Michelle Malkin » And another one bites the dust: EPA nominee withdraws over grant fraud scrutiny/conflict of interest

And another one bites the dust: EPA nominee withdraws over grant fraud scrutiny/conflict of interest

By Michelle Malkin • March 25, 2009 04:33 PM

This is beginning to get repetitious. Just in from the EPA, another Obama nominee is bailing out over scrutiny of his past:

EPA Statement on Jon Cannon
Release date: 03/25/2009

Contact Information: Betsaida Alcantara, 202-564-1692 / alcantara.betsaida@epa.gov or Brendan Gilfillan, 202-564-2081 / gilfillan.brendan@epa.gov

(Washington, D.C. – March 25, 2009) Jon Cannon, nominee for Deputy U.S. Environmental Protection Agency Administrator, released the following statement:

“Today I am voluntarily removing my name from consideration to be Deputy Administrator of the Environmental Protection Agency. It has come to my attention that America’s Clean Water Foundation, where I once served on the board of directors, has become the subject of scrutiny. While my service on the board of that now-dissolved organization is not the subject of the scrutiny, I believe the energy and environmental challenges facing our nation are too great to delay confirmation for this position, and I do not wish to present any distraction to the agency.”

EPA Administrator Lisa P. Jackson said: “I’m disappointed that Jon Cannon will be unable to serve as Deputy Administrator, and I thank him for his many years of dedication to the EPA. The administration will move quickly to identify a new candidate who can help us carry out our mission to preserve environmental sustainability and create green jobs as we transition the nation to a clean energy economy.”

(Hat tip: Daniel G.)

There are no news stories up yet from the MSM on the scandal Cannon is referring to, but I found this EPA report from 2007 on how the America’s Clean Water Foundation mishandled three huge government grants totaling nearlly $26 million:

The Foundation did not comply with the financial and program management standards and the procurement standards promulgated in Title 40 Code of Federal Regulations (CFR), Part 30. Specifically, the Foundation (1) could not provide support for any of its general journal entries; (2) included duplicate transactions in its accounting system; (3) recorded labor charged to EPA grants incorrectly; (4) could not support the recorded indirect costs; (5) claimed unallowable preaward costs; (6) recorded EPA cash draws inaccurately; (7) did not submit required indirect cost proposals to EPA; (8) did not complete the required single audits for fiscal years ended June 30, 2003, June 30, 2004, and June 30, 2005; and (9) did not submit a Federal Cash Transactions Report when required.

The Foundation’s procurement practices and procedures did not comply with the grant regulations. The Foundation awarded sole source contracts without performing the cost/price analysis required by Title 40 CFR 30.45. It also awarded a contract to a member of its Board of Directors, contrary to the conflict of interest provisions at Title 40 CFR 30.42, and reimbursed a contractor for billings above contractual ceilings. Because the Foundation did not adequately document its costs and did not comply with the EPA regulations, we questioned the Federal share claimed of $25,372,590.

The America’s Clean Water Foundation disappeared soon after the discovery of financial shenanigans:

While performing the single audit for the year ended June 30, 2004, RAFFA, the Foundation’s accounting firm, discovered accounting irregularities and a potential embezzlement of funds.

The Foundation’s president and the managing partner of RAFFA met with EPA officials to report these irregularities. As a result of this meeting, EPA, on July 18, 2005, changed the Foundation’s method of grant payments from “Advance” to “Reimbursement.” EPA officials stated they took this action because the circumstances described indicated a breakdown in internal controls. They also stated that EPA would not process any new grant awards or amendments to existing grants until the Foundation demonstrated it had complied with EPA’s standards for financial management systems in Title 40 CFR 30.21(b).

In a November 8, 2005, letter, EPA informed the Foundation that payment for grant costs incurred for contract ACWF-OFAER-01-05 awarded to Environmental Management Solutions, LLC (now Validus Services, LLC) would not be approved because the Foundation did not comply with EPA procurement requirements. In response, the Foundation provided information on the OFAER contract procurement and requested a deviation from the regulations. EPA deferred action on the Foundation’s request for deviation to allow the Foundation additional time to provide the required cost review documentation. On July 11, 2006, EPA denied the Foundation’s request for deviation because (1) the required documentation was not submitted and (2) the OIG indicated in a memorandum report2 that costs incurred under the contract were not reasonable or allowable. EPA requested that the $5.6 million it reimbursed the Foundation under the contract be returned.

In a July 14, 2006, letter, the Foundation’s attorney notified EPA that the Foundation was formally dissolved. The letter stated that all members of the Board of Directors had resigned, the Foundation filed dissolution papers with the District of Columbia, and it no longer had any employees or an office location. The stated reason for the dissolution was the lack of program funding; the Foundation could no longer operate effectively or respond to Agency inquiries. The letter indicated that Foundation records and files had been moved to a storage facility in Standardsville, Virginia, that access to the records can be arranged, and that the Foundation retained its right to initiate and maintain claims.

But, you know, this is all just a “distraction.”

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Comments

#1

On March 25th, 2009 at 4:37 pm, Misscheryl said:

The quicker we can get rid of this clown and his band of comics, the better our country will be.

THROW THE BUM OUT!
#2

On March 25th, 2009 at 4:44 pm, Oink said:

Kinda reminds me a (just a little) of the Fox News exclusive about Obama, the Joyce Foundation, the Chicago Carbon-whatever company, and grant money.
#3

On March 25th, 2009 at 4:47 pm, inspiredhome said:

I drive to the People’s Republic of Boulder three times a week and I’ve been seeing less and less of Obama and Hope N Change stickers. Do we get a 90 day return policy? I’m guessing it’s more along the line of “you break it, you buy it.” Except Obama turns to us and says, “Hey I forgot my wallet. You mind?”
#4

On March 25th, 2009 at 4:51 pm, Misscheryl said:

“Hey I forgot my wallet. You mind?”

nail.head.
#5

On March 25th, 2009 at 4:58 pm, Hangfire said:

I didn’t realize that the best way to get rid of corruption in Washington D.C. was to start nominating people for cabinet posts.
#6

On March 25th, 2009 at 5:02 pm, mojack420 said:

the chicago machine dose what the chicago machine knows .

nothing to see here move along you racist
#7

On March 25th, 2009 at 5:03 pm, swede said:

Geez. The only place in the country that’s hiring and they can’t find help. Isn’t there a White House union to protect jobs for the incompitent?
#8

On March 25th, 2009 at 5:11 pm, docflash said:

You can bet your patooie this won’t be on the MSM.This sounds like out and out theft.
#9

On March 25th, 2009 at 5:13 pm, Flyoverman said:

Michelle, for the sake of accuracy, could you please add the TOTUS on the bus graphic? I believe he is omnipresent so….

Also, even though they are not included in the picture the tires should be pretty worn by now, not to mention the shocks.

Whole lotta thumpin going on.
#10

On March 25th, 2009 at 5:14 pm, maine yankee said:

THROW ALL THE BUMS OUT !!!!

NO INCUMBANTS !!!!!

I don’t care who they are, or where the’re from. Dem or Rep.

THROW THE BUMS OUT !!
#11

On March 25th, 2009 at 5:14 pm, oregonelam said:

Hillary is starting to look more like a goody two shoes compared to these goons.
#12

On March 25th, 2009 at 5:19 pm, backwoods conservative said:

Face it. There are no honest Democrats.
#13

On March 25th, 2009 at 5:25 pm, AlohaGuy said:

It also awarded a contract to a member of its Board of Directors…

Hmmm…
#14

On March 25th, 2009 at 5:25 pm, TXGator said:

For God’s sake, I find myself wishing Hillary were POTUS.

Jesus freakin’ Christ.
#15

On March 25th, 2009 at 5:29 pm, swede said:

backwoods conservative said:
Face it. There are no honest Democrats.

Depends on what your definition of “are” is. Do you mean honestly honest or relative voracity? There are no relationships with those women.

Honest.
#16

On March 25th, 2009 at 5:36 pm, bansharia said:

well lets see ahnold is emptying jails, perhaps obambi can find some people to hire from CA parolee list.
#17

On March 25th, 2009 at 5:39 pm, Craig said:

EPA Administrator Lisa P. Jackson said: “I’m disappointed that Jon Cannon will be unable to serve as Deputy Administrator, and I thank him for his many years of dedication to the EPA.

Don’t worry Ms. Jackson…it’s clean water under the bridge.
#18

On March 25th, 2009 at 5:54 pm, backwoods conservative said:

There are no relationships with those women.

Honest.

Of course not. The conservative women are much better looking.
#19

On March 25th, 2009 at 5:55 pm, letget said:

Now, how many here are surprised? bho and team will not nominate anyone who might actually stand for something or care for our country.
L
#20

On March 25th, 2009 at 6:02 pm, Salt said:

Hmm… so is building an administration really not like organizing a community?

You don’t say?
#21

On March 25th, 2009 at 6:05 pm, tpitman said:

On March 25th, 2009 at 5:25 pm, TXGator said:

For God’s sake, I find myself wishing Hillary were POTUS.

Jesus freakin’ Christ.

Me too. Scary, ain’t it?
#22

On March 25th, 2009 at 6:06 pm, Pasadena Phil said:

Alright, everybody just calm down. This is probably just another unfortunate misunderstanding. I’m sure that when all the facts come out, we’ll all understand how it all makes sense.

“You see, we were all sitting in the board room organizing our records for the various scheduled audits when suddenly a big gust of wind came out of nowhere blowing our files and millions of dollars of cash out the window and into a biblical rain storm (wouldn’t you know it), down the storm drains and out to sea. I’m sorry…I didn’t hear your question. What about the cash?”
#23

On March 25th, 2009 at 6:14 pm, Bear said:

Now if we could get rid of the EPA our environment would improve.
#24

On March 25th, 2009 at 6:32 pm, Stillwaiting said:

I didn’t think single audits were that rigorous. The irregularities must have been numerous to actually be uncovered.
#25

On March 25th, 2009 at 7:22 pm, reutersrutter said:

Do Nothing fools!
#26

On March 25th, 2009 at 7:28 pm, Jeff2161 said:

Face it…If ACORN was audited they would fail too…At least the EPA was somewhat conscientious about our money. I’m surprised they cancelled payments, frankly…
#27

On March 25th, 2009 at 7:28 pm, Jeff2161 said:

Oh, that’s right…That happened under the Bush administration…My bad…
#28

On March 25th, 2009 at 7:34 pm, ajmontana said:

With so many people out of work how hard can it be to find good people. To take a line from The Untouchables…..
“go to the tree, fresh from the academy”
Is he afraid he may find someone honest?
Hopey Changey is a failure, 60 days in and doing nothing but partying and campaigning. Pathetic. They better get a dog soon it’s going to be the only friend he will have.
#29

On March 25th, 2009 at 7:35 pm, torabora said:

So…??? Million$$$$ were stolen. So what?
The banks stole hundreds of billion$$$$, who cares about that?

Stealing is OK now. Laws and contracts aren’t worth the ink they’re drawn with.

All hail Lord Obama!
#30

On March 25th, 2009 at 7:38 pm, Living in the PSRK said:

OT:

Drought Reignites Dust Bowl Fears

March 21, 2009
R. Scott Rappold
The Gazette, Colorado Springs, CO

ELKHART, Kan.• This empty stretch of prairie, broken only by the stony ruins of a long-demolished basement, is where Floyd Coen learned that you can eat tumbleweeds if you have to.

The basement, today just a ring of rocks around a pool of sand, was where his family lived in the 1930s, on a farm his father chiseled out of the arid grassland.

It’s where the family took shelter when “dusters” swept through — “Let’s all go in the house and die together,” they would say.

It’s where seven older brothers watched helplessly as their 2-year-old sister succumbed to dust pneumonia.

This was the epicenter of one of the worst ecological disasters in American history, the Dust Bowl. Drought and unsustainable farming methods left 83 percent of Morton County, home to Elkhart, in extreme southwestern Kansas, barren, and fierce prairie winds blew much of the land away. No other county in the six Dust Bowl states had a greater portion of its land devastated.

Seventy-five years later, the land is blowing again…
#31

On March 25th, 2009 at 7:40 pm, Jeff2161 said:

, torabora said:
So…??? Million$$$$ were stolen. So what?

Well, with the exception of Tiiimmmeeeehhh… Wall street types were smart enough NOT to apply for jobs in the D’oh administration.
#32

On March 25th, 2009 at 7:41 pm, Living in the PSRK said:

well lets see ahnold is emptying jails, perhaps obambi can find some people to hire from CA parolee list.

Yeah, something else we Kalifornian get to look forward to this Summer…
#33

On March 25th, 2009 at 7:42 pm, Lucifer Jones said:

With all the casualties, just how many blowouts and wheel alignments has the bus had so far?
#34

On March 25th, 2009 at 7:43 pm, Jeff2161 said:

Yeah, something else we Kalifornian get to look forward to this Summer…

Hey Hollywood, time for a sequel. Felons go to Washington. Heh.
#35

On March 25th, 2009 at 7:44 pm, Jeff2161 said:

With all the casualties, just how many blowouts and wheel alignments has the bus had so far?

Bodies are soft…It’s no worse than hitting a pothole. Easier since the Bus is not at top speed.
#36

On March 25th, 2009 at 7:45 pm, simcoe said:

And another one gone
Corrupt-a-crat gone
Another one bites the dust

It ain’t called Chicago DC, ‘bama

=======================

The fact that they can withdraw implies that they agreed to be nominated. It should be that, if you agree to be nominated to a United States Government post, a withdrawal to hide something cannot stop an investigation.
#37

On March 25th, 2009 at 7:46 pm, Jeff2161 said:

BTW: Yes, the bus pulls left so, it would need an alignment with a new administration driving.
#38

On March 25th, 2009 at 7:47 pm, Jeff2161 said:

Remember Weird Al Yankovic’s song…Another one rides the bus ?
#39

On March 25th, 2009 at 7:49 pm, Jeff2161 said:

This is the link.
#40

On March 25th, 2009 at 8:02 pm, gridlock said:

Sweet deal. You set up a phony-baloney organization and get a big whumpin’ government grant from your buddies. Then if the government ever starts asking where all the money went, you fold up your tent and disappear, and you get to keep all the money!

Where do I sign up for this deal?
#41

On March 25th, 2009 at 8:05 pm, gridlock said:

On March 25th, 2009 at 5:13 pm, Flyoverman said:
Michelle, for the sake of accuracy, could you please add the TOTUS on the bus graphic? I believe he is omnipresent so….

You know those dopey little convex mirrors on the corners, to make sure you don’t get any rugrat sized dents in the front bumper? One of those could be replaced with TOTUS, very easily…
#42

On March 25th, 2009 at 8:46 pm, Rogue Cheddar said:

On March 25th, 2009 at 5:25 pm, TXGator said:
For God’s sake, I find myself wishing Hillary were POTUS.

Jesus freakin’ Christ.

You for saying and me for thinking, despite our frustrations, we should refrain from the Lord’s name in vain. Especially when uttering Hillary’s name in the very same thought bubble. Penance will be ten Hail Mary’s. Come on! Say it with me now! (gets on knees) “Hail Mary …”
#43

On March 25th, 2009 at 8:59 pm, ajmontana said:

Hillary? pahleeeeze, she can’t even get a flippin button right.

Sarah would be running circles around both Hildebeast aaaaaaaand Odopey.

Chinese fire drill doesn’t even do justice to how messed up this admin is.
#44

On March 25th, 2009 at 9:41 pm, jangar said:

Birds of a feather…

Nothing new here.
#45

On March 25th, 2009 at 10:09 pm, RetFireman said:

Well thank God the Dems are so ethical. I mean, can you just imagine what a nightmare this process would be if they weren’t..let alone how much of a laughing stock buffoon it would make Obama out to be?

At least their ethics and honest business practices will save him from such a fate.
#46

On March 25th, 2009 at 10:10 pm, plymouthacclaim said:

backwoods conservative said:
Face it. There are no honest Democrats.

There was one, but Ralph Hall is now a Republican.

As he said: “…the Democratic party left me.”
#47

On March 25th, 2009 at 10:11 pm, Flyoverman said:

You know those dopey little convex mirrors on the corners, to make sure you don’t get any rugrat sized dents in the front bumper? One of those could be replaced with TOTUS, very easily…

Sweet, gridlock! A custom school bus.
#48

On March 25th, 2009 at 10:39 pm, Pat said:

A repeat of the grant recipient in Chicago who took Annenberg money and he and his wife just took the money and ran instead of building a park.

This shows the corruption that follows when government controls the purse strings of the nation. We have to stop the growth of government, and the GOP had better get to it or they will be rejected again.
#49

On March 25th, 2009 at 11:13 pm, gco said:

It isn’t a bus anymore, it’s a monster truck.

Sunday! Sunday! Sunday! One night only at the Metrodome! ArugulaFoot!
#50

On March 25th, 2009 at 11:16 pm, Republicanvet said:

On March 25th, 2009 at 8:02 pm, gridlock said:

Sweet deal. You set up a phony-baloney organization and get a big whumpin’ government grant from your buddies. Then if the government ever starts asking where all the money went, you fold up your tent and disappear, and you get to keep all the money!

Where do I sign up for this deal?

First, you have to be a left wing wacko and belong to some nutty organization. Get a few buds together, hire someone to write grants, then watch the money flow in.

Helps to have some high level leftists in your camp, or even a Congressman giving a nudge to some tight-fisted bureaucrat.

Seriously, I can’t figure out why each of the crooks on the Board if Directors of this bunch are not on trial right now.

It is long past getting old seeing tax money given to some left wing group, who either steals it or turns around and uses it to further destroy America.

Another question that comes to mind is:

How many other loosely run wacko groups like this get grants to do environmental assessments that end up screwing the taxpayer in the end?

OK, more questions:

Why was legal action against the organization not one of the recommendations?

Why have the EPA OIG and other officials not followed up on this?
#51

On March 26th, 2009 at 4:32 am, graysonret said:

With the world economic situation the way it is, people vote into the Presidency, a rookie, teleprompter reader, from the corrupt state of Illinois, who can only vote “present”, with so little experience that he has to bow to the Pelosi/Reid way, and who can never seem to find anyone, worth anything, to be nominated. And to think the MSM concludes that he’s great. Lord, is half the country on drugs?
#52

On March 26th, 2009 at 5:13 am, SpeakEasy said:

As a friendly reminder to those wishing for a President Hillary, she and hubby were no less crooked, just smoother at the con. Just like Carter, Obama will do more for the Republican brand than most of the RINOs in Washington.
#53

On March 26th, 2009 at 8:51 am, conservativesRus said:

On March 25th, 2009 at 11:16 pm, Republicanvet said:
It is long past getting old seeing tax money given to some left wing group, who either steals it or turns around and uses it to further destroy America.

My correction -it is long past seeing tax money given to ANY group. It isn’t the purpose of government to give money to any group. (At least as far as that largely ignored document known as the Constitution)
#54

On March 26th, 2009 at 9:38 am, taylork said:

Awesome.
The longer the department is without leadership, the longer it will be before they start trying to tax my farts.
#55

On March 26th, 2009 at 9:58 am, cheapseat said:

unfortunately, there is no 90 day change your mind policy, sure would be nice if so, because we are only 2 months into a 4 year sentence. now i know how those convicts feel. hopeless until the parole hearing in 2010, but not counting on release until 2012. the days are sure long listening to dear leader continually on the airwaves, while he can’t fill a cabinet or organize a clusterflop. if only he could get as into governing as he and his wife are into partying, things might start happening. he has had more parties than successful cabinet appointees.
#56

On March 28th, 2009 at 3:55 pm, Dimsdale said:

“While my service on the board of that now-dissolved organization is not the subject of the scrutiny, I believe the energy and environmental challenges facing our nation are too great to delay confirmation for this position, and I do not wish to present any distraction to the agency.”

You can’t be a distraction if you don’t have some significant skeletons in your political closet.