STATEMENT OF

ASSISTANT COMMISSIONER WILLIAM A. KEEFER

OFFICE OF INTERNAL AFFAIRS

UNITED STATES CUSTOMS SERVICE

BEFORE THE SENATE FINANCE COMMITTEE

MAY 25, 1999

Chairman Roth and distinguished Members of the Committee, thank you for the opportunity to appear before you. As the Assistant Commissioner of Internal Affairs for the United States Customs Service, I am pleased to have been invited here today to discuss Commissioner Kelly's actions to reinforce the organizational integrity of the Customs Service.

As you are aware, I joined the Customs Service as Assistant Commissioner for Internal Affairs in February of this year. Prior to assuming my responsibilities with this agency, I was a career federal prosecutor. I served as Interim United States Attorney in the Southern District of Florida and as Deputy Chief of the Public Integrity Section at the Department of Justice. In my 23 years as a federal prosecutor, I investigated, prosecuted or supervised hundreds of corruption cases involving individuals that ranged from agency clerks to federal judges. I dealt with virtually every internal affairs, professional responsibility and Inspector General's office in the federal government. While in the Miami United States Attorney's office, I was directly involved in some of the best -- and worst -- Customs Internal Affairs investigations and prosecutions. In short, I know what it takes to successfully investigate and prosecute federal law enforcement corruption.

When I assumed my new position with the Customs Service, Commissioner Kelly's directive was clear: help him institute any and all measures necessary to ensure the highest standards of integrity throughout the agency. Mr. Chairman, I am committed to that goal and welcome the challenge. Misconduct by Customs employees will not be tolerated under my watch.

Before addressing the reforms we are undertaking to ensure the highest caliber of professional standards and ethics within the agency, I would like to take a moment to describe our employees. The vast majority are well-trained, highly motivated and competent professionals who devote their lives to carrying out what may be the most diverse and complicated mission of any agency in the federal government. Every internal and external review of Customs has concluded that no systemic corruption exists within the agency. These same reviews conclude that 99 percent of our workforce are women and men of the highest integrity. While instances of corruption in Customs are few, however we may not have always done a good job in responding to allegations of misconduct. That is changed.

We all know about the corrupting influences that Customs employees face daily. We are committed to institutionalizing a system that will discourage our employees from succumbing to those temptations and which will detect and punish those who violate our laws or regulations. We want everyone to understand the rules as well as the consequences of any illegal or improper activities. We are making changes that will remain in place regardless of who heads the agency in the future.

As we implement the reforms necessary to ensure greater integrity and responsibility on the part of all employees, we know you will be watching as you carry out your oversight responsibilities. We welcome that oversight and we want all our employees to understand that there will be oversight of their activities as well.

Before I was appointed Assistant Commissioner, Mr. Kelly, who was at the time Under Secretary of the Treasury for Enforcement, had already undertaken an intensive and focused review of all internal investigative and disciplinary processes within the agency. In addition, to elevate the issue of integrity to the highest rung of the agency ladder, Commissioner Kelly took several important steps. First, he placed my office -- the Office of Internal Affairs -- under his direct supervision. As a result, I report directly to the Commissioner; there is no intermediary between us. It is my job to keep him fully informed of integrity issues and investigations, and to make recommendations on how to strengthen and professionalize the Internal Affairs mission. As you know, Commissioner Kelly demands top to bottom accountability from his people. He wants to know what the problems of his agency are. He wants solutions, not excuses.

In addition to elevating my office, the Commissioner elevated other important positions in Internal Affairs as well. He created a Senior Executive Service level Deputy Assistant Commissioner position for Internal Affairs. That person will work closely with me to ensure managerial control and operational effectiveness. He also elevated the position of the Regional Special Agents in Charge to SES levels, giving those positions parity with other federal law enforcement agencies. These new, permanent positions will attract the highest caliber of applicants throughout Customs. The benefit to Internal Affairs will be immediate and lasting. Mr. Chairman, I believe these actions underscore the personal priority and strong commitment the Commissioner places on rooting out corruption within the agency. Let me take a moment to describe some of the reforms that Commissioner Kelly is implementing:

Reporting Misconduct: The Commissioner's review showed that the process for reporting misconduct was flawed. Under the old system, the options for reporting misconduct were diverse and often confusing. Some allegations were made in the form of a passing comment to any available supervisor. Others were made in writing or through direct contact with the Office of Internal Affairs. And some types of allegations were not required to be reported to Internal Affairs at all. The procedures for documenting these allegations, where they existed at all, were similarly broad. To correct the problem, every allegation of misconduct, without exception, is now being reported directly to my office. Every allegation is now being tracked by my office. This new procedure is simple, unambiguous and ensures accountability.

To make this process work efficiently, my office is now staffed with a small cadre of specially trained intake officers who make an initial determination regarding the seriousness of each reported allegation of misconduct, including whether it is time-sensitive or places the mission, personnel, or resources of the Customs Service in immediate danger. Allegations of misconduct are scrutinized daily by an Intake Review Group of Headquarters-level Internal Affairs agents and Labor and Employee Relations Specialists. This team of experts decides whether and where to refer the allegation for further action. This standardized process focuses reporting of suspected misconduct and alleged criminal activity in a way which guarantees the most effective response. In addition, a 24-hour toll-free hotline and operations center has been created and is staffed by Internal Affairs personnel to facilitate the timely reporting of allegations of misconduct.

Documentation and Time Limits: The new allegation intake system triggers two important processes to ensure greater accountability. First, a retrievable computer record will be created that will follow the allegation from receipt to final disposition. Second, a clock will begin ticking. For noncriminal allegations, specific time limits have been incorporated into the intake system to govern when appropriate referral, investigation, reporting and final action must be completed. Managers will be held accountable for compliance with these deadlines. Furthermore, criminal investigations will be more closely supervised. The quality and timeliness of these investigations are of particular concern to me. Failure to exhaust viable leads or to interview knowledgeable witnesses is inexcusable. An untimely report is often a useless report. These are failings of supervision, both in the field and at Headquarters, and will not be tolerated. We will require frequent case reviews by field supervisors, which will be tracked by Headquarters. Each noncriminal Report of Investigation will be reviewed by attorneys at Headquarters before being approved by me, and every Report of Investigation will include a clear finding for each allegation investigated by Internal Affairs. The new standards and review process will serve to focus and improve the quality of the Internal Affairs work product.

Tracking Cases: Perhaps the most deficient area of Internal Affairs was our inability to track a case from its inception to final disposition. Cases investigated by Internal Affairs and then referred to management for administrative disposition were virtually impossible to follow. Our new automated Case Management System will merge the investigative and discipline case tracking systems and provide us with the tools to monitor the status and disposition of all cases. I am not overstating the importance of the new tracking system when I say it is the key to ensuring accountability on all levels.

Special Investigative Unit: An Internal Affairs special investigative unit is being formed at Customs Headquarters to handle the most serious and high-level cases. This rapid response team will consist of a cadre of highly experienced agents at the GS-14 level, which is a unique status for nonsupervisory personnel. These agents will be tasked with the investigation of critical incidents worldwide, and they will report directly to me. They will also quickly and efficiently handle misconduct investigations of SES and GS-15 personnel when the Inspector General returns these cases to Customs for investigation. There will be no foot-dragging when high-level employees and high-profile matters are investigated by this new unit.

Rotation: As you all know, there is always a degree of tension between investigators and internal affairs personnel in every law enforcement agency. To improve cooperation and effectiveness between these units, the Commissioner has instituted a rotation process of senior agents between the two offices, including GS-13s, 14s and 15s. This rotation will enhance agents' understanding of investigative processes and build a talent pool of future agency leaders. We respectfully disagree with the Inspector General's recent conclusions regarding rotation between Internal Affairs and the Office of Investigations. The clear majority of Internal Affairs investigations do not involve Office of Investigations agents. For that minority which does, a clear recusal policy and strong supervision will overcome any legitimate questions concerning a lack of objectivity by Internal Affairs.

Streamlining: To improve efficiency and enhance accountability for our anti-corruption efforts, the Commissioner has restructured the Internal Affairs field operation, reducing the number of regions from five to four. The most important restructuring will take place along the critical Southwest Border. Under the new plan, the entire Southwest Border will fall under the control of a single Regional Special Agent in Charge. This will provide a single voice to effectively and efficiently deal with corruption issues on this long and very crucial border.

Retaliation and the fear of retaliation have been persistent allegations at Customs. Some employees have expressed fear of retaliation by their managers if they report misconduct to Internal Affairs for investigation. We are taking measures to address this issue. First, specific training about retaliation and the Whistleblower Protection Act will be made a part of the Internal Affairs Basic Course beginning

June 21, 1999. Second, in appropriate investigations, Internal Affairs agents will specifically advise managers whom they interview about the rules prohibiting retaliation against their employees. Third, I will work with my fellow Assistant Commissioners to make sure that retaliation allegations are aggressively and effectively investigated and resolved through the disciplinary process.

As the Commissioner has stated previously, the way Customs administers discipline has been revamped as well. For the first time, a service wide Disciplinary

Review Board will screen all substantiated investigations and recommend appropriate discipline in all serious cases.

Furthermore, the accountability of the deciding official has been made very clear, and disciplinary action will be tracked in the field and at Headquarters. Under the new system, discipline at Customs will be swifter and more consistent.

In conclusion, there is nothing more important to law enforcement than integrity. Corruption endangers law enforcement agents, undermines public confidence, and facilitates other crimes. My job -- to make sure that Internal Affairs does a better job in attacking this insidious menace -- is clear.

Mr. Chairman and Members of the Committee, I thank you for your time and attention and I am now prepared to answer your questions.