H.R. 2985, Bill To Protect the Jobs of Nonappropriated Fund Whistleblowers

GAO supports H.R. 2985, a bill to provide employment protection to nonappropriated fund employees in the Department of Defense (DOD) post exchange system who report instances of fraud or mismanagement. However, GAO believes that the bill should be amended to clarify the appeals process. Present and former exchange employees have requested GAO to conduct investigations of a variety of problems. Some of the employees' complaints related to perceived improper personnel actions and the lack of an independent appeals process. In a July 1981 report, GAO pointed out that exchange employees do not have the same appeal rights afforded most other Federal workers. DOD has not provided appeal channels independent of the Army and Air Force Exchange Service chain of command. Unlike most other Federal employees, nonappropriated fund employees may not appeal personnel actions to the Merit Systems Protection Board, which established an independent Office of the Special Counsel to investigate and prosecute merit system abuses and eliminated the past conflicting roles of the Civil Service Commission being both rulemaker and adjudicator. As presently drafted, H.R. 2985 provides for the Secretaries concerned to establish regulations to implement the protection provisions. It does not require an independent appeals process nor state what remedies should be available to resolve instances of prohibited personnel practices. GAO believes that the bill should specify that an organization independent of the nonappropriated fund activities and the Defense personnel system should be responsible for carrying out its provisions.