Archive for July 6, 2009


 

 

Link to Original Blog:  http://southwestairlinesalmostkilledyou.blogspot.com/2009/07/faa-is-very-sick-agency-run-by-college.html

 

 

July 2, 2009
FAA whistle-blower safety warnings found to have merit
Posted: 12:14 PM ET
American Morning – amFIXFiled under: Airline safety

Tom Devine, legal director of the non-profit Government Accountability Project, tells CNN the FAA is a ‘very sick agency.’
By Allan Chernoff
CNN Sr. Correspondent

A federal investigation into Federal Aviation Administration employee whistle-blower safety complaints has found more than two dozen to be on the mark, CNN has learned, potentially putting the public’s safety at risk.

The federal Office of Special Counsel, which investigates allegations of reprisal against whistle-blowers, tells CNN it has made a “positive determination” that the FAA improperly responded to 27 current cases of FAA employee whistle-blowers warning of safety violations ranging from airline maintenance concerns to runway and air traffic control issues.

“It means that FAA is a very sick agency,” said Tom Devine, legal director of the non-profit Government Accountability Project. “There’s never been an agency that’s had that large of a surge of whistle-blowers whose concerns were vindicated by the government’s official whistle-blower protection office.”

The Department of Transportation told CNN, “We acknowledge it’s a large number of cases.”

“We take whistle-blower complaints very seriously and we fully cooperate with all of the investigations,” said FAA spokesperson Laura J. Brown.

Among the warnings found to have merit are those of FAA inspector Christopher Monteleon, who flagged safety problems at Colgan Air for several years before a Colgan plane crashed near Buffalo in February killing 50 people. He told CNN he’s faced retaliation at the FAA for pointing out issues including faulty aircraft manuals and poor cockpit procedures he observed during in-flight aircraft testing.

“My supervisor called me into his office and said, ‘Stop your investigation.’ He said that these violations never occurred,” said Monteleon.

But Monteleon continued raising safety concerns about the airline. Eventually he was demoted and put on leave of absence.

“I had my aviation inspector credentials taken from me,” Monteleon told CNN. “It has just been humiliating. It’s been awful.”

The FAA says it does not believe any of Monteleon’s reassignments were retaliatory, and cannot comment further because this is a personnel issue covered by privacy laws.

While the Office of Special Counsel has found merit in Monteleon’s charges of safety violations, the Special Counsel continues to investigate his claim that he was the victim of retaliation for pressing his safety concerns.

Though passenger safety is at stake, the Office of Special Counsel found the FAA has repeatedly deferred to the airlines it regulates.

“That’s shocking, and it’s really unconscionable for a government agency that’s supposed to be about safety, not about witch hunts for those who find safety lacking,” said Mary Schiavo, inspector general of the Department of Transportation from 1990-1996, who is now an attorney representing families of accident victims.

What’s going on at FAA? Critics say it’s the culture.

In 2003, former FAA administrator Marion Blakey established a “Customer Service Initiative” that defined airlines as customers, rather than the flying public. The current Transportation Department Inspector General Calvin Scovel, found, “FAA’s definition of its customer has had a pervasively negative, although unintended, impact on its oversight program.”

While there’s no evidence of illegal dealings, the FAA has an active revolving door. Agency managers regularly go on to work in the aviation industry while industry executives take top spots at FAA.

-Former FAA administrator Marion Blakey is now president and CEO of the Aerospace Industries Association.

-Former FAA chief operating officer Russell Chew moved on to become president of Jet Blue Airways, where he just stepped down and took on the role of Senior Adviser for the company.

-FAA’s chief operating officer of air traffic, Hank Krakowski, came from United Airlines where he held a number of senior management positions, including vice president of flight operations.

-Linda Daschle, wife of the former Senate Democratic leader, was the FAA’s acting administrator, and then became a lobbyist representing the airline industry.

“There’s a very cozy relationship between the lobbyists for the industry and the Department of Transportation and the FAA,” said Schiavo.

As in all federal agencies, senior executives leaving the FAA are subject to a one-year “cooling off” period that forbids them from representing a client before the FAA.

The new transportation secretary Ray LaHood and FAA administrator Randy Babbitt, who took office June 1, say they will make sure whistle-blowers are heard.

“We will pay attention to any kind of complaint or accusation or any concern expressed by an employee of FAA. It’s a new day at the FAA and at DOT,” LaHood told CNN.

FAA last year established a Safety Issues Reporting System for employees to raise safety concerns. FAA also tracks employee hotline complaints in its General Counsel Office.

But, the agency has resisted calls to establish an independent office to investigate whistle-blower safety claims. The pending House bill to reauthorize FAA would require the agency to establish such an office. The Senate still has to write its version of the bill.

The Office of Special Counsel has referred all 27 cases to the transportation secretary who is investigating and must tell the Special Counsel what steps will be taken to fix the safety problems.

 

Lawmakers Invested in Bailed-Out Firms
Conflict-of-Interest Questions Arise

 

Link:  http://www.washingtonpost.com/wp-dyn/content/article/2009/06/10/AR2009061002565.html?wprss=rss_business

 

By Paul Kane and Carol D. Leonnig
Washington Post Staff Writers
Thursday, June 11, 2009

Top House lawmakers had considerable holdings in major financial institutions that took billions of dollars in taxpayer bailouts at the end of last year, according to annual financial disclosure reports released yesterday.

From stock holdings to retirement funds to mortgages, more than 20 House leaders and members of the House Financial Services Committee had large personal stakes in the Wall Street powerhouses whose collapse last year led to an unprecedented government intervention in the marketplace. In some instances those lawmakers, like millions of other investors, sold their holdings at steep losses while others retained the stocks at greatly diminished value.

House Speaker Nancy Pelosi (D-Calif.) and her husband lost hundreds of thousands of dollars investing in American International Group, which has received $170 billion in government loans and cash injections, making it by far the largest recipient of federal bailout dollars. Republican Whip Eric Cantor (R-Va.) and his wife held stock, retirement plans and other investments worth at least $183,000 and as much as $495,000 in firms benefiting from federal government rescue efforts, including Goldman Sachs and Morgan Stanley.

At least 18 members of the House Financial Services Committee — which oversees the banking and housing industries at the core of the economic meltdown — held stock last year in firms that received federal bailout assistance, according to a review of the forms that were available yesterday.

The release of the annual disclosure forms was not scheduled to occur until tomorrow, but the House clerk’s office briefly posted many of them online yesterday, apparently by accident. A firm called LegiStorm captured the data and posted them on its Web site. The Senate will release its forms tomorrow.

The disclosure forms require lawmakers to reveal a broad range of personal holdings and liabilities but not the precise value. Lawmakers are not required to disclose any information about their primary residence, only on rental properties that they own, and they do not have to reveal the terms of those mortgages. Also, Congress requires only that lawmakers list the place of employment and board memberships for spouses, not their annual salaries or director’s fees received by spouses.

Some ethics watchdogs were critical of members of Congress for investing directly in companies they oversee. “You wonder if they’re voting on things because it’s good for the country or because it would increase their personal wealth,” said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington.

But other legal experts said lawmakers, like thousands of other voters, are not receiving special treatment. “This illustrates one of the purposes of financial disclosure, and that is for the public to be able to judge whether they think that a particular interest creates at least an appearance of a conflict,” said Robert L. Walker, the former chief counsel for the House and Senate ethics committees.

Rep. Barney Frank (D-Mass.), chairman of the Financial Services Committee, co-authored the $700 billion bailout legislation and continues to oversee its implementation.

Frank is one of the few lawmakers who go beyond what the law requires, disclosing more than 145 pages of month-to-month statements from his accounts with Citigroup Global Markets. Frank does not invest directly in stocks, instead concentrating largely on state and local bonds, with a small amount directed into mutual funds.

Frank’s personal portfolio broke about even for 2008 — at about $1 million — because of steady gains in bonds. In an interview yesterday, the self-proclaimed “regular Sam Adams” said others should heed his investment advice: “I get a steady 4.5 percent, and I help my state in the process. I’m a patriot, and I’m making money, too.”

Other lawmakers were not so fortunate.

The Pelosi family lost between $100,000 and $1 million as AIG’s stock tanked last year. Pelosi’s husband reported a partial sale of between $1,000 and $15,000 of AIG stock on the last day of December 2008. For all their stocks and other investments, taking the most conservative estimate, the Pelosis lost at least $730,000 as stocks nose-dived and other investments soured, but they made up those losses in other investment gains.

Pelosi, whose husband, Paul, runs the San Francisco investment firm Financial Leasing Services, remains one of the wealthiest members of Congress. Her 22-page disclosure revealed investments in San Francisco condos, a Napa Valley vineyard, a hotel resort in Rutherford, Calif., and a San Francisco limousine business. She reports $100,000 to $1 million in income last year from grape sales at the vineyard.

Some members of the financial services panel also took a hit on companies that required federal bailout dollars. Rep. Thaddeus McCotter (R-Mich.), a member of the GOP leadership and booster of his state’s imploding auto industry, watched his holdings in Chrysler plummet. His disclosure forms for the end of 2007 showed he had between $1,000 and $15,000 in company stock, which by the end of last year fell to between $1 and $1,000 in value. After receiving more than $10 billion in federal assistance late last year, Chrysler was guided into bankruptcy by the Obama administration, which helped engineer this week’s sale of Chrysler to the Italian carmaker Fiat.

Rep. Carolyn B. Maloney (D-N.Y.) sold all her holdings in Morgan Stanley in March 2008, cashing out her stock for between $15,000 and $50,000 — holdings that a year earlier were worth between $50,000 and $100,000, records show.

Staff writers Ben Pershing and Philip Rucker, research editor Alice Crites and staff researcher Madonna Lebling contributed to this report.

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