCA/Registry w/o attachments
1 - O:k/Leg/Suhiect File: Congressional Oversight w/attachments
I - R"H/Signer ,
STAT OJk/Le~ pap (-- November 198;)
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TAB A
1. Changes in the Office of Inspector General will be
announced shortly that will strengthen that office, and these
changes should be given a chance to work before Congress enacts
new legislation.
2. Congress at one time considered establishing a
statutory Inspector General at the FBI, but you persuaded
Members to wait to determine whether the Office could be
strengthened without resorting to statutory provisions. The
members were satisfied with the result, and Congress is no
longer calling for a statutory Inspector General at the FBI.
3. A statutory inspector would be appointed by the
President with the advice and consent of the Senate. He could
only be removed by the President. He would be under the
general supervision of the Director. Such an independent entity
in the Agency could be viewed by the rest of the Agency as
adversarial. If an adversarial relationship developed,
employees would be unlikely to volunteer information to the
Inspector General. Thus, enactment of a statutory Inspector
General could lead to the perverse result of the Inspector
General receiving less information than is currently the case.
4. Under the Specter bill, semi-annual reports would have
to be made on the activities of the Inspector General. The
reports would be transmitted to the oversight committees. The
Inspector General would also have to report to the committees
serious problems, violations of law or regulation, or serious
deficiencies relating to the administration of programs and
operations of the Agency. It is likely that these reports
would trigger requests for Inspector General investigations.
The proliferation of such reports and investigations could make
Agency employees reluctant to share information with the
Inspector General for fear that it would not be held in
confidence.
5. The Inspector General has traditionally been a career
Agency official. As a career official, the Inspector General
has the understanding of the Agency necessary to conduct
competent investigations. It is not likely that a career
Agency official would be appointed as a statutory Inspector
General. It would take time for a non-CIA official appointed
Inspector General to gain sufficient experience to lead an
investigation, and during this interim period the effectiveness
of the Office of Inspector General would suffer.
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6. Under the Specter bill, a statutory Inspector General
would have subpoena power. This would allow the Inspector
General to conduct inquiries outside the Agency. Allowing CIA
to conduct domestic, quasi-law enforcement investigations would
be inconsistent with the charter of the CIA.
7. A statutory Inspector General will not by itself solve
the problem, as perceived by Congress, of a weak Office of the
Inspector General. This problem can only be remedied
administratively by getting highly qualified people to serve in
the Office of the Inspector General; by making clear to Agency
employees that you expect all employees to cooperate fully with
the Inspector General; and by establishing that Agency
employees who lie to the Inspector General will be punished
severely.
8. An independent Inspector General could create the
perception among potential sources and foreign liaison services
that the Director was unable to protect sensitive intelligence
sources, including information provided by the liaison
service. This could lead to a reduction in cooperation with
CIA by sources and liaison services.
9. The Specter bill attempts to address this problem by
providing that the DCI may prohibit the Inspector General from
initiating or completing an investigation into an ongoing
operation if the DCI determines that such a prohibition is
necessary to protect the vital national security interests of
the United States. The DCI would have to report to the
oversight committees within 7 days the exercise of his power to
stop an investigation. The reporting requirement would make it
unlikely that any DCI would exercise the powers granted under
the Specter bill to stop an investigation on grounds of
national security. Further, the report to Congress would
likely trigger a Congressional investigation.
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(5) days.
SECTION 4. INSPECTOR GENERAL FOR THE CIA
(1) Purpose; Establishment. In order to create an
independent, objective and Congressionally accountable unit
to conduct and supervise investigations and audits relating to
programs and operations of the Central Intelligence Agency,
there is hereby established in the CIA an office of inspector
General.
(2) Appointment and Removal. There shall be at the head
of the office an Inspector General who shall be appointed by the
President, by and with the advice and consent of the Senate.
The Inspector General shall report to and be under the general
supervision of the Director of Central intelligence or the
officer next below in rank but not any other officer of the CIA.
(3) The Director may protibit the inspector General from
initiating, carrying out, or completing any audit or
investigation, or from issuing any subpoena, only concerning
ongoing operations, and only if he determines that such
prohibition is necessary to protect vital national security
interests of the United States.
(4) If the Director exercises any power under subsection
(3) of this section, he shall submit a classified statement of
the reasons for the exercise of the power within seven (.) days
to the Select Committee on Intelligence of the Senate any
Permanent Select Committee on Intelligence of the House cf
Representatives.
(5) The Inspector General may be removed frorr, office only
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by the President. The President shall immediately communicate
in writing to both House of Congress the reasons for any such
removal.
(6) Duties and Powers. It shall be the duty and
responsibility of the Inspector General appointed under this
Act--
(A) to provide policy direction for and to conduct
supervise, and coordinate investigations and audits relating
to the programs and operations of the CIA to assure they are
conducted efficiently and in accordance with applicable law
and regulations;
(B) to keep the Director and the Congress fully
and currently informed, by means of reports required by
subsection (8) and otherwise, concerning violations of laws
and regulations, fraud and other serious prcblems, abuses and
deficiencies and to report the progress made in implementing
corrective action.
(7) The Inspector General shall have the power to issue
subpoenas to carry out his work.
(8) Reports. The Inspector General shall not later than
April 30 and October 30 of each year, prepare a classified
semiannual report summarizing the activities of the Office
during the immediately preceding six-month periods endina
March 31 and September 30.
(9) Classified semiannual reports of the inspector
General shall be furnished to the Director not later than
April 30 and October 30 of each year and shall be transmitted
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by him to the Select Committee on Intelligence of the House of
Representatives within 30 days after receipt, together with any
comments he deems appropriate.
(10) The Inspector General shall report immediately,
serious problems, violations of law or regulations or serious
deficiencies relating to the administration of programs and
operations of the Agency. The Director shall transmit any such
report to the Select Committee on Intelligence of the Senate and
the Permanent Select Committee on intelligence of the House of
Representatives within seven (7) calendar days, together with
any comments he deems appropriate.
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TAB C
APPENDIX 3
INSPECTOR GENERAL ACT OF 1978
Pub.L. 95-452, Oct. 12, 1978, 92 Stat. 1101, as amended Pub.L. 96-88, Title V,
? 508(n), Oct. 17, 1979, 93 Stat. 694; Pub.L. 97-113, Title VII, ? 705, Dec. 29,
1981, 95 Stat. 1544; Pub.L. 97-252, Title X1, ? 1117(aHc), Sept. 8, 1982, 96 Stat.
75-752; Pub.L. 99-93, Title I, ? 150(a). Aug. 16, 1985, 99 Stat. 427; Pub.L.
99-399, Title IV, ? 412(a), Aug. 27, 1986, 100 Stat. 867.
Sec Sec.
1. Short title. 6. Authority of Inspectors General; in-
2. Purpose and establishment of Offices formation and assistance from Fed-
of Inspector General, departments eral agencies, unreasonable refusal,
and agencies involved. office space and equipment.
3. Appointment of Inspectors General, 7. Complaints by employees, disclosure
supervision, removal, political ac- of identity, reprisals.
tivities, appointment of Assistant 8. Additional provisions with respect to
Inspector General for Auditing and the Inspector General of the De-
Assistant Inspector General for In- partment of Defense
vestigations. 8A. Special provisions relating to the
4. Duties and responsibilities; report of Agency for International Develop-
criminal violations to Attorney Gen- ment.
eral. 9. Transfer of functions.
5. Semiannual reports; transmittal to 10. Conforming and technical amend-
Congress; availability to public; im- ments.
mediate report on serious or fla- Il. Definitions.
grant problems 12. Effective date.
? 1. Short title
That this Act be cited as the "Inspector General Act of 1978".
Legislative History. For legislative history and
purpose of Pub L 95-452, we 1978 U.S Code
Cong and Adm News, p 2676.
? 2. Purpose and establishment of Offices of Inspector General; departments
and agencies involved
In order to create independent and objective units-
(1) to conduct and supervise audits and investigations relating to programs
and operations of the Department of Agriculture. the Department of Commerce,
the Department of Defense, the Department of Education, the Department of
Housing and Urban Development, the Department of the Interior, the Depart-
ment of Labor, the Department of Transportation, the Agency for International
Development, the Community Services Administration, the Eixironmental Pro-
tection Agency, the General Services Administration, the National Aeronautics
and Space Administration. the Small Business Administration. the United States
Information Agency, the Veterans' Administration. and the Department of
State;
(2) to provide leadership and coordination and recommend policies for activi-
ties designed (A) to promote economy. efficiency, and effectiveness in the
administration of, and (B) to prevent and detect fraud and abuse in. such
programs and operations; and
(3) to provide a means for keeping the head of the establishment and the
Congress fully and currently informed about problems and deficiencies relating
to the administration of such programs and operations and the necessity for and
progress of corrective action;
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thereby I is hereby established in each of such establishment, an office of Inspector
General.
(AF amended Pub.L 9f,-88. Title V, ? 50S(n)(1). Oct 17, 1979, 93 Stat 694; Pub L. 97-113, Title
V11, ? 705taW1). Dec 29. 1981, 95 Stat 1544; Pub.L 97-252, Title Xl. ? 1117(a)(1), Sept 8. 1982.
96 Stat 750. PuLL 99-93, Title 1. ? 15(Na)(I). Aug 16. 1985, 99 Stat 427; Pub.L. 99-399. Title
IV, ? 4124al(I). Aug. 27, 1986, 100 Stat 867.)
1 So in original Probabl% should be 'there"
1986 Amendment. Par (I) Pub L 99-399 established by section 601 of the Economic Op-
inserted "the United States Information Agenc)," portunity Act of 1964, as amended (42 U.S C.A
before "the Veterans' Administration". ? 2941). was terminated when the Economic OT,
1985 Amendment. Par (1) Pub.L 99-93 portumt5 Act of 1964. Pub.L. 88-452. Aug 20.
added reference to the Department of State 1964. 78 Stat 508. as amended. was repealed,
1982 Amendment. Par (1) Pub.L 97-252. except for Titles VIII and X. effective Oct 1,
1117(x)(1), inserted "the Department of Dc- 1981, by section 683(a) of Pub L 97-35, Title VI,
fetse," foliowing "Commerce.". Aug 13, 1981. 95 Stat 519. which is classified to
42 U.S.C.A ? 9912(a). An Office of Community
1981 Amendment. Par (1) Pub.L 97-113 Services. headed by a Director, was established in
inserted 'the Agency for International Develop- the Department of Health and Human Services b)
ment." after "Transportation.". section 676 of Pub.L 97-35. which is classified to'
1979 Amendment. Par (1) Pub.L 96-44 in- 42 U.S.C.A. ? 9905
serted "the Department of Education." following legislative Hlstor3. For legislative history and
"Commerce.- purpose of Pub.]_ 95-452. see 1978 U.S Code
Effective Date of 1979 Amendment. Amend- Cong and Adm News. p. 2676 See. also. Pub L
ment b5 Pub.L 96-88. effective Map 4, 1980. with 96-88, 1979 U.S Code Cong and Adm News. p
specified exceptions, ace section 601 of Pub.L. 1514, Pub.L 97-113. 1981 U.S Code Cong and
96-88. set out as an Effective Date note under Adm News. p 2404. Pub.L 99-93, 1985 U.S
section 3401 of Title 20, Education Code Cong and Adm News, p. 329, Pub L
Community Services Administration. The 99-399, 1986 U.S Code Cong and Adm News, p
Community Services Administration. which was 1865
? 3. Appointment of Inspector General: supervision; removal: political ahtivi-
ties: appointment of Assistant Inspector General for Auditing and Assist-
ant Inspector General for Investigations
(a) There shall be at the head of each Office an Inspector General who shall be
appointed by the President, by and with the advice and consent of the Senate,
without regard to political affiliation and solely on the basis of integrity and
demonstrated ability in accounting, auditing, financial analysis, law, management
analysis, public administration, or investigations. Each Inspector General shall
report to and be under the general supervision of the head of the establishment
involved or, to the extent such authority is delegated, the officer next in rank below
such head, but shall not report to, or be subject to supervision by, any other officer
of such establishment. Neither the head of the establishment nor the officer next in
rank below such head shall prevent or prohibit the Inspector General from initiating,
carrying out, or completing any audit or investigation, or from issuing any subpena
during the course of any audit or investigation.
(b) An Inspector General may be removed from office by the President. The
President shall communicate the reasons for any such removal to both Houses of
Congress.
(c) For the purposes of section 7324 of Title 5, United States Code, no Inspector
General shall be considered to be an employee who determines policies to be pursued
by the United States in the nationwide administration of Federal laws.
(d) Each Inspector General shall, in accordance with applicable laws and regula-
tions governing the civil servic?
(1) appoint an Assistant Inspector General for Auditing who shall have the
responsibility for supervising the performance of auditing activities relating to
programs and operations of the establishment, and
(2) appoint an Assistant Inspector General for Investigations who shat' have
the responsibility for supervising the performance of investigative activities
relating to such programs and operations
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Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News. p. 2676.
?4
Note I
? 4. Duties and responsibilities: report of criminal violations to Attorney Gen-
eral
(a) It shall be the duty and responsibility of each Inspector General, with respect
to the establishment within which his Office is established-
(I) to provide policy direction for and to conduct, supervise, and coordinate
audits and investigations relating to the programs and operations of such
establishment;
(2) to review existing and proposed legislation and regulations relating to
programs and operations of such establishment and to make recommendations in
the semiannual reports required by section 5(a) concerning the impact of such
legislation or regulations on the economy and efficiency in the administration of
programs and operations administered or financed by such establishment or the
prevention and detection of fraud and abuse in such programs and operations;
(3) to recommend policies for, and to conduct, supervise, or coordinate other
activities carried out or financed by such establishment for the purpose of
promoting economy and efficiency in the administration of, or preventing and
detecting fraud and abuse in, its programs and operations;
(4) to recommend policies for, and to conduct, supervise, or coordinate rela-
tionships between such establishment and other Federal agencies, State and
local governmental agencies, and non-govern mental entities with respect to (A)
all matters relating to the promotion of economy and efficiency in the adminis-
tration of, or the prevention and detection of fraud and abuse in, programs and
operations administered or financed by such establishment, or (B) the identifica-
tion and prosecution of participants in such fraud or abuse; and
(5) to keep the head of such establishment and the Congress fully and
currently informed, by means of the reports required by section 5 and otherwise,
concerning fraud and other serious problems, abuses, and deficiencies relating
to the administration of programs and operations administered or financed by
such establishment, to recommend corrective action concerning s'.~h problems,
abuses, and deficiencies, and to report on the progress made in rnpiementing
such corrective action.
(b) In carrying out the responsibilities specified in subsection (aXI), each Inspector
General shall-
(1) comply with standards established by the Comptroller General of the
United States for audits of Federal establishments, organizations, programs,
activities, and functions;
(2) establish guidelines for determining when it shall be appropriate to use
non-Federal auditors; and
(3) take appropriate steps to assure that any work performed by non-Federal
auditors complies with the standards established by the Comptroller General as
described in paragraph (1).
(c) In carrying out the duties and responsibilities established under this Act, each
Inspector General shall give particular regard to the activities of the Comptroller
General of the United States with a view toward avoiding duplication and insuring
effective coordination and cooperation.
(d) In carrying out the duties and responsibilities established under this Act, each
Inspector General shall report expeditiously to the Attorney General whenever the
Inspector General has reasonable grounds to believe there has been a violation of
Federal criminal law.
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U S. Code
Cong. and Adm. News, p. 2676.
Notes of Decisions
1. General Services Administration programs
The Inspector General has the responsibility
and the power to conduct. supervise and coor-
dinate audits and investigations relating to pro-
grams of the General Services Administration in
order to promote efficiency and to prevent fraud
and abuse. but unlike the Internal Revenue Set.
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Note I
TITLE S.-APPENDIX 3 192
vice, which b) section 7122 of Title 26 loses its Inspector General are not ao limited U.S s. An
power to continue eivilh once the Justice Depan? Meta! U.S.A.. Inc.. D.C.N.J.I980, 484 F.Supp
ment begins to move cnmmalh, the powers of the 884
4 5. Semiannual reports; transmittal to Congress; availability to public; imme-
diate report on serious or flagrant problems
(a) Each Inspector General shall, not later than April 30 and October 31 of each
year, prepare semiannual reports summarizing the activities of the Office during the
immediately preceding six-month periods ending March 31 and September 30. Such
reports shall include, but need not be limited to--
(l) a description of significant problems, abuses, and deficiencies relating to
the administration of programs and operations of such establishment disclosed
by such activities during the reporting period,
(2) a description of the recommendations for corrective action made by the
Office during the reporting period with respect to significant problems, abuses,
or deficiencies identified pursuant to paragraph (1);
(3) an identification of each significant recommendation described in previous
semiannual reports on which corrective action has not been completed:
(4) a summary of matters referred to prosecutive authorities and the prosecu-
tions and convictions which have resulted;
(5) a summary of each report made to the head of the establishment under
section &h)(21 during the reporting period; and
(6) a listing of each audit report completed by the Office during the reporting
period.
(b) Semiannual reports of each Inspector General shall be furnished to the head of
the establishment involved not later than April 30 and October 31 of each year and
shall be transmitted by such head to the appropriate committees or subcommittees of
the Congress within thirty days after receipt of the report, together with a report by
the head of the establishment containing any comments such head deems appropri-?
at.e.
(c) Within sixty days of the transmission of the semiannual reports of each
Inspector General to the Congress, the head of each establishment shall make copies
of such report available to the public upon request and at a reasonable cost.
(d) Each Inspector General shall report immediately to the head of the establish-
ment involved whenever the Inspector General becomes aware of particularly
serious or flagrant problems. abuses, or deficiencies relating to the administration of
programs and operations of such establishment. The head of the establishment shall
transmit any such report to the appropriate committees or subcommittees of Con-
gress within seven calendar days, together with a report by the head of the
establishment containing any comments such head deems appropriate.
(e)(1) Nothing in this section shall be construed to authorize the public disclosure
of information which is-
(A) specifically prohibited from disclosure by any other provision of law;
(B) specifically required by Executive order to be protected from disclosure in
the interest of national defense of national security or in the conduct of foreign
affairs: or
(C) a part of an ongoing criminal investigation.
(2) Notwithstanding paragraph (1)(C), any report under this section may be
disclosed to the public in a form which includes information with respect to a part of
an ongoing criminal investigation if such information has been included in a public
record.
(3) Nothing in this section or in any other provision of this Act shall be construed
to authorize or permit the withholding of information from the Congress, or from
any committee or subcommittee thereof.
(As amended Pub.L. 97-252. Title X1. E 1117(c). Sept E, 1982. 96 Stat 752)
1982 Amendment. Subset (e) Pub.L 97-252 pugisl tior Put, v H L 9. 4 or. legset isla97F CS ~. and Co&
added subset (e) Cori and Adrr. News, p 2676
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Note 1
? 6. Authority of Inspector General; information and assistance from Federal
agencies; unreasonable refusal; office space and equipment
(a) In addition to the authority otherwise provided by this Act, each Inspector
General, in carrying out the provisions of this Act, is authorized-
(1) to have access to all records, reports, audits, reviews, documents, papers,
recommendations, or other material available to the applicable establishment
which relate to programs and operations with respect to which that Inspector
General has responsibilities under this Act;
(2) to make such investigations and reports relating to the administration of
the programs and operations of the applicable establishment as are, in the
judgment of the Inspector General, necessary or desirable;
(3) to request such information or assistance as may be necessary for
carrying out the duties and responsibilities provided by this Act from any
Federal, State, or local governmental agency or unit thereof;
(4) to require by subpena the production of all information, documents,
reports, answers, records, accounts, papers, and other data and documentary
evidence necessary, in the performance of the functions assigned by this Act,
which subpena. in the case of contumacy or refusal to obey, shall be enforceable
by order of any appropriate United States district court: Provided, That
procedures other than subpenas shall be used by the Inspector General to obtain
documents and information from Federal agencies;
(5) to have direct and prompt access to the head of the establishment involved
when necessary for any purpose pertaining to the performance of functions and
responsibilities under this Act;
(6) to select, appoint, and employ such officers and employees as may be
necessary for carrying out the functions, powers, and duties of the Office
subject to the provisions of Title 5, United States Code, governing appointments
in the competitive service, and the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General Schedule pay rates;
(7) to obtain services as authorized by section 3109 of Title 5, United States
Code, at daily rates not to exceed the equivalent rate prescribed for grade GS-18
of the General Schedule by section 5332 of Title 5, United States Code; and
(8) to the extent and in such amounts as may be provided in advance by
appropriations Acts, to enter nto contracts and other arrangements for audits,
studies, analyses, and other services with public agencies and with private
persons, and to make such i ayments as may be necessary to carry out the
provisions of this Act.
(b)(1) Upon request of an Inspector General for information or assistance under
subsection (a)(3), the head of any Federal agency involved shall, insofar as is
practicable and not in contravention of any existing statutory restriction or regula-
tion of the Federal agency from which the information is requested, furnish to such
Inspector General, or to an authorized designee. such information or assistance.
(2) Whenever information or ass stance requested under subsection (a)(1) or (aX3)
is, in the judgment of an Inspecto General, unreasonably refused or not provided,
the Inspector General shall report the circumstances to the head of the establish-
ment involved without delay.
(c) Each head of an establishment shall provide the Office within such establish-
ment with appropriate and adequate office space at central and field office locations
of such establishment, together with such equipment, office supplies, and communi-
cations facilities and services as may be necessary for the operation of such offices,
and shall provide necessary maintenance services for such offices and the equipment
and facilities located therein.
Legislative History. For legislative history and sought evidence pertaining to defense contractor's
purpose of Pub.L. 95-452. see 1978 C.S. Code audits, at request of Defense Contract Audit
Cong. and Adm. News. p. 26"b Agency so long as he did so in furtherance of
purpose within his statutory authority and exer-
cised independent judgment in deciding to issue
Notes of Decisions subpoena. C.S. v Westinghouse Elec. Corp.,
1. Subpoena powers C-A.3 (Pa.) 1986. 788 F.2d 164.
Inspector General of Department of Defense Inspector General could inspect government
had statutory authority to issue subpoena. which contractor's business records that had been sub,
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Note I
poenaed for grand dun investigation. notwith-
standing that he had recommended that mvesuga
lion. where Inspector General had subpoenaed
those records prior to refemng matter to Justice
Department. criminal investigation had been com-
pleted and prosecution had been declined, and
inspection was critical to Inspector General's in-
vestigation In re Grand lur) Matter. E D.Pa
1986. 640 F.Supp 63
Likelihood or imminence of criminal proceed.
inp did not render enforcement of a related ad-
ministrative subpoena impermissible and did not.
therefore. preclude enforcement of is subpoena
duces tecum sought by the Inspector General of
the General Services Administration for certain
tax and related business records of taxpayers in
connection with an investigation of payoffs and
other fraudulent practices where the agency in
question had not itself made a formal recommen-
dation to the licence Department to prosecute.
and the summons or subpoena had a civil purpose
U.S v. An Metal-U.S.A., Inc D C.NJ.1990, 484
F.Supp 884
Acquisition of the tax returns and related doc-
uments of a government contractor pursuant to an
investigation of fraud is within the scope of the
subpoena powers of the Inspector General Id
Tax and related business records of taxpayers
were not beyond the scope of the subpoena power
of the Inspector General of the General Services
Administration when he sought to discover same
in connection with an investigation of payoffs and
other fraudulent practices Id
7. Complaints by employees: disclosure of identity; reprisals
(a) The Inspector General may receive and investigate complaints or information
from an employee of the establishment concerning the possible existence of an
activity constituting a violation of law. rules, or regulations, or mismanagement,
gross waste of funds, abuse of authority or a substantial and specific danger to the
public health and safety.
(b) The Inspector General shall not, after receipt of a complaint or information
from an employee, disclose the identity of the employee without the consent of the
employee, unless the Inspector General determines such disclosure is unavoidable
during the course of the investigation.
(c) Any employee who has authority to take, direct others to take, recommend, or
approve any personnel action, shall not. with respect to such authority, take or
threaten to take any action against any employee as a reprisal for making a
complaint or disclosing information to an Inspector General, unless the complaint
was made or the information disclosed with the knowledge that it was false or with
willful disregard for its truth or falsity.
Legislative History. For legislative history and
purpose of Pub.L 95-452, see 197b U.S Code
Cong and Adm News, p 2676
? 8. Additional provisions with respect to the Inspector General of the Depart-
ment of Defense
(a) No member of the Armed Forces, active or reserve, shall be appointed
InspE -tor General of the Department of Defense.
(b)(l) Notwithstanding the last two sentences of section 3(a). the Inspector
General shall be under the authority, direction, and control of the Secretary of
Defense with respect to audits or investigation's. or the issuance of subpoenas, which
require access to information concerning-
(A) sensitive operational plans:
(B) intelligence matters.
(C) counterintelligence matters:
D) ongoing criminal investigations by other administrative units of the
D- partment of Defense related to national security; or
(E) other matters the disclosure of which would constitute a serious threat to
national security.
(21 With respect to the information described in paragraph (1) the Secretary of
Defense may prohibit the Inspector General from initiating. carrying out. or complet-
ing any audit or investigation, or front issuing any subpoena. after the Inspector
General has decided to initiate. carry out or complete such audit or investigation or
to issue such subpoena. if the Secretary determines that such prohibition is neces-
sary to preserve the national security interests of the United States.
(3) If the Secretary of Defense exercises any power under paragraph (11 or (21.
the Inspector General shall submit a statement concerning such exercise within,
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thirty days to the Committees on Armed Services and Governmental Affairs of the
Senate and the Committees on Armed Services and Government Operations of the
House of Representatives and to other appropriate committees or subcommittees of
the Congress.
(4) The Secretary shall, within thirty days after submission of a statement under
he reasons for the exercise of power under
paragraph (3), transmit a statement of the,
paragraph (1) or (2) to the Committees on Armed Services and Governmental Affairs
of the Senate and the Committees on Armed Services and Government Operations of
the House of Representatives and to other appropriate committees or subcommit-
tees.
(Cl In addition to the other duties and responsibilities specified in this Act, the
Inspector General of the Department of Defense shall-
(1) be the principal adviser to the Secretary of Defense for matters relating to
the prevention and detection of fraud, waste, and abuse in the programs and
operations of the Department;
(2) initiate, conduct, and supervise such audits and investigations in the
Department of Defense (including the military departments) as the Inspector
General considers appropriate;
(3) provide policy direction for audits and investigations relating to fraud,
waste, and abuse and program effectiveness;
(4) investigate fraud, waste, and abuse uncovered as a result of other
contract and internal audits, as the Inspector General considers appropriate;
(5) develop policy, monitor and evaluate program performance, and provide
guidance with respect to all Department activities 'elating to criminal investiga-
tion programs;
(6) monitor and evaluate the adherence of Department auditors to internal
audit, contract audit, and internal review principles, policies, and procedures;
(7) develop policy, evaluate program performance, and monitor actions taken
by all components of the Department in response to contract audits, internal
audits, internal review reports, and audits conducted by the Comptroller General
of the United States;
(8) request assistance as needed from other audit, inspection, and investiga-
tive units of the Department of Defense (including military departments); and
(9) give particular regard to the activities of the internal audit, inspection, and
investigative units of the military departments with a view toward avoiding
duplication and insuring effective coordination and cooperation.
(d) Notwithstanding section 4(d). the Inspector General of the Department of
Defense shall expeditiously report suspected or alleged violations of chapter 47 of
title 10, United States Code (Uniform Code of Military Justice), to the Secretary of
the military department concerned or the Secretary of Defense.
(e) For the purposes of section 7, a member of the Armed Forces shall be deemed
to be an employee of the Department of Defense.
(f)(1) Each semiannual report prepared by the Inspector General of the Depart-
ment of Defense under section 5(a) shall include information concerning the numbers
and types of contract audits conducted by the Department during the reporting
period. Each such report shall be transmitted by the Secretary of Defense to the
Committees on Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the House of Repre-
sentatives and to other appropriate committees or subcommittees of the Congress.
(2) Any report required to be transmitted by the Secretary of Defense to the
appropriate committees or subcommittees of the Congress under section 5(d) shall
also be transmitted, within the seven-day period specified in such section, to the
Committees on Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the House of Repre-
sentatives.
(g) The provisions of section 1385 of title 18, United States Code, shall not apply
to audits and investigations conducted by, under the direction of, or at the request of
the Inspector General of the Department of Defense to carry out the purposes of
this Act.
As amended Pub.L. 97-252. T;tie XI, ? 1117ibi, Sept. 8, 1982. 96 Stat- 751.)
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1982 Amendment. Pub L 97-252 amended
section generally. substituting additional provt.
sions relating to the Inspector Genera! of the
Department of Defense for provisions relating to
semiannual reports of Secretary of Defense on
audit. tncesugaticc. and inspection units of De
fence Department. asailabihq of such reports to
the public. exclusion of national security material.
delegation of the Secretary's duties. submittal of
proposed legislation. the establishment of a last.
force to study operation of audit. investigative and
inspection units, membership in the task force,
and the submission of a comprehensive report by
the task force to the Secretary of Defense and
Director of Office of Management and Budget.
who were to submit a final report to Congress not
later than April 1. 1980
legislative History. For legislative history and
purpose of Pub L 95-452. see 197E U.S Code
Cong and Aden News, It 2676
1. Subpoenas
Inspector General of the Department of De.
fense was entitled to enforcement of an adminis-
tratise subpoena seeking evidence pertaining to a
defense contractor's internal audits, despite de
fense contractors contentions that subpoena was
improperh issued on behalf of the Defense Con
tract Audit Agency to coerce settlement of ^
related administrative dispute the! scope and sub-
sect of subpoena were too broad and that comp);
once would be unduh burdensome U S s Wesi.
inghouse Elec Corp.. D C Pa 1965. 615 F.Supp
1163
? SA. Special provisions relating to the Agency for International Development
(a) In addition to the other duties and responsibilities specified in this Act, the
Inspector General of the Agency for International Development-
(1) shall supervise, direct, and control all security activities relating to the
programs and operations of that Agency, subject to the supervision of the
Administrator of that Agency; and
(2) to the extent requested by the Director of the United States International
Development Cooperation Agency (after consultation with the Administrator of
the Agency for International Development), shall supervise, direct, and control
all audit, investigative, and security activities relating to programs and opera-
tions within the United States international Development Cooperation Agency.
(b) In addition to the Assistant Inspector Generals provided for in section 31d) of
this Act. the Inspector General of the Agency for International Development shall, in
accordance with applicable laws and regulations governing the civil service, appoint
an Assistant Inspector General for Security who shall have the responsibility for
supervising the performance of security activities relating to programs and of ra-
tions of the Agency for International Development.
(c) The semiannual reports required to be submitted to the Administrator of the
Agency for International Development pursuant to section 5(b) of this Act shall also
be submitted to the Directs of the United States International Development
Cooperation Agency.
(di In addition to the officer: and employees provided for in section 6(a)46) of this
Act. members of the Foreign Service may. at the request of the Inspector Genera) of
the Agency for International Development, be assigned as employees of the Insh-'c-
tor General. Members of the Foreign Service so assigned shall be responsible soliv
to the Inspector General. and the Inspector General (or his or her designeel shall
prepare the performance evaluation reports for such members.
(e) In establishing and staffi-,g field offices pursuant to section 6(c) of this Act.
the Administrator of the Agenc.1 for International Development shall not be bound
by overseas personnel ceilings established under the Monitoring Overseas Direct
Employment policy.
(f) The reference in section 7(a) of this Act to ar employee of the establishment
shall. with respect to the Inspector General of the Agency for International Develol-
ment, be construed to include an employee of or under the United States Internation-
al Development Cooperation Agency.
(gl The Inspector General of the Agency for International Development shall he in
addition to the officers provided for ir. section: 624(a) of the Foreign Assistance Act
of 1961 [22 U.S.C.A. ? 23*4(a)]
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(hi As used in this Act, the term "Agency for International Development"
includes any successor agency primarily responsible for administering part I of the
Foreign Assistance Act of 1961 [22 U.S.C.A. ? 2151 et seq.].
(Added Pub.L. 97-113, Title VII, ? 705ia)(3). Dec. 29, 1981, 95 Stat. 1544.1
References in Text. The Foreign Assistance
At of 19e1, referred to in subsec. (h). is Pub.
8--195. Sept. 4, 1961, '5 Stat. 424. as amended.
Part 1 of the Foreign Assistance Act of 1961 is
classified generally to subchapter I (? 2151 et
seq ) of chapter 32 of Title 22. Foreign Relations
and Intercourse. For complete classification of
this Act to the Code. see Short Title note set out
under section 2151 of Title 22 and Tables solume
Legislative History. For legislative history and
purpose of Pub L. 97-113, see 1981 C S. Code
Cong a- d Adm. News, p. 2404.
(a) There shall be transferred-
(1) to the Office of Inspector General-
(A) of the Department of Agriculture, the offices of that department
referred to as the "Office of Investigation" and the "Office of Audit";
(B) of the Department of Commerce, the offices of that department
referred to as the "Office of Audits" and the "Investigations and Inspec-
tions Staff" and that portion of the offit referred to as the "Office of
Investigations and Security" which has r_sponsibility for investigation of
alleged criminal violations and program abuse;
(C) of the Department of Defense, the offices of that department re-
ferred to as the "Defense Audit Service" and the "Office of Inspector
General, Defense Logistics Agency", and that portion of the office of that
department referred to as the "Defense Investigative Service" which has
responsibility for the investigation of alleged criminal violations;
(D) of the Department of Education, all functions of the Inspector
General of Health, Education, and Welfare or of the Office of Inspector
General of Health, Education, and Welfare relating to functions transferred
by section 301 of the Department of Education Organization Act [20
U.S.C.A. ? 3441];
(E) of the Department of Housing and Urban Development, the office of
that department referred to as the "Office of Inspector General";
(F) of the Department of the Interior, the office of that department
referred to as the "Office of Audit and Investigation";
(G) of the Department of Labor, the office of that department referred to
as the "Office of Special Investigations";
(H) of the Department of Transportation, the offices of that department
referred to as the "Office of Investigations and Security" and the "Office of
Audit" of the Department, the "Offices of Investigations and Security,
Federal Aviation Administration", and "External Audit Divisions, Federal
Aviation Administration", the "Investigations Division and the External
Audit Division of the Office of Program Review and Investigation, Federal
Highway Administration", and the "Office of Program Audits, Urban Mass
Transportation Administration";
(1i of the Community Services Administration, the offices of that agency
referred to as the "Inspections Division", the "External Audit Division",
and the "Internal Audit Division";
(J) of the Environmental Protection Agency, the offices of that agency
referred to as the "Office of Audit" and the "Security and Inspection
Division";
(K) of the General Services Administration, the offices of that agency
referred to as the "Office of Audits" and the "Office of Investigations";
(L) of the National Aeronautics and Space Administration, the offices of
that agency referred to as the "Management Audit Office" and the "Office
of Inspections and Security";
(M) of the Small Business Administration, the office of that agency
referred to as the "Office of Audits and Investigations"; and
(N) of the Veterans' Administration, the offices of that agency referred
to as the "Office of Audits" and the "Office of Investigations"; and
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(21 such other offices or agencies, or functions, powers, or duties thereof, as
the head of the establishment involved may determine are properly related to
the functions of the Office and would, if so transferred, further the purposes of
this Act,
except that there shall not he transferred to an Inspector General under paragraph
(2) program operating responsibilities.
(b) The personnel, assets, liabilities. contracts, property, records, and unexpended
balances of appropriations, authorizations, allocations, and other funds employed.
held, used, arising from, available or to be made available. of any office or agency
the functions, powers, and duties of which are transferred under subsection (a) are
hereby transferred to the applicable Office of Inspector General
(c) Personnel transferred pursuant to subsection (b) shall be transferred in
accordance with applicable laws and regulations relating to the transfer of functions
except that the classification and compensation of such personnel shall not be
reduced for one year after such transfer.
(d) In an case where all the functions, powers, and duties of any office or agency
are transferred pursuant to this subsection, such office or agency shall lapse. Any
person who, on the effective date of this Act [Oct. 1, 1978], held a position
compensated in accordance with the General Schedule, and who, without a break in
service, is appointed in an Office of Inspector General to a position having duties
comparable to those performed immediately preceding such appointment shall contin-
ue to be compensated in the new position at not less than the rate provided for the
previous position, for the duration of service in the new position.
(As amended Pub.L 96-86, Title V, ? 508(t)(21 Oct 17. 1979, 93 Stat. 694. Pub.L 97-252 Title
XI. ? 1117(a)2). (3). Sept 6. 1982, 96 Stat 750.)
1982 Amendment. Subsec (aNl) Puh.L
97-252 added subpar. (C) Forme- subpars (C)
to (M) redesignated (D) to (N). respective)N
1979 Amendment. Subsec (&)l) Pub L
96-88 redesignated subpar (C) to (L) as (D) to
(M) and added a new subpar (C)
Effective Date of 1979 Amendment. Amend.
ment b% Pub.L 96-88. effective Mac 4. 1980, with
specified exceptions. see section 601 of Pu L
96-88. set out as an Effective Date note ur ley
section 3401 of Title 20, Education
Community Services Administration, he
Communit) Services Administration. which was
established b% section 601 of the Economic Op-
portunii Act of 1964. as amended (42 C.S.CA
2941). was terminated when the Economic Op-
portunity Act of 1964. Pub.L 88-452. Aug 20.
1964. 7F Stat 508 as amended. was repealed.
except for Titles VIII and X. effective Oct 1.
1981, bv section 6F3ta) of Pub.L 97-35. Title t'1.
Aug 13. 1981. 95 Stat 519, which is classified o
42 C.S.C.A ? 9912(a) An Office of Commun's
Services. headed bl a Director, was established in
the Department of Health and Human Services bl
section 676 of Pub.L 97-35. which is classified to
42 U.S.C A ? 9905
Transfer of Audit Personnel to Inspector Gen.
eral. Department of Defense. Section I I17(e) of
Pub.L 97-252 provided that "in addition to the
positions transferred to the Office of the Inspector
General of the Department of Defense, pursuant
to the amendments made b) subsection (a) of this
section (to sections 2(l), 9(a)()). and 11(1) of this
Act). the Secretan of Defense shall transfer to the
Office of Inspector General of the Department of
Defense not less than one hundred additional
audit positions The Inspector General of the
Department of Defense shall fill such positions
with persons trained to perform contract audits "
Legislative Histon. For legislative history and
purpose of Pub.L 95-452. see 197E U.S Code
Cong and Adm News, p 2676 Sec alsc. Pub.L
96-58, 1979 U.S Code Cong and Adm News. p.
1514
10. Conforming and technical amendments
[Section amended sections 5315 and 5311 of Title 5. Government Organization and
Employees. and section 3522 of Title 42 The Public Health and Welfare, which
amendments have been executed to text.]
Legislative History. For legislative histor% and
purpose of Pub.L 95-452. see 197E U.S Code
Cong and Adrr News r 26"t
? 11. Definitions
As used in this Act-
) the terry. "head of the establishment" means the Secretar of Agriculture,
Commerce, Defense, Education, Housing and Urban. Development. the Interior,
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199 INSPECTOR GENERAL ACT
? 12
Labor, State, or Transportation or the Administrator of the Agency for Interna-
tional Development, Community Services. Environmental Protection, General
Services, National Aeronautics and Space, `mall Business, or Veterans' Affairs,
or the Director of the United States Information Agency 1 as the case may be,
(2) the term "establishment" means the Department of Agriculture, Com-
merce. Defense. Education, Housing and Urban Development, the Interior.
Labor. Mate, or Transportation or the Agency for International Development.
the Community Services Administration, the Environmental Protection Agency,
the General Services Administration, the National Aeronautics and Space Ad-
ministration, the Small Business Administration, the United Mates Information
Agency or the Veterans' Administration, as the case may be;
(3) the term "I. Spector General" means the Inspector General of an establish-
ment;
14) the term "Office" means the Office of Inspector General of an establish-
ment; and
(5) the term "Federal agency" means an agency as defined in section 552(el
of Title 5 (including an establishment as defined in paragraph (2) ), United States
Code, but shall not be construed to include the General Accounting Office.
As amended Pub.L. 96-85 Title V, ? 509(n831. i41. Oct. 17, 1979, 93 Stat. 695. Pub.L 97-113.
Title VII. ? 7054a82), Dec. -9, 1981. 95 Stat. 1544. Pub.L 97-252. Title X1, ? 1117(aii4l. ,5). Sept.
8. 1952. 96 Stat. 750: Pu L. 99-93, Title 1. ? 15Ce H_i, Aug 16. 1985. 99 Stat. 427, Pub.L
99-399, Title IV. ? 412(a8_ , Aug. 27, 1986. 100 Stat. 567
So in originalProbably should be followed by a comma
1986 Amendment. Par (I) Pub L 99-399. specified exceptions, see section 601 of Pub L.
? 412ia)(2HA), inserted "or the Director of the 96-88. set out as an Effective Date note under
United States information Agency" before "as the section 3401 of Title 20, Education
case may be" Community Services Administration. The
Par. (2). Pub.L 99-399, ? 412(a)(2)(B). insert- Community Services Administration- which was
ed "the United States information Agency" before established bs section 601 of the Economic Op-
"or the Veterans' Administration".
portunity Act of 1964. as amended (42 C SC A
1985 Amendment. Pars. (1). (22)'. PubL 2941), was terminated when the Economic Op-
9a-o3 inserted "State," after "Labor." portunity Act of 1064, Pub L 88-452, .Aug 20.
1982 Amendment. Par. (i l Pub L. 97-252- 1964, '8 Stat. 508. as amended, sas repealed,
? II1'(584). :nserted 'Defense,'- following except for Titles VIII and X. of ctive Oct I,
"Commerce, 1981. by section 683(a) of Pub L. 9--35. Title VI,
Par (2). Pub L 97-252, ? II17(a)5), inserted Aug. 13. 1981. 95 Stat 519. which s classified to
"Defense." following "Commerce,". 42 C S.C A ? 9912(a) An Office of Community
1981 Amendment, Par (1) Pub L 9'-113, Services. headed by a Director, was established in
? '05taX2i(Ai, inserted "the Agency for Interna- the Department of Hca!th and Human Sersices by
tional Deselopment," after "Administrator or, section 676 of Pub L 9'-35, which !s classified to
Par (2) Pub.L 9'-113, ? '05ia82)(B). insert- 42 L' S C.A ? Q905.
ed "the Agency for International Development." Legislative History. For legislate history and
after "Transportation or" purpose of Pub L 95-452. see I';-, U S Code
1979 Amendment. Par (1) Pub.L 96-88, Cone and Adm News. p. 2676 Sei also, Pub L
? 509tn431. inserted "Education." following gn8S 19'9 U S Code Cong and Adm News, p
"Commerce" 1514. Pub.L. 9"-113, 1981 U S Code Cong and
Par (2). Pub L 96-88. ? 508(n)(4). inserted Adm News, p 2404. Pub L 99-93. 1985 U S
"Education." following "Commerce," Code Cong and Adm News. p 329. Pub L
Effective Date of 1979 Amendment. Amend- 99-359 1986 L' S Code Cong and Adm News. p
ment bs Pub.L ub d8, effectise May 4. 1980, with 186`
? 12. Effective date
The provisions of this Act and the amendments made by this Act [see section 10 of
this Act] shall take effect October 1. 1978.
Legislative History. For !egislat!ve history and
purpose of Pub L o5-452. see 19'8 U S Cixic
Cong and Adm News, p 'CO
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