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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