[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Pages 13368-13369]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      NOMINATION OF DONALD MANCUSO

  Mr. GRASSLEY. Mr. President, I would like to take a moment today to 
tell my colleagues why I oppose the nomination of Mr. Donald Mancuso.
  I would like my colleagues to understand why I have placed a hold on 
Mr. Mancuso's nomination.
  Mr. Mancuso has been nominated to be the Inspector General (IG) at 
the Department of Defense (DOD).
  Mr. President, over the years, I have made a habit out of watching 
the watchdogs. I have tried hard to make sure the IG's do their job. I 
want the IG's to be a bunch of junk yard dogs when it comes to 
overseeing their respective departments.
  In doing this oversight work, I have learned one important lesson: 
the IG's must be beyond reproach.
  Now that Mr. Mancuso's nomination has been submitted to the Senate 
for confirmation, this is the question we--in this body--must wrestle 
with:
  Does Mr. Mancuso meet that standard?
  Is Mr. Mancuso beyond reproach?
  That's the question now before the Senate.
  I have to ask myself that question because of something that happened 
a year ago.
  In June 1999, a former agent from the Defense Criminal Investigative 
Service or DCIS walked into my office. He made a number of very serious 
allegations of misconduct about senior DCIS officials, including Mr. 
Mancuso.
  And he had a huge bag full of documents to back them up.
  Mr. Mancuso was the Director of DCIS from 1988 until 1997 when he 
became the Deputy DOD IG.
  Mr. Mancuso was the Pentagon's top cop. He was in charge of the DOD 
IG's criminal investigative bureau. He was a senior federal law 
enforcement officer.
  The allegations were very serious.
  Many concerned Mr. Mancuso's internal affairs unit.
  It was alleged that an agent assigned to the internal affairs unit 
had a history of falsifying reports to damage the reputation of fellow 
agents.
  It was further alleged that Mr. Mancuso was aware of this problem yet 
failed to take appropriate corrective action.
  It was alleged that Mr. Mancuso personally approved a series actions 
to protect a senior deputy who was under investigation for passport 
fraud.
  It was alleged that Mr. Mancuso and the senior deputy were close 
personal friends.
  The senior deputy happened to be in charge of the internal affairs 
unit.

[[Page 13369]]

While head of that unit, this person is suspected of committing about 
12 overt acts of fraud. He was eventually convicted and sent to jail.
  Mr. Mancuso allegedly took extraordinary measures to shield this 
individual from the full weight of the law and departmental 
regulations.
  It was also alleged that Mr. Mancuso engaged in retaliation and other 
prohibited personnel practices.
  The Majority Staff on my Judiciary Subcommittee on Administrative 
Oversight and the Courts conducted a very careful examination of the 
allegations.
  The results of this investigation were presented in a Majority Staff 
Report issued in October 1999.
  Mr. President, I came to the floor on November 2, 1999 to discuss the 
contents of the report.
  All supporting documentation--and there was a mountain of material--
was simultaneously placed on the Judiciary Committee's web site.
  The Majority Staff Report substantiated some of the allegations 
involving DCIS officials, including Mr. Mancuso.
  I also sent a copy of the report and supporting documentation to 
Secretary of Defense Cohen.
  Mr. President, I also wanted to be certain that my friend, Senator 
Warner, Chairman of the Armed Services Committee, and my friend Senator 
Thompson, Chairman of the Governmental Affairs Committee, were up to 
speed on this issue.
  I have continued sending them material as the case has developed.
  I want them to be informed about what I am doing and where I am 
headed with Mr. Mancuso's nomination.
  Mr. President, after the staff report was issued, my office was 
inundated with phone calls from current and former DCIS agents with new 
allegations of misconduct by Mr. Mancuso and others.
  The Majority Staff has investigated some of the new allegations, as 
well. Some have been substantiated and some have not.
  The new findings have been summarized in letter reports.
  Those have been shared with Secretary Cohen.
  And I met with the new Deputy Secretary, Mr. Rudy de Leon, on May 
24th to express my concerns about the allegations involving Mr. 
Mancuso.
  Mr. President, I am not alone in raising questions about Mr. 
Mancuso's conduct.
  At least six other government entities believe that the allegations 
are serious enough to warrant further investigation. These include:

       Chief of the Criminal Division, Eastern District of 
     Virginia
       Integrity Committee of the President's Council on Integrity 
     and Efficiency
       Public Integrity Section at the Justice Department
       Inspector General, Department of the Treasury
       U.S. Office of Special Counsel
       Inspector General, General Services Administration

  Most of these investigations are ongoing. However, at least one has 
been completed.
  The Inspector General at the Treasury Department has corroborated 
some of the facts and conclusions in the Majority Staff Report.
  I also know that the U.S. Attorney, who prosecuted Mr. Mancuso's 
senior deputy for passport fraud, is very unhappy with Mr. Mancuso's 
conduct in that case.
  The U.S. Attorney has characterized Mr. Mancuso's conduct in that 
case as: ``egregious and unethical.''
  Mr. President, at this point, there are just too many unanswered and 
unresolved questions bearing on the allegations.
  I think it would be accurate to say the case against Mr. Mancuso 
would not stand up in a court of law.
  Successfully meeting that test, however, does not mean that Mr. 
Mancuso is ready to be the Pentagon's Inspector General.
  The IG's must meet a much higher standard.
  The IG must be beyond reproach.
  Having questions about judgment and appearance--like in Mr. Mancuso's 
case--is not beyond reproach.
  Mr. President, I will have much more to say about this at a later 
date.
  I yield the floor.

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