NTU Expresses Support for Strengthening "Whistleblower" Protection Legislation

The Honorable Thomas M. Davis III, Chairman
The Honorable Henry A. Waxman, Ranking Member
Committee on Government Reform
U.S. House of Representatives
2157 Rayburn House Office Building
Washington, DC 20515

Dear Mr. Chairman, Mr. Ranking Member, and Members of the Committee:

Recently, you and your colleagues received a letter from 19 citizen and labor organizations urging the Committee to "formalize the schedule for hearings and a markup of the Federal Employee Protection of Disclosures Act (H.R. 1317)" and to adopt "amendments that strengthen H.R. 1317." On behalf of the 350,000-member National Taxpayers Union (NTU), I write to offer our support for this legislative effort, from a fiscal policy perspective.

As you may know, NTU has long advocated protective laws to shield government "whistleblowers" from retaliation. Indeed, one of NTU's first leaders was Ernest Fitzgerald, a legendary whistleblower who uncovered more than $2 billion in cost overruns on the C-5A project. Since then, patriotic Americans like Mr. Fitzgerald have helped NTU and government investigators to expose items ranging from Medicare benefit fraud to irregularities at the Pentagon's own Inspector General Office.

Despite the fact that whistleblower protection statutes were unanimously enacted in 1989 and 1994, a series of hostile court decisions has effectively gutted these laws, and has left brave employees with vital information about wasted tax dollars in limbo. Meanwhile, legislative "fixes" to clarify Congress's intent and rebuild the legal shelter offered to whistleblowers have gained momentum in previous years, but have fallen frustratingly short of final enactment.

For these reasons alone, Congress ought to consider H.R. 1317 promptly. Yet, there are other pressing whistleblower issues that recommend, indeed necessitate, the Committee's adoption of additional provisions to this bill. For example, recent court cases have only added more uncertainty to the matter of covering certain employees of agencies such as the Federal Bureau of Investigation and the Department of Homeland Security under whistleblower laws. This ongoing controversy can have an adverse impact on the work of groups like NTU, which often depend upon credible "insider" accounts to build a case for greater financial oversight of the nation's burgeoning homeland security structure. Just a few examples uncovered from the Transportation Security Administration (TSA) illustrate vividly the plethora of accountability problems that have cost taxpayers dearly:

  • Increases in labor overhead costs of 104-130 percent, when security contracts were first handed over from airlines to the TSA in 2002.
  • An expenditure of more than $460,000 on a posh TSA celebration in 2003, including nearly $82,000 for plaques and other awards.
  • Most recently, a report of lavish expenditures associated with TSA's Transportation Security Operations Center, boasting a $350,000 fitness facility to serve 79 employees and a $282,000 array of artwork and silk plants (contractor markups and overpayments added to the tab).

Could any of the forgoing waste, fraud, and abuse have been prevented by more timely information from a federal worker, confident that the law would facilitate his or her disclosures? The answer may never be known. What remains certain, however, is that failing to afford "national security whistleblowers" effective anti-retaliatory safeguards will only deprive Congress of a vital "early warning system" that could prevent future fiscal debacles. H.R. 1317 should be amended to rectify this situation.

When the Department of Homeland Security was first created, NTU strongly backed flexible personnel policies that would allow the agency to hire the most competent employees with fewer bureaucratic impediments and outdated labor rules. We continue to advocate these reforms, not only for the Homeland Security Department but also for the entire federal government. While such forward-looking practices can and do hold the promise of cost savings, taxpayers are also well served by other checks and balances that permit federal workers to report government waste without fear.

Given the unanimous passage of previous whistleblower-defense laws, it is readily apparent that most lawmakers support the principle of shielding these conscientious individuals from reprisals. Yet, putting this principle into practice has been difficult, thanks to the utter contempt courts have shown toward Congress's will, not to mention statutes whose structures cannot withstand the rigorous challenges that whistleblowers face today. The Committee on Government Reform has the power to address these defects now, by reporting a strengthened version of H.R. 1317 to the House floor in expedited fashion. By doing so, your tremendous leadership will inspire your colleagues throughout Congress who are seeking the best possible value for the hard earned dollars that taxpaying Americans send to Washington.

Sincerely,

Pete Sepp
Vice President for Communications