[Congressional Record Volume 142, Number 111 (Thursday, July 25, 1996)]
[House]
[Pages H8520-H8521]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  WHITE HOUSE ACQUISITION OF FBI FILES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Pennsylvania [Mr. Clinger] is recognized for 5 minutes.
  Mr. CLINGER. Mr. Speaker, I rise today to address a very serious 
issue. For over 3 years I have tried to get to the bottom of the White 
House travel office firings and most recently the White House's 
acquisition of hundreds of FBI background files of former Republican 
officials.
  Why has the White House resisted making public the information needed 
to conclude these investigations? One of the foremost questions in my 
mind as the committee sought to understand how and why the White House 
obtained these FBI background files was: Who is Craig Livingstone? Who 
recommended him? Who hired him? And why was he ever put in charge of 
such a sensitive job at the White House? Simple enough questions, or so 
I thought.
  Even though Mr. Livingstone enjoyed an unusually long tenure in the 
White House Counsel's office--surviving four White House counsels and 
even though he enjoyed a 40-percent salary increase by touting his 
record as a ``team player'' while keeping bankers' hours--now a month 
later, we still have no answers to the simple question of who brought 
Craig Livingstone into the Clinton inner circle as Security Chief. Does 
Craig Livingstone really not know who hired him or is he just not 
telling us? Who in the White House recommended that the counsel's 
office hire Craig Livingstone?
  Seeking answers elsewhere for Craig Livingstone's immaculate hiring 
as it was described by one observer, I directed my investigative staff 
to conduct depositions of the FBI agents assigned to the White House 
for background investigations. FBI Director Louis Freeh personally 
suggested that I review Mr. Livingstone's FBI background investigation 
file rather than question his agents directly on this subject.
  Last Thursday, July 18, I went to the FBI headquarters where I 
reviewed Mr. Livingstone's FBI background file. During the course of an 
FBI background investigation, it is customary to interview an 
individual's supervisors. Among those interviewed for Craig 
Livingstone's background check was then-White House Counsel Bernard W. 
Nussbaum. The interviews took place in early March.
  In the interview conducted of 1993, an interview conducted by Agent 
Dennis Sculimbrene, his report of this interview stated that Mr. 
Nussbaum advised, and I am quoting, ``that he is not only an appointee 
of Craig Livingstone for the period of time that he has been employed 
in the new administration, Mr. Livingstone had come highly recommended 
to him by Hillary Clinton, who has known his mother for a longer period 
of time.'' The agent reported that Mr. Nussbaum said that, quoting, 
``he was confident that the appointee lives a circumspect life and was 
not aware of any drug or alcohol problems.''
  This 1993 statement calls into question Mr. Nussbaum's June 26, 1996 
statements made under oath before the Government Reform and Oversight 
Committee. When Congressman Steve Horn asked former Associate White 
House Counsel William Kennedy whether Mrs. Clinton wanted Mr. 
Livingstone there at the White House, Mr. Kennedy testified that, and I 
am quoting: ``I can state that I have never discussed Mr. Livingstone 
with Mrs. Clinton in any way, shape or form.'' Mr. Nussbaum immediately 
responded: ``Nor did I.'' When I directly asked Mr. Nussbaum, ``Do you 
know who hired Craig Livingstone?'' Mr. Nussbaum responded: ``I don't 
know who brought Mr. Livingstone into the White House.''
  Just as disturbing, is the fact that the FBI provided a heads up 
about this information to the White House. I learned this week that 
prior to my review of Graig Livinstone's FBI background file, the FBI 
called White House Deputy Counsel to the President Kathleen Wallman to 
provide information contained in Craig Livingstone's file--information 
that previously had not been provided to the White House. Did the White 
House tell anyone about this information?
  What possible legitimate purpose could the FBI have had to call the 
White House about this information? Why did the FBI not contact the 
independent counsel if they really were concerned about the information 
discovered in Livingston's background file?
  The day after the FBI contacted the White House, on Wednesday, July 
17, two headquarters agents went to Agent Dennis Sculimbrene's home at 
10:00 in the morning and interviewed him about the taking of the 
Nussbaum statement. The FBI agents conducting the interview told Mr. 
Sculimbrene that the White House was unhappy and concerned about this 
particular interview and about what had been said about Bernie 
Nussbaum.
  Why, after the Attorney General herself said that it would be a 
conflict of interest for the FBI or the Justice Department to 
investigate anything related to this matter, would FBI agents go to the 
home of such a critical witness? Who directed these agents? Who 
approved and knew about these actions and when did they know? Was the 
independent counsel informed and why was Agent Sculimbrene told that 
the White House was unhappy?

                              {time}  1715

  This is a matter I will refer to the U.S. attorney for the District 
of Columbia. Because Attorney General Reno has designated Independent 
Counsel Kenneth Starr to investigate potential criminal wrongdoing in 
the White

[[Page H8521]]

House Travel Office and FBI Files matters, I am simultaneously 
forwarding this matter to Judge Starr's attention.
  While our investigation is continuing, our focus is not, not on 
possible criminal activities. I want to emphasize that I am not here to 
prejudge the veracity of any of the statements that I have referred to, 
but I am concerned about what appear to be very serious discrepancies. 
I believe, therefore, this issue must be addressed by a Federal law 
enforcement office tasked to review these types of issues.
  Mr. Speaker, I include for the Record the following information:

 White House and FBI Actions and Contacts on FBI File Matter--Prepared 
      by Staff of House Government Reform and Oversight Committee


                             june 14, 1996

       FBI issues report on White House obtaining FBI files saying 
     the FBI was ``victimized'' by the White House's gathering of 
     FBI background files.
       Craig Livingstone is deposed by the Committee on Government 
     Reform and Oversight and reveals problems in his background.


                             june 17, 1996

       Craig Livingstone is deposed by the Committee on Government 
     Reform and Oversight.
       White House Counsel Jack Quinn announces that Livingstone 
     has asked to be put on administrative leave.


                             june 18, 1996

       After an initial inquiry, Independent Counsel Starr advised 
     Attorney General Reno that he does not believe he has 
     jurisdiction to investigate the FBI File matter further.
       Attorney General Reno ordered the FBI to conduct a thorough 
     investigation into unjustified White House requests for 
     background files.


                             june 20, 1996

       Attorney General Reno turned the investigation of White 
     House requests for FBI background files over to Whitewater 
     Independent Counsel Starr in order to avoid a conflict of 
     interest. Reno wrote: ``I have concluded it would constitute 
     a conflict of interest for the Department of Justice itself 
     to investigate the matter involving an interaction between 
     the White House and the FBI, a component of the Department of 
     Justice.''


                             JUNE 26, 1996

       Craig Livingstone announces his resignation in his opening 
     statement before a Committee on Government Reform and 
     Oversight hearing on the Security of the FBI Files.


                             JUNE-JULY 1996

       Independent Counsel investigation proceeds with numerous 
     White House witnesses appearing before the Grand Jury.


                             JULY 15, 1996

       Dennis Sculimbrene is deposed by the Committee on 
     Government Reform and Oversight.


                             JULY 16, 1996

       Chief Investigative Counsel Barbara Olson of the Committee 
     reviews the FBI background file of Craig Livingstone and 
     Anthony Marceca.
       According to FBI Counsel Shapiro, he contacted Deputy White 
     House Counsel Kathleen Wallman regarding the Nussbaum 
     interview in Livingstone's FBI background file.


                             JULY 17, 1996

       Two FBI agents from FBI Headquarters appear at the 
     Haymarket, Virginia home of Dennis Sculimbrene to talk with 
     him about his interview of Bernard Nussbaum and show him the 
     document. They also ask him for his notes of the interview.
       Committee holds hearing with Secret Service witnesses on 
     the Security of FBI Background Files. Secret Service Agent 
     Arnold Cole reveals that he spoke with Bill Kennedy about 
     problems in the background of Craig Livingstone when the 
     Secret Service reviewed his file for security concerns.


                             JULY 18, 1996

       Chairman Clinger and Chief Investigative Counsel Barbara 
     Olson review Craig Livingstone's FBI background file at the 
     FBI. Chairman Clinger requests information regarding any 
     communication of information in the Craig Livingstone FBI 
     Background file to the White House.


                             JULY 19, 1996

       FBI General Counsel Shapiro writes letter to Chairman 
     Clinger informing him that the FBI did indeed provide the 
     White House with information on the Nussbaum interview: 
     ``because issues raised in Mr. Nussbaum's interview [in 
     Livingstone's FBI background file] has been discussed in 
     connection with the Committee's oversight investigation, it 
     was determined that the Bureau had a responsibility to advise 
     affected parties. Therefore, after arrangements were made for 
     your staff to review the files, the Department of Justice, 
     and then the White House, were advised of the results of this 
     review.''

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