Federal Drive

Wednesday Morning Federal Newscast – January 19th

Issa investigates GAO auditors Goldman exec named SEC investment chief

Federal News Network Staff

January 19, 2011 8:52 am

3 min read

The Morning Federal Newscast is a daily compilation of the stories you hear Federal Drive hosts Tom Temin and Amy Morris discuss throughout the show each day. The Newscast is designed to give FederalNewsRadio.com users more information about the stories you hear on the air.

Usually its GAO that investigates agencies, but now the Congressional watchdog itself has become the subject of a probe. The House Oversight and Government Reform Committee is looking into activity at GAO’s Forensic Audit and Special Investigations Unit. National Journal reports the probe is the result of revisions GAO made to a report on alleged fraud in recruiting practices at for-profit career colleges. The changes softened examples from an undercover investigation, but kept a key finding that the colleges have encouraged fraud and misled potential applicants. Oversight committee Chairman Darrel Issa says the revisions raise concerns about the GAO audit and investigations unit.
Nearly three out of four contractors believe the government could do more to resolve contracting disputes, according to a new industry survey. Business advisory firm Grant Thornton LLP surveyed more than 100 government contractors. The results show a growing distrust between industry firms and the government, with more than half of contractors pointing to inefficiency at the Defense Contract Audit Agency. The most frequent source of dispute: the executive compensation charged by contractors.
The Defense Department’s David Wennergren, will become the next and final chief of the soon-to-be-defunct Business Transformation Agency. Wennegren is DoD’s deputy chief management officer. He will add the this new role to his list of duties. Wenneger’s job will be to oversee the closure of the agency. The BTA was placed on the chopping block as part of the efficiency initiatives announced by Secretary Gates in August.
The Securities and Exchange Commission has chosen a Goldman Sachs executive to lead a division that oversees mutual funds and investment advisers. The agency says Eileen Rominger will become director of investment management. She replaces Andrew “Buddy” Donohue, who left in November. Rominger has worked for nearly three decades as a portfolio manager and leader of asset management teams. Most recently, she’s worked for Goldman Sachs for 11 years.
Connecticut Senator Joe Lieberman will not run for relection to a fifth term. Lieberman will make his announcement today after telling close aides of his decision. Lieberman has been highly active in federal management issues, including oversight of the Homeland Security Department. He is also sponsor of a major piece of cyber security legislation, still pending. A long-time Democrat, Lieberman won election as an Independent after being defeated in the Democratic primary in 2006.
The FBI says initial forensic tests have linked the three fiery packages recently sent to government officials in Maryland and Homeland Security Secretary Janet Napolitano. Special Agent Richard McFeely says now they’re sure that the packages were manufactured the same way. They’re still waiting for fingerprint and fiber analysis. McFeely says investigators are chasing down more than 100 leads in the case and a separate “red cell” team of investigators is exploring what could have motivated the sender. There was a third package, but McFeely says that one was likely a copycat. The letters smoked and popped when they were opened. Nobody was hurt.
A search is under way for a Navy sailor believed to have fallen overboard in the Gulf of Oman. A military spokesman for the Bahrain-based U.S. 5th Fleet says helicopters from and patrol planes remain actively involved in the search, now in its second day. The sailor was reported missing from the destroyer USS Halsey yesterday evening after failing to report for watch duty.

More news links

High court wary of legal fight over Navy plane

Twice convicted ex-CIA spy gets 8 more years

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