'BONUS BABIES': SOME UNCIVIL SERVANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000100170020-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: December 28, 2011
• Sequence Number: 20
• Publication Date: November 5, 1980
• Content Type: OPEN SOURCE

STAT
Declassified in Part -Sanitized Copy Approved for Release 2011/12/28 :CIA-RDP90-009658000100170020-4
. - 'T' Eli' Y ia,I'.r:l
o~ Face
~AC~C ;ANl3E~S~~1
THE WASHINGTON POST
5 November 1980
When President Carter's civil service~:;vf drug companies. A special panel of
reform legislation was enacted- ,two 'federal investigators concluded in 1977
years ago, the White House ballyhooed` ~ ;that Finkel and. FDA management
it as the greatest boon to governmental ::had concealed the truth and given in-
efficiency amce the _ invention of ,the -`'complete and misleading testimony in
paperclip. `.. ~ '~ a case involving the railroading of an
Competent public aervanta `were 'to '- `FDA whistleblower. The report found
be rewarded, not,; juste with s hearty ~ ~ Finkel's ,conduct "unacceptable" ? and
cash in the form_of bonuses.. Whistle-""' + Jack Stempler, general.: counsel of
protection and recognitiori~ for expos- .; ,President Nixon, ;Stempler directed-..
ingwaste and mismanagement. ': the Air Force response to charges,.by.
Unfortunately, ? this Mary : Poppins'`~=cost analyst 'A. Ernest Fitzgerald. ex-
acenariowasn't the way 'things worked , , posing a $2 billion cost overrun in the
out. Ia practice, the cash bonuses were ; Co transport plane program: Fitzger-
-handed out to entrenched senior` bu= old was smeared, fired and -when he
reaucraf~with-political clout:=-'some ;won reinstatement after a long court
of whom were actually involved in re- ', fight =-shunted into a do-nothing job.
foliation against lower-echelon. whistle=~' ' The Senate Judiciary Committee is
blowers. Virtue is still pretty much its:. ~~ investigating Stempler'srole in the
own ward' for. the, working stiffs in 'Fitzgerald harassment. What is ironic
~. ~ tf.:
federal government: ~ ` ". . , ,= is that Carter, campaigning in 1976, re-
The handling of the bonus idea has ;' peatedly mentioned Fitzgerald as the
turned so sour, in fact, that disillu-.: kind of public servant who would be
sinned employes refer to the program;; rewarded in a Carter administration.
as "cash for cronies." `~.``` r ': ? instead, the $20,000
reward went to
,
My reporters Indy Badhwar 'arid ; one of Fitzgerald's persecutors.
Gloria Danziger have reviewed'a: long.;',' ? Claude J. Farinha, another high
list of the recipients of cash bonuses = 'Air Force official, $20,000. Farinha was
$3 million worth, ranging from $3,000' ".the brains behind Project Nlax, a mul-
to $20,000._ Here's the sorry rundown: _ , timillion=dollar compute;"ized manage-
on just a few of these bureaucratic `went system that congressional watch-
bonusbabies:~~ ~ .. ? ~, . '" `;~,?,`~ dogs concluded was as worthless as it
? Manon `Finkel; ass~stant-'dn~ector -' .was expensive. The Air Force, with Fa-
for new drug evaluation, Food and '? rinha's knowledge, continued to lavish
Drug Administration, $10,000 -bonus. ' `' money on the program until it was
For. years, she has been accusecYof her- ~ ` quietly scuttled.- .. , .
assing??~ FDA=, scientists, `who'were ? Erich von Marbod,'de uty chief o .-
deemed "adversarial" to the interests :,; ..the . e erase apartments ..security
.: . , ~... ~,.r~ , ,
assistance a enc $10000. Von iV1ar- ~
came un er congressional fire ins
or prove mg a ve rote - I
gence i orma ion a s Mme t o arter
a ra ion wag se g sop ti_
shah t lr ',' Nlarlood gave incur
om ~a~in -mto oviet ds - as-
surances w is were cum late and:
corre ,contra c e
'~IEer~a our, ie of tie Gen- '
eral Services Administration's Wash-
ington,. D.C., :regional office, $3,500?.
KalIaur was the subject of a . Justice
.Department investigation in 1978 for
his activities when he was on loan Ito
the Carter-iVlondale .transition team. .
He and an associate cooked up a way
to get around GSA. regulations as ~a
means of paying transition team mem-:
bers until they were officially on the
government payroll. Kallaur admits to
using a "short cut" but. denies there.l
.:was a Justice Department investiga- ~
'tion. He says Justice "looked at" the ~
' system he had devised to pay salary ~
advances, and concluded there was no-:
thing wrong. ..., ~ . }?
?? Edward Scott, :former asaistmt
secretary, Department of Transport~-
tion, $20,000.. Scott's brainchild was. a
costly scheme to replace secretaries
(the clerical land) with TV-sized cum-1
putsr .terminals that .would receive,. J
store and dispense messages while .i
busy executives were. out to lunch: or a
otherwise absent. Scott took the bonus
and then left government service. , . ;, ? ; d
Declassified in Part -Sanitized Copy Approved for Release 2011/12/28 :CIA-RDP90-009658000100170020-4