By Kristina Wong

Jun 18, 2009 9:29pm

GOP Lawmaker Rips Treasury for “Gagging” SIGTARP, Sees Parallels with Nixon Era & Calls for Investigation

ABC News' Matt Jaffe reports: The lone sitting Republican member of Congress on the Congressional Oversight Panel tonight dubbed the Treasury Department's challenge of the independence of bailout watchdog Neil Barofsky "outrageous, "unprecedented", and "disturbing", and he called on the Panel to launch an immediate investigation.

"It's highly outrageous and highly irregular and we are going to get to the bottom of it," warned Rep. Jeb Hensarling, R-TX, in an interview with ABC News.

"For Treasury to assert some kind of attorney-client privilege to try to gag the Special Inspector General – it raises some very disturbing questions," he said.

Department spokesman Andrew Williams has denied that they ever used attorney-client privilege to withhold documents from Barofsky.

But the Texas lawmaker, a longtime critic of the $700 billion Troubled Asset Relief Program, said the Obama administration appears to have "a bigger problem" with inspector generals overall, after Gerard Walpin, the former Inspector General of the Corporation for National and Community Service, was fired last week by President Obama. Hensarling said the administration's actions bring back shades of the Nixon regime.

"I don't undertstand an administration that talks about transparency and accountability, but then one IG gets fired and the other gets gagged. It's unprecedented. You have to go back to the Nixon era to find a parallel."

"It's breathtaking that they're attempting to take this action," he stated. "As I understand the legal statute, they don't have a leg to stand on."

"I don't think Congress would've created the position without independence – otherwise it's just a dog and pony show. It begs the question what do they have to hide?"

"It strikes me as an outrageous action for what has become an outrageous program," Hensarling said. "This is an incredibly serious issue. This is a program that's turned into a $700 billion revolving bailout fund that has little to do with financial stabilization."

"I am going to call on the Congressional Oversight Panel to launch an immediate investigation."

- Matt Jaffe

User Comments

I agree with Jaffe about the parallels between Nixon and the Obama administration — there are more than just this one.
I also agree with the previous comment about the censors of this site. They are uneven and heavy-handed, at best.

Posted by: paul | June 18, 2009, 9:54 pm 9:54 pm

I caanot bvelieve these ediots from PETA would even make such a stupid comment.
I am not a Barrack Obama fan but you know what this is stupid. He has important issues to address other than what you might think about him killing a fly. What would have the man do let the fly crawl all over him with all its germs it carries. It eats animal manure for crying out loud. You need to get a life. Obviously you don’t have one. I will tall you now I kill every fly I get a chance to. GET OVER IT! Why are you not protesting all the abortions that go on every day in America. I’ll help you with that one! I cannot believe the news statiions would give you 1 minute of air time. Shame on them!

Posted by: Margaret | June 18, 2009, 9:59 pm 9:59 pm

Actually, you do not need to go back to that Republican administration (Nixon) for lack of transparency and politics permeating decisions. You just need to go back to the last Republican administration (Bush).

Posted by: mk3872 | June 18, 2009, 10:08 pm 10:08 pm

What a shocker, a Republican grandstanding. The Walpin firing followed the law and is currently going through exactly the Congress/Administration back and forth on details that was intended by the law. And the SIGTARP has not been gagged, and Jake has already posted the link to the memo where he cordially agrees with Treasury asking for clarification of the org chart on this issue.
It would be really nice if Republicans actually decided to focus on the problems we care about – the economy, Iraq, Afghanistan, health care, etc – rather than collecting meaningless soundbites to feed their base next election.

Posted by: jhw539 | June 18, 2009, 11:03 pm 11:03 pm

These GOP charges are so absurd and desperate they deserve no response.
Bush was Nixon on steroids. Only a clueless Texas Republican congressman could come up with this crock. Hensarling thought Bush was the Second Coming so what do you expect.

Posted by: hopesprings52 | June 18, 2009, 11:32 pm 11:32 pm

Mr. Jaffe,
Thank you for an informative report. I hope the truth will finally come out. Fiscal investigations are so important and the Treasury needs an independent IG to monitor it.

Posted by: Ordinary Sadie | June 18, 2009, 11:42 pm 11:42 pm

I wonder if Sen McCaskill is feeling heat from other Democrats for giving a bipartisan flavor to the Inspectogate scandal. The Dems and the media may remain united to protect Obama in this highly questionable pattern of behavior towards IGs, but the electorate is beginning to find out about it, and I expect there will be fallout in 2010 and 2012 for the Dems.

Posted by: Davd J | June 18, 2009, 11:55 pm 11:55 pm

This too will be swept under the rug very quickly.
Get used to it folks…
Its obvious, none of us can get along.

Posted by: not buying the bull | June 19, 2009, 12:12 am 12:12 am

The Administration fired the highly ethical and productive AMTRAK IG today. The IG had been very aggressive in rooting out contracting fraud, and in terminating contracts funneled to mob-infested companies. Of course AMTRAK has a TON of stimulus money to spend because it is Biden’s pet porkulus project, so of course the AMTRAK IG had to go because he was disrupting implementation of Obama’s Chicago-style “Pay to Play” scheme. The Walpin firing has the stench of Chicago all over it–I can’t believe the flimsy excuse that has been offerred by the White House and grotesque smearing of a public servant that has taken place, but it seems pretty obvious with today’s firing that a pattern is taking place . . .

Posted by: chad3337 | June 19, 2009, 12:16 am 12:16 am

Who needs those stinkin’ IG’s? What this administration needs is more CZAR’S!! No congressional oversight, no one to answer to except Dear Leader and they get to control TRILLIONS of taxpayer dollars. Yeah, CZAR’S is the way to go! Let’s get ACORN involved too. Sounds like a plan!
pffftt!

Posted by: Sunnyr | June 19, 2009, 12:41 am 12:41 am

And WHEN is Congress going check the power grab by the Executive branch and exercise its Constitutional powers?
Oh right…when is the Democratic-controlled Congress going to check the power grab by the Democratic Executive branch? It is long past time to uphold their oaths of office instead of upholding their party loyalty.
Even a Democratic Senator, Robert Byrd, warned that the “czar system” threatened the Constitutional system of checks and balances because the oversight of federal agencies is the responsibility of the Senate.
Are they so obsessed with POWER that they are willing to turning a blind eye to the abuses of POWER at the expense of their own and the good of the nation?

Posted by: RRR | June 19, 2009, 1:07 am 1:07 am

Obama is a pay to play man all the way. What did anyone expect. He said it, he did it and all of you voted for change you could believe in. Well you got what you wanted, now live with it and enjoy it while you can. When your taxes go to 90 percent and you have to wait for months to see a doctor and some dufas says you don’t need it, you will die. Enjoy this change, more czars, everyting will cost a lot more. You got what you wanted. Soon all of the USA will be just like Detroit. A vast wasteland.

Posted by: platteman | June 19, 2009, 6:56 am 6:56 am

RRR:”Oh right…when is the Democratic-controlled Congress going to check the power grab by the Democratic Executive branch? It is long past time to uphold their oaths of office instead of upholding their party loyalty. ”
What a joke. Look at reality – the Republican Congress allowed Bush anything he wanted, massive growth in executive power ranging from the Patriot act to his own personal my-jurisdiction-only prison. They even set TWO records for filibusters, spending their two in years in the minority filibustering more than in the entire first century of Congress.
The Democratic Congress won’t even approve funds to clean up Guantanamo without out a plan for every inhabitant and are publicly scolding the President of their own party for not following the intent of the law in letting go Walpin (he gave a reason, but McCaskill – a Democrat – did not merely ask for a better reason, she accused him of violating the law and demanded one).
Based on REALITY, which Congress seems to be providing a real check on the Executive?

Posted by: jhw539 | June 19, 2009, 8:50 am 8:50 am

jhw..I am truly trying to find a correlation between your defense of firing or gagging INDEPENDENT Inspector Generals, and: filibustering, which all parties do to excess, The Patriot Act of 2001, which ALL Senators, Dem and Rep, voted for with the exception of one, as well 2006 renewal where only 10 voted against and Gitmo, where 80 M was pulled by the Dem held majority for Gitmo’s closure, no amount of spin can defend that..The above was not just due to Bush Administration and the Republican party, they had substantial help from the Democrats as well…The point is that there comes a time when the present administration must answer for THEIR DECISIONS without hiding behind the “skirts” of the previous administration..the polls are beginning to reflect that point..

Posted by: Parallex View | June 19, 2009, 11:05 am 11:05 am

“The Walpin firing followed the law and is currently going through exactly the Congress/Administration back and forth on details that was intended by the law.” – jhw539
Followed the law? Try some facts. Mr. Walpin says his “termination” phone call came from Norman Eisen, the Special Counsel to the President for Ethics and Government Reform, who said the President felt it was time for Mr. Walpin to “move on,” and that it was “pure coincidence” he was asked to leave during the St. HOPE controversy.
What part of that followed the law? Last year Congress passed the Inspectors General Reform Act, which requires the President to give Congress 30 days notice, plus a reason, before firing an inspector general. A co-sponsor of that bill was none other than then Senator Obama. Now that they have failed to pressure Walpin into resigning, they been forced to give him 30 day notice, and to tell Congress its reasons (which should be interesting.
And I suppose this “back and forth” you refer to, jhw539, is the Administration smearing Walpin as “confused” and “disoriented” in public.

Posted by: Traffic Cop Timmy | June 19, 2009, 11:05 am 11:05 am

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