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OCR Page 1 of 188THE WHITE HOUSE
WASHINGTON
June 14, 1996
MEMORANDUM FOR THE PRESIDENT
FROM:
KITTY HIGGINS Kity
SUBJECT: Summary of Cabinet Weekly Reports
June 7-14, 1996
DEPARTMENT OF TREASURY
GAO Critical of Tax Systems Modernization (TSM): A just released GAO report
concluded that while "actions are underway" at the service, "the IRS has not yet
corrected management and technical weaknesses." Although the IRS now proposes to
obtain additional help from outside contractors, GAO said the IRS cannot manage its
current contractors successfully and recommended that Congress consider limiting
TSM spending to small, low-risk, short-term projects. The Department has reduced the
FY97 funding request for TSM from $850 million to $664 million and is engaged in
aggressive oversight of this program. Treasury is working with GAO and the Hill to
ensure that they are fully aware of the corrective measures being taken.
Customs seizures: On June 2, Customs agents seized 2,597 pounds of marijuana and
made three arrests in El Paso, TX as the result of a joint investigation by the El Paso
Police Department, DEA, and Customs. On May 30, inspectors, canine enforcement
officers, and members of the Florida National Guard seized 600 pounds of cocaine on
an American Airlines flight arriving from Bogota, Colombia. The cocaine was
concealed inside an industrial textile roller.
Brady Bill: On May 27, a convicted murderer was sentenced to 37 months in prison
after he pled guilty to purchasing firearms illegally. In October 1995, ATF was
advised of the name of the man after he was denied the purchase of a handgun as the
result of a Brady check. ATF special agents investigated the check results and
determined that the attempted-purchaser had been convicted of murder. A search of
the man's house by ATF agents uncovered eight firearms that the defendant purchased
between January 1994 and the enactment of the Brady Law.
Weekly Cabinet Report, week of June 7-14, 1996, page /