Allegations against GSA chief may affect budget

A House Appropriations subcommittee chairman said Wednesday that if the scandal surrounding the head of the General Services Administration is not cleaned up, the agency's funding bill will be amended "to shreds."

Rep. Jose Serrano, D-N.Y., leader of the House Appropriations Financial Services and General Government Subcommittee, told GSA Administrator Lurita Doan that House members may seek to limit the agency's $562 million fiscal 2008 appropriations request if allegations that she violated the Hatch Act -- a law that limits political activity in agencies -- linger.

Serrano said claims that a Jan. 26 meeting at GSA's headquarters conducted by a deputy of White House political adviser Karl Rove and attended by Doan included a discussion of "hard-core political issues on how to win elections" raise questions about whether the agency is using its funding for partisan activities. Serrano also said that Doan's criticism of congressional oversight efforts and GSA's inspector general may create problems.

"As a friend of the agency, this cloud has to clear before this [appropriations] bill hits the floor," Serrano said.

In an interview after the hearing, Serrano said Doan has to explain exactly what happened in the January meeting and Congress has to be assured that it will not happen again. He said Doan cannot "lightly brush off the fact that" members of Congress are "highly concerned."

Serrano said the bill containing GSA's appropriation request likely will move to the House floor by June.

"We … cannot be funding agencies that are going to be involved in political shenanigans," he said.

Doan told Serrano during the hearing that he should not have to convince his colleagues to grant GSA's appropriations request.

"What you're supposed to be doing is talking about what is good for our customers and the American people," Doan said. "If you look at how these requests are structured, they're not structured by GSA. They are structured by our government customers."

Serrano interrupted Doan. "You made one mistake," he said. "You said what I should be doing. I kind of resent being told what I should be doing."

Serrano noted that he has to present GSA's appropriations request to his subcommittee, the full appropriations committee, the full House and, ultimately, the Senate. Each time, he said, he is going to have to fend off attempts to amend the bill.

Doan said she was trying to convince Serrano "that there might be one other selling point" that he could add to his "marketing strategy."

Doan argued that there was nothing inappropriate about the meeting, which she characterized as one of a series of monthly brown-bag luncheons arranged by the agency's White House liaison, J.B. Horton. Doan said Horton heads the meetings, sets the agenda and invites the speakers.

The GSA chief also said that agency officials are cooperating with an investigation by the Office of Special Counsel into whether she violated the Hatch Act.

According to government officials, Doan met with OSC investigators Monday to discuss her involvement in the January meeting. Several attendees have alleged that Doan asked at the conclusion of the meeting how GSA could help "our candidates in the next election."

Doan repeatedly has said she does not remember saying those words or other details about the meeting.

OSC officials confirmed that Doan is the only meeting attendee under investigation for potentially breaking the Hatch Act. Experts are divided over whether she violated the law, based on the available facts.

Serrano also asked about a Dec. 19, 2006, address given by Doan in which she said the intensity and frequency of oversight of the agency has increased while the amount of business conducted has decreased. Serrano said he is "extremely troubled" by the statement because it appears to advocate less oversight from the inspector general and from Congress.

"I do not think there is a member of Congress in this room that thinks we should rubber stamp everything that GSA does without giving a critical examination, given the controversies that have erupted over how business is being conducted at GSA," Serrano said.

Doan said the statement has been misconstrued and that she is seeking more efficient oversight.

"We want to make it faster. We don't want to create a burden on our customers by dragging out the amount of time it takes," Doan said. "You have management here and oversight here. It should always be equally balanced …. We're going to keep everything in balance."