USDOT IG Scovel on the Hot Seat

The key question at this point is: Will USDOT Inspector General Scovel vigorously pursue an objective and comprehensive investigation into the ITIP/TTID Program and Traffic.com monopoly/scam or -- because of intense pressure from his boss (USDOT Secretary Mary Peters) -- will the IG's audit be just a cursory review of this program?

Mr. Scovel, a retired Brigadier General in the U.S. Marine Corps. with an impressive record of accomplishment, is undoubtedly feeling intense pressure right now. By design, the IG for any federal department faces a potentially huge conflict of interest because he or she reports to two masters, the department to which they are assigned (e.g., the USDOT) as well as to Congress. However, there's little doubt that day-to-day the IG reports to the departmental secretary and, of course, that's where the rub comes in with the Traffic.com scam, because USDOT Secretary Peters' failure to adequately respond to Senator Hatch's very pointed letters relative to the USDOT's continued support for Traffic.com's monopoly is the main reason for Sen. Hatch's and Cong. Weiner's calls for an IG investigation in the first place.

At this point, all eyes are on the IG's office. Congressman DeFazio, the chairman of the House Highways and Transit Subcommittee that has oversight responsibility for the TTID program, recently told Congressman Weiner that he was awaiting the IG's investigation into this matter. The IG's Legislative Counsel told Sen. Hatch's legislative assistant that they have already assigned staff to conduct a comprehensive audit of the TTID program. More importantly, they said that they would be reviewing the program both "pre-SAFETEA-LU" and "post-SAFETEA-LU," which means that they are going to look closely at all the shenanigans that went on early in the program that created the underpinning for this monopoly. I have little doubt that if they truly do conduct a comprehensive investigation/audit into this program, they'll find that former USDOT Secretary Mineta, former USDOT Deputy Secretary Jackson, and current Secretary Peters (who was formerly Federal Highway Administrator under Mineta and Jackson when this whole scheme was gaining momentum in 2001-2003) all have inordinately pushed Traffic.com's monopoly, to the point of actually "reassigning" a senior career manager in the FHWA who saw through this scam and refused to go along with it. If the OIG is willing to work with the SEC, DOL, and IRS in this investigation, it's likely that they'll also find that at least Messrs. Mineta and Jackson did so because they had a substantial hidden financial interest in Traffic.com's success. (I remain hopeful that Ms. Peters has supported Traffic.com's monopoly out of loyalty to Mr. Mineta rather than her own financial interest in it, but time will tell.)

Interesting, the bipartisan Inspector General Reform Act of 2007 -- if it passes soon -- could strengthen Mr. Scovel's ability to spearhead a comprehensive investigation into senior USDOT officials' roles in this nasty and long-running scandal.

My gut feeling is that the OIG will do the right thing whether or not that bill passes in time. It's time that folks with real integrity -- and from all I've read about him Mr. Scovel appears to be one -- started cleaning up the mess in DC.

Jerry