Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 20, 1993 TAG: 9305200341
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: From The New York Times and The Associated Press
DATELINE: WASHINGTON LENGTH: Medium
Administration officials, who said the low-level appointees had failed to account for thousands of dollars, questioned some of their contracts with air-charter companies.
The staff members were not appointees of the Clinton administration.
Dee Dee Myers, the White House press secretary, said that an outside review of the office by an accounting firm had turned up evidence of "gross mismanagement" and "very shoddy accounting practices."
While she said the White House was not accusing any of the staff members of criminal wrongdoing, she declined to explain why it had brought in the FBI.
The office does most of its work on behalf of news organizations but also books commercial flights and hotel accommodations for White House officials.
The White House said it had hired a distant cousin of Clinton, Catherine Cornelius, 25, who handled Clinton's campaign press charters, to make travel arrangements on an interim basis under the supervision of the Office of Management and Budget.
A partner of the accounting firm that conducted the review, Peat Marwick, said there was evidence of possible illegalities.
"The nature of the transactions raises questions," the partner said, speaking on condition of anonymity. "When you see lack of documentation of cash, unaccounting of petty cash - those are not the things you want to see in any accounting environment."
White House officials said they asked the FBI to investigate whether officials in the travel office had sought kickbacks from plane charter companies.
Billy Dale, the head of the travel office, said he was flabbergasted by the charges. "They told us we were being let go because they were reorganizing, revamping the office. . . . I'm just devastated."
by CNB