Alleged Fraud and Mismanagement in the Office of Industrial Security International, Brussels, Belgium

GAO was asked to review and comment on several allegations involving the overall operations of the Brussels, Belgium, branch of the Office of Industrial Security International and its branch chief.

GAO found that the Inspector General of the Defense Logistics Agency (DLA) had made a comprehensive and objective investigation of these matters. The DLA General Counsel later made an independent review of the investigative report and concluded that all of the allegations had been addressed to the fullest extent possible. With regard to the branch chief's activities, the Inspector General's investigation failed to substantiate the majority of the allegations. There was no evidence to support the allegation of fraud, but allegations of knowingly and willfully falsifying attendance records, travel vouchers, and allowance certificates were substantiated. The branch chief has been censured by his supervisors, and prompt action was taken to recover overpayments which resulted from errors in the branch chief's travel vouchers. Some of the allegations concerning the overall operations of the Brussels office were substantiated. However, DLA has issued written directives to correct most of the deficiencies. In the opinion of GAO, the Inspector General's investigation was adequate and of sufficient scope to address the allegations and to ensure that the Government's overall interests were protected. The corrective actions already taken or planned should result in significant improvements in the agency's operations. However, GAO sees a need for closer overview of the office by the Executive Director, Industrial Security, and for periodic internal reviews by independent audit organizations.