An investigation by the U.S. Department of Interior’s Office of Inspector General into allegations surrounding former assistant secretary for Insular Areas, Anthony Babauta, found that the Guam native made “inappropriate” comments to employees.

However, OIG says it found no evidence that Babauta used government funded trips for personal gain, according to the 32 page investigative report released Tuesday. The report does indicate possible conflict of interest involving Babauta and the awarding of DOI grants to a college and a non profit group — both in Guam.

Babauta resigned from his post in January 2013 after being placed on administrative leave in November 2012, when allegations surfaced against him.

In October 2012, DOI’s Office of the Solicitor (SOL) brought allegations to the OIG that Babauta mistreated his employees through discrimination and sexual harassment, misused government equipment and personnel, and took personal trips under the guise of official business, according to the OIG investigative report.

It also says that these allegations originated from Office of Insular Affairs (OIA) employees, some of whom also filed Equal Employment Opportunity complaints against Babauta.

Samoa News should point out that OIG investigators interviewed several current and former OIA employees, but they were not identified by name in the report. On the other hand, OIA executive director Nikolao Pula was also interviewed and he was identified by name.

DOI GRANTS

During its investigation, OIG said it found that against the advice of his staff and grant specialists, Babauta directed the awarding of two OIA grants to the University of Guam (UOG) to support the Micronesian Center for a Sustainable Future (MCSF).

 Both grants went to Babauta’s former employer, a UOG senior official, and UOG subsequently hired Babauta’s friend as the MCSF project coordinator, OIG said, adding that the investigation revealed that UOG allowed the project coordinator to expend $32,636.34 in grant funds on unallowable expenses, many of which were of personal benefit to the project coordinator.

A large section of the report covered in detail the investigation of the grant awards to UOG and MCSF. Total grant awards were close to $500,000 and last year DOI terminated the grants, while the unused balance of around $370,000 was being returned to the federal government, the report said.

OIG investigators interviewed Pula, who “expressed overall concerns about grants awarded by OIA since Babauta joined the office,” the report said.

“He (Pula) said he had heard from various staff members that it appeared as if OIA was giving a lot of grants to UOG. Based on his experience, Pula believed that Babauta’s involvement with the grants appeared to be a conflict of interest,” it says.

MISTREATMENT

OIG also investigated allegations, among other things, that Babauta made inappropriate and sexual comments to female employees; used foul language in front of, and directed at, employees; and discriminated against older, male employees.

When questioned by investigators, Pula said he became concerned a few months after Babauta became the assistant secretary when Babauta selected four young women to work closely with him and travel with him frequently.

When asked if these women received any promotions, Pula said he was not aware of this, according to the report, which also quoted Pula saying that he also heard Babauta yelling profanities at an OIA staffer on one occasion, “appearing to show off how he disciplined employees whom he believed performed poorly”.

OIG said its investigation supported allegations that Babauta “made inappropriate comments to employees and conducted himself unprofessionally at times” — citing interviews with OIA staffers.

PROPERTY & PERSONNEL

The OIG also investigated allegations that Babauta had an employee pick up his daughter in a government rental vehicle while traveling in Guam. Additionally, Babauta had an employee pick up his former girlfriend at an airport and then drive them around over the weekend.

The former girlfriend (who was not identified by name in the report) told OIG investigators that the pair were in a relationship for about a year and a half, according to the report, which also states that the former girlfriend said the pair met in 2008 when Babauta was a Congressional staffer.

It also says that through interviews with current and former OIA employees, “we discovered that Babauta had one employee perform work outside the scope of his Government duties and that Babauta resided at the guest house of one subordinate employee for several months without providing compensation.”

GOVERNMENT TRAVEL

On the allegation regarding Babauta's use of government travel — including one trip to see his former girlfriend, the OIG report said, “we did not find evidence that Babauta used government travel for personal gain, but there were certain trips for government business in which he appeared to benefit personally.” (Details of the report are found on www.doioig.gov)

BABAUTA’S RESPONSE

Responding to the OIG report, Babauta issued a statement in Guam saying that he has reviewed the OIG report “and I am satisfied it reaffirms that my official acts and decisions as Assistant Secretary... were legitimate endeavors to improve the quality of life for areas under my responsibility,” the Pacific Daily News reports.

“I acknowledge that there are some appearances of conflicts, but I trusted then, as I do now, that my personal relationships with island leaders had no bearing in how I made a final decision,” he said. “I consider those of whom I interacted with, and were subjects of this investigation, to be outstanding leaders and faithful public servants. No one worked to betray the public’s trust.”

As to the personal matters cited in the OIG investigation, Babauta said, “I am embarrassed because of it and publicly apologize to my family.”