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UNITED STATES I
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NOVii1531
_PB,1NC PAI.A T\\FF MEMORANDUM FOR:
Robert Carlson, Director, EIS, RI DIR v._&Is Carl Alderson, Director, EIS, RII pfp g
Robert Warnick, Director, EIS, RIII James Gagliardo, Director, EIS, RIV UD blo Allen Johnson, Director, EIS, RV g
FROM:
Dudley Thompson, Director DE
- Enforcement and Investigations, IE DEP605 File
SUBJECT:
INVESTIGATIVE GUIDANCE MEMORANDA The Chairman has directed that we develop guidelines, standards and procedures regarding investigations on a priority basis. A copy of his memorandum on this subject is attached for your information. We have developed a schedule for accomplishing this and will provide it to the EDO shortly.
I will provide a copy to you as soon as it is approved.
As you know, we are not without some guidance concerning investigations.
Various tis have been issued on a number of topics such as oaths and affirmations, format for written" statements, handling of potential criminality, and Miranda warnings.
We have attempted to minimize the use of less formal documentation such as memoranda.
However, the dynamic nature of the investigative program, the considerable Commission-level interest, and resource constraints have led me to conclude that we need a more responsive mechanism than a II. As a result, I propose to establish a system of Investigative Guidance Memoranda (IGM) anal-ogous to the currently used Enforcement Guidance Memoranda.
The net result of this is as follows:
Investigative guidance to be followed during the conduct.or documentation of investigations will be by means of an IGM.
Procedures that affect other NRC components such as reporting of potential criminality or contacts with 00J will be by means of tis.
i NOV 2 5198f 2
b W +W e
a Regional Enforcement Directors '
3 Our eventual goal, of course, will be to incorporate as much of this as possible into the Manual Chapter on Investigations, although there will undoubtably be a continuing need for IGMs due to the dynamic nature of the Investigative Program.
',ylf' udley apson, Director Enforctment and Investigations Staff Office of Inspection and Enforcement Encl:
Chairman's 11/16/81 memo ec:
V. Stello, DED/ROGR R. DeYoung, IE e
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I 254 W DNESDAY, NOVEMBER 18,1981 A GANNETT NEWSPAPER i
I s It BmigledtZimmer Plant Probe-l l
- 138 RSMS for Cincinnatt Oas & Electric Co.
pursued his charges through the federal released Tuesday concluded.
<cO&E3 on timecard cheating at the bii-nureaucracy with the heip of the Gov-The same official summary supports.
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lion dollar power plant in Clermont - ernment Accountability Project (OAP),
Applegate's assertion that his origshal gg YOH By gy County.
a Washington-based watchdog group.
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= dismissed by the NRC.
i complaintvoo$n III invesugative effort age A-6.
lie told the NRC that mistakes on That provoked the NRC into a sec-
. The Re:
safety-related systems were being ond look at Applegate's allegations and did not adequately pursue all of the alle-i:
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covered up by contractors and CO&ta '
the way its regional stafI had respond-gations la sufficient depth or breadth j
necessary gnternay,,g th al uons by rl.
Region III NRC Inspectors from ed.
and lacked adequate documentation."'
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i invesug torThomas Applegate t "Applegate was correct in saying that the summarysad
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defecuve welds in safety-related sys-(See ZIblMER PROBE.:
Applegate worked undercover briefly _
APPLEGATE CRIED cover-up. iip tems had been accepted." one document back of this section)-
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WH M Gl. $ ( q Murder Not Goal,
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victim unconscious. bu t the Ea,*er t.ebeann eureew smelling salts were to wake her i," i' '
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LEllANON-James Besser said up. he added.
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A-12 THE ONCNNATI ENQUIRERAnlednedar.finarrnher M. Ital.
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%n e "The overall invesugauve effort was there was neither vigorous nor sufficiently broad in CONTNUED FROM PAGE A-1 5% cutMr.
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- . CONTINUED FROM PAGE A-1 Les hday, Applegate said the full re-
' The finding 'not substantiated' with the measure, which would allow its sources said f
the government to spend the House had relayed word that the port also points to a coverup by CO&E. lie said regard to the allegation that defecuve welds in 4].
i It specifles which pipes and welds were chang-safety-related systems had been accepted is money through the end of the President was likely to veto the l"
ed Dehind the backs of NRC Inspectors who notconsistent with the facts."
fiscal year next Sept 30, or unut measurs unless it rentained a 5%
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were examining documentation on supposedly Despite these findings and another, the regular money bills were across-the-tacerd spendmg cut.
, sound workmanshtn incomplete Investigation of quality assurance passed.
There appeared little chance at Zimmer,'Palladino said nothing "to date" Senate officials atid the ~ Congress would meet those i
I AppIerate said he felt vindicated by the indicates that the " unsatisfactory" N RC re-measure approved by the com-terms,efficials egreed.
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f report and predicted more bad news for CO&E sponse to Applegate's charges created a dan-mittee calls for spending of H15.3 "I would urge you and your i
i blillon-a level ther insisted was colleajuee in Lhe Senate to next week in another NRC report ger to public health. -
only $100 million above Mr. Rea-adopt a Mt across.the. board j
I 9J Some NitC staff members said Tuesday CO&E agreed.
gan's request. Administrauon reductlen, Mr. Reagan told l
Y.
that conditions may be worse than the report "It's pretty hard to quarrel with his post.
of ficials disputed that figure, al-Baker, adeng.*lt is crucial that tion," spokesman David Allemuchle said.
-We've always expressed our confidence in the though they could not immedt-fiscal year 1982 spending and l
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ON E OFFICI AL close to the investiga-safety and lategrity of Zimmer."
,ately provide their own esumate defielt levels be constralned to of spending in the bill.
.the maahames degree feasible."
4 tions, who asked that his name not be used, THOSE ASSURANCES anucipated the I
said the crlucal report "was watered down."I first major emergency preparedness drill at y' g' '.ct,"g.;
p lie said bureaucraue cauuon kept the lan-j Limmer and in Clermont and Campbell coun-
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Palladino's chler investigator, James J.
j cu mmings, supported that contention.
Today, while the NRC judges CO&E's abil-4 l
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In ms ice...-. -=F. Lum =msa lty to cope with a mock accident at the reac-i g
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.vlew data on "spect!!c welds alleged to be county and state agencies would have been-p,"
said NRC regional inspectors didn't even re-tor,other federal of ficials wl!! review how well a
6 defecuve" although there was a history of able to protect the public.
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'Y such problems at Zimmer.
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Letters by Palladino, Cummings and sup-g, - '
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. porting documents were released after The I
Moreover, other NRC investigations are Enquirer filed a request for the documents
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Ly suspect, Cummings indicated in his memo. under the Freedom of Information Act GAP.
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randum to Palladino and the four other com. also filed a request t'
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Cummings said his staf f "made a con-Despite Pa!!adino's conclusions, disagree-i scious effort to temper our evaluation process ment exists within the NRC, l"
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with the very obvious f act that few Investiga -
William J. Dircks, executive director for 4
l tions can successfully withstand the crluctsm NRC operations, accused Cummings of falling 1
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of aMondaymorningquarterback."
to understand "the NRC mission or priorttles, 1 A" Cummings said blame "must be shared L
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- no't only by the Individuals who were specift. or processes and controls involved in the con-4 struction of a nucicar power planL" f
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cally assigned to the case but also by regional L
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None of Applegate's charges are substan-j
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J PALLADINO RELIED on data from Cum-welds, and CO&E or its contractors are solving'
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'.mings* Of flee of Inspector and Auditor. It them' criticized regional staffers from NRC's Office "I am unable to conclude Lhat the Office
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results of investigation both as to Interviews Applegate's allegations was unsausfactory,"
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s UNITED s7ATES NUCLEAR REGULATORY COMMISSION
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- ~M November 16. 1981
'Imiamn MEMORANDUM FOR: William J. Dircks Executive Director for Operations 7
FROM:
Nunzio J. Palladino i
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SUBJECT:
CIA REPORT ON THF. ADEQUACY OF THE DIE INVESTIGATION AT THE WILLIAM H. ZDNER NUCLEAR POWER STATION I agree with OIA's finding that 01E's original investigation should have been more comprehensive.
I believe we need criteria to detemine the instances which require full-scale investigations. The NRC does not have the resources to conduct in-depth investigations in all instances, and such in-depth investigations are 'not called for by the circumstances of every case.
However, when a full investigation is called for, as for example in the case of possible criminal conduct, NRC needs' to conduct that investigation consistent with fundamental standards that govern investigations by any agency.
Please develop ' guidelines for determining when to conduct investigations,
~
and establish more femal investigative standards and procedures for such investigations.
I believe it could be helpful to consult with OIA, and perhaps with investigative agencies outside the NRC in connection with this effort.
I would like you to provide SECY a schedule indicating when you think the new guidelines, standaras, and procedures can be completed..
cc: Comissioner Gilinsky l
Comissioner Bradford Comissioner Ahearne l
Comissi6ner Roberts SECY OGC OPE -
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institute for Pchey Studies 1
1901 Ove Street. N.W.. Washington. D.C. 20009 (202)234 0382 November 23, 1981 Dixector FREEDOM OF INFORMAT10t{
office of A6rinistration ACT REQUEST Nuclear Regulatory Ccmnission Washirgton, D.C. 20555 fCY] A- @
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On behalf of our client, Mr. Thomas Applegate, and pursuant to 1:eth the Freedom of Infornution Act (5 U.S.C. 5552) and tha Privacy Act (5 U.S.C.
5552a), se request copies of all notes, rre.oranda, telephone logs, tapes, diaries and/or other records prepared by U.S. goverr.ent e ployees in connection with an August 7,1981 Nuclear Pegulatory Ccmrission ("NRC")
Office of Inspector ard Auditor ("oIA") report entitled "Seecial Irruirv re:
Maquacy of IE Investigation 50-358/80-9 at the Willia:n H. Zi:nrer Nuclear P w-station " ("Zirrner CIA Peport"), as well as the investigation the Zirrner CIA ;tsport is based upon.
In particular, dr. Applegate requests all earlier full er partial drafts and/or proposed supple:nents t6 the Zinnur CIA Ps;crt, as well as all records related to any deletions fran its final versien.
If any rr.aterial covered by this repast has been destroyed and/or reeved, please provide all surrounding dec. nentation including bt not li:nited to a description of the action (s) taken, relevant date(s),
and justL'ication for the actien(s).
i.
ft. Applegate regt.ests that fees be waived, because " finding the inferrration can be censidered as prirrarily benefitting the general public. " 5 U.S.C. S 552 (a) (4) (A).
The fee waiver should he granted for three' reasons. First, he schnits this reqbest to further the goals of his C h h 10, 1980 whistleblcwing disc 1csure to the Cffice of the Special Counsel of the Merit syste.s Protection Beard.
'ihe Special Counsel required an N;C investigation only after finding a reasonable b211ef that Ft. Apple-gate's disclosure evidenced illegality, r-ismanage:nznt, gross waste and a substantial and specific dnager to public health or safety.
Unques-tionably, the Special Counssi finding and tre ensuing OIA Papert.- which fundmentally challenges the generic nature of NRC investigations -
prcves that it. Islegate's ccncems serve "the public interest." He seeks these doeurents in order to nonitor the adequacy. of the NFC respcnse.
Second, the findings of the Zirnmer CIA report totally ignered two vital issues in Mr. Applegate's whistlebicwing disclosu:n -
- 1) the failure to adequately review his criminal allegatiers of widesp ad black: arkets, s ruggling, and theft, and
- 2) the fnilure to ecntact witnesses in 79:11 1980 who sculd hevo exposed a series of issues six nenths b2 fore gip raised then with the ccm-ission and the special Councol.
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g-office of Mministration Nuclear Regulatory camission Noveber 23, 1981 Page Bo me special counsel had ordered the comission to respond to both allegations.
Se docmants Mr. Applegate roguests nay help to explain why the comission chose to defy a legal requi....at of the Civil Service Reform Act. We subnit that it inherently serves the public interest to further undarstand the process that leads to governnent illegality.
Third, press accounts have contained charges that the report was " watered
&wn. " Although deleted portions would not represent tha Camission's findigs, it is in the public interest to fully air the facts and conpeting policies in the debate that produced this controversial doctrnant.
De issue is of the utnest inportarce to the Anarican people - the adequacy of NRC efforts to protect public health and safety.
Fca any doctments or portions of docrants that y:n: de.y d..e to a specific e
.yi. ion, please provide an index,itamizing and describing docunants or portions of docments withheld'. D e index should provide a detailed justification of your grounds for claiming each exemption, wh%ing why each exemption is relevant to the dceujent or portion withheld. 1his index is required under Vaughn V. Rosen (I), 484 F.2d 820 (D.C. Cir.1973), cart. denied, 415 U.S. 977 (1974).
We icok forverd to your response within tan wrking days.
Sincerely, b-gg
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Associate Director e
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BY BEN L.K AUMAN Whatever their differences
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sawwswew about the CI A probe. Chatrman r
Nuctest Regut. tory Commission h*I ag, o ".n gon Il Ud P
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(NRC) employees responsible for du Inspections and enforcement at uon meets !;RC requirements.
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g *.T Zimmer power stauon say they The OI A report is so riawed I
that it does not alter that tonclu.
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guuty of everything it unjusur ac.
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- Innsugator.O.A. Phlulp. said 01A that the NRC probe was not to m *M.% t
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lip were part of the Region 11I objectins were to see if Zimmer w
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in september, whether they were requirements, whether zimmer yM. + %.
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persuasive was not elear, consututed a hasard to pubite
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NRC Chairman Nunslo Pal. healt.*n and safety, "and to take
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legedly ha$ Deen accepted as u
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good. Region III staff checked to r*
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mrar taa6 raundmo was only. see if bad welds had a11pped past FIRE GUTS HOME: Fire Cast. s g., g.
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,Iducting n no-wto* fight with Imat tazpecuana. Eurytning was by a ttree eierm fire Tuesday rsgNt. 7
-v.s. Rep. Morris Udall, D-Arts, fine. "No noncompuance regard *
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.mtuee on energy and the envi-fled? rh111tp wrote.
neegreers whe nenfed Brewer Tuesda
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.Iwho chairs a key House subcom eing these welds has been idenua Florence, Ala,where Na wife Lo he If'.
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said;"The history of the welds 4
OIA stood truth on its head, was not viewed as signifncanL*.
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PEILLIP ALSO *rondemned Fli s OnI-75r
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- Repp er. O!A conclusions are, O!A crtuctse of examinauon of i
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{emphasas) apply to the O!A re. dettwry.
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e ttew? Ther were:
the restonal director a 38.ltem A 33-passenger Ford statbus
- i-The sector invesugator sent O
c' e *"I'be invesugauon failed to H
Cyroperty document the results of
- criuque of 01A'S toport carrying the Thomas More Col.
- 5
- antesussuon as to latervlees and,' Complaints about sloppy work lese varsity and jtintor varstly.
I matertai refleved?
.. and quality easurance oogged basketball teams and three *
- lpesar*mine the cornet status ange The invesugauon faued to
- construction through much of th coaches overturned on Interstate -
r!
,g trien.
'fs near Oeorgetown, xy. Tuesday *f q
.ntstory of several welds?
Witnessee at fleensing hear.
afternoon, causing attnor injurta, y e *The overallinvestigauve of., Ings tried repeatedly to se& the
- l e fort was neither vigorous nor NRC to pay stianuen to their no te and totany wrecting tne van, j 3 3, cono,,, gl,,
,es,.ea esufficienur breed in acope?
. eastges of sneputude and dis.
head coach of the TMC Rebela j ar.. And, Foster noted, CIA apper. honesty at the construcuen ette..
i ennut recorded laterviews witn in.
The NRC saad criminal mat
- Was in f atr condigon la JehB epecuon and enforcement staff, ters are not its primary concern Oraves Memorial Ho. spital 18 *
.a 1
- tecreuyl and assured crtues that the qual.
3
- Regional offletals vere in Cin. Ity maeurance program would
+
e-
' etnnau Tuescar, etscumstng their catch f aulty work before the Tn[4 E n 6
11f Invesugauons with of fletals of hulton-dollar plant in Clermont 1 Q1 L LJG 3 a sp.
octncinnas! Oss & Electine Co. County was licensed for ep(ta.. Ohio needs more' money for edee 1
- .+'
(CObsk tions.
f
. Neppler would not say whether Sut recency, the NRC ordered more incenures for new Joon, as CO&F. faced hefty fines for als.
CO&E to assume all gus11ty assur.
maintain its present level er supr*8 tases at Damer, but he indicated ance responsibutues sad to bring services. Republican tuberna.'cns-3.
that questions about contractors its staff up to demands of the lot.
Seth Taft said Tuesday, hiding sloppy work would be on Contractors lust weren1doing the And. Taft said. tne state. shou!C thesdenda, job. Region !T1 Inspectors said.
de all this witnin the present le*
None of the
.* squire shutung boblems would Then NRC ordered CO&E to uon?
en construe. recheck all safety related spo.
- *t, a retar
- 4ttorrisy and
,lon, he added. Elmser le to tems. That's gotng on now, of the Cuyahoga County CommW l
lenerate electricity commercia!!r If NRC off1ctals are cornct.
EnguJter that tae maJos campaign
.wlthin two years, accordlag to that problems involve sloppy be jobs, schools sad federal cutone'
,CO&E;alatset schedule.
documentauen. net careless wort he La runntag because he gets "as and systemaue cowr ups-then sausfacuen frem selving ethers
- pft NRC AND CO&E epotesmen NRC precedures f.or finding,
- have scheduled separate preas tracting and correcung construe.
EE S AID the htgh unemploye, tenterences today, uen mista.kts are suspert.
the state shows the need for st*8
- -y
,a n w:.
mrusanw ee -
e.
- - - - - - - ' - - - - ' - - ^ - - - ~ ~ -
~~
m:.1 ouannan o umcc macu wunco vupcquengwsp Congress should consider establishing an. lines legcommenbne on\\...
. !.'OlA reports, par Y t Nlt ama and lie.n, etencene p.
. f e_ K A Ut..v e4 (4
Of flee of Inspector General at NRC. '
- s. Ucularly if a disagreement or,~snisunder-. tratayl fis ve resoure
,,, 9 Such a move would be desirable "In standing exists.
- i alm ed at eli naung.f raud 4;
where OI A reviewed and apparenUy sp');;., O A l
e'. cous.t em- (e rice esi AO) report view of the crlucalimporLance of etrecuve.~.
"Further, we found certain Instances 4ritha N
4
.'t.
- t that Of a dI
- ' - I.a el-.' et. :..latory and efficient regulation to the future of pros... Inse,et Lions commercial nuclear activities
- OAO said. 8 proved prograsp offices
- comments before.Pinvesuget reports lack at ll
-eu. ne t Lhe Zunener power An independent Inspector Oeneral ' accepting the n and including (hem on its that inves uve teports lesued l
- could better evaluate NRC's performance; e reports.
,,( f,
.'"e*A :4K.i m g.dnoconclus recommendationdt <-
e' el 6. ** *.
- t. s. It '.a.m e
inspart on ORA's fallere e is.. t * :.s NflC's Of fice of In-combat fraud, waste, abuse and mismanq.*;.
's" r -
- beerst..r.oI Al. whicle enumines agement; anel assure that both Congressu :,*I.ASTIJ, WE noted certain.InstancesJto produceA tung forth pelectes,
. in tia.mc !or lucptitude and.and the NRC commissioners receive objec.. were OI A undertook joint lawestigauens.e. proceglures and gu
" evert though l$-
Live Informatioh on problems involving,.*. wth other program offices.:ively', Indica 44 dc2nde the development of ouch amanuaL"
.*.4 L saltl. In 1F85. tha$ its, snedsate plans inr.
.? *.48/These molnts, collect
. e.t.1 k.w. J Pai(C rol cagues in neulcar activiues?
N
- .e at lx.4 sung as. luvest gation of
~ When GAO looked four years ago. NRC kthaR.DI A*l Indpendence, deeds to be..?* ' OIA found fault,with the lege llegion.
. L 't
.s.:'c,III invesuga Another problem is that DI A reports.. canissions... gion 34 y.lsamer fpr singlarj '
.. of...: errously shoidy work seemed too small to warrant the inspectoce' strengthened."
ut.5 a vs.unser general operauon subsequenUy ordered..,
..t **. e.:
... e.
.. Ill e.asa tals re.por ded that for 12 federat agencies.
'are " Internal management documents J;r.In addluon to.its recomsnendatlesi'of*
that are not generally released outside of f an Inspector General, OAO suggested the e.
4:e r n g tent umi that OIA
. ~ ~
- OIA:
"t J
g.
..: cr.~, at unjustly < harged to NRC'S FOUI,UPS at Three Mlle Island g.NRC.*0 AO said.-
That was how OIA handledits review of;. < e Develop a pryotem for pla. -nning d
and elsewhere changed that judgment,1 P 4 Region III's leso invesugauon kt Elmmer. 'su 1 setting priorttles for audit and in a4
. v-r; :I e.astles.lanwwhich do G AO ncknowledged.
e-OIA completed its review of the invesu-.* Live work that compiles'with Of of
.n t ree ne. u.e r 1 rtet.e e.perifically NRC commissioners disagreed, saying v.
s t.: tho..e of Rei;tess: Ill than Hist OI A is being upgraded and will be. gauon in August bdt refused to release the.. Management and'Besdget criteria a,nd to adequate.
y damning findings to TheEnquirerdespitoV OAOguidance. '
~'*****4.
e.e an.:. unfilets of Interest are independence and conflicts of Interest...
That repot) was released in mid f e o Concentrate' investigative' resoutpps A Freedom ofIn*ormauon Act reguest.
wie 01 % managensent, lack of A key G AO crluctsm concerned,OI A on internal fraud and waste..
d8 Nt :
It's fine that DIA reports direcuy to the November because NRC Chairman Nunzio*b e Avoid assigning auditors to insdstigEA N RC commissioners and la "thus organisa-Palladino presented.it, approvingly to a.'.tivework.
operauons are too vulnerable to internal;', environment. 'Ilouse subcommitteq "on energy and the., ' e co-ordinat es e. s.a.' 'lut s f i elke-J on tionally Independent." G AO said, but
- "d efforts te ldentify possible assignments'ds-
..: ut t i..: :am;-al.preneet prac-xmg scures of employees to take agency pressures.
' OAO said spanagespent weaknesses also e
. e Develop that long-promised ope h
- r.ms u s.ers of Thrre Allie is-
"We founti several instances where * 'tontribute to work which can beless thast,f ons manual.
.t... *:-... **:**
dations were revised or deleted primarily [ satisfactoryin eguality[q.agliness and im-f :
findings, conclusions and/or recosamen.
th o Begin to snonitor assignseents se IIhat mvestas:atmg what went wrong
. lateilleent decisions can be erade whether pact.
s
.t
. e-Aer plan'.
.I employees aIso charged NRC because NRC programs officials disagreed,"
W
.^~3.
- f to increase. snalntain or reduce W
. ima turalt O Ao said.
G AO said.
. '*0!A HAS foclased toe'sadeh of itsI.'icoenmitted toajoh.
.is the Lind of problem in OIA's "We also discovered that OIA rouunely' i attendon on administrative and personnel 8t ' o Establish and enforce'requiresngnis e that led GAO to conclude that allows program officials to exceed dead.
matters rather than en the sporejugpor '.. forfollow-upotaudits anginvesugationa..
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