Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 28, 1993 TAG: 9303280061
SECTION: VIRGINIA PAGE: E-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: NORFOLK LENGTH: Medium
The quarterly bonus program is designed to motivate workers by sharing profits. But Navy auditors believe that depot managers were sharing more than productivity gains justified.
"This is a huge swindle," a source familiar with the Naval Criminal Investigative Service probe told The Virginian-Pilot. "What was an incentive has become an entitlement program. It's a lot of money, and the taxpayers are out."
The questionable payouts have helped the Norfolk depot, known as NADEP, top all other aviation depots in productivity awards in the three years of the bonus program.
The payouts also have threatened to derail the program, but Pentagon officials appeared eager to defend the productivity-bonus concept and played down the Norfolk facility's discrepancies.
"The bottom line is NADEP Norfolk employees really work consciously to save the taxpayers money," said Katie Cubbage, a management analyst in the Defense Department comptroller's office.
She said the program is a new one without firm policies or guidelines.
The audit and investigation are coming at a critical time for the depot, which is on Defense Secretary Les Aspin's list of recommended closings of military facilities.
The audit had nothing to do with the recommendation, said Charles Nemfakos, who headed the Navy committee responsible for base closures.
The investigation reportedly involves only how the bonuses were calculated, not how productive the depot workers were.
by CNB