home *** CD-ROM | disk | FTP | other *** search
- BUSINESS, Page 49Don't Whistle While You Work
-
-
- At the IRS, tattling can be hazardous to one's career
-
-
- The Internal Revenue Service is tough on taxpayers, but the
- agency can be a soft touch when it comes to misconduct by its
- top executives. Case in point: two former IRS officials, Frank
- Santella and Joseph Jech. The Office of Special Counsel, an
- independent federal agency that protects whistle blowers, filed
- civil charges in May against the two for harassing and demoting
- two IRS managers who tried to snitch on their superior,
- Santella, a former regional boss in the Chicago IRS office.
- Santella allegedly went after the informers with the help of
- Jech, who retired in June as the IRS's assistant director of
- internal security.
-
- Jech and Santella were among 25 high-ranking IRS officials
- implicated in a pattern of misconduct and corruption uncovered
- in hearings last year by the House Commerce, Consumer and
- Monetary Affairs Subcommittee. If found guilty of the OSC
- charges, both men could be banned for life from Government
- service. The alleged offenses began in 1984, when the whistle
- blowers turned in Santella for trading favors with a Mob-linked
- businessman. Thereafter, senior IRS officials began a
- harassment campaign that is still going on.
-
- Even though an IRS "grievance examiner" supported the
- whistle blowers in 1987 and urged action against their
- oppressors, many of the service's highest officials refused to
- comply. For four months the examiner's report sat on the desk
- of IRS deputy commissioner Michael Murphy, the agency's most
- powerful bureaucrat. Jech eventually moved to a higher IRS
- post, while Santella was allowed to retire quietly. (He is now
- a top official at the federal Railroad Retirement Board, where
- he helps oversee a $7 billion benefits program.)
-
- At one point, an assistant to Murphy offered to reimburse
- one of the whistle blowers, Stanley Welli, for his legal fees
- in return for his silence. In a 1988 internal IRS memo that
- described Welli's appeal for help to the OSC, Murphy scrawled
- the comment MISTAKE! in the margin. Last March senior IRS
- officials awarded Murphy a plaque for "exemplary conduct which
- sets the standard for ethics and integrity for all IRS
- employees."
-
- In response to congressional attacks, IRS commissioner Fred
- Goldberg restructured the agency last January. While not
- punishing any of the implicated high-level IRS wrong doers, his
- plan calls for a presumably independent body, the Treasury
- Department's inspector general, to handle all high-level
- misconduct probes in the future. But the OSC is now
- investigating whether the inspector's office itself was involved
- in harassing the Chicago whistle blowers. Moreover, in August
- 1989, only weeks after Santella's behavior was denounced in
- congressional hearings, Treasury I.G. deputy Robert Cesca wrote
- a glowing letter recommending Santella for a top post with
- another federal agency.
-
-
- By Richard Behar.
-
-
-
-
-
-
-
-
-