REPORT: CUSTOMS' INTERNAL WOES INVITE TROUBLE

U.S. Customs' failure to address allegations of internal wrongdoing has left
the nation's top-priority effort to stop drug traffic at its borders at
``great risk'' of corruption, according to a report to Congress this week by
independent federal investigators.

The report by Customs overseers at the U.S. Treasury Department lambasted
the agency's efforts to investigate its own. The investigation included
visits to field offices around the country, including Miami.

Two other outside investigations, by the U.S. Senate and a separate Treasury
office, are expected to culminate in oversight hearings this summer. Those
probes were prompted in part by Herald reports outlining similar instances
of mismanagement.

While allegations of bribery and other criminal misconduct have almost
tripled in recent years, the report says, half the internal probes reviewed
were ``inadequate,'' languishing for months without action, with potential
witnesses ignored and leads not pursued.

``And in a few cases, the subject of the investigation was either
interviewed before the complaining witness or not interviewed at all,''
according to the report conducted by the Treasury Department's Office of
Professional Responsibility.

The report blamed the shortcomings on bad leadership, infighting, poor
recruiting and hiring, insufficient integrity training, and inconsistent
administration of discipline.

``If these conditions are not immediately addressed and corrected, Customs'
ability to effectively combat corruption will continue to be impaired,'' the
report states. ``The number one, and undoubtedly, most threatening and
formidable corruption threat facing Customs is the illegal drug trade.

``Large amounts of illegal drugs that are destined for the U.S. through
land, sea and air ports of entry -- and the enormous amount of money at the
disposal of drug traffickers to corrupt law enforcement personnel -- places
Customs and its employees at great risk to corruption.''

The findings in many ways mirror a December Herald report that found dozens
of examples of careers that flourished after internal investigations of
dating drug smugglers, tampering with evidence, skimming seized drug cash,
having sex with a paid informant and other crimes and policy violations.

In response to the report, Customs Commissioner Raymond Kelly acknowledged
the problems and laid out an action plan designed to correct them in a
letter to Rep. Jim Kolbe, R-Ariz., chairman of the House Appropriations
subcommittee that oversees the agency.

``A strong and proactive Office of Internal Affairs is one of the best
defenses against dishonesty and corruption,'' Kelly wrote. ``Unfortunately,
Customs' Office of Internal Affairs has developed serious problems over a
number of years.''

Already, Kelly has reassigned the former Assistant Commissioner of Internal
Affairs, Homer Williams, who is under grand jury investigation in San Diego
on allegations he tipped off a girlfriend that she was targeted in a
corruption probe.

Williams' replacement -- William Keefer, a career federal prosecutor and
former U.S. Attorney in Miami ---- took over the office on Monday.

In addition, Kelly has begun a major shake-up in the agency, including
forced transfers of three top Miami administrators named in The Herald
reports. Kelly has also stripped regional commands of many promotional and
disciplinary decisions, ordered a stop to infighting by rotating field
agents through internal affairs, beefed up the disciplinary review systems
and formed seven ``working groups'' to recommend reforms in areas ranging
from swift discipline to whistle-blower protections.

The report did not address specifics or attempt to define how badly the
agency has been affected to date, but concluded:

>From 1995 through 1997, internal affairs ``self-initiated only 12 of the
311 investigations of allegations of criminal conduct.''

Periodic review investigations, in which Customs evaluates its own
performance, are suffering a severe backlog, with some 5,600 waiting to be
conducted.

Bribery allegations have risen from 25 in 1995 to 70 in 1997, with cases of
overall criminal wrongdoing rocketing from 63 to 180 in the same period.

``The real challenge to the leaders of an organization is not the
apprehension of corrupt employees after the fact, but the identification and
prevention of corrupt behavior by employees at risk before it happens,'' the
report states.

The agency's nearly 20,000 employees, including inspectors and field agents,
are responsible for monitoring imports and exports at some 300 ports of
entry and collecting more than $20 billion each year in duties, tariffs and
fines. In 1997, it processed more than 400 million passengers, 17 million
cargo shipments and seized about 400 tons of drugs.

Herald staff writer Frank Davies contributed to this report.