U.S. OFFICE OF SPECIAL COUNSEL ANNOUNCES FAVORABLE SETTLEMENT OF WHISTLEBLOWER REPRISAL COMPLAINT AGAINST TREASURY’S OFFICE OF INSPECTOR GENERAL

FOR IMMEDIATE RELEASE - 10/22/98
CONTACT: JANE MCFARLAND
(202) 653-7984      

    The U.S. Office of Special Counsel (OSC) today announced the favorable settlement of a whistleblower complaint filed with it by James M. Cottos, former Assistant Inspector General, against his employer, the Office of Inspector General (OIG), Department of Treasury.

    Mr. Cottos filed a complaint with OSC in 1996, alleging that the Treasury IG, Valerie Lau, and her Deputy, Richard Calahan, retaliated against him for, among other things, providing testimony before the Senate Whitewater Committee regarding the sharing of investigative information between officials of the Treasury Department and the White House. The retaliatory acts that followed, according to Mr. Cottos, included the denial of a pay increase, low performance evaluations, reassignment to a non-supervisory position, and a threat not to certify his continuing qualification in a Senior Executive Service position.

    During its investigation, OSC examined Mr. Cottos’ specific allegations regarding his Whitewater testimony as well as whether Mr. Cottos had suffered retaliation because he was suspected of leaking information to Congressional committees examining the award of sole source contracts by the Treasury IG, an allegation he denied. At the time the settlement was reached between the Treasury OIG and Cottos, OSC had completed its investigation of the case, and the matter was being examined by the Prosecution Division to determine whether there were reasonable grounds to believe that a prohibited personnel practice had been committed.

    Under the settlement, Mr. Cottos, who has agreed to withdraw his OSC and related EEO complaints, will receive back pay and other appropriate relief. The settlement agreement stipulates that OIG does not admit any wrongdoing or violation of law in connection with the personnel actions about which Mr. Cottos complained. The OSC provides an independent avenue to protect merit systems principles in federal employment. Among other things, OSC receives, investigates, and prosecutes before the Merit Systems Protection Board (MSPB), charges concerning the commission of prohibited personnel practices, with priority given to protecting whistleblowers. OSC investigations frequently culminate in the favorable resolution of complaints without need to resort to litigation. In FY 1998, for example, OSC obtained 80 pre-litigation informal stays and/or favorable corrective actions on behalf of employees who had filed complaints alleging the commission of a prohibited personnel practice.

    Special Counsel Elaine Kaplan has noted that while OSC stands “ready and eager to prosecute meritorious cases, its accomplishments cannot fairly be measured solely by the number of complaints it has filed before the MSPB. OSC’s ability to influence or achieve favorable results through the settlement process without need to resort to litigation contributes significantly to the protection of the public interest promoted by the Whistleblower Protection Act.”

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