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.