ML20235T495

Advises That Due to Lack of Sufficient Info to Serve as Basis for Investigation Into Alleged Fraudulent Director'S Decision DD-86-4,matter Closed W/O Further Investigation Rept

ML20235T495
Person / Time
Site:	Perry
Issue date:	05/10/1988
From:	Connelly S NRC OFFICE OF INSPECTOR & AUDITOR (OIA)
To:	Lieberman J NRC OFFICE OF ENFORCEMENT (OE)
References
CON-#189-8137 2.206, DD-86-04, DD-86-4, NUDOCS 8903080315
Download: ML20235T495 (2)

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'd WAsmWGTON, D. C.30ata I k tAAf131988 2 'JAN - 91989d staI S MEMORANDUM FOR: James Lieberman, Director D flAn g

Office of Enforcement cd y FROM: Sharon R. Connelly, Director Office of Inspector and Auditor

SUBJECT:

ALLEGED FPAUDULENT DIRECTOR'S DECISION (DD-86-4)

In a January 9,1987,10 CFR 2.206 Petition concerning the Perry Nuclear Power Plant (Perry), Energy Probe and the Western Reserve Alliance (WRA) alleged fraud by the NRC staff in the preparation of Director's Decision DD-86-4 which was issued by the Director Office of Nuclear Reactor Regulation (NRR) -

on March 18, 1986. Director's Decision DD-86-4, was in response to a February 4, 1986, 10 CFR 2.206 Petition by WRA regarding the seismic adequacy of Perry in light of the January 31, 1986 earthquake in the vicinity of the '

Perry facility.

In its January 9,1987 petition, WPA requested the NRC to withdraw Director's

- Decision, DD-86-4, based on WRA's belief that the NRC Office of Investigations (OI) had documented fraud in the preparation of that Decision. In an April 1, 1987 letter to the Director, Office of Nuclear Reactor Regulation WRA acknowledged an error in its January 9,1987 Petition, i.e., the inaccurate designation of OIA as 01. In its letter, WPA again documented its belief that DIA had documentation of fraud by the NRC staff in the preparation of DD-86-4.

OIA reviewed its investigative files and identified no allegations or investi-gations into reports that DD-86-4 was fraudulently prepared by the NRC staff.

DIA investigative files did document DIA's efforts between February and August 1986 to facilitate communications between the Government Accountability Project's (GAP) alle' ers and the NRC with respect to technical concerns regarding Perry. GA had contacted DIA in February 1986 and expressed concern that Region III had conducted inspections at Perry in response to silegations contained in a February 4, 1986, 10 CFR 2.206 Petition by WRA without interviewing GAP allegers for additional details. GAP requested OIA to intercede and arrange for NRC interviews of the GAP allegers.

On August 20, 1987, OIA interviewed Donald L. Schlemer of the WRA to obtain information concerning the WRA allegation in the January 9, 1987, 2.206 Petition that DD-86-4 had been fraudulently prepared by the NRC staff.

Schlemmer declined to provide OIA any information upon which to base an investigation. Instead, Schlemmer suggested that DIA review 3ast 2.206 Petitions submitted by WRA to the NRC and the Securities and Exchange Comission and identify any matters appropriate 'or an OIA investigation. OIA e9030g g $$$$$40 pga [M g I

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adviS*d Schlemer that without additional information concerning the allege fraudu1ent Director's Decision. 01A would not be able to investigate th concern. acontact DIA and provide infomation in support of the WRA general a Schlemer has not communicated with OIA since that

, ,gation of fraud.

interview-cause of the lack of sufficient inforrnation to serve as a basis for an O investigation into the alleged freudulent Director's Decision and the fact that WRA's assertion that 01A had already investigated the fraudulent Director's Decision was incorrect, this matter is closed without further investigative effort.

Originni signed by Sharon R. Connolly Sharon R. Connelly, Director Office of Inspector and Auditor cc: Comission (5)

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