By John Harding
On May 24, Mary L. Kendall, Acting Interior Department Inspector General’s memo to her boss, Secretary Ken Salazar, discussed an “Investigative Report,” titled “Island Operating Company, et al.”
Ordinarily, public release would have followed a formal MMS response, 90 days after getting it. But today’s events forced Kendall “to release it now,” saying her greatest concern is the “environment in which these inspectors operate – particularly the ease with which they move between industry and government.”
Kendall’s report stated, “Minerals Management Service (MMS) employees (in charge of inspections and oversight) accepted gifts from oil and gas production companies.”
Kendall found evidence that MMS and industry personnel fraternized and exchanged gifts, and have known each other since childhood. MMS staff used illegal drugs including cocaine and crystal methamphetamine and (just like the SEC) viewed pornography on their government computers.
Her findings were presented to the U.S. Attorney’s Office for the Western District of Louisiana, which declined prosecution.
Kendall discovered MMS falsification of offshore oil rig inspection forms. On October 15, 2009, she presented her findings on this to the U.S. Attorney’s Office for the Western District of Louisiana who again declined the case for prosecution.
1 comment:
I also heard MMS inspectors used to ink-in inspection forms that were pencil-ined by drilling companies. Of course there were also rumors that government regulators and drilling employees were actually in bed with one another, presumably drilling for something other than "liquid gold." Talk about an intimate gov-corp relationship.
My question, if gov regulators aren't regulating, then why continue the facade? Cheaper to let industry work unchecked, but sue the hell out of the when they screw-up. Kind of like the BP Gulf spill model.
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