[Congressional Record Volume 145, Number 56 (Thursday, April 22, 1999)]
[Senate]
[Pages S4122-S4123]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Roth, and Mr. Grassley):
  S. 870. A bill to amend the Inspector General Act of 1978 (5 U.S.C. 
App.) to increase the efficiency and accountability of Offices of the 
Inspector General within Federal departments, and for other purposes; 
to the Committee on Governmental Affairs.


                         INSPECTOR GENERAL ACT

  Ms. COLLINS. Mr. President, today I am introducing the Inspector 
General Act Amendments of 1999. I am very pleased to be joined by my 
colleagues, Senators Roth, Grassley, and Bond, who have demonstrated 
unparalleled leadership on IG issues in the Senate. Indeed, Senator 
Roth is one of the architects of the inspector general law, having 
advocated its creation in 1978 and, in 1982, having introduced 
legislation that created IGs in the Departments of Defense, Justice, 
and the Treasury. In such distinguished company, I am confident that my 
legislation hits the mark of improving an already invaluable program.
  As chairman of the Permanent Subcommittee on Investigations, one of 
my top priorities since coming to the Senate has been the seemingly 
never-ending fight against waste, fraud, and abuse. We have all heard 
the horror stories of $500 hammers and roads built to nowhere. The 
waste of scarce Federal resources not only picks the pockets of 
taxpayers, but also places severe financial pressures on already 
overburdened programs, in some cases forcing cutbacks in the delivery 
of vital Government services.
  Over the past 2 years in my capacity as the subcommittee's chairman, 
I have seen disturbing fraud and waste firsthand in a wide variety of 
programs. Last year, for example, the subcommittee held several 
hearings to shine a spotlight on the massive fraud in the Medicare 
Program. To cite just one example of the subcommittee's findings, our 
investigation revealed that the Federal Government had been sending 
Medicare checks to 14 fraudulent health care companies. These companies 
provided absolutely no services to our senior citizens at all. Indeed, 
the address listed by one such company did not even exist, and if it 
had existed, it would have been located in the middle of the runway of 
the Miami International Airport.
  The fraud we uncovered was stunning. It costs taxpayers millions of 
dollars each year, diverting scarce resources from the elderly and 
legitimate health care providers in a program already under enormous 
financial strain.
  The Medicare fraud investigation and others like it were undertaken 
by my subcommittee working hand in hand with the inspectors general for 
a variety of Federal agencies. The inspectors general are charged with 
identifying and eliminating waste, fraud, and abuse in Federal programs 
administered by the agencies they monitor.
  Last year marked the 20th anniversary of the IG Act, the law that 
Congress passed to create these guardians of the public purse. As we 
recognize this important milestone, it is important for Congress to 
take a close look at the IG system. We must build on its strengths and 
remedy its weaknesses.
  Over the past 21 years, the inspector general community has grown 
from 12 in 1978 to 58 inspectors general today. Offices of Inspectors 
General receive more than a billion dollars in annual funding and 
employ over 12,000 auditors, criminal investigators, and support 
personnel. Each Office of Inspector General shoulders tremendous 
responsibilities and is given considerable power to uncover waste, 
fraud, and abuse within Federal programs.
  By and large, the IG community has performed in an outstanding 
manner. IGs have made thousands of recommendations to Congress, 
ultimately saving taxpayers billions of dollars. Inspectors general 
have conducted investigations that have resulted in the recovery of 
hundreds of millions of dollars from companies and individuals who have 
defrauded the Federal Government.
  The inspectors general have a demonstrated record of success over the 
past 20 years. But as with all Government entities, we must ensure that 
the IG community is as well-managed, accountable, and effective as 
possible. IGs are public watchdogs, but they, too, must be watched. 
With these principles in mind and drawing on my extensive work with the 
inspectors general over the past 2 years, I am today introducing 
legislation to improve the accountability, independence, and efficiency 
of the inspectors general program.

  The legislation I am introducing is designed to increase the 
accountability of inspectors general while retaining and, in some 
aspects, strengthening the provisions in law that guarantee their 
independence from the agencies they oversee.
  My bill establishes a renewable 9-year term of office for each of the 
inspectors general who are appointed by the President and confirmed by 
the Senate. Currently, Presidential IGs serve for an indeterminate 
term.
  The IG community has testified that having a fixed term of office 
would provide them with the assurances they need to be able to perform 
their vital but, in some cases, unpopular oversight responsibilities in 
a more independent environment.
  The 9-year term also would enhance IG autonomy because it would 
extend beyond two Presidential administrations.
  There has been considerable turnover in some of the IG positions, and 
the establishment of a fixed term would also encourage inspectors 
general to serve for longer periods of time, thus, adding experience to 
the IG community. Finally, by providing a defined term of service, an 
appropriate framework is provided for the evaluation of the performance 
of each IG to determine if re-appointment is warranted. Thus, Mr. 
President, the 9-year term I am proposing would both enhance the 
independence of the IGs while improving their accountability.
  My legislation also takes steps to streamline the IG offices 
themselves, making them more efficient and flexible, by consolidating 
existing offices and by reducing the frequency with which IGs must 
prepare and file resource-intensive reports.
  Some of the IGs' offices that exist today are very small, with just a 
handful of employees. They could be made more efficient and effective 
by transferring their functions to larger IG offices that oversee 
similar programs.
  For example, my legislation consolidates the current stand-alone 
office of the Federal Labor Relations Authority IG, which has just one 
employee, into the Office of Personnel Management, thus eliminating 
unnecessary overhead and bureaucracy but continuing the vital audit and 
oversight capacity of both agencies. In total, three existing small 
IGs' offices would be consolidated into the IG offices of major 
departments and two smaller IG offices would be consolidated into one 
office.
  Currently, Mr. President, the Offices of Inspectors General are 
required by law to provide semiannual reports to Congress. To increase 
the value of these reports, I am reducing this requirement to a single 
annual report and streamlining the information presented. In this way, 
Congress can focus on high-risk areas before they get worse and before 
the problems become more difficult to solve.
  Mr. President, the inspectors general have made very valuable 
contributions to the efficient operation of the Federal Government. 
Their record, however, is not without blemish. For example, the 
community's record was tarnished by the activities of the inspector 
general at the Department of Treasury. After an extensive 
investigation, the Permanent Subcommittee on Investigations found this 
particular IG violated Federal contract laws in her award of two 
noncompetitive, sole source contracts.
  These actions not only wasted thousands of dollars but also shook the 
confidence of Congress, the agency, and the public in the IG's ability 
to operate with the highest degree of integrity. It was extremely 
disturbing to find that this inspector general was herself guilty of 
wasting resources and abusing the public trust. At the conclusion of 
our investigation, one could not help but wonder, who is watching the 
watchdogs?
  Let me emphasize, Mr. President, that in my view, problems like the 
ones we uncovered in the Treasury Department are very unusual. They are 
not characteristic of the IG community. They are not widespread. 
However, because the inspectors general are the very officials in the 
Government responsible for combating waste, fraud, and abuse, they 
should be held

[[Page S4123]]

to the very highest ethical standards. Even one example of impropriety 
is cause for concern.
  To increase accountability, my legislation requires independent 
external reviews of each IG office every 3 years. It gives each office 
the flexibility to choose the most efficient method of review, but it 
does require that the watchdogs themselves submit to oversight by a 
qualified third party. This provision is intended to help ensure public 
confidence in the management and the efficiency of the IG offices and 
will provide valuable guidance to Congress in fulfilling our oversight 
responsibilities.
  Mr. President, I am pleased to announce that the National Commission 
on the Separation of Powers has endorsed my recommendation that such an 
independent, external review be conducted of each IG office. The 
Commission is a bipartisan committee sponsored by the Miller Center for 
Public Affairs at the University of Virginia, and includes among its 
members former Senator Howard Baker, former White House Counsel Lloyd 
Cutler, former U.S. Attorney William Barr, former Secretary of State 
Lawrence Eagleburger, and former Director of Central Intelligence 
William Webster. I am very proud that my proposal has been endorsed by 
such an esteemed organization.
  Mr. President, the legislation I introduce today represents a major 
step toward improving the effectiveness, the independence, and the 
accountability of the inspectors general program. I urge my colleagues 
to join me in this effort to strengthen and improve the inspectors 
general program as we approach the next century.
  Thank you, Mr. President.
                                 ______