FBI Confidential Payments Under Fire

FBI payments to confidential sources came under harsh attack today by the Department of Justice inspector general.

In a public summary of the report, Glenn Fine blasted the bureau, writing that "the way FBI field divisions currently handle confidential funds presents special challenges and creates potential vulnerabilities for theft."

The report is only the latest in a series from the inspector general that have criticized the FBI's oversight. The investigation stemmed from a confidential case in which a telecommunication specialist pleaded guilty to stealing over $25,000 in covert funds for personal use. The case exposed how the employee was able to take advantage of "weak controls over field division confidential funds."

A key problem is the FBI's antiquated technical system, which cannot track "commercial vendor names, invoice numbers, or whether a supported case is open or closed." What's more, the report found, the volume of bills and the inconsistent way field offices deal with confidential case funds made late payments for covert telecommunications costs commonplace—and sometimes led telecommunication carriers to stop FBI surveillance because of nonpayment.

There was little comfort, either, in the supervision of employees. According to a random sample of case files, the report found that nearly one half of those employees had financial histories that included personal monetary problems, including late loan payments and bankruptcies. The FBI said it is committing to work on some of the inspector general's recommendations for improvement.

—Emma Schwartz