Krongard to Bush: Thanks, HomieHere's Cookie Krongard's letter informing George W. Bush of his resignation. Long story short, he's very grateful for the opportunity to have... zzz. And lest there be any doubt about Cookie's legacy, he lets the president know that he's training a new generation of IGs:
I believe very strongly in the obligation of all good citizens to do public service at some point in their lives. I was pleased this year to create the Howard J. Krongard Scholars in the Nation's Service at Princeton University... I remain deeply committed to these objectives, but I fear that if the current environment in Washington persists, too many of the most qualified prospective public servants across the country will be dissuaded from serving.
Imagine the horror: the next generation of would-be investigators, making money up in investment banks when they could be looking the other way while contractors line their pockets with taxpayer money. A grateful nation turns its eyes to Cookie Krongard.
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CRUMBLED: State Department IG Cookie Krongard ResignsSo that's what happened to Cookie Krongard's forthcoming perjury hearing. Today, the embattled State Department Inspector General faced reality and resigned.
Krongard, you'll recall, was accused of seemingly endless laxity in investigating State Department contractor fraud in Iraq and Afghanistan; and of retaliating against whistleblowers in his own office. Things got much worse when he denied knowledge, under oath, that his brother was on the advisory board of Blackwater, a huge State Department contractor. He quickly reversed himself. And after that, Cookie's brother contradicted him in an interview with TPMmuckraker.
Here's McClatchy's Warren Strobel:
In an e-mail to his staff, obtained by McClatchy, Krongard said that he plans to leave the government by Jan. 15.In a reference to the upheaval in the inspector general's office in recent months, he told his staff: "I also ask you, frankly, to make an effort to reduce the static that interferes with the harmony we would like to achieve."
There was no immediate comment from the State Department.
Translated from the Cookiese, that reads, "Please don't leak anything even more embarrassing about me as I enter this new, humiliating phase of my life."
Update: Cookie's full email is after the jump.
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Whither The Buzzy-Cookie Showdown?This week was supposed to be the main event. In one corner, a State Department inspector general accused of incompetence, subterfuge, and conflicted interest, saying he didn't know his brother served on the advisory board of a huge State Department contractor. In the other, a former CIA Executive Director, saying he told his brother in October about joining that board. Krongard versus Krongard. Both under oath. Rep. Henry Waxman (D-CA) as referee.
After a mid-November interview with Buzzy Krongard, Waxman announced that on the week of December 3, he'd hold a hearing to determine whether State Department IG Howard "Cookie" Krongard lied to the House oversight committee in his last testimony. Well, it's December 6. There hasn't been a hearing so far. There isn't one on the committee schedule. What gives?
Honestly, TPM readers, I have no idea. Waxman's people haven't answered my emails. I appear to be on a straight-to-voicemail arrangement with Krongard's spokeswoman. Even Buzzy seems to be freezing me out. I'm starting to get a complex!
It would be pretty surprising if Waxman backed off his path to pursuing a perjury investigation. Krongard has apparently figured he can weather the storm. What will happen? I'd like to tell you that we'll see, but I might be the last to know.
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Krongard: No Comment on BlackwaterNow that Buzzy Krongard has quit Blackwater's advisory board, will State Department Inspector General Howard "Cookie" Krongard rescind his recusal from Blackwater investigations?
I'd like to be able to answer that question, but unfortunately it'll take a little while. During the pre-Thanksgiving rush to leave town, the Office of the Inspector General's press operation is in the hands of Terry Heide, who normally handles congressional affairs for the OIG. When I called Heide and posed the question, she replied, "The OIG has no further comments on anything related to Mr. Krongard's situation." Attempts at a follow-up were repelled by an instruction that there was "no need to call us back, because we have no comment." Click.
In September, Rep. Henry Waxman (D-CA) accused Heide of threatening IG whistleblowers Ron Militana and Brian Rubendall. According to Waxman, when Militana and Rubendall attempted to cooperate with his investigation of Krongard for stifling waste, fraud and abuse inquiries, Heide told them, "You have no whistleblower protections. Howard could retaliate and you would have no recourse. ... Howard can fire you." In a phone interview with me the day Waxman issued the charge, Heide "categorically" denied threatening Militana and Rubendall.
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Waxman Aide: Cookie, Buzzy Brother Battle is ON!So much for the pleas of defense attorney Barbara van Gelder not to turn brother against brother.
On Saturday, van Gelder, attorney for State Department Inspector General Howard "Cookie" Krongard, asked Rep. Henry Waxman (D-CA) to abandon a planned hearing into whether Krongard lied to the House oversight committee about his brother's ties to Blackwater. But Waxman isn't buying it. Says a committee staffer: "Our plans are the same. The dispute with his brother reinforces the questions regarding his credibility and competence."
No word yet on whether Buzzy Krongard will testify at the hearing, which is scheduled to occur the week of December 3rd.
PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (0)When you talk to your brother on the phone, you take notes, right? Well, Howard "Cookie" Krongard does.
As we mentioned, Cookie's criminal attorney Barbara van Gelder sent Rep. Henry Waxman (D-CA) his notes of what brother Buzzy Krongard told him about Buzzy's relationship with Blackwater. We've added Cookie's notes to our document collection (read them here), along with van Gelder's request that Waxman stop investigating her client (read that here).
I, for one, envy Cookie's handwriting. Line one: Buzzy has "NO financial interest whatever" in Blackwater. Paragraph three: "Was on short list for Advisory Board position but is not taking it." That, of course, contradicts what Buzzy Krongard told me and Waxman and anyone else who'll listen. We'll see what he has to say about his brother's notes.
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Today's Must ReadState Department Inspector General Howard "Cookie" Krongard's new strategy to get out of a possible perjury investigation? Begging.
It turns out Krongard has retained a criminal defense lawyer named Barbara van Gelder. (Maybe for the perjury fight, maybe because of the FBI's recent parley with Cookie's subordinates.) Van Gelder wrote to Rep. Henry Waxman (D-CA) on Saturday to ask the House oversight committee chairman to cancel an upcoming hearing on whether Krongard lied to the committee about what he knew of his brother's (since-renounced) position on Blackwater's advisory board. According to van Gelder, the committee would be doing little more than interfering in an unseemly family feud: "There is no legitimate purpose to be gained by publicly pitting two brothers against each other."
And yet she makes it so tempting. Van Gelder provided what she describes as Krongard's notes of his crucial phone conversation with his brother Buzzy on Halloween. Buzzy says he told Cookie he was joining the Blackwater board during that conversation. Van Gelder says that's not so, and Cookie has evidence to prove it. Take it away, Justin:
A page van Gelder purports to be Howard's contemporaneous notes on the conversation appear to indicate Buzzy Krongard said he had no financial ties to Blackwater and would not take the board position he had been offered."No financial interest whatsoever," the alleged notes read. The word "no" is underlined. "Was on short list for Advisory Board but is not taking it," the document states.
But, she argues, Waxman shouldn't seek to resolve the contradiction between the two accounts -- one of which was administered under oath, and the other of which was formally reported to Congressional investigators. Van Gelder is surely worth every penny.
Oh, and if that name sounds familiar: Barbara van Gelder, an ex-federal prosecutor, was last seen representing former OMB procurement official David Safavian.
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A Guide to Firing Cookie KrongardIt's late Friday afternoon, and yet, Howard "Cookie" Krongard still appears to be in office as the State Department inspector general. (His voice is still on his office voicemail, at least.) His spokeswoman says he has no intention of resigning, even as the likelihood of a congressional perjury investigation increases. So if he won't resign, who can fire Krongard?
In the final analysis, it would be up to President George W. Bush. Only a handful of federal inspectors-general can be fired by their agency chiefs, and State's is not among them. That's a good-government measure: after all, it's probably not conducive to integrity in governance if top officials can dismiss their internal watchdogs. (Only top U.S. allies can do that.) Savor the irony: by not firing a supposedly-independent public servant, President Bush is helping the cause of transforming the U.S. into a banana republic.
There are, however, procedures to be followed for cashiering Cookie. The first is to refer a complaint to the Inspector Generals' inspector -- Kenneth Kaiser of the FBI, who runs the integrity committee of the President's Council on Integrity and Efficiency. His committee is presumably the one State Department spokesman Sean McCormack meant when he said yesterday that State has "asked the overseer board of inspectors general to look into the work of the State Department Inspector General Office." However, when I called the State Department to confirm that, and to find out when the referral occurred, a charming State flack told me that it was after 5 p.m. on Friday and he had "a million things to do." I left a message with Kaiser's spokeswoman, and I'll bring you more as soon as I have more to report.
However, in the event that Kaiser thinks Cookie's gone a bit stale, Kaiser's boss might be more sympathetic. That would be famed Bush crony Clay Johnson III, who vetted such Bush administration luminaries as Mike Brown and David Safavian. If Krongard wants to fight on to the bitter end, he might have a friend in a very convenient place.
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Buzzy Tells Waxman He Told Cookie About Joining BlackwaterWe're that much closer to a perjury investigation. Buzzy Krongard has told House oversight committee staff what he told TPMmuckraker on Wednesday: that he told his brother, State Department Inspector General Howard "Cookie" Krongard, about his decision to join the advisory board of State Department contractor Blackwater. Cookie Krongard told the committee on Wednesday his brother had told him no such thing.
Waxman says he'll hold a hearing the week of December 3 to determine if Krongard lied to the committee under oath. Both Krongard brothers will be invited to testify. And you thought your last family reunion was awkward. But will Howard Krongard resign before then?
Here's what Buzzy Krongard told Waxman's staff, according to a just-released Waxman memorandum:
Buzzy Krongard stated that Howard Krongard called him specifically to ask about any relationship he had with Blackwater “in preparation for his testimony” to the Committee. Buzzy Krongard stated: “He asked me whether I had any financial interest or any ties to Blackwater, and so I told him ‘I’m going on their Board.’” According to Buzzy Krongard, “He responded by saying, ‘Why would you do that?’ and ‘Are you sure that’s a good idea?’” Buzzy Krongard then said, “I told him that was my decision, not his, and that we just differed on that.”Buzzy Krongard stated that during the Committee hearing, he was at home watching it live. He listened to Howard Krongard’s prepared opening statement. Then, he heard Howard Krongard offer spontaneously the comment that his brother had no connection to Blackwater. Buzzy Krongard said: “You could have blown me over.” During the hearing, he attempted to reach Howard Krongard by telephone. Before he could reach him, Buzzy Krongard received a call from Howard Krongard and explained again that he was a member of the Board.
Apparently Buzzy called the committee after receiving a letter from Waxman yesterday. As Waxman reiterated at the hearing, lying to committee staff -- even if not deposed under oath -- is a potential criminal offense, and Buzzy offered this account without being subpoenaed.
Update: Just got off the phone with Cookie Krongard's spokeswoman, Diane Quest. Quest says she just saw Waxman's letter and has taken it in to Krongard for review. "I don't see us having any comment on it," she says. No word yet on whether he'll go back to testify at the just-announced hearing. And, for the record: Will Krongard resign? "As far as I know, no."
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Waxman Wants to Hear from Buzzy KrongardSure enough, Rep. Henry Waxman wrote yesterday to Buzzy Krongard to sort out whether or not his brother, State Department Inspector General Howard "Cookie" Krongard, truthfully testified to Waxman's committee that Buzzy never told him about joining the advisory board of State Department contractor Blackwater.
Waxman didn't subpoena Krongard, but asked if he'd consent to a "transcribed interview" by November 30. He also wants a couple pieces of documentation. From Waxman's letter (pdf):
1. All documents reflecting communications to or from (a) Erik Prince, (b) Blackwater USA or any parent companies, subsidiaries, or affiliated companies thereof (collectively, "Blackwater"); or (c) any officers, employees, or other persons affiliated with Blackwater.PERMALINK | COMMENTS (9) | RECOMMEND RECOMMEND (0)2. All documents, including phone records, relating to communications with Howard J. Krongard regard Erik Prince or Blackwater.
3. All other documents relating to Blackwater or your relationship with Blackwater.
DOJ Has Criminal Probe Into Baghdad Embassy ContractGlenn Kessler of The Washington Post and Warren Strobel of McClatchy unearth a gem I missed from Wednesday's Cookie Krongard hearing. Apparently, the Justice Department has a criminal probe open into the construction of the Baghdad embassy. That would explain Rep. Henry Waxman's (D-CA) focus on Krongard's alleged non-cooperation with Justice on the embassy contracting issue. Kessler:
The probe came to light Wednesday during a House Oversight and Government Reform Committee hearing into the actions of State Department Inspector General Howard J. Krongard. Though lawmakers appeared careful not to mention names of people under investigation, Krongard mentioned two people during his testimony, both of whom are key figures in the building of the embassy, as he defended his practice of meeting with people under investigation."I would like to tell you exactly what I was doing, both with Mr. Golden and Ms. French," Krongard told lawmakers.
James L. Golden is a Washington-based contract employee of the State Department who oversees the project, though earlier this year the U.S. ambassador to Iraq barred him from returning to that country after he was suspected of altering evidence after a mortar attack. Mary French is the embassy project coordinator based in Baghdad.
Justice isn't commenting. But perhaps this probe is why the FBI paid Krongard a recent visit?
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Did Cookie Try To Convince Buzzy Not To Join Blackwater's Advisory Board?In the middle of a story in the Baltimore Sun about the sibling tension between State Department inspector general Cookie Krongard and his brother Buzzy, there's this revelation: apparently, in the phone conversation where Buzzy told Cookie he was going over to Blackwater, Cookie tried to talk his brother out of it.
Buzzy Krongard was watching that testimony at home in Lutherville and said he was "flabbergasted" by his brother's remarks. The pair had talked about three weeks earlier, Buzzy Krongard said. "I told him I was going on the advisory board, and he then said, 'I don't think that's a very good idea,' and I said that was for me to figure out."
Cookie Krongard, as we reported yesterday, is not saying another word about the incident. But Buzzy's latest revelation -- which he did not mention to me when TPMm broke the story -- suggests even more trouble for Cookie. If true, then Cookie clearly acknowledged that the appointment of his brother to Blackwater's advisory board would create a conflict of interest for him as the State Department inspector general.
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Cookie's Very, Very Important HolidayHe probably called it a working vacation.
TPMm friend Nick Schwellenbach at POGO highlighted this a couple weeks back, but it's never too late to bring to your attention the travel photos of Howard "Cookie" Krongard, the embattled State Department inspector general.
To the left and above, Cookie hangs out with his security detail. "Not too worried about the bad guys at the moment," the caption says. Unfortunately, those guys weren't around for Cookie's Congressional hearing earlier this week.
To the right, see him kick back in what he calls the "V V I P lounge" of Kabul airport on what appears to be a leopard-skin chair! He must be tired from a hard day of thoroughly investigating waste, fraud and abuse in Afghanistan all by himself.
Below, a sporty-looking Cookie climbs the ruins of what he claims is a Taliban armored personnel carrier! (They had those?)
Howard Krongard and the Confidence GameElaborating on today's gaggle discussion of the State Department's faith in Howard "Cookie" Krongard, here's what spokesman Sean McCormack had to say at the formal press briefing:
QUESTION: Okay. And just the second thing, you've been asked several times if you could say that the Secretary or the building has confidence in him and you have declined --MR. MCCORMACK: Look, he's still --
QUESTION: -- to say that.
MR. MCCORMACK: He's still -- he is still doing his job as Inspector -- as Inspector General. He has --
QUESTION: (Inaudible) that you have confidence in his ability to do the job --
MR. MCCORMACK: Look, it's not --
QUESTION: Do you have confidence in his --
MR. MCCORMACK: It's not for me to judge, Matt, the job the Inspector General is doing. The Congress can do that. The Secretary can do that. There have been questions that he has had to answer. He has answered those with Chairman Waxman. There have been some issues that have been raised with respect to the Inspector General's office. As appropriate, we have asked the overseer board of inspectors general to look into the work of the State Department Inspector General Office. These are -- this is all strictly according to the book. Howard is continuing his work as Inspector General. It's important work, the Secretary believes it's important work, and clearly, the Congress believes it's important work.
QUESTION: (Inaudible) -- but the word, confident -- you can't use the word, confidence, or give me a yes or no answer to the question, do you have confidence?
MR. MCCORMACK: (Inaudible) you can play the Washington games with people. Howard is still working as Inspector General here at the State Department.
Krongard's Deputy Didn't Know of Blackwater ConnectionHere's what Rep. Henry Waxman (D-CA) meant yesterday when he said Howard "Cookie" Krongard's deputy was in the dark about the State Department's inspector general's familial ties to Blackwater.
Contained in a just-released House oversight committee report (pdf) put together by the Democratic staff is this exchange between staff members and Deputy Inspector General Bill Todd:
Q: Do you know whether Mr. Krongard has any relationship with Blackwater or any individuals affiliated with Blackwater?A: I asked him about it. He says no. ...
Q: Do you know whether his brother, Buzzy Krongard, is affiliated with Blackwater in any way?
A: I have no knowledge of that. I asked him that.
Q: And what did he say?
A: Absolutely not.
It's unclear when Todd was deposed, though I'm checking that with the committee staff. The timing is significant: Buzzy Krongard says he told Cookie Krongard he was joining Blackwater's advisory board about two to three weeks ago. Did Cookie Krongard misrepresent himself to Todd? Indeed, what occasioned Todd's inquiry into Krongard's ties to Blackwater in the first place? I have a call out to the State Department Inspector General's office to try and figure all this out as well.
Similarly, I'm hearing State will release a prepared statement this evening about Condoleezza Rice's ability to fire Krongard. Apparently I wasn't the only reporter today curious about how firing an inspector general works.
Update: Turns out the interview with Todd took place on October 12. That would be before Buzzy told Cookie he was taking the Blackwater position, according to Buzzy's timeline.
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Cookie Recuses Himself From Baghdad Embassy InquiryThat's one fewer corruption case Howard "Cookie" Krongard will investigate. The embattled State IG says he'll step aside from the Baghdad Embassy construction scandal.
In addition to removing himself from all queries related to Blackwater, Inspector General Howard Krongard has given up his role in looking into corruption allegations involving the construction of the new U.S. embassy in Baghdad, State Department spokesman Sean McCormack said.The move came at the request of a congressional oversight committee chaired by Rep. Henry Waxman, D-Calif., which Krongard testified before a day earlier. During the hearing he learned, apparently for the first time, that his brother is a member of Blackwater's advisory board.
"That was at the request of Congressman Waxman's committee because they are doing their own inquiries into the new embassy compound," McCormack said. "Because of the reporting relationship between the IG and the Congress, of course, Howard honored that request."
How does State feel about Krongard remaining on the job? Here's AP's dry wit:
Despite the fact that he has now recused himself from the State Department's two main internal investigations in Iraq and has come under heavy pressure to resign, Krongard has not offered to step down and is, for the moment, continuing as the inspector general, McCormack told reporters. He did not, however, offer Krongard a ringing endorsement."He is still doing his work as inspector general," McCormack said. "Obviously, if there weren't support for his doing his job as inspector general, then he wouldn't be doing that job."
Update: There's quite an irony here. As Paul reported, Krongard stopped his staff from investigating corruption in the embassy construction contract -- preferring to personally collect a blanket denial from the contractor after speaking to hand-picked employees and closing the file. Maybe now the IG's office can actually get some work done here.
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Krongard: No CommentSo much for those questions. Diane Quest, spokeswoman for State Department Inspector General Howard "Cookie" Krongard, says Krongard is "not commenting any further than what was said at the hearing." Asked if Krongard stands by his testimony in light of its direct contradiction by his brother, Quest repeated the no-comment.
Will Krongard stay on the job? Quest says she's heard of "no announcements" by the State Department on Krongard's future.
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Why Didn't Krongard Recuse Himself from Blackwater Probes?Howard "Cookie" Krongard, the State Department inspector general, has some explaining to do. Yesterday he told Congress that his brother, A.B. "Buzzy" Krongard, never told him that Buzzy joined the advisory board of State Department contractor Blackwater. Only Buzzy told me that he told Cookie precisely that in a phone conversation about two or three weeks ago. It's going to be a fun Thanksgiving for the Krongards.
Cookie Krongard pledged at yesterday's House oversight committee hearing to recuse himself from any Blackwater investigations. But here's the question: if Buzzy is telling the truth -- and he has much less motive to lie than his brother does -- why didn't Cookie recuse himself as soon as he learned of Buzzy's ties to Blackwater? Buzzy's timeline puts Cookie's knowledge of the family Blackwater ties near the time when Amb. Patrick Kennedy was reviewing the State Department's relationships to security contractors. Did the inspector general's office contribute to that review?
Rep. Henry Waxman (D-CA) said at the hearing yesterday -- but did not elaborate -- that Krongard concealed his brother's ties to Blackwater from his own deputy. How did the deputy learn of the concealment?
Furthermore, with Blackwater remaining a central focus of State Department internal inquiry, how can State function with an inspector general who can't take part in the probes?
We've got calls out to the State Department and to Krongard's office to learn the answers to these questions. Updates to come.
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Buzzy Krongard: I Told My Brother I Was Joining Blackwater's Advisory BoardHoward "Cookie" Krongard might have just perjured himself before the House Oversight Committee.
Earlier today, the State Department inspector general repeatedly told the panel that he was unaware his brother, A.B. "Buzzy" Krongard, had joined the advisory board of State Department security contractor Blackwater. Krongard said he had a single phone conversation with his brother about the issue, in October, in which Buzzy didn't tell Cookie he was joining the board.
Only Buzzy says that's not true.
In an exclusive interview with TPMmuckraker, Buzzy Krongard says that in that phone conversation, he specifically told Cookie Krongard he had agreed to join Blackwater's advisory board. "I had told my brother I was going on the advisory board," Buzzy Krongard says. "My brother says that is not the case. I stand by what I told my brother."
Buzzy Krongard says the phone conversation was more recent than Cookie Krongard indicated to the committee. Cookie said it took place about five or six weeks ago. Buzzy says it was about two or three weeks ago. Both men say there was just one phone conversation. How to reconcile the two accounts?
"I told him I was going on this board. He claims I didn't tell him," Buzzy Krongard says. "So what can I tell you?"
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Krongard: I Didn't Tip Off Tomlinson to Inquiry -- Just His DeputyLeave aside the drama from today's House oversight committee hearing about State Department Inspector General Howard Krongard's brother joining the advisory board of a huge State Department contractor. Another issue that came up: Krongard is accused of improperly tipping off ex-Broadcasting Board of Governors chief Ken Tomlinson -- a close Karl Rove ally and muckly fellow -- in 1995 that Tomlinson was under investigation for double-billing the State Department for hours worked. The charge was included in Rep. Henry Waxman's bill of particulars (pdf) against Krongard issued in September.
Krongard initially told Rep. Chris Shays (R-CT) that he didn't have any contact with Tomlinson. But in follow-up questioning with Rep. John Yarmuth (D-KY), he said his temporary assistant accidentally faxed specific complaints about Tomlinson from a whistleblower over to the BBG's executive director. It was all a mistake, Krongard said, because he had just meant to send the BBG a letter from Congress alerting BBG to the investigation.
Only sending the letter from Congress is exactly what Waxman initially faulted. His bill of complaints against Krongard stated that sending the BBG the Congressional letter "was inconsistent with standard investigative procedures, and, according to multiple sources, jeopardized the investigation." What's more, Waxman didn't buy Krongard's distinction between sending the fax to the executive director and communicating with Tomlinson, which was the basis for his answer to Shays. Krongard, for his part, said there was no way he could have conducted any kind of inquiry if he hadn't reached out to the BBG executive director for basic information.
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GOPer: Cookie's Ignorance about Brother's Spot "Pretty Outrageous"One of Krongard's chief defenders, Rep. Chris Shays (R-CT), found the timeline of the Krongards' relationship with Blackwater troubling. "To have your brother tell you he was not involved in Blackwater" and to only find out at the hearing that he's connected to the company "is a pretty outrageous thing," Shays said. Buzzy has done Cookie "tremendous damage" and suggested that Cookie should have taken further steps to ensure that he knew whether his brother was on the advisory board of a State Department contractor. Here's video:
PERMALINK | COMMENTS (20) | RECOMMEND RECOMMEND (0)According to Howard "Cookie" Krongard, his brother Buzzy didn't tell him in a phone conversation in early October that he had joined Blackwater's advisory board, though Buzzy "may have" mentioned he was approached by the company for the position. So when did Buzzy Krongard join the advisory board?
Blackwater's Anne Tyrrell says she doesn't know the exact date. But "it would be accurate to say that he was invited in late July and accepted soon after," she says.
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Krongard Recuses Himself from Blackwater InvestigationsHoward "Cookie" Krongard said he's just learned that his brother is on Blackwater's advisory board and has formally recused himself from investigating the company.
Rep. Stephen Lynch (D-MA) asked when Krongard learned his brother, A.B. "Buzzy" Krongard was on Blackwater's board. Krongard said that he just learned about his brother's position, and had a single phone conversation with him in early October -- "about five, six weeks ago" -- in which Buzzy told Cookie that he didn't have "a significant financial interest" in Blackwater. Blackwater has multi-million contracts with the State Department.
Company spokeswoman Anne Tyrrell told me the advisory board was formed in the summer. I'm still trying to learn the exact date Buzzy joined up, but that would be before Buzzy's phone conversation with his brother. Cookie Krongard told Rep. Lynch that his brother didn't mention taking a position on the advisory board, although Buzzy "may have said" that Blackwater approached him about one. "I am not my brother's keeper," Cookie Krongard said.
Here's video:
Update: Cookie has certainly changed his tune from the beginning of the hearing. There, he said that his brother had told him that he wasn't on Blackwater's advisory board. Here's what he said:
"I can tell you very frankly, I am not aware of any financial interest or position [my brother] has with respect to Blackwater. It couldn’t possibly have affected anything I’ve done, because I don’t believe it. And when these ugly rumors started recently, I specifically asked him. I do not believe it is true that he is a member of the advisory board, as you stated, and that is something I think I need to say."
Late Update: Rep. Lynch's first name is Stephen, not Patrick. I regret the error.
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Confirmed: A.B. 'Buzzy' Krongard Sits on Blackwater's Advisory BoardThat's settled. Blackwater spokeswoman Anne Tyrrell confirmed in an e-mail today to TPMmuckraker that A.B. "Buzzy" Krongard, brother of State Department Inspector General Howard "Cookie" Krongard, is a member of Blackwater's advisory board.
Howard Krongard testified this morning that he doesn't know if his brother is on Blackwater's advisory board, but if Buzzy is, Howard would recuse himself from any Blackwater-related investigations.
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Erik Prince Invited Krongard's Brother to Join Blackwater Advisory BoardKrongard might not know if his brother is a member of Blackwater's advisory board. But Rep. Elijah Cummings (D-MD) read from a July, 2007 letter from Erik Prince, the company's CEO, inviting A.B. "Buzzy" Krongard to join the board as "a stellar opportunity to support security, peace and freedom." Howard Krongard said he still didn't know if his brother has in fact joined the board, but that if A.B. Krongard has, Howard Krongard would recuse himself from any investigations into Blackwater.
We'll show you the letter as soon as we have it.
Rep. Cummings also said that there's a Blackwater advisory board meeting in a Virginia hotel right now. Rep. Diane Watson (D-CA) followed up, saying that A.B. Krongard has, in fact, checked into that hotel, which is in Williamsburg, Virginia.
Howard Krongard replied that he didn't know if, perhaps, his brother traveled to Williamsburg to decline membership on the board. Here's video:
Update: Here's the letter. (pdf)
Late Update: Rep. Elijah Cummings represents Maryland, not Georgia. I regret the error.
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Krongard Defends Not Cooperating with Justice Department Investigation of BlackwaterWhy didn't Howard Krongard cooperate with a Justice Department investigation of whether Blackwater smuggled weapons into Iraq? One explanation, that Krongard denied, is that his brother has ties with Blackwater. (It's still unclear. We have requested comment from Blackwater. We'll see.)
Krongard's own explanation is that in early July this year, the special inspector general for Iraq reconstruction, Stuart Bowen, informed Krongard that he was reviewing two Blackwater contracts with the State Department and asked for help. Krongard said that he didn't think it was appropriate to cooperate with a "criminal" investigation until he could "deconflict" his role with Bowen's investigation: "It raised questions of parallel procedure." Here's video:
Waxman said that Krongard's explanation contradicts what he was told by both Krongard deputies and Justice Department officials, who say it's standard practice for inspector general investigators to cooperate with Justice Department requests.
Rep. Darrell Issa (R-CA), playing his usual contrary role, said that none of Krongard's whistleblower accusers agreed to testify under oath. Waxman countered that the accusers were under oath in private interviews and GOP members were allowed to cross-examine them. The GOP wanted them to testify today and isn't satisfied with Waxman's promise to release the transcripts of their interviews.
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Waxman: State IG's Brother Sits on Blackwater's Advisory BoardAt the beginning of today's House oversight committee hearing on State Department Inspector General Howard "Cookie" Krongard, Rep. Henry Waxman (D-CA) dropped a bombshell: Krongard's brother, former CIA Executive Director A.B. "Buzzy" Krongard, sits on Blackwater's advisory board. Blackwater, of course, is a State Department contractor.
Calling Krongard's case one of seemingly "reckless incompetence," Waxman reminded the hearing that one of the charges against Krongard is that he squelched an investigation into a State contractor -- since named as Blackwater -- smuggling weapons into Iraq. According to Waxman, Howard Krongard concealed his brother's association with Blackwater from "his own deputy." Here's video:
Update: Krongard just said he is "unaware of any financial interest" in Blackwater by his brother. "I do not believe it is true that he is a member of the advisory board, as you stated," he told Waxman.
Late Update: To be clear, the issue seems to be that Blackwater invited Krongard's brother to join its advisory board, not its board of directors. This post has been changed to reflect this clarification.
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House Oversight GOP on Cookie: He's Not So BadDid State Department Inspector General Howard "Cookie" Krongard squelch investigations into waste and fraud in Iraq and Afghanistan? He'll at least get a hearing before the House oversight committee today. We'll be providing running updates (it's airing on C-Span3 this morning and streaming on the committee's website).
The panel's Republicans think Cookie is getting a raw deal. And right on time for the hearing, they've released a report defending him from charges of politicizing the office. Krongard, you'll recall, has been accused by committee chairman Rep. Henry Waxman (D-CA) of scuttling numerous investigations into State Department contracting, as well as retaliating against whistleblowers who came to Waxman with their concerns.
The executive summary claims that the committee's investigation has "descended to governing by personal attack" and says that the allegations against Krongard "remain unsubstantiated." What's more: the Democrats' "expenditure of time and taxpayer funds spent proving that the State Department IG is abrasive and abusive is itself an abuse of the Committee’s authority."
You can read the full report here (pdf). I haven't, but The Washington Post has, and it found this morsel:
But even the minority report says it found "substantial support" for Waxman's charge that Krongard routinely belittled employees or treated them harshly. "Several witnesses observed that the IG had a poor regard for government workers," the report says, noting that one said he went through several secretaries. One secretary simply did not show up for work and told others that she would not return to the front office, a witness testified.PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (0)"It was common knowledge not to speak in the staff meetings because he was heavy-handed," Patti Boyd, a former deputy assistant inspector general, told the committee staff. "People were actually afraid to say anything. So they actually said nothing." She added: "It was my observation that he disliked everyone."
Cookie To Be Chewed At House Hearing WednesdayIt's official: embattled State Department Inspector General Howard "Cookie" Krongard will finally testify before the House Oversight and Government Reform Committee on Wednesday.
Krongard, for the uninitiated, is the IG voted most likely to... not investigate waste, fraud and abuse. In September, Rep. Henry Waxman (D-CA), the oversight committee chairman, accused him of scuttling investigations into corruption in State activities and contracts in Iraq and Afghanistan. Matters got worse when Krongard's subordinates told Waxman that his aides threatened retaliation against them for going public. Condoleezza Rice promised that Krongard would answer the charges. The FBI got involved. It's a whole to-do.
Come Wednesday at 10 a.m., Krongard will get a chance to explain himself. As of last week, the hearing focused primarily on the whistleblower-protection question. Aides to the committee said last week that there were no preconditions to Krongard's testimony, and lo and behold, the title of the current hearing is now the broad-brush "Assessing the State Department Inspector General."
Can't wait for Wednesday? Check out the Mighty Justin Rood's newest piece on the State Department's allergy to accountability in Iraq and Afghanistan.
PERMALINK | COMMENTS (9) | RECOMMEND RECOMMEND (0)You didn't think there could be an entire House oversight committee hearing on corruption in Iraq without the exploits of Howard "Cookie" Krongard making an appearance, did you?
Krongard, recall, is the State Department inspector general accused by his own subordinates of scuttling Iraq-related corruption investigations and then retaliating against his accusers for snitching to Henry Waxman. (Allegedly!) Pointing to the hearing's cavalcade of State-related corruption problems -- cost overruns on building the U.S. embassy in Baghdad; lax supervision of a $1.2 billion DynCorp contract to train Iraqi police; that whole Blackwater thing -- Del. Eleanor Holmes Norton (D-DC) asked if perhaps having a more "vigilant" IG might have been helpful.
Rice's answer? Nah, not really.
Krongard, she said, "very much" wants to respond to the committee's "allegations against him," and she all but promised he'll finally testify. But she emphasized that, in several cases -- the DynCorp controversy, for instance -- the State Department had uncovered for itself the extent of corruption-related problems in Iraq and either provided that information to the special inspector general for Iraq reconstruction, Stuart Bowen, or took action itself. Sometimes, even, Krongard's "very active" office contributes to "how we find things."
Why Rice thinks it's exculpatory that the State Department is aware of billions of dollars worth of corruption problems despite the problems' persistence is, well, a bit unclear. But take that, Waxman! Every now and then, Krongard actually does his job.
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Cookie Crumbling: FBI Investigates State Dept IGPerhaps it was only a matter of time before the FBI opened an investigation into shady State Department inspector general Howard "Cookie" Krongard. House oversight committee chairman Henry Waxman (D-CA) has accused Krongard both of quashing numerous inquiries into corruption in Iraq and retaliating against employees who alerted committee staff to the problem. Now, National Journal reports (not available online), the FBI wants to ask Krongard's former employees some questions:
FBI agents recently interviewed a former senior official at the State Department's Office of the Inspector General as part of a preliminary inquiry by a federal oversight group into charges that the department's IG, Howard Krongard, blocked investigations of suspected fraud and waste by contractors in Iraq and Afghanistan.PERMALINK | COMMENTS (8) | RECOMMEND RECOMMEND (0)Ralph McNamara, who was a deputy assistant inspector general at State, was forced out of his job over the summer after raising concerns that Krongard had thwarted investigations into the safety of the new U.S. Embassy in Baghdad, which is still under construction. McNamara said in an interview that he met with the agents at FBI headquarters in September for about an hour and answered questions about Krongard...
The FBI's interview with McNamara signals new potential headaches for Krongard, who has been the subject of complaints by six other current and former staffers in the IG's office of impeding investigations into contract fraud and waste in Iraq and Afghanistan. Some of those aides have received protection from retaliation under the federal whistle-blower statute.
State Dep't Official: OK, OK, Iraq Is CorruptDavid Satterfield, reality. Reality, David Satterfield. Glad you could meet one another.
After weeks of silence and obfuscation on the extent of corruption in Iraq, Satterfield, one of Secretary of State Condoleezza Rice's top Iraq advisers, finally admitted what has been clear to unbiased observers for a long time: Iraq is really, really corrupt. Satterfield bowed to the unfortunate fact of corruption in Iraq during a conference call with reporters yesterday.
"Corruption is a reality in Iraq," the department's Iraq policy coordinator, David M. Satterfield, said. "Iraqis at every level have failed to put the nation's interests ahead" of their own and those of their religious, ethnic and tribal affiliations, he said.
State's refusal to discuss corruption in Iraq has reached absurdity in recent weeks. First, House oversight committee chairman Henry Waxman accused State's inspector-general, Howard "Cookie" Krongard, of scuttling corruption investigations. Then he accused Krongard of retaliating against some of the whistleblowers in Krongard's office who alerted his staff to the alleged malfeasance. State also took the weird step of reclassifying a publicly available documents from the U.S. embassy in Baghdad running down the list of corrupt institutions in and around the Maliki government. And for good measure, at a hearing that featured a former Iraqi corruption judge describing how his colleagues have been tortured and murdered for their work, a State official meekly commented that he would rather discuss Iraqi corruption in a closed session.
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Krongard Aide 'Categorically' Denies Threatening WhistleblowersI just got off the phone with Terry Heide, the congressional liaison for State Department Inspector General Howard "Cookie" Krongard. Earlier today, Rep. Henry Waxman (D-CA) wrote to Krongard alleging that Heide had threatened two IG investigators, Ron Militana and Brian Rubendall, after they agreed to go on the record to Waxman's House Oversight and Government Reform Committee with accounts of Krongard stifling corruption investigations. "I categorically deny any and all of it," Heide said. "I did not intimidate them or threaten retaliation. I don't have the power to fire people."
According to Waxman's letter, Heide allegedly told Militana and Rubendall that they should only cooperate with Republican staffers on the committee -- a charge she says isn't true. "I am a career civil servant," Heide said, not a partisan appointee.
The letter's account comes from Militana's notes of the September 25 conversation with Heide and a lawyer from the department counsel's office. Militana alleges that Heide told him and Rubendall that if they cooperated with the investigation, "You have no protection against reprisal. You have no whistleblower protections. Howard could retaliate and you would have no recourse. ... Howard can fire you. It would affect your ability to get another job."
In response, Heide told me that "First and foremost, I told them to cooperate" with the investigation. When asked to explain how Militana could say that Heide had instructed them only to cooperate with the GOP staff, she replied "I can't." According to Heide, "there was a lot more said [at the September 25 meeting] that they did not include" to Waxman's committee, but she said she would not elaborate, since "these individuals have filed for whistleblower protection."
Before ending our conversation, Heide said that Waxman's office did not contact her for her side of the story before releasing today's letter accusing her of threatening Militana and Rubendall. "Waxman has hurt me personally and professionally," Heide said.
Waxman could not immediately be reached for comment.
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Waxman: State IG Threatened To Fire WhistleblowersLooks like Cookie isn't so sweet toward those who'd talk to the House Oversight and Government Reform Committee.
Earlier this month, committee chairman Henry Waxman (D-CA) wrote a scathing letter to State Department Inspector General Howard "Cookie" Krongard, accusing him of scuttling inquiries about corrupt contractors working on State's dime in Iraq and Afghanistan. The basis for Waxman's claims came from former employees John DeNona and Ralph McNamara, who resigned after Krongard slow-walked or obstructed their investigations. But Waxman was also assisted by current Krongard staffers who had a bad taste left in their mouths from Krongard's unorthodox approach to due diligence.
Those two staffers are Special Agent Ron Militana and Assistant Special Agent in Charge Brian Rubendall. Both are career federal investigators who agreed to go on the record with their accounts of Krongard's misconduct. And their boss held them in high esteem: Krongard called Militana "one of my best investigators." But after Waxman sent his letter to Krongard, his staff threatened their careers, according to a new letter to Cookie just released by Waxman's office.
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Foreign Service Union Calls on State IG to ResignI'm late in noticing this, but last week the American Foreign Service Association -- the foreign-service officers' union -- took a look at Rep. Henry Waxman's accusations that State Department Inspector General Howard "Cookie" Krongard obstructed corruption investigations into contracting for Iraq and Afghanistan. AFSA came to a pretty severe judgment: Krongard's got to go.
From a statement by AFSA chief John K. Naland:
"The worse-case scenario in corruption is when it endangers lives. The worse-case scenario in public service is when the watchdog becomes the suspected violator. Both of these allegations have been leveled against Mr. Krongard. As long as he maintains day-to-day control, his office’s ability to do its vital job with full credibility will be compromised. He should step down until the allegations are resolved one way or another."
The statement also says that several "concerned former State Department employees with direct knowledge of some of the events in question" have come to AFSA with their Krongard-related tales of mismanaged corruption inquiries. Waxman will hold a hearing on Thursday into Iraq-related corruption, with or without Krongard's appearance.
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Today's Must ReadSo what defense contract in Iraq didn't involve a kickback? What contract was awarded through competitive bidding? As Pentagon investigators conduct an unprecedented review into corruption in the department's Iraq contracting, it's a rare bid that wasn't crooked.
Yesterday, Congress learned that $6 billion worth of contracts are under criminal review. That's right -- criminal:
Military officials said Thursday that contracts worth $6 billion to provide essential supplies to American troops in Kuwait, Iraq and Afghanistan — including food, water and shelter — were under review by criminal investigators, double the amount the Pentagon had previously disclosed.In addition, $88 billion in contracts and programs, including those for body armor for American soldiers and matériel for Iraqi and Afghan security forces, are being audited for financial irregularities, the officials said.
Taken together, the figures, provided by the Pentagon in a hearing before the House Armed Services Committee, represent the fullest public accounting of the magnitude of a widening government investigation into bid-rigging, bribery and kickbacks by members of the military and civilians linked to the Pentagon’s purchasing system.
House Armed Services Committee Chairman Ike Skelton (D-MO) called DOD's procurement process "a culture of corruption," an assessment that appears to represent the bipartisan consensus. Yet the Pentagon's deputy inspector general said the contracting corruption was attributable to "isolated incidents." Yes, $6 billion worth of isolated incidents.
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Waxman to Blackwater Head: Let's Have a ChatIn the wake of the ongoing Blackwater scandal, Rep. Henry Waxman (D-CA) wants to have a frank discussion with Erik Prince, the company's founder. His House oversight committee will hold a hearing on Blackwater on October 2. And it just won't be a party if Prince doesn't attend.
Waxman sent Prince a letter today requesting his appearance at the hearing. The little-seen Blackwater official probably won't take kindly to Waxman's intent to question "whether the specific conduct of your company has advanced or impeded U.S. efforts."
The Blackwater hearing offers Waxman the opportunity to link the issue with a different investigation his committee is undertaking. Waxman is also looking into whether the State Department's inspector general, Howard "Cookie" Krongard, obstructed an inquiry into allegations that Blackwater, on a State Department contract, was illegally smuggling weapons into Iraq. Krongard has been invited to an October 20 hearing before the committee.
Text of the letter below the fold.
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Today's Must ReadBlackwater: Above the law.
Yesterday we reported that not only is Blackwater immunized from liability under any Iraqi law, but the State Department has allowed it to operate under less restrictive rules of engagement than any other private military company. As a result, the State Department bears responsibility for the culture of impunity that resulted. Today The Washington Post adds more detail:
Blackwater "has a client who will support them no matter what they do," said H.C. Lawrence Smith, deputy director of the Private Security Company Association of Iraq, an advocacy organization in Baghdad that is funded by security firms, including Blackwater.The State Department allowed Blackwater's heavily armed teams to operate without an Interior Ministry license, even after the requirement became standard language in Defense Department security contracts. The company was not subject to the military's restrictions on the use of offensive weapons, its procedures for reporting shooting incidents or a central tracking system that allows commanders to monitor the movements of security companies on the battlefield.
"The Iraqis despised them, because they were untouchable," said Matthew Degn, who recently returned from Baghdad after serving as senior American adviser to the Interior Ministry. "They were above the law." Degn said Blackwater's armed Little Bird helicopters often buzzed the Interior Ministry's roof, "almost like they were saying, 'Look, we can fly anywhere we want.' "
Last year, Congress passed a law placing contractors under the Uniform Code of Military Justice, the law that establishes legal conduct for U.S. forces. Little follow-on work has established what exactly that means for private security companies, however. While the Pentagon has issued a number of so-called fragmentary orders seeking to regulate the private security firms, Blackwater is exempt, since its contracts are with the State Department and CIA. Blackwater isn't required to keep the U.S. military command informed of its operations or file incident reports to it.
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Blackwater Well-Positioned to Stymie Official Inquiries, RegulationBlackwater doesn't just operate in a legal black hole in Iraq. The private-security firm has grown expert in protecting itself from oversight and regulation in Washington as well.
Over at POGO, Nick Schwellenbach connects Blackwater to House oversight committee chairman Henry Waxman's investigation of Howard Krongard, the State Department inspector general whom Waxman alleges stifled numerous corruption probes in Iraq and Afghanistan. One of those probes involved an alleged Blackwater scheme to funnel weapons into Iraq, and, Schwellenbach notes, it wouldn't be so difficult for Blackwater to know how to get around an IG probe. Its parent company, the Prince Group, recently hired the Pentagon's ex-IG, Joseph Schmitz.
Indeed, all throughout Blackwater are ways to get around government oversight: Cofer Black, the company's vice chairman, used to work at the CIA with A.B. "Buzzy" Krongard, formerly CIA's executive director. And, yes, you read that last name correctly: Krongard of CIA is the brother of the current State Department IG. Think Schmitz or Black knew which numbers to call in the event of a State inquiry into the company?
That's not all.
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Waxman: State Investigator Blocked Corruption ProbesIn a blistering 14-page letter today (pdf), House oversight committee Chairman Henry Waxman (D-CA) charged that the inspector general for the State Department Howard Krongard has been actively impeding probes into waste and corruption in Iraq and elsewhere. The basic allegation, as Waxman simply puts it, is that "you believe your foremost mission is to support the Bush Administration, especially with respect to Iraq and Afghanistan, rather than act as an independent and objective check on waste, fraud, and abuse on behalf of U.S. taxpayers." In other words, Waxman is charging that he's a hack, and the worst kind, too -- one that can do real damage.
Waxman has a litany of examples of Krongards' alleged hackishness, but one is particularly colorful.
There have been allegations that the contractor First Kuwaiti used forced labor building the U.S. Embassy in Baghdad. So Krongard looked into it.
Only he had a peculiar method, according to Waxman's investigation. First, he insisted on doing the report entirely by himself and shut out his staff. And instead of seeking out the source of the allegations, he allowed the contractor to choose the employees that he'd interview. He ultimately interviewed six employees.
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