Washington • The Justice Department is conducting a criminal investigation into possible contract rigging by the general counsel at the government agency that distributes foreign aid, documents obtained by The Associated Press show.
Memos from the inspector general of the U.S. Agency for International Development also reveal that the I.G. is investigating whether Deputy Administrator Donald Steinberg tried to interfere with an internal investigation.
Internal inspector general documents said he told the I.G.’s office it shouldn’t have investigated the alleged rigging, nor should the matter have been referred to the Justice Department.
Inspectors general are watchdogs within a federal agency and are supposed to operate independently.
The original investigation focused on whether Lisa Gomer, USAID general counsel, may have "wired" a contract last May so the winner of the solicitation would be the agency’s retiring chief financial officer, David Ostermeyer.
The contract bidding for a "senior government-to-government assistance adviser" was canceled after questions were raised.
"If the solicitation was in fact designed for Ostermeyer to win, Ms. Gomer and USAID may have violated various federal laws, the Federal Acquisition Regulation and government ethics policies," according to a letter from two House members to USAID Administrator Rajiv Shah in November.
The letter was written by Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, and Rep. Jason Chaffetz, R-Utah, chairman of the panel’s national security subcommittee.
On Wednesday, the inspector general’s office wrote Issa’s committee saying the Justice Department authorized the inspector general to give the committee documents related to Steinberg’s potential interference. The Justice Department said it would continue to investigate the original allegations. All the documents were described as "law enforcement sensitive."
One document said Steinberg told inspector general officials that Shah asked him to speak with the internal investigators about the review. Steinberg, according to another inspector general document, ripped into the independent watchdog.
"When people are slapping badges down, reading rights and monitoring who is calling who as it relates to career people, it is a mistake," Steinberg was quoted as telling his agency’s investigators. Steinberg added, according to the document, "We are not that kind of agency. People are being told they need to hire lawyers and that is inappropriate."
The memo also quoted Steinberg as saying "now that Justice is involved, it is like the I.G. is out to get these people. Justice is going to proceed criminally. This should have come through the front office first."
The law governing inspectors general says that the internal investigators "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."
There was no response to a message requesting comment, left on the home answering machine of a David Ostermeyer.
Steinberg declined to comment, and Gomer could not immediately be reached for comment.
A senior USAID official, who spoke on condition of anonymity because he was not authorized to comment on the subject, said Gomer has been reassigned from her general counsel’s position and has submitted her resignation effective Feb. 9. The official said she was not ordered to resign.
The USAID spokesman, Kamyl Bazbaz said, "We take very seriously the independence of the inspector general and the importance of the agency’s cooperation with I.G. audits and investigations."
He added, "It is the usual practice for the I.G. to brief the senior leadership of the agency regarding its ongoing investigations and audits."
In an inspector general’s "memorandum of interview" last June, investigators described their probe into allegations that "Lisa Gomer, general counsel for USAID colluded with David Ostermeyer, chief financial officer for USAID, by working with him to write a scope of work for a personal service contract ... in the Office of General Counsel."Next Page >
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