WASHINGTON, June 12, 2009

Obama Axes AmeriCorps' Inspector General

Was Criticized For Investigation Of Possible Misuse Of Funds By Sacramento Mayor, Obama Supporter

  • AmeriCorps Inspector General Gerald Walpin was criticized by the acting U.S. Attorney in Sacramento for his handling of an investigation last year of Sacramento Mayor Kevin Johnson and a nonprofit group.

    AmeriCorps Inspector General Gerald Walpin was criticized by the acting U.S. Attorney in Sacramento for his handling of an investigation last year of Sacramento Mayor Kevin Johnson and a nonprofit group.  (CBS/AP)

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(AP)  President Barack Obama says he has lost confidence in the inspector general who investigates AmeriCorps and other national service programs and has told Congress he is removing him from the position.

Mr. Obama's move follows an investigation by IG Gerald Walpin of Sacramento Mayor Kevin Johnson, who is an Obama supporter and former NBA basketball star, into the misuse of federal grants by a nonprofit education group that Johnson headed.

Walpin was criticized by the acting U.S. Attorney in Sacramento for the way he handled an investigation of Johnson and St. HOPE Academy, a nonprofit group that received hundreds of thousands of dollars in federal grants from the Corporation for National Community Service. The corporation runs the AmeriCorps program.

"It is vital that I have the fullest confidence in the appointees serving as Inspectors General," President Obama said in a letter Thursday to House Speaker Nancy Pelosi and Vice President Joe Biden, who also serves as president of the Senate. "That is no longer the case with regard to this Inspector General."

The president didn't offer any more explanation, but White House Counsel Gregory Craig, in a letter to Sen. Charles Grassley, R-Iowa, cited the U.S. attorney's criticism of Walpin to an integrity committee for inspectors general.

"We are aware of the circumstances leading to that referral and of Mr. Walpin's conduct throughout his tenure and can assure you that the president's decision was carefully considered," Craig wrote.

Grassley had written President Obama a letter pointing to a law requiring that Congress be given the reasons an IG is fired. He cited a Senate report saying the requirement is designed to ensure that inspectors general are not removed for political reasons.

Grassley said Walpin had identified millions of dollars in AmeriCorps funds that were wasted or misspent and "it appears he has been doing a good job."

Messages left for Walpin seeking comment were not immediately returned.

The IG found that Johnson, a former all-star point guard for the Phoenix Suns, had used AmeriCorps grants to pay volunteers to engage in school-board political activities, run personal errands for Johnson and even wash his car.

In August 2008, Walpin referred the matter to the local U.S. attorney's office, which said the IG's conclusions seemed overstated and did not accurately reflect all the information gathered in the investigation.

"We also highlighted numerous questions and further investigation they needed to conduct, including the fact that they had not done an audit to establish how much AmeriCorps money was actually misspent," Acting U.S. Attorney Lawrence Brown said in an April 29 letter to the federal counsel of inspectors general.

Walpin's office made repeated public comments just before the Sacramento mayoral election, prompting the U.S. attorney's office to inform the media that it did not intend to file any criminal charges.

The U.S. attorney's office reached a settlement in the matter. Brown cited press accounts that said Johnson and the nonprofit would repay half of nearly $850,000 in grants it received.

Kevin Heistand, chairman of the board of St. HOPE Academy, said in a statement it was "about time" Walpin was removed. "Mr. Walpin's allegations were meritless and clearly motivated by matters beyond an honest assessment of our program."

Ken Bach, who works in the inspector general's office at the corporation, will be acting inspector general until President Obama appoints someone to the position.

Walpin, a New York attorney, was appointed by then-President George W. Bush and sworn into office in January 2007 after being confirmed by the Senate, according to a news release on AmeriCorps' Web site. Walpin graduated from College of the City of New York in 1952 and received a law degree in 1955 from Yale Law School. He was a partner with the New York City law firm Katten Muchin and Rosenman LLP for more than 40 years.

Alan Solomont, a Democrat and the board chairman of the government-run corporation, and Stephen Goldsmith, a Republican and the board's vice chair, said they strongly endorsed President Obama's decision.


For more info:
  • Americorps.org

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    Add a Comment See all 19 Comments
    by korzonas June 18, 2009 3:10 PM EDT
    Republicans may be only 17%, but Democrats aren't the majority, in case you hadn't heard. Voters identifying themselves as Independents are the largest political group. I've been both a registered Republican and registered Democrat over my 27 years of voting. I'm a moderate conservative and was unhappy with many of Bush's antics and sickened by how an alleged conservative grew centralized government power. However, I'm appalled at how the Obama Administration is driving our country rapidly towards Socialism. We'll be lucky if we end up only as socialist as France. We're headed towards Venezuelan-style Fascism.

    Before you disagree, look up Fascism in Wikipedia.
    Reply to this comment
    by MRTAKKE June 17, 2009 1:36 PM EDT
    How long will this administration continue to blame Bush for everything. When someone attacks you buddies....you FIRE them. This man was doing his job. But we continually follow along with Obama's thug Chicago politics.
    Reply to this comment
    by againsthatingleberals June 17, 2009 11:59 AM EDT
    Any of you liberals-who-hate notice the text above saying that HALF of the money had to be given back in the negotiated settlement?! "Partisan hack"?? I'd call him a good guy to have on the tax payers side.
    Reply to this comment
    by HansBader June 13, 2009 12:17 PM EDT
    Walpin is a moderate Republican -- so moderate that he was cited by the Obama Administration recently in support of a judicial nomination it made.

    They cited him because he is a respected former federal prosecutor, and long-time, trusted big-name law firm partner with clients across the political spectrum.

    So it's hilarious to see Obama supporters claim that Walpin uncovered this example of waste, abuse, and ideological misuse of funds by a prominent Obama backer, solely out of ideological motivation.

    Walpin is much, much less of a partisan than the special prosecutors Nixon fired in Watergate, which helped lead to Nixon's downfall.
    Reply to this comment
    by johndevinejr June 12, 2009 12:07 PM EDT
    Misunderestimate...are you related to Bush?
    Posted by itsjustathought at 7:34 AM : Jun 12, 2009

    It is called sarcasm
    Reply to this comment
    by antoniof123 June 12, 2009 10:42 AM EDT
    Let's see Barrack brush it under the rug Obama has decided that "we's in charge now" so let my black brothers go.
    Posted by NEWCO123 at 6:07 AM : Jun 12, 2009

    Actually you did not read the artical even the Republicans agree with this but to burst your little bubble he was apporinted by you guess it the village itiot Bush.
    Reply to this comment
    by cbs4me3 June 12, 2009 10:22 AM EDT
    Oh transparency and accountability, will you ever take root. The facts need to be reported on how this supporter spent our federal tax dollars. If there is no issue, that is fine. And, what is this business about the target of the investigation paying one-half of the federal funds it had received.
    Reply to this comment
    by mnbrant June 12, 2009 9:49 AM EDT
    I don't care.
    Reply to this comment
    by johndevinejr June 12, 2009 9:23 AM EDT
    Posted by NEWCO123 at 6:21 AM : Jun 12, 2009

    I think now would be a good time to bring up the Birth Certificate Conspiracy Theory.

    And put on your tinfoil hat.
    Reply to this comment
    by johndevinejr June 12, 2009 9:21 AM EDT
    all of george w bush's us attorney and inspector general positions became political appointees. despite what neocons think, this was a violation of law that no democrat president violated.

    this is just one more reason that americans voted overwhelmingly for barack obama and the democrats. elections have consequences.
    Posted by bigsk8fan at 6:05 AM : Jun 12, 2009

    You misunderestimate the republican thought process, such as it is. They believe that it is their idea of America that makes them right. That if you don't agree with their vision of America you are unAmerican.
    Forget about the fact that they are almost exclusively white Christians. The fact that they believe they are right is what makes them think they are the majority. These silly elections do not reflect what is going on in their heads, so they still think they are the majority.
    A 17% majority.
    Reply to this comment
    by johndevinejr June 12, 2009 9:16 AM EDT
    Let's see Barrack brush it under the rug Obama has decided that "we's in charge now" so let my black brothers go.
    Posted by NEWCO123 at 6:07 AM : Jun 12, 2009


    Another Far Right Wing Extremist Nut Job. I guess Homeland Security was right, these racist buffoons will make up a story for whatever is going on in their pointed little heads.
    Reply to this comment
    by johndevinejr June 12, 2009 9:13 AM EDT
    HEH, Heh heh, Where's all this transparency? THIS IG was on to something, finding out the truth and then supposed to be covering it up.

    The IG found that Johnson, a former all-star point guard for the Phoenix Suns, had used AmeriCorps grants to pay volunteers to engage in school-board political activities, run personal errands for Johnson and even wash his car. (HEH, Heh, heh another Elite scores points)
    Posted by pepperwood2 at 5:53 AM : Jun 12, 2009

    That is exactly backward from what the article said. It said that misuse of funds was occuring right under Walpin's nose and he did nothing.
    Reply to this comment
    by mecury69 June 12, 2009 9:09 AM EDT
    "THIS IG was on to something, finding out the truth and then supposed to be covering it up."

    Actually, it's not what he found it was how he conducted himself during the investigation.

    "In August 2008, Walpin referred the matter to the local U.S. attorney's office, which said the IG's conclusions seemed overstated and did not accurately reflect all the information gathered in the investigation."

    That was under the Bush administration.

    "Stephen Goldsmith, a Republican and the board's vice chair, said they strongly endorsed President Obama's decision."

    Another republican who knew this guy was not dependable.

    He distorted facts to form opinion for his side and repressed other facts that would have and and did not report and was removed.

    Let's just stay with the facts folks.
    Reply to this comment
    by bigsk8fan June 12, 2009 9:05 AM EDT
    all of george w bush's us attorney and inspector general positions became political appointees. despite what neocons think, this was a violation of law that no democrat president violated.

    this is just one more reason that americans voted overwhelmingly for barack obama and the democrats. elections have consequences.
    Reply to this comment
    by korzonas June 18, 2009 2:57 PM EDT
    Actually, Obama *did* break a law. Ironically, it's a law that he co-sponsored! The President cannot terminate an Inspector General without 30 days notice and official notification of Congress as to the reason for the dismissal. Obama did neither.

    It makes me wonder if Senator Obama even read the bills he was sponsoring and signing. It would not surprise me if he didn't.
    by mecury69 June 12, 2009 9:02 AM EDT
    "utterly destroy GM and Chrysler,"?

    Huh? Talk about drinking the kool aid dude. Those companies destroyed themselves and should have been gone last year. The Obama administration (incorrectly by the way) allowed the companies to continue far longer then they should have.

    Try not to distort facts for political purposes; have some *alls, defend or attack a position on reality not made up stuff.
    Reply to this comment
    by pepperwood2 June 12, 2009 8:53 AM EDT
    "It is vital that I have the fullest confidence in the appointees serving as Inspectors General," President Obama said."

    HEH, Heh heh, Where's all this transparency? THIS IG was on to something, finding out the truth and then supposed to be covering it up.

    The IG found that Johnson, a former all-star point guard for the Phoenix Suns, had used AmeriCorps grants to pay volunteers to engage in school-board political activities, run personal errands for Johnson and even wash his car. (HEH, Heh, heh another Elite scores points)
    Reply to this comment
    by I_am_me1953 June 12, 2009 8:53 AM EDT
    "utterly destroy GM and Chrysler"

    by vistavermin1 June 12, 2009 5:43 AM PDT

    ______________________________

    What rock have you been living under?

    GM and Chrysler alone have to carry the blame for going bankrupt. Can't blame that one on Obama or GWB. Greedy ignorant CEOs and UAW workers caused that downfaLL.
    Reply to this comment
    by antoniof123 June 12, 2009 8:46 AM EDT
    My God it will take years maybe decades to clean up the Bush mess that the GOP congress allowed to take place. No wonder they don't want investigations taking place.
    Reply to this comment
    See all 19 Comments
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