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- NATION, Page 29The Secret in the Stacks
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- 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.
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- 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.
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- 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.
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- 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.
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- 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.
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