White House Travel Office Firings Bungled, GAO Says : Government: Action against seven gave the appearance of inappropriate political pressure, it finds, adding that no laws were broken.

The White House bungled the firing of seven travel office employees last May, giving the appearance of inappropriate political pressure on the FBI and undue influence by a Hollywood crony of President Clinton’s, but apparently breaking no laws, congressional auditors say.

The General Accounting Office, in a report released Monday, said White House officials acted within their authority in dismissing the seven longtime travel office workers, because all seven served at the sole discretion of the President.

But the GAO criticized the roles of Hollywood producer Harry Thomason, air charter executive Darnell Martens and Catherine Cornelius, a young third cousin of President Clinton, who initiated an investigation of the travel office early in the Clinton Administration in hopes of landing the travel business for themselves, the report said.

Thomason and Martens held White House passes and were given free rein within the executive complex. The access heightened “the appearance of inappropriate influence” by the Hollywood producer and his business associate, Martens, the GAO said.

After an outcry over the firings in the press and Congress, other federal jobs were found for five of the seven workers. The two most senior travel office employees have retired.

At the time of the dismissals, White House officials said that the action was being taken because of alleged “gross mismanagement” in the office, which coordinates travel for White House staff and for members of the press who cover the President. The press charter business alone results in billings of more than $7.5 million a year.

The GAO said it could not determine whether the allegations by the Administration of fiscal mismanagement in the travel office were true because that question remains under Justice Department criminal investigation. The GAO said it could not interview Thomason, Martens or any of the fired employees because of the investigation.

The White House welcomed the GAO’s report, saying that its findings are consistent with an internal investigation last summer.

The GAO and White House investigations found considerable evidence of sloppy bookkeeping, poor oversight and lax cash management in the travel office. Some of the deficiencies have been corrected, the GAO said, but financial management problems remain.

It was also learned Monday that the GAO’s conclusions match those of the Justice Department’s Office of Professional Responsibility, which looked into two aspects of the travel office matter.

One was the assertion in a suicide note left behind by White House lawyer Vincent Foster that “the FBI lied,” an accusation presumed to relate to the FBI’s handling of the investigation into the travel office.

The other was whether the White House had misused the FBI in the inquiry by summoning the official in charge of the FBI’s congressional and public affairs to a meeting to discuss what the press should be told about the inquiry.

The twin investigations by the Justice Department office, the department’s internal watchdog, are expected to be released later this month.

A separate criminal investigation by the department’s public integrity section is still underway, officials said Monday. It is looking into the actions of the two most senior travel office employees.