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Meeting with Inspectors General 1/30/89 [OA 4425]
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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Grant, Mary Kate, Files Subseries: Subject File, 1988-1991 OA/ID Number: 13881 Folder ID Number: 13881-011 Folder Title: Meeting with Inspectors General, 1/30/89 Stack: Row: Section: Shelf: Position: G 19 2 7 6 GB: Concerned about Those mivolved /conflict of interest If's work to guaranteed highest of standards in Also just as concerned about Darman tough budgetary times DD: upon to Riso JR: Budget ethics V. important to this group, (Explained structure of PCIE) as well as assisting new appointees in- agencies GB asked 8 OMB has statutory authority? yes - HHS IG: PCIE + IG's/mini IG's - government- wide RWR Bush asked Boyden if Griffin Bell/Malcolm Wilkey committee could we the collective cyperience of this group? BG says yes - Amy Schwartz OB asked if code at the agencies re: 16 yes ethics etc at each one Types of Criminal violations, administrative crime X ethics violations explained to GB - HHS 16 says support for Ethics offre in WH to ceunsel on methical appearances at agencies (often better coming from WH) EPA IG concerned in post employment & conflict of interest em. re Superfund DoB isn of only place where insider dealing contract manipulation takes place state IG - now involved in Embassy impection GB: ethical violations are these pol appointees or career guys who do this?- Pols make ignorant mistakes - need indoc Cabinet & subcabinet need briefing 1-on-14/16 but Career guys do it deliberately needs to be done soon - GB agrees makes good sense gave GB checklis /book w/ Ethics Do in & Don 'ts GB spoke of bring head of Regulatory Reform wanting held to bring ADS drug to 1978 market & sold b/c it - he That was unnaponable - lowest common demominator EX Lilly stock in of purception yet want good people in gov't - If Hothines sum to attract trivial complaints like This - They try not to spend too much time On it GBashs what % from Hothines? 8-10% of cases GB: What if you find Congressmen involved m wrongdoing? GB says sensitive to separation of powers but - Refer to head of Hill Committee chairman need to treat equally IG Told him his struck a blow for ethics 1 preventative effect Investment in prevention better than investment in investigation. GB will welcome suggestion through OMB + general Counsel DD systemic problems that in S& L crisis of miclear reactors - wants PCIE to look at these process wise to mp other probs in the bud. Sam Adams OFFICE OF MANAGEMENT AND BUDGET 395-6911 HANDLING Urgent! Expedite Regular Handling (Hand-carry) (Time sensitive) Decision Memo Information Memo Testimony/Speech Correspondence, Outgoing to Control # SPECIAL HANDLING INSTRUCTIONS SHORT SUMMARY OF MATERIAL Attached are talking notes for the President for his meeting with the Inspectors General (IGs). These notes also include questions which the President could use as a basis for an open discussion with the IGs. And we have included information under each question regarding possible IG responses to each of these questions. We have also attached the following (as background information on the IGs): O The President's Management Report for 1990 (the IG section is clipped) O The 10-year report of the IGS (September 1988), and O A two page background piece on the IGs. CLEARED BY Also attached is a one page background statement you requested on the IGs including how they work together on the President's Council. PREPARED BY CLEARED BY CLEARED BY CLEARED BY CLEARED BY CLEARED BY CLEARED BY NAME AND Adams Feezle Merck DIVISION Riso Haun Cogan GO GO ADM DO DO INITIALS AND SA DATE 1/25 1/25/89 1/25/89 TALKING NOTES FOR THE PRESIDENT Meeting with the Inspectors General Introductory Remarks President Reagan established the President's Council on Integrity and Efficiency as one of his first acts in office as part of his commitment to eliminate fraud, waste and abuse in the Federal Government. You have made significant strides over the past 7 years, and reported the following major accomplishments for you by the close of FY 1988: OO Savings and funds put to better use: $125 billion OO Successful prosecutions: more than 27,000 00 Suspensions and debarrments of persons and firms doing business with the government: more than 10,000. I am meeting with you today to discuss the functions of the Council and where we go from here in addressing the major problems confronting the Government. OO Despite your collective achievements, the problems of Government waste and abuse are still very much with us. Almost on a daily basis the media carry stories about an ethical blunder by a high government official, continuing problems with Government procurement, or other problem of Government waste. Let me say at the outset of this meeting, I expect the highest ethical conduct of all persons serving in my administration. And want to see this ethical tone reflected in the conduct of all Government officials and workers.) I am glad to have an opportunity to discuss where we go from here because I know you share those ethical standards and you have done so much in the past to uphold them. Questions In order to get the ball rolling, let me ask a couple of questions, and then I'd like to hear your views. OO Question. Where are the opportunities for progress in attacking abuse and waste and how should the Council proceed in attacking them? I am particularly interested in your views on what the Council can do in supporting the ethical standards of my Administration. Answer. The Council works to support the highest ethical standards in Government. Members of the Council include the Director of the Office of Government Ethics and the Special Counsel of the Merit Systems Protection Board. All the IGs conduct investigations and audits within their agencies to ensure that these ethical standards are maintained. The Council prepares annual project plans to identify "targets of opportunity" in the audit area and focuses its resources based on these plans. Plans for FY 89 and FY 90 are now under discussion by the Council. Some of the substantive areas these plans address include: improvements to procurement management and financial systems. OO Question. Should the Council continue in its present form, or should it be restructured to address these high priority problems? Answer. The IGs generally feel that the Council functions well. I provides them with access to the President which they very much want. They are concerned, however, about any White House "interference" in their operations or function, in view of their statutory independence and the nature of their mission. 00 Question. What can the Council do to help support my Administration's efforts to reduce the budget deficit? Answer. Inspector General audit findings help particularly in spotting and eliminating unnecessary costs. About 90% of the "savings and funds put to better use" reported by the IGs fall in the category of cost avoidance. The balance of their "savings" are collection of accounts receivable and collection of fines and other penalties. Although IG efforts usually do not lead to direct savings which would reduce the deficit, their overall effort acts as a brake on unnecessary spending. 2 TALKING POINTS FOR THE PRESIDENT Meeting with the Inspectors General President Reagan established the President's Council on Integrity and Efficiency as one of his first acts in office as part of his commitment to eliminate fraud, waste and abuse in the federal government. You have made significant strides over the past 7 years, and your latest achievements by the close of FY 1988 have been reported to me: Savings and funds put to better use: $125 billion Successful prosecutions: more than 27,000 Suspensions and debarrments of persons and firms doing business with the government: more than 10,000 I am meeting with you today to discuss the functions of the Council and where we go from here in addressing the major problems confronting the government. Despite your collective achievements, the problems of government waste and abuse are still very much with us. We all know our resources these days are scarce. I want to stress that only through sound management principles and prioritizing our agenda can we best use those resources. You know that I expect the highest ethical standards from you, but also know that I expect good management. As I've said, we're here to discuss the Council and how we can continue the progress you have made so far. In order to get the ball rolling, let me ask a couple of questions, and then I'd like to hear your views. QUESTIONS Question: Where are the opportunities for progress in attacking abuse and waste and how should the Council proceed in attacking them? I am particularly interested in your views on what the Council can do in supporting the ethical standards of my Administration. Question: What can the Council do to help support my Administration's efforts to reduce the budget deficit? Question: What kind of relationship exists between the Inspector General and the head of each Agency? Would you characterize it as a spirit of cooperation or conflict? In my Administration, I see you working hand in hand with those people whom I've selected as you fight waste, fraud and abuse. I'd like to find out how to create a spirit of cooperation between you. Question: Should the Council continue in its present form, or should it be restructured to address high priority problems such as procurement management and financial systems? (If this question should instead be directed at you, we recommend that you remain noncommital as to whether the Council should continue in its present form. We suggest you simply acknowledge its fine work combatting waste, fraud and abuse while mentioning that the matter is under review.) (Also, should you be asked whether the Council's biannual meetings with the President will continue, we recommend that you not commit to specific dates or meetings, but rather assure them that you will continue to review their work in either written form or in formal meetings.)