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323154690
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Meeting with Inspectors General 1/30/89 [OA 4425]
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323154690
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document
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Meeting with Inspectors General 1/30/89 [OA 4425]
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13881-011
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Mary Kate Grant Subject Files
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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.)