Customs’ Work Environment Is Criticized

The U.S. Customs Service has bungled internal investigations, promoted disciplined employees and allowed managers to probe subordinates when there was a clear conflict of interest, the Treasury Department inspector general reported Thursday.

Portraying an agency at war with itself, the report said the agency’s disciplinary system left employees with “an overall perception of favoritism” and “a fear of reprisal from management for the reporting of wrongdoing.”

The report was presented to the Senate Finance Committee, which is conducting a top-to-bottom review of the Treasury Department agency.

Dennis Murphy, a spokesman for Customs Commissioner Raymond W. Kelly, said that Kelly immediately began addressing the problems after assuming his post nine months ago and already has made changes.

“He recognized this was a fractured organization. He felt the mission was poorly focused,” Murphy said.

Among key findings:

* Investigators never tried to resolve conflicting witness statements during the investigation of an inspector who admitted placing marijuana in the luggage of a cruise ship passenger. The case never was presented to prosecutors.

* An employee who became a suspect by displaying a large quantity of seized money was allowed to retain possession of the funds for three days. After the employee placed it in a Customs safe, it was discovered that $1,700 was missing. No action was taken.

* A supervisor who had been drinking with an employee was put in charge of an investigation of an incident on the same night when the employee drove a government vehicle under the influence of alcohol and left the scene of an accident.

* Awards and promotions were granted to employees who were under investigation and later disciplined. Others received promotions after discipline, including an agent who had made false statements and obstructed justice. The agent was never prosecuted.