Pubdate: Fri, 21 May 1999 Source: Associated Press Copyright: 1999 Associated Press Author: Larry Margasak, Associated Press Writer WIDESPREAD ABUSES FOUND IN CUSTOMS WASHINGTON - The U.S. Customs Service created "a fear of reprisal" among employees who reported wrongdoing and mishandled investigations so that wayward agents were neither disciplined nor prosecuted, a Treasury Department audit says. The agency that runs the nation's ports of entry promoted employees who had been disciplined for infractions and let managers investigate subordinates despite clear conflicts of interest, the Treasury Department inspector general reported Thursday. The report was presented to the Senate Finance Committee, which is conducting a major review of the Treasury Department agency. Dennis Murphy, a spokesman for Customs Commissioner Raymond Kelly, said Kelly immediately began addressing these problems after assuming his post nine months ago and already has made changes. The former head of the internal affairs unit was replaced, an impartial board was established to handle discipline problems and a "cold case unit" was formed to review old investigations and reopen them if necessary, he said. Murphy said Kelly recognized that the agency's internal affairs office which was singled out in the report for mishandling investigations "was a fractured organization." Among key findings: A supervisor who had been drinking with an employee was placed in charge of the investigation when, the night of the imbibing, the employee drove a government vehicle under the influence of alcohol and left the scene of an accident. An inspector who admitted placing marijuana in a passenger's luggage was only admonished by a supervisor, and later received seven cash awards and one promotion over the next four years. Investigators never tried to resolve conflicting witness statements during the investigation of an inspector who admitted placing marijuana in the luggage of a cruise ship passenger. The case never was presented to prosecutors. There is no indication that prosecutors were told of an employee involved in smuggling of aliens. A prosecutor concluded a sensitive corruption investigation was compromised when an internal affairs agent assigned to the case was promoted as a supervisor of the subject. Awards and promotions were granted to employees who were under investigation and later disciplined. Others received promotions after discipline, including an agent who had made false statements and obstructed justice. The agent was never prosecuted. A case was not thoroughly pursued and subsequently closed, even after law enforcement sources provided information that an employee was involved with individuals suspected of money laundering, gun running and armored car robberies. "One AUSA (assistant United States attorney) described IA (internal affairs) as dysfunctional and almost unwilling to enforce criminal laws," the report said. The report concluded, "There is an overall perception of favoritism in the application of the disciplinary process, and in many instances, there is a fear of reprisal from management for the reporting of wrongdoing." Murphy, the agency spokesman, said Kelly replaced the head of internal affairs with a career Justice Department official. To end the perception of unfairness, Murphy said, the agency now sends serious disciplinary cases to a national review board rather than a local manager. And nobody becomes a manager without a complete review of the official's past record, Murphy said. - --- MAP posted-by: Derek Rea