THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, January 5, 1996 TAG: 9601050451
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY JACK DORSEY, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 66 lines
The commander of the Navy's exchange stores has agreed to step aside while an investigation continues into alleged improper management of the Norfolk Naval Base Exchange.
The decision was reached Thursday after the Navy's Inspector General's office said it planned to broaden its probe, which initially began last spring following complaints from workers at the store.
It is unknown if criminal charges could result, or if Navy policies had been violated.
Some of the complaints - none of which have been substantiated - alleged that the Norfolk Exchange showed favoritism toward flag officers who came there to shop.
A half-dozen investigators are expected to take a more in-depth look next week into allegations that the Norfolk store's management may have engaged in inconsistent and unauthorized practices relating to pricing, provisions of services and other possible irregularities, officials said.
Rear Adm. Jack T. Kavanaugh, commander of the Navy Exchange Service Command, headquartered in Virginia Beach, agreed with his superior, Rear Adm. Robert M. Moore, commander Navy Supply Systems Command, that he will turn over his duties to his deputy commander while the probe continues.
``He is not being relieved of command,'' said Rear Adm. Kendall Pease, chief of Navy information in Washington. ``They both agreed that it would be in the best interest of the Navy and the Navy Exchange Service Command if Adm. Kavanaugh steps aside as commander until the investigation is completed.''
Pease declined to comment further, saying it would be inappropriate until the investigation is complete.
However, sources have said that Kavanaugh is one of the flag officers to have allegedly accepted special privileges from the Norfolk Exchange store.
Specifically, one source said he accepted a ride to his office after leaving his automobile at the exchange for servicing. However, another pointed out that such a service is available to any customer who requests it.
Other allegations also have been made about additional senior officers based in the area. They include: having Christmas trees delivered to some flag officers' government quarters, a service not normally provided other customers; having tailors conduct fittings at officers' residences; and having employees in the exchange's parking lot notify management whenever a senior flag officer entered the store.
Kavanaugh's command is responsible for 135 exchange stores, 41 Navy Lodges and more than 250 ship's stores. Navy Exchanges sell everything from soap and baby diapers to electronics, computers and furniture. They did more than $2.2 billion in sales in 1993.
The investigation of the Norfolk Exchange, which is located outside the Main Gate of the base, has been a one-person probe up to now. That investigator apparently completed his work recently. However, senior officials believed his report failed to answer all the questions.
They now want specialists in the Supply Corps to take a more detailed look.
Pending completion of the investigation, Capt. Bruce Bennett, the vice commander, will be the acting commander. The Norfolk Exchange store is managed by a civilian, Robert Turley. ILLUSTRATION: Color photo
Rear Adm. Jack T. Kavanaugh will turn over his duties.
by CNB