Panel plans to broaden probe into conferences

WASHINGTON -- The chief investigator in the House of Representatives said Monday he plans to broaden a probe into federal conferences after dissecting $823,000 in spending that took place at the notorious Las Vegas-area training meeting hosted by the General Services Administration.

Rep. Darrell Issa, R-Calif., said he was not done looking into government conferences, challenging whether all are really needed.

The House Oversight and Government Reform Committee has sent 23 letters to federal agencies inquiring about their off-site gatherings, he said, adding that "the committee intends on investigating the whole practice of conferences."

"We are going to be expansive in our look at unnecessary conferences," said Issa, the committee's chairman, who convened the first in a series of congressional hearings this week on excesses at the 2010 Western Regions Conference at the M Resort in Henderson and reports of other mismanagement within the GSA.

"The first question under any administration is why do we need them," Issa said. "I certainly think as we look at a pattern that apparently began and continued probably through every administration since Hoover, what we want to do is bring to an end under this administration."

"What has come to light surrounding GSA's activities should give pause to anyone who has opposed cutting government size and spending," Issa said.

Travel industry lobbyists and executives have urged Congress not to overreact to what they are portraying as "poor decision making" by organizers of the four-day conference held in October 2010.

But that was a message lost on Democrats and Republicans who swapped outrage during a three-hour hearing Monday.

"You know, Alexander Graham Bell has this marvelous invention called a telephone," said Rep. Trey Gowdy, R-S.C. "Better yet, a videoconference. The notion that you have to spend $800,000 to exchange ideas is laughable."

GSA PLANNER REMAINS SILENT

The hearing was marked by the appearance of Jeffrey Neely, the GSA regional commissioner and chief planner of the Western Regions Conference who had promised it would be an "over the top" affair.

Neely declined to answer questions Monday, asserting his constitutional right to remain silent after being subpoenaed to appear.

After each of six questions from Issa, including what his job title is at GSA and whether he attended the Henderson conference, Neely invoked Fifth Amendment protection against self-incrimination.

After being excused, Neely, 57, exited through a side door as GSA Inspector General Brian D. Miller confirmed to lawmakers he has recommended the Department of Justice pursue criminal charges against the San Francisco-based regional official.

Neely, who has overseen the GSA's Pacific Rim region, is on administrative leave with pay, a step in being fired from his $172,000-a-year job.

Miller called the GSA abuses "repugnant conduct" and said that auditors were told by witnesses such behavior was widespread in the Pacific Rim region. Neely, he said, was portrayed as someone who would threaten to "squash like a bug" employees who crossed him.

Miller said he was continuing to investigate "all sorts of improprieties" within GSA including bribes and possible kickbacks.

At the hearing, Democrats and Republicans took turns blasting what Miller in an explosive April 2 audit report deemed "excessive and wasteful spending" in Las Vegas and several violations of federal contacting rules.

The findings were somewhat ironic in that the General Services Administration manages procurement and contracting on behalf of other federal departments.

Among other things, $142,527 was spent on catering for 300 conference-goers at the M Resort, $6,325 was spent for commemorative coins, $8,120 for souvenir books, and $1,840 for 19 blackjack dealer vests so, according to Rep. Michael Turner, R-Ohio, "everybody could feel they were in character when they got to the conference."

NEVADANS CONCERNED

Nevada leaders worry that Las Vegas may be scapegoated as a destination that encourages such excess. The city was mentioned by name only twice during the three hour-hearing, including once by Rep. Mike Kelly, R-Pa., who applauded the uncovering of the scandal.

"Thank God this time, what happened in Vegas didn't stay in Vegas," he said.

Dan Tangherlini, the GSA's new acting administrator, said the agency has sent demands that Neely and two others who were in Las Vegas repay what was spent on parties they held in their rooms.

Neely was told to pay $2,717, former Public Building Services head Robert Peck was sent a bill for $1,960, and GSA executive Robert Shepard received a demand for $922. Peck was fired on April 2, and Shepard is on administrative leave.

Tangherlini said he has canceled 35 upcoming conferences, at a savings of $995,686. At least two reported were to be held in Las Vegas.

Tangherlini was urged to pursue GSA officials who spent more than $136,000 to organize the Western Regions Conference, including holding six planning meetings at the M Resort.

"The tribes of Israel sent 12 scouts to the promised land," Gowdy said . "The GSA had to send 15 to Las Vegas to check out a hotel."

Martha Johnson, who was GSA administrator, resigned when the audit was made public. She said she spent her final weeks initiating reforms but felt she should resign to send a message the agency was serious about cleaning up.

Johnson said the Western Regions Conference had been an economical, straightforward set of training sessions in the late 1990s but evolved into "a raucous, extravagant, arrogant, self-congratulatory event that ultimately belittled federal workers."

"I am extremely aggravated by the gall of a handful of people to misuse federal tax dollars, twist contracting rules and defile the great name of the General Services Administration," she said.

Johnson came under fire for signing off on a $9,000 bonus for Neely while the inspector general's office was conducting its investigation. She said she approved it on Peck's recommendation and because "I was focused on performance." Neely, she said, was filling the two top posts in the Pacific Rim region.

Lawmakers also criticized Johnson for not taking action sooner after learning of the overspending. She was briefed on the inspector general's draft findings in May 2011, but the final report was not issued until earlier this month.

The Republican-led House Transportation and Infrastructure has scheduled a hearing on the GSA conference for today . The Senate's public works committee has set a hearing for Wednesday. Also, Sen. Richard Durbin, D-Ill., said he planned to bring it up at a GSA budget hearing later that day.

Contact Stephens Washington Bureau Peter Urban at purban@stephensmedia.com or 202-783-1760. Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760. Follow him on Twitter @STetreaultDC.