IG Charges GIPSA Failed to Enforce Law
Wed Jan 18, 2006 08:51 AM CST
-USDA Agency Failed to Enforce Packers and Stockyards Act
By Chris Clayton
DTN Staff Reporter
OMAHA (DTN) -- Top officials in the USDA's chief enforcement agency for Packers and Stockyards Act violations failed to create any kind of environment that allows the agency to enforce the law and inflated its investigation numbers in reports to Congress, according to an audit released Wednesday.
The U.S. Department of Agriculture's Office of Inspector General found the Grain Inspection Packers and Stockyards Administration had no official policy for defining what constitutes an "investigation." So agency staff labeled almost every activity staff engaged in as an "investigation." That included monitoring routine daily information or simply sending letters to companies requesting information.
James Link, who was appointed as GIPSA's new top administrator last October, said in an interview Tuesday he has clarified the way investigations should be conducted and GIPSA is now delegating more authority to regional office staff to conduct investigations. Lines of communication within the agency needed to be clarified, Link said.
The report was publicly issued just over a month after the deputy administrator who had been in charge of the Packers and Stockyards division since 2000, Joann Waterfield, resigned her office. GIPSA officials had received advance notification of what the report would contain. Waterfield has not responded to repeated attempts by DTN seeking comment.
GIPSA oversees the movement and storage of grain, as well as enforcing the 1921 Packers and Stockyards Act, a law meant to ensure there is a fair and competitive environment for producers selling livestock. Regional offices overseeing the Packers and Stockyards division are located in Atlanta, Denver and Des Moines.
GIPSA officials reported 1,842 Packers and Stockyards investigations in fiscal 2005, but the Inspector General's office could not identify the locations of work performed on 1,799 of those reported investigations. Records were also incomplete on more than half of the investigations reported by GIPSA.
After seeing the report, U.S. Sen. Tom Harkin, D-Iowa, called for "swift and substantial changes" within GIPSA. Harkin, who initially requested the Office of Inspector General audit last spring, said he intended to introduce legislation that would transfer some of GIPSA's activities into a different office possibly within the U.S. Department of Justice. The report showed GIPSA management had failed to protect competitive markets for livestock producers, he said.
"USDA has failed to fulfill its responsibility to enforce the Packers and Stockyards Act. This report clearly finds that top officials at GIPSA were blocking employees from pursuing investigations and then cooking the books to cover-up the agency's lack of enforcement action," Harkin said.
The Inspector General stated senior management's control for managing competition and complex investigations at GIPSA also inhibited the ability of staff to conduct such work, according to the report. A Senior Management Review Panel within GIPSA effectively inhibited investigations by failing to approve them or establishing any policies or procedures to approve such investigations. As of August, there were 50 potential investigations still waiting for the review panel to approve for staff to initiate the cases.
That meant GIPSA was not referring cases to the USDA's Office of General Counsel for possible prosecution. In February 2005, GIPSA referred one case to the General Counsel's office, the first in three years.
The Office of General Counsel has not issued an administrative action against any company since 1999 because of a lack of referrals from GIPSA.
Link said he did not think too much power over investigations had been concentrated in USDA headquarters, but it has become clear there needed to be better communication between regional employees and the Washington, D.C., office.
"I wouldn't say it was so much concentration, but I would say a little bit of confusion over who could make decisions over different levels of communication and we're trying to clarify that," Link said.
The audit also said GIPSA leaders basically ignored prior recommendations in audits from the Office of Inspector General and the Government Accountability Office dating back to 1998. GIPSA officials had basically failed to take action on 64 policy issues within the agency dealing with the way GIPSA would monitor day-to-day activities in the livestock industry or how GIPSA would conduct investigations. At least 55 of these potential regulations had been in review since 2004 with two of the proposals dating back to 2000.
In response the Inspector General's report, Link stated that GIPSA has now implemented specific guidelines for conducting investigations.
Chris Clayton can be contacted at [email protected].
Wed Jan 18, 2006 08:51 AM CST
-USDA Agency Failed to Enforce Packers and Stockyards Act
By Chris Clayton
DTN Staff Reporter
OMAHA (DTN) -- Top officials in the USDA's chief enforcement agency for Packers and Stockyards Act violations failed to create any kind of environment that allows the agency to enforce the law and inflated its investigation numbers in reports to Congress, according to an audit released Wednesday.
The U.S. Department of Agriculture's Office of Inspector General found the Grain Inspection Packers and Stockyards Administration had no official policy for defining what constitutes an "investigation." So agency staff labeled almost every activity staff engaged in as an "investigation." That included monitoring routine daily information or simply sending letters to companies requesting information.
James Link, who was appointed as GIPSA's new top administrator last October, said in an interview Tuesday he has clarified the way investigations should be conducted and GIPSA is now delegating more authority to regional office staff to conduct investigations. Lines of communication within the agency needed to be clarified, Link said.
The report was publicly issued just over a month after the deputy administrator who had been in charge of the Packers and Stockyards division since 2000, Joann Waterfield, resigned her office. GIPSA officials had received advance notification of what the report would contain. Waterfield has not responded to repeated attempts by DTN seeking comment.
GIPSA oversees the movement and storage of grain, as well as enforcing the 1921 Packers and Stockyards Act, a law meant to ensure there is a fair and competitive environment for producers selling livestock. Regional offices overseeing the Packers and Stockyards division are located in Atlanta, Denver and Des Moines.
GIPSA officials reported 1,842 Packers and Stockyards investigations in fiscal 2005, but the Inspector General's office could not identify the locations of work performed on 1,799 of those reported investigations. Records were also incomplete on more than half of the investigations reported by GIPSA.
After seeing the report, U.S. Sen. Tom Harkin, D-Iowa, called for "swift and substantial changes" within GIPSA. Harkin, who initially requested the Office of Inspector General audit last spring, said he intended to introduce legislation that would transfer some of GIPSA's activities into a different office possibly within the U.S. Department of Justice. The report showed GIPSA management had failed to protect competitive markets for livestock producers, he said.
"USDA has failed to fulfill its responsibility to enforce the Packers and Stockyards Act. This report clearly finds that top officials at GIPSA were blocking employees from pursuing investigations and then cooking the books to cover-up the agency's lack of enforcement action," Harkin said.
The Inspector General stated senior management's control for managing competition and complex investigations at GIPSA also inhibited the ability of staff to conduct such work, according to the report. A Senior Management Review Panel within GIPSA effectively inhibited investigations by failing to approve them or establishing any policies or procedures to approve such investigations. As of August, there were 50 potential investigations still waiting for the review panel to approve for staff to initiate the cases.
That meant GIPSA was not referring cases to the USDA's Office of General Counsel for possible prosecution. In February 2005, GIPSA referred one case to the General Counsel's office, the first in three years.
The Office of General Counsel has not issued an administrative action against any company since 1999 because of a lack of referrals from GIPSA.
Link said he did not think too much power over investigations had been concentrated in USDA headquarters, but it has become clear there needed to be better communication between regional employees and the Washington, D.C., office.
"I wouldn't say it was so much concentration, but I would say a little bit of confusion over who could make decisions over different levels of communication and we're trying to clarify that," Link said.
The audit also said GIPSA leaders basically ignored prior recommendations in audits from the Office of Inspector General and the Government Accountability Office dating back to 1998. GIPSA officials had basically failed to take action on 64 policy issues within the agency dealing with the way GIPSA would monitor day-to-day activities in the livestock industry or how GIPSA would conduct investigations. At least 55 of these potential regulations had been in review since 2004 with two of the proposals dating back to 2000.
In response the Inspector General's report, Link stated that GIPSA has now implemented specific guidelines for conducting investigations.
Chris Clayton can be contacted at [email protected].