Earth Equity News

Justice Department Didn't Pursue Higher-Ups in Scandal-Ridden Program Despite Evidence. By Derek Kravitz and Mary Pat Flaherty, WashPost, September 11, 2008. "The [Interior Department's IG] report [on drug and sex scandals within the 'royalty-in-kind' office of the Minerals Management Service] alleges... former director Gregory W. Smith also netted more than $30,000 from improper outside work... The royalty-in-kind program... has been the subject of multiple investigations since 2006... Besides Shell, the energy company employees mentioned in the report worked for Chevron, Hess and Gary-Williams Energy. The social outings detailed in the report included alcohol-, cocaine- and marijuana-filled parties... Additionally, the report said, Smith had an inappropriate sexual relationship with a subordinate whom he paid to buy cocaine, allegedly promising her a $250 bonus in return... Investigators referred their findings to federal prosecutors, who did not charge Smith with any criminal wrongdoing and declined to comment on their decision... Justice officials also declined to comment on their decision not to pursue a criminal case against the highest-ranking official named in the report, Lucy Querques Denett, former associate director of the MMS, who... is accused of improperly arranging a million-dollar deal for two retired employees. Denett, 55, [is] the wife of Paul A. Denett, the procurement policy administrator for the White House Office of Management and Budget... People familiar with the investigation said health problems were a factor in the decision not to prosecute her. The Justice Department's decision not to charge Denett or Smith created a rift with Interior officials, according to sources with knowledge of the dispute."