IG Defends McKenna, Daly-Sims Probe, Says It Focused on Criminal Allegations
Meanwhile, the head of the Credit Union Association of the Dakotas states this is "an embarrassing situation for the NCUA."
Saying that the office investigates allegations that could lead to prosecution – but not sexual harassment – the NCUA’s Office of Inspector General’s office Monday defended its probe of former agency General Counsel Michael McKenna and his former deputy, Lara Daly-Sims.
On Monday, Daly-Sims’ attorney blasted the IG’s office for ignoring allegations of sexual harassment and for making Daly-Smith’s name public.
However, Marta Erceg, the counsel to the inspector general and assistant inspector general for investigations, said Daly-Sims and attorney Cathy Harris knew since Nov. 18 how the IG intended to conduct its investigation
“We informed her and her attorney in December that her allegations of harassment are addressed as part of the [equal employment opportunity] proceeding and not our investigation, in response to an email that Daly-Sims had sent us,” Erceg said.
On Friday, the IG released a report that said McKenna and Daly-Sims had visited strip clubs, and consumed alcohol and possibly marijuana, while on government time. The report also alleged that Daly-Sims was paid more than $46,000 in salary for hours that she did not work.
In the report, Daly-Sims said she felt coerced by her supervisor, McKenna, into visiting strip clubs and consuming alcohol. She said McKenna indicated that he would help Daly-Sims get the general counsel position when he retired.
Harris, chair of the Sexual Harassment and Sexual Orientation, Transgender and LGBT Practice Sections at Kator, Parks, Weiser & Harris, a Washington, D.C., law firm, said Daly-Sims has filed an EEO complaint with the NCUA.
Erceg said she learned through press reports last week that Daly-Sims had filed that complaint in December.
However, she said Daly-Sims was aware of the IG investigation as early as Nov. 18, when her office interviewed Daly-Sims and McKenna.
“Daly-Sims’ discrimination complaint a month later was not the basis for opening our investigation in November,” Erceg said.
She said Daly-Sims’ name was made public because “she was a high-level employee and our investigation substantiated the misconduct allegations against her (and McKenna) and also found that she had committed time and attendance fraud.”
Meanwhile, the fallout from the revelations continued Monday.
“Unfortunately, because of where these individuals worked, their actions have a trickle-down effect on our industry,” Jeff Olson, president/CEO of the Credit Union Association of the Dakotas, said in a statement on the association’s website.
“This is truly an embarrassing situation for the NCUA. Credit unions and the taxpaying public deserve appropriate and swift operational changes and accountability from the agency,” he continued.
“You can bet credit unions, the Leagues and especially Congress will be watching how Chairman Hood and the new Executive Director will respond and move forward,” he added.