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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) 787.5860 Page 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 ace ey Se Det Set LIONS Todas Gp Thal Caer = 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. Impayahr amoieaercveekoryese-arter det low h-aupiar- ree ° onan er) Se Det Set LIONS ToDahe's Gp They Caer “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” asyote caarececcaetarystn

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