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- NATION, Page 29The Secret in the Stacks How the Library of Congress hid Pentagon spending
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- The Army, Air Force, Navy, Marines, Library of Congress . . .
- Hold it -- when did bibliophiles get mixed up with the military?
- Last year, it turns out, the library began working covertly with
- the Pentagon to arrange consulting contracts on weapons projects
- as a way to hide Defense Department spending.
-
- The startling connection was disclosed last week by June Gibbs
- Brown, inspector general of the Defense Department, in hearings
- held by Ohio Democrat John Glenn, chairman of the Senate
- Governmental Affairs Committee. Brown said the practice was
- designed to permit the Pentagon to avoid competitive bidding in
- hiring consultants, since this is not required of the Library. It
- also skirted a law requiring Government agencies to report how much
- they spend on consulting fees.
-
- An additional $250 million in Pentagon contracts was laundered
- through the Department of Energy and the Oak Ridge National
- Laboratory in Tennessee. The Energy Department's inspector general,
- John Layton, said contracts at DOE were drawn so loosely that the
- department was forced to pay fully even when contractors defrauded
- the Government. Since January, 22 people, mostly defense
- contractors and consultants, have pleaded guilty to or been
- convicted of a variety of charges in the so-called Ill Wind
- investigation into procurement abuses.
-
- The library went along with the deception, said Brown, because
- it got a 15% cut of the awards from the Pentagon. That amounted to
- $12.6 million in income for the library last year on $84 million
- in DOD contracts. Librarian of Congress James Billington, who
- ordered an internal investigation of the suspect contracts,
- directed that they be either canceled or transferred to the
- Pentagon.
-
- The library loophole was just one of an array of misdeeds
- reported to the Glenn committee by some of the Federal Government's
- 23 inspectors general, whose semi-independent offices were created
- in 1978 to ferret out abuse in the departments and agencies to
- which they are attached. Glenn has been calling them to testify,
- spurred by the scandal at the Department of Housing and Urban
- Development.
-
- HUD inspector general Paul Adams had repeatedly warned his
- boss, Secretary Samuel Pierce, about the problems and had been
- repeatedly ignored. Last week the Government Accounting Office
- reported that the losses in just one HUD program, the Federal
- Housing Administration, totaled $4.2 billion -- five times the
- amount the Reagan Administration had conceded. That bill lands on
- top of the $300 billion or so needed to rescue the savings and loan
- industry -- another problem that Washington chose to overlook while
- the losses mounted.