CHAPTER XIII

Muzzling the Public’s Watchdog

Joseph Campbell had been treasurer and vice president of Columbia

University while General Dwight D. Eisenhower was president of that

institution. A pleasant and friendly relationship developed between

the two men, and General Eisenhower was attracted by Campbell’s

competency in accounting and finance. After General Eisenhower was

elected President, he named Campbell a member of the Atomic Energy

Commission in 1953.

A year later President Eisenhower named Joseph Campbell Comptroller

General of the United States in charge of the General Accounting

Office (GAO). It is an important fifteen-year-term office designed to

serve the Congress as the “financial watchdog” of all spending in the

executive departments and agencies. No single office in the United

States is more vital to the task of forcing the sprawling federal

government to administer the laws fairly and make expenditures

according to the laws.

The GAO was established in the Budgeting and Accounting Act of

1921 as an arm of the legislative branch of government. Once the

Comptroller General has been appointed by the President, he becomes

an agent of the Congress. To assure the independence of the office,

the Congress established the long term and provided that the

incumbent could be removed from office only by joint resolution of

Congress or by impeachment.

The Budgeting and Accounting Act also gave the GAO the power to

examine all information and reports in order to determine whether

money was being spent in a legal manner. The section on access to

records states:

“All departments and establishments shall furnish to the Comptroller

General such information regarding the powers, duties, activities,

organization, financial transactions, and methods of business of

their respective offices as he may from time to time require of

them; and the Comptroller General, or any of his assistants or

employees, when duly authorized by him, shall for the purpose of

securing such information, have access to and the right to examine

any books, documents, papers, or records of any such department or

establishment.”

The law allowed but one exception to the Comptroller General’s legal

right to demand and obtain access to “records of any such department

or establishment.” That one exception gave the Secretary of State

the power to determine whether there should be a publication of

expenditures of funds used in dealings or treaty making with foreign

nations.

The law should have been clear to anyone. The GAO auditors were

to be given access to all papers and all records dealing with

the expenditure of federal funds. It was the only way they could

carefully examine contracts and determine whether any frauds or

illegal procedures were involved.

But through the years, as might be expected in a bureaucracy, some

officials had been reluctant to put all the cards on the table for

the GAO. The reluctance increased in proportion to the bungling,

mismanagement, or fraud that might be uncovered by prying GAO

investigators.

In the first years of Joseph Campbell’s tenure as Comptroller

General, his office faced some of the normal bureaucratic reluctance.

But, on the whole, the holding back was spotty. Usually the

departments produced the records demanded when the inspection

provisions of the Budgeting and Accounting Act were pointed out to

them.

By 1958, however, the use of “executive privilege” had become so

widespread that it was interfering with the work of the GAO. The

interference gradually came to light through the work of an Armed

Services subcommittee headed by Representative F. Edward Hebert, the

Louisiana Democrat. Chairman Hebert had asked Comptroller General

Campbell to do a thorough study of the multibillion-dollar Air Force

ballistic missile program. He had also set the GAO on the trail of

a dozen other smaller projects where it appeared that influence,

favoritism, incompetence, or fraud had cost the taxpayers millions of

dollars in excess costs.

To Chairman Hebert this unjustified secrecy was serious business.

For nearly ten years he had been engaged in important investigations

which had proved that the military services could not be relied upon

to police their own spending. It was vital that there be an adequate

policing job on a Defense budget that totaled about 40 billion

dollars a year—approximately half of the entire federal budget. Year

after year, Chairman Hebert and Chief Counsel John Courtney had

conducted hearings showing incredible waste and inefficiency. The

staff of the Hebert subcommittee was small, and Chairman Hebert was

forced to rely on the GAO for the major part of the auditing work and

legal studies.

The Defense Department could not avail itself of the claim of

“national security” when the GAO auditors started an investigation

because the GAO auditors were cleared to handle “Secret” and “Top

Secret” classified material in the same manner that Defense officials

were. Lacking the “national security” claim, the military services

latched onto the claim of “executive privilege.” One directive

followed another, gradually pulling down the secrecy curtain. The

periodic, quiet protests by Campbell went unnoticed by the public

until the usually mild-mannered Comptroller General fired off a

letter to Defense Secretary Neil McElroy.

“These restrictions,” Campbell wrote, “could seriously hamper the

General Accounting office in performing its statutory responsibility

and will impede the performance of our work.”

He pointed out to McElroy that his GAO auditors could not do their

job in the face of directives that prohibited them from examining the

Inspector General reports, and allowed them only a summary of reports

as approved by the Secretaries of the various armed services.

In a letter to Chairman Hebert, Campbell made his complaint more

specific:

“Any information or factual data directly bearing on a program of

activity subject to audit by the General Accounting Office should not

be withheld or subjected to procedures designed to screen official

documents, papers, or records, by the authority or activity being

audited.”

Later, in a letter to the Moss subcommittee on Government

Information, the Comptroller General stated that he was seeking to

make a study of the activity of the Inspector General of the Air

Force to determine how effective the internal investigations had been.

He stated that to conduct such an investigation, the GAO inspection

must include:

1 A survey of the Air Force procurement methods (advertising versus

negotiation).

2 A survey of procurement quantitative and qualitative program

changes.

3 A survey of contract cost overruns.

“It is essential that such reports be made available to the General

Accounting Office in order that we can evaluate the effectiveness

of the department’s system of internal control and to preclude

unwarranted and unnecessary duplication of effort in the internal

audit and the independent reviews made by this office,” Campbell

wrote.

“There is no basis why reports on the subject of the types pointed

out above should not be made available to the General Accounting

Office unless the purpose is to delay or hamper the efforts of the

office to disclose all facts bearing upon the activity or area under

audit.

“We believe that any departmental regulation denying to the General

Accounting Office access to any report relating to ‘internal audit

and control’ is contrary to the law.”

It should be remembered that this was not a Democratic congressman

or senator accusing a Republican administration. This was Joseph

Campbell, long-time friend of President Eisenhower, charging that the

Eisenhower administration was acting “contrary to the law” in the

claim of an “executive privilege.”

Congressman John Moss subsequently declared that President Eisenhower

was not discharging his duties under the Constitution. Under Article

II, Section 3 of the Constitution, the President is obliged to “take

care that the laws be faithfully executed....” In this instance,

President Eisenhower was not only disregarding the Budgeting and

Accounting Act but also supporting those acting “contrary to the

law,” Moss said.

Although the fuss had started over GAO access to a sixty-two-page Air

Force inspector general report on the ballistic missile program (see

Appendix C), the real issue was whether the Air Force, the Army, the

Navy, or any other executive agency could arbitrarily refuse to give

reports, papers, and financial records to the GAO.

It was difficult to follow President Eisenhower’s thinking. This

was a period of time when President Eisenhower and members of his

administration were emphasizing that financial problems could be

one of the nation’s big worries. One of the major problems, they

believed, was making sure the government was getting its money’s

worth from military spending.

Even in times past, when GAO investigators were given maximum access

to records, serious scandals had been unearthed. Most of them were

not discovered by the military establishment but came to light only

after the GAO or the congressional committees went to work. Chairman

Hebert and Campbell had a long record of fruitful hearings to back

them in questioning the wisdom (to say nothing of the legality) of

allowing our military spenders to erect more barriers for the GAO

auditors—the only independent outside check on the billions spent on

military matters.

At the presidential press conference on November 5, 1958, I raised

the question of the right of the General Accounting Office to examine

reports of the Air Force and the Defense Department.

“Mr. President,” I said, “you have mentioned the spending in the

Defense Department here as one of the important issues, and the

General Accounting Office, which is the watchdog on frauds and

extravagances in the various agencies, has been barred from reports

over in the Air Force and the Defense Department generally, and on

this they [the Air Force and Defense Department officials] claim that

they have authority from you to withhold reports if it is ‘expedient

to do so.’”

I tried to make the question conform as much as possible to the

precise trouble area between the GAO and the Defense Department.

“I wonder,” I continued, “if you have given that authority [to

withhold] and if you feel that the GAO should have a full rein to go

in and investigate all indications of fraud and extravagance?”

Replied the President: “You are obviously talking about some special

thing that I would have to study before I could make—give an answer.

I have stated this time and time again: I believe that every

investigating committee of the Congress, every auditing office, like

the GAO, should always have the opportunity to see official records

if the security of our country is not involved.”

President Eisenhower was now saying that the GAO should have all

records unless the security of our country was involved. I tried to

pin him down on it.

“Will they claim this, Mr. President, under ‘executive privilege—’” I

started my question.

President Eisenhower cut in before I had finished to avoid any

further comment. “No, that’s all I have to say—I told you that is all

I had to say for the moment.”

Representative Clare Hoffman, the wily Michigan Republican, noted

that President Eisenhower’s answer seemed to bar use of “executive

privilege” in refusing reports to the GAO. A few days after the press

conference, he wrote President Eisenhower to call attention to the

press conference exchange and to ask:

“Did you mean to imply by your comments that the complete text

of Inspector General reports, including recommendations, be made

available to Congress and the General Accounting Office?”

President Eisenhower’s letter to Representative Hoffman on the

same day again barred the GAO from the full reports of inspectors

general. The President said that “facts” in the reports would be made

available to the GAO, but that “recommendations and other advisory

matter” were not to be released (see Appendix C).

The whole situation landed right back where it had started. The Air

Force, Navy, or Army officials would still screen the Inspector

General reports, eliminate material they didn’t want to fall into the

hands of GAO auditors, and pass out their own self-serving summary

to the investigators. Law and logic had fallen by the wayside. The

Budgeting and Accounting Act might as well not have been written

for all the good it was doing in forcing departments to produce all

pertinent documents.

The next big test came with the Navy. In February 1959, Comptroller

General Campbell wrote to the Moss subcommittee stating that

the secrecy curtain made it impossible for him to fulfill his

responsibility to audit Navy financial affairs.

“We consider it illogical, impractical and contrary to express

provisions of the law for public officials to withhold, in their

discretion, information concerning the discharge of their public

trust,” Campbell wrote.

“We are advising the Secretary of Defense and the Secretary of

the Navy that we are unable to properly discharge our statutory

responsibility if information needed in our work is denied to our

representatives in the performance of our audits.”

Representative William L. Dawson, chairman of the parent House

Government Operation Committee, instructed Moss to prepare for public

hearings. He wrote Campbell:

“I am sure everything possible will be done to overcome the repeated

arrogance of Federal executive officials whose denial of information

to the General Accounting Office flouts the clear law of the land.”

Comptroller General Campbell said that the “executive privilege”

claim was being made by the Secretary of the Navy on grounds that “he

believes full disclosure of rank opinions, advice and recommendations

from persons at lower levels ... would not be in the public interest.

“This same reasoning is now being applied by the various bureaus and

offices in the day-to-day work of their employees.

“We believe that sound management practices require that

observations, opinions, and recommendations by subordinates and any

other matters considered in making a decision should be a matter of

record.

“All of these are matters upon which judgments are founded and

subsequent decision and actions are based. Such documentation serves

as a protection to the individual making the decisions or taking the

action as well as furnishing a sound basis for subsequent appraisal

of their timeliness, effectiveness and honesty.”

Campbell complained that under Navy procedure at that time “the

individuals having custody of the materials are required to screen

the material and remove from the official files any data they or

their superiors feel we should not have.

“These actions provide a means by which the Department could conceal

substantive evidence of waste, extravagance, improvident management,

poor procurement practices, or other adverse conditions.”

By March of 1959, Campbell had full proof that he could not rely

on the summary reports submitted to him by the Navy. He declared

that the Navy had submitted two reports on one subject that were

“incorrect representations” of the government’s action. “The second

version of the report, while containing twice as many pages, is

also incomplete and inadequate because of the use of self-exercised

censorship.”

Campbell said that the secrecy was not only illegal and bad

government but that it was mighty expensive. He explained that the

secrecy deprived the GAO auditors of information already accumulated

at the taxpayers’ expense. This meant that the GAO was forced to go

out and duplicate work already done if it was to make any effort to

fulfill its responsibility.

Comptroller General Campbell put no price tag on the extra cost for

a GAO audit of the Navy. However, the GAO did estimate that lack of

access to the Air Force Inspector General reports made that audit

cost at least $125,000 more than necessary. Though the cost of the

audit could have been avoided with the proper co-operation of the Air

Force, the audit ultimately disclosed millions of dollars in bungling

and waste in the Air Force missile program—all covered up in the

name of “executive privilege.”

The Richmond _Times-Dispatch_ commented:

“The amazing thing about this situation is that President Eisenhower

backs the armed services in withholding vital information from

the GAO. He has been told by his legal advisers that ‘executive

privilege’ has some validity, where it is in essence nothing but the

determination of bureaucrats to keep the GAO from seeing their books.

“This bogus doctrine forced the GAO to spend an extra $125,000 in

making its inquiry into Air Force mismanagement.... Just how much

longer is the public going to put up with this sort of thing?”

I knew that Virginius Dabney, editor of the Richmond

_Times-Dispatch_, was fed up with this expensive and undemocratic

secrecy. So was J. Russell Wiggins, executive editor of the

Washington _Post and Times Herald_; James Pope, executive editor of

the Louisville _Courier-Journal_; Herbert Brucker, editor of the

Hartford _Courant_; V. M. (Red) Newton, managing editor of the Tampa

_Tribune_; and Harold Cross, the special counsel for the American

Society of Newspaper Editors.

The Chicago _Daily News_, the St. Louis _Post-Dispatch_, and _The

Wall Street Journal_ were among the other top papers firmly opposed

to the secrecy cover-up. But despite several excellent editorials,

the problem just wasn’t flamboyant enough to catch the attention

of the public or even most reporters. Too many news stories and

editorials in other papers merely repeated the self-serving

justifications of the Eisenhower administration without determining

whether the assertions were true.

Washington cover-up · 第 13 / 18 章