Recently Released Report
Investigative Report of Anthony Babauta
OIG’s Office of Investigations completed an investigation into allegations that former Assistant Secretary for Insular Affairs Anthony Babauta was directing Federal awards to friends, mistreating his employees through discrimination and sexual harassment, misusing Government equipment and personnel, and taking personal trips under the guise of official business.
Our investigation found that, against the advice of his staff and grant specialists, Babauta directed the award of two Office of Insular Affairs grants to the University of Guam (UOG) to support the Micronesian Center for a Sustainable Future (MCSF). We found that Babauta’s former employer was a senior official at UOG, and that UOG subsequently hired Babauta’s friend as the MCSF project coordinator. We also determined that UOG allowed the MCSF project coordinator to expend $32,636.34 in grant funds on unallowable expenses, many of which were of personal benefit to the MCSF project coordinator.
Our investigation also supported the allegations that Babauta made inappropriate comments to employees and conducted himself unprofessionally at times. Through interviews with current and former Office of Insular Affairs employees, we discovered that Babauta had one employee perform work outside the scope of his Government duties and that Babauta resided at the guest house of one subordinate employee for several months without providing compensation. We did not find any evidence to confirm that Babauta used Government travel for personal gain, but we identified certain trips for Government business in which Babauta appeared to benefit personally.
Babauta resigned from his position on January 24, 2013. In addition, the Office of Insular Affairs reported the results of our investigative findings to UOG in a July 12, 2013 memorandum from Acting Assistant Secretary for Insular Affairs Eileen Sobeck to the UOG senior official. Sobeck informed the UOG senior official that OIA was terminating the grants and that the remaining funds—approximately $378,818—were being deobligated and returned to the Federal Government.
Read the complete report here.