Steve A. Liniek, Inspector General
US. Department of State
Office of Inspector General
Room 8100, SA-3
2201 C Street, N.W. Washington, DC 20520-0308
Re: Request to Investigate
Dear Inspector General Linick:
‘The Foundation for Accountability and Civie Trust (FACT) is a nonprofit organization dedicated
to promoting accountability, ethis, and transparency in government and civic arenas. We achieve
this mission by hanging a lantern over public officials who put their own interests over the interests
of the public good. As recently reported, “[more than $9 million of Department of State money
thas been funneled through the Peace Corps to a nonprofit foundation started and run by Secretary
(of State John Kerry's daughter.” Ethan Barton, John Kerry's State Dep t Funneled MILLIONS 10
ls Daughter's Nonprofit, The Daly Caller, Sept. 12,2016 (attached as Exhibit A). Not only does
the family relationship clearly indicate preferential treatment, but so do the unusual details
surrounding the payments—it was done without competition and over a longer period of time than
normally allowed. [d| The ethics rules simply do not permit government employees to give this
{ype of preferential treatment, which resulted payments of over $9 milion of taxpayer funds. We
‘write today to request a full investigation into the facts and circumstances surrounding these
apparent unethical acts and a determination of whether any laws were violated
Ethics rules require that a government employee “shall act impartially and. shall not
preferential treatment to any private individual or organization” when performing government
duties. 5 CFR § 2365.101(6)(8). Specifically, a government employees is prohibited from using
his position for the private gain of relatives, whether directly or through an affiliation with a
nonprofit organization. 5 CER. § 2635.702. Essentially, a government employee is prohibited
{rom acting to benefit an individual based upon a personal relationship, including any actions that
create even an appearance of an ethical violation. 5 C.F. § 2365.101(0)(14),
Contrary to these rules, government officials and Secretary Kerry's daughter “colluded to launch
the program and ensure [her nonprofit] would get the contract.” Ethan Barton, John Kerry's Sate
Department Furmneled MILLIONS to His Daughter's Nonprofit, The Daily Caller, Sep. 12, 2016
(ottached as Exhibit A). Not only does the contract itself indicate there was preferential treatment,
but the fact that it was given without competition and years longer than normally allowed, further
demonstrates the preferential treatment. Unfortunately, it appeats that Secretary Kerry's familial
wo fete org*1717K Street NW, Suite 900, Washington, D.C, 20006 «Phone (202) 787.5860Page 2 of 2
relationship led to access not available tothe general public as well as government payments of
‘over $9 million in violation of the ethics rules. This ype of governmental action is precisely the
type of behavior the ethics rules are designed to protect against and can only lead to distrust in our
government officials. We request a full investigation into these communications and a
{determination of whether any laws were broken.
Respectfully submitted,
fae
Matthew G. Whitaker
Executive Director, Foundation for Accountability & Civic Trust
wa fate ogg +1717 K Steet NW, Sue 900, Washington, D.C, 20006 Phone (22) 77-5860,Exhibit A
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= The Daily Caller - http:/ /dailycaller.com =
EXCLUSIVE: John Kerry's State Department Funneled MILLIONS To His Daughter’s Nonprofit
Posted By Ethan Barton On 10:03 PM 09/12/2016 In | No Comments
More than $9 million of Department of State money has been funneled through the Peace Corps to
‘nonprofit foundation started and run by Secretary of State John Kerry's daughter, documents obtained
by The Daily Caller News Foundation show.
The Department of State funded a Peace Corps program created by Dr. Vanessa Kerry and officials from
both agencies, records show. The Peace Corps then awarded the money without competition to a
nonprofit Kerry created for the program.
Initially, the Peace Corps awarded Kerry's group — now called Seed Global Health ~ with a three-year
‘contract worth $2 milion of State Department money on Sept. 10, 2012, documents show. Her father
was then the chairman of the Senate Committee on Foreign Relations, which oversees both the
Department of State and the Peace Corps.
Seed secured a four-year extension in September 2015, again without competition. This time, the Peace
Corps gave the nonprofit $6.4 milion provided by the Department of State while John Kerry was
secretary of state,
‘Seed also received almost $1 million from @ modification to the first award, as well as from Department
(of State funds the group secured outside the Peace Corps.
‘The Peace Corps program — called the Global Health Service Partnership (GHSP) — sends volunteer
physicians and nurses to medical and nursing schools in Malawi, Tanzania, Uganda and Liberia,
‘according to Sead’s website. More than 40 clinical educators worked at 13 sites in the 2014-2015
program.
Kerry and government officials colluded to launch the program and ensure that Seed would get the
contract.
“Vanessa, Buck, and Sarah are meeting with Ambassador Gogsby on the morning of 9/16/11 to discuss
‘next steps for the GHSP. sald a memo from September 16, 2011 — one year before Seed received its
first award. "Conversations with OGAC leadership confirm that Ambassador Goosby Is very supportive of
the Initial proposal"
‘The memo was referring to Peace Corps Directors Buck Buckingham and Sarah Morgenthau and
‘Ambassador Eric Goosby, who then headed the Office of the US Global AIDS Coordinator (OGAC) — the
State Department office that later funded GHSP,
[A meeting one month later unveiled the strategy to send tax dollars to Seed,
“The public funding to start the GHSP Is secured, it will come from OGAC through [Peace Corps] to
support core HQ and field based activites, and t0 develop a sub-agreement to provide support to the
foundation for contributions for their work in this partnership,” minutes from a Nov. 18, 2011, meeting
said. The "oundation” refers to Seed, which was then called the Foundation for Global Health Service
Officials in that meeting also assured Kerry that she would not have to compete with other groups for
Department of State funds.
“Buck obtained clarity of the mechanism by which federal money will be provided to" Seed, the minutes
said. “The process can be fast tracked and non-competed through a specific grant mechanism.”
Meanwhile, the State Department buried its intent to transfer funds to the Peace Corps in its required
‘congressional notification.
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“The GHSP is @ smaller line item in a multi-page dacument with multi-million dollar programs,” minutes
from the November 2011 meeting said.
‘Seed received its frst award less than one year later. Peace Corps later provided anther nearly
$900,000, noting it underestimated the program's expenses, especially travel and salary costs.
1t’s unclear when that modification was added, but Kerry draw a salary from Seed for the first time in
2014. She was the only officer listed on the nonprofits 990 tax form to receive compensation — some
{$140,000 for a reported 30 hours per week.
Discussion about the $6.4 million extension also provides questionable details. Peace Corps officials
ted that contracts could not extend beyond five years and considered competing the next award, but
decided they would "go forward with sole-source option If mandated by OGAC,” minutes from a July 17,
2014 meeting sald.
Uttimately, the extension was awarded without competition on Sept. 10, 2015. It's unclear why the
Peace Corps violated its five-year policy by giving Seed seven years of non-competitively awarded
funding.
Peace Corps justified the decision to forgo competition by arguing Seed was already burrowed into the
program, and that replacing it out would cause problems.
“As such, if @ cooperative agreement were to be awarded to @ new partner, applicants that were
recruited and vetted by Seed may be unable to be placed in the feld,” a Sept. 10 2015 document
stated. The document further noted that "Peace Corps has been unable to identity any potential
partners which satisy the needs of the GHSP program” other tan Seed, which was created based
‘round the program's needs.
‘Seed spokesman Mark Marino denied any conflicts of interest, telling TheDCNF:
No conflict of interest exists in our partnership with Peace Corps and the US government. Dr. Vanessa
Kerry is primarily employed by and paid through Massachusetts General Hospital and Harvard Medical
‘School, Dr. Kerry receives no financial compensation from the Peace Corps or US government. Funding
from the Peace Corps, an independent agency in the federal government, represents about 27% of
‘Seed's total $6.3 million budget this fiscal year,
[dequiz] Marino also claimed that "Seed is the only organization that provides debt repayment for US
doctors, nurses, and midwives to serve internationally, something Seed does entirely through private
philanthropy. Seed specifically works in the areas of medical, nursing and midwifery education focused
fon human resource capacity building, making it different than many other non-government
organizations.”
'A Peace Corps spokesman who demanded anonymity told TheOCNF that the “Peace Corps is proud of the
Continued work we have done in collaboration with Seed Global Health and the President's Emergency
Plan for AIDS Relief (PEPFAR) to send qualified health professionals abroad to teach and expand clinical
capacity”
‘Since the agency's early years, Peace Corps has sought to improve health outcomes in the countries it
serves. The Global Health Service Partnership isan innovative continuation of the Peace Corps’
commitment to global health.”
Department of State spokesman John Kirby told TheDCNF that “there Is absolutely no conflict of interest
here. Secretary Kerry played no role In this decision making while In the Senate or subsequently while
at the State Department.”
Kirby sald “Kerry's work on the Senate Foreign Relations Committee allotted funding to PEPFAR
generally — not directly to this program. Using funds appropriated by Congress for PEPFAR, the State
Department directs funds through an interagency process to seven implementing agencies”
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