United States General Accounting Office

GAO Report to Congressional Requesters

May 1996 U.S. INFORMATION

AGENCY

Issues Related to

Reinvention Planning

in the Office of Cuba

Broadcasting

G O A

years

1921 - 1996

GAO/NSIAD-96-110

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-262073 

May 13, 1996

The Honorable Ileana Ros-Lehtinen

The Honorable Lincoln Diaz-Balart

The Honorable Robert Torricelli

The Honorable Dan Burton

The Honorable Chris Smith

The Honorable Robert Menendez

House of Representatives

In response to your requests, we reviewed certain issues associated with

the operations of the Office of Cuba Broadcasting (OCB) and Radio Marti,

which are part of the U.S. Information Agency (USIA). This report provides

information on (1) OCB’s reinvention plan, (2) the role and use of OCB’s

research analysts, (3) the reason for the resignation of Mr. Richard Lobo as

Director of OCB, and (4) the extent of progress that has been made in

monitoring Radio Marti’s compliance with Voice of America (VOA)

broadcast standards. In addition, we developed information on key events

and time frames concerning USIA’s Office of Inspector General (OIG)

investigation into allegations of management reprisals in OCB.

Background OCB, which was created in 1990 and assumed management responsibilities

for both Radio and TV Marti, is part of USIA’s International Broadcasting

Bureau. Radio Marti, a U.S.-funded surrogate radio station, was

established in 1983 to fill the void in news and information that the Cuban

government had created through censorship. TV Marti became operational

in 1990, having a similar goal of serving as a consistently reliable source of

credible and authoritative information and promoting the cause of

freedom in Cuba. Other OCB units include Radio Marti’s Miami Bureau and

the Executive Office of the Advisory Board for Cuba Broadcasting. The

Advisory Board was created in 1983 to make recommendations for

improvements in Cuba broadcasting.1

 Appendix I provides a partial

organizational chart for USIA and OCB. As of October 1, 1995, the number of

staff in OCB totaled 225, including 122 in Radio Marti and 77 in TV Marti.

Radio Marti has had significant executive branch and congressional

support for years because its broadcasts were designed to provide a large

portion of the Cuban population an important source of news, cultural and

ethnic programming, and entertainment. Reflecting the continued

1

The Board was established within the Office of the President by the Radio Broadcasting to Cuba Act

(P.L. 98-111) to (1) review activities carried out under the act and the Television Broadcasting to Cuba

Act (P.L. 101-246) and (2) make recommendations to the President and USIA as necessary.

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B-262073 

importance of Radio Marti as an instrument of U.S. policy, President

Clinton recently directed Radio Marti to expand its reach into Cuba by

doubling the power of its medium wave transmissions. Funding for Radio

Marti has totaled over $150 million since fiscal year 1984, including

$13.1 million in fiscal year 1995. TV Marti has had less support because its

programs have been largely jammed by the Cuban government. It has

received appropriations totaling over $80 million since fiscal year 1989,

including $11.6 million in fiscal year 1995.

OCB’s efforts to streamline and reinvent its operations began in early 1993,

consistent with guidance from the new administration, Vice President

Gore’s National Performance Review, and USIA management’s concerns

about possible reductions in the OCB budget. Guidance included two

February 1993 executive orders directing executive departments and

agencies to (1) eliminate not less than 4 percent of their civilian personnel

positions over 3 fiscal years and (2) reduce administrative costs by 

14 percent over 4 fiscal years. In February 1994, Richard Lobo became

OCB’s new Director. In March 1994, Mr. Lobo submitted a reinvention plan

for OCB that was designed to continue its streamlining and budget

reduction process. The plan’s objectives included reducing OCB’s costs by

$4 million in fiscal years 1994 and 1995 and eliminating 10 staff positions,

including 4 research analyst positions. The plan was approved by USIA’s

Director in April 1994, but was placed on hold 4 days later. About 1 year

later, Mr. Lobo submitted an amended reinvention plan that was approved

by USIA’s Director for implementation, but implementation was suspended

in April 1995 because of the research analysts’ allegations of management

reprisals. The analysts alleged that OCB management had targeted their

positions for elimination in reprisal for accusations by one or more of the

analysts that political bias had undermined the accuracy and objectivity of

Radio Marti’s broadcasts. The accusations are being investigated by OIG

and are also the focus of a union grievance filed against USIA on behalf of

employees in Radio Marti’s research analytical unit.

Results in Brief OCB’s plan to reduce costs and eliminate nonessential staff positions was

consistent with overall executive branch goals for streamlining

government operations. It was also in line with recommendations of the

March 1994 Advisory Panel on Radio Marti and TV Marti2

 for reducing

OCB’s costs and was endorsed by the Advisory Board for Cuba

Broadcasting. However, the plan was not based on a comprehensive

2

Congress created the Panel in 1993 (P.L. 103-121) and tasked it to (1) study all aspects of Radio and

TV broadcasting to Cuba and (2) make recommendations for improvements.

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B-262073 

cost-benefit assessment of key OCB departments and support functions. In

addition, OCB’s failure to implement the plan did not result in budget

shortfalls that it had forecast for fiscal year 1995. (See app. II.)

Primarily because of frustrations stemming from his unsuccessful

attempts to further streamline OCB and implement the reinvention plan,

Richard Lobo resigned as Director in May 1995. (See app. IV.)

Historically, the primary functions of the research analytical unit included

supporting public affairs programs of Radio Marti, preparing Cuba

situation reports, and reviewing program scripts for policy compliance.

The analysts’ role was redirected and expanded in 1990 to provide services

assisting, advising, and supporting the news and programs departments,

including participation in on-air broadcasts. However, in 1992 OCB

management decided to remove them from on-air programming, and at

that time, questions began to surface concerning the policy compliance

role of the analysts. The role of the analysts was also re-examined in late

1993 as part of OCB’s streamlining process. Mr. Lobo said that several

factors led to his proposals in March 1994 for eliminating the research

positions. The factors were possible budget reductions, the size and costs

of the analytical unit, the availability of Cuba expertise elsewhere within

OCB, and the diminishing use of the analysts’ products by Radio Marti’s

program and news staff. Current news and program officials told us that

the analytical unit’s services have diminished in importance. (See apps. III

and IV.)

The analysts and others have criticized Radio Marti for failing to have its

broadcasts fully meet VOA’s standards for objectivity, accuracy, and

balance. In February 1993, we reported3

 that we had received allegations

from several sources that some of Radio Marti’s broadcasts did not meet

standards. Although USIA said that its internal review of the allegations had

concluded that few had any real substance, USIA created an external review

panel4

 to evaluate broadcasts and relocated its internal program review

unit that had responsibilities for monitoring broadcasts. In

September 1994, we reported5

 that (1) the effectiveness of the external

review panel was limited and (2) the International Broadcasting Bureau’s

Program Review Office had not fulfilled its mission of ensuring that Radio

Marti’s broadcasts comply with standards. OCB has since made some

3

Radio Marti (GAO/NSIAD-93-126R, Feb. 17, 1993).

4

Composed of five members, the panel meets quarterly to assess Radio Marti’s broadcasts.

5

Radio Marti: Program Review Processes Need Strengthening (GAO/NSIAD-94-265, Sept. 23, 1994).

Page 3 GAO/NSIAD-96-110 U.S. Information Agency
B-262073 

progress in monitoring compliance with VOA standards by adopting

procedures for considering the comments and suggestions for improved

programming made by Radio Marti’s external review panel. In addition,

the Program Review Office now monitors the Radio’s broadcasts.

However, some limitations still exist in monitoring, and the analyses of

Radio Marti’s broadcasts have not conclusively determined if broadcasts

comply with standards. USIA’s Broadcasting Board of Governors6

 is now

considering whether it should establish another panel to review Radio

Marti’s broadcasts and pronounce on their objectivity and balance. 

(See app. V.)

In June 1994, USIA’s OIG began investigating allegations of management

reprisals in OCB. Its investigation initially focused on allegations by Radio

Marti’s Deputy Director, but it was expanded to consider allegations of

others, including the research analysts. As part of the investigation, OIG

officials have interviewed over 20 current or former OCB, Radio Marti, or

other agency officials. However, OIG’s investigation has been controversial

since July 1995, because of the release of partial information and affidavits

during the investigation. On July 24, 1995, USIA’s Director referred the

conduct of OIG’s investigation to the President’s Council on Integrity and

Efficiency. The Council, which investigates allegations and referrals

concerning presidentially appointed Inspectors General, had not

completed its examination into matters concerning USIA’s OIG as of

mid-April 1996. (See app. VI.)

Agency Comments In commenting on a draft of this report, the Broadcasting Board of

Governors stated that our draft report accurately reflected the issues

involved. The Board’s comments are presented in their entirety in

appendix VII along with our evaluation.

Scope and

Methodology

To develop information for this report, we reviewed documents related to

the preparation, approval, and suspension of OCB’s reinvention plan; the

resignation of Mr. Lobo; the mission and changing role of OCB’s research;

and the scope, objectives, and status of the USIA OIG’s investigation into

allegations of management reprisals at OCB. We also held discussions with

officials in USIA’s International Broadcasting Bureau, OCB, Radio Marti, and

USIA’s OIG, as well as with the Chairman of the Advisory Board for Cuba

Broadcasting and Mr. Richard Lobo.

6

Created by the International Broadcasting Act of 1994 (P.L. 103-236), the Board is responsible for

policy and budgetary oversight for all international broadcasting services under the aegis of USIA.

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B-262073 

Our review was conducted at USIA from September 1995 to March 1996 in

accordance with generally accepted government auditing standards.

As arranged with your offices, unless you publicly announce this report’s

contents earlier, we plan no further distribution until 30 days from its issue

date. At that time, we will send copies to appropriate congressional

committees. We will also provide copies to others upon request.

If you or your staff have any questions about this report or need further

assistance, please telephone me at (202) 512- 4268. Major contributors to

this report were Diana Glod, Lynn Moore, and Jesus Martinez.

Jess T. Ford, Associate Director

International Relations and Trade Issues

Page 5 GAO/NSIAD-96-110 U.S. Information Agency
Contents

Letter 1

Appendix I 

Partial Organizational

Chart for U.S.

Information Agency

and Office of Cuba

Broadcasting

8

Appendix II 

Efforts to Streamline

and Reinvent Office of

Cuba Broadcasting

9

First Reinvention Plan 10

Amended Reinvention Plan 11

Limited Cost-Benefit Data 13

Appendix III 

Issues Concerning the

Role of Research

15

Policy Compliance Function 15

On-Air Analysis Function 16

Allegations by Research Staff 16

Appendix IV 

Reasons for OCB

Director’s Resignation

18

Appendix V 

Progress in

Monitoring

Compliance With

Voice of America

Standards

19

Page 6 GAO/NSIAD-96-110 U.S. Information Agency
Contents

Appendix VI 

Inspector General’s

Investigation and

Related Matters

21

Referral to President’s Council on Integrity and Efficiency 21

Grievance Filed With Employee’s Union 22

Internal Review by USIA 22

Appendix VII 

Comments From the

Broadcasting Board of

Governors

24

Table Table 1: Sources of Radio Marti Funding for Fiscal Years 1990-95 12

Abbreviations

OCB Office of Cuba Broadcasting

OIG Office of Inspector General

USIA U.S. Information Agency

VOA Voice of America

Page 7 GAO/NSIAD-96-110 U.S. Information Agency
Appendix I 

Partial Organizational Chart for U.S.

Information Agency and Office of Cuba

Broadcasting

U. S. Information

Agency

Broadcasting

Board of 

Governors

Advisory 

Board for

Cuba 

Broadcasting

External 

Review

Panels

International

Broadcasting

Bureau

Office of

Program

Review

Office of Cuba

Broadcasting

Office of

Program

Evaluation

TV Marti Radio Marti

Miami Bureau Department of

Research

--Media Monitoring

 Unit

--Information

 Resources Branch

--Analytical

 Unit

Department of

Programs

Department of News

Page 8 GAO/NSIAD-96-110 U.S. Information Agency
Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

Executive orders in February 1993 directed executive departments and

agencies to reduce the number of their civilian personnel positions and

costs. Instructions in early 1993 from the U.S. Information Agency’s (USIA)

Comptroller on implementing those orders stated that whole functions,

programs, or facilities should be considered for elimination. According to

former Office of Cuba Broadcasting (OCB) officials, meetings were held in

OCB to discuss a number of streamlining actions and options, such as

reducing staff positions in Radio Marti and TV Marti and abolishing Radio

Marti’s analytical unit.

Key events that were the basis for OCB’s reinvention plan included the

following.

• In a September 1993 memorandum to all OCB employees, the Acting

Director of OCB described possible reductions in OCB’s budget for fiscal

year 1994, noting that drastic cuts in appropriations were a real possibility,

particularly for TV Marti. The memorandum noted that personnel offices

in OCB and USIA were asked to assist staff and facilitate changes that might

become necessary should Congress substantially reduce the

appropriation.

• In a November 1993 memorandum to OCB’s department heads, the Acting

Director of OCB endorsed Vice President Gore’s plan for a more efficient

government and asked each department head to prepare a plan for

streamlining and downsizing.

• In December 1993, the Director of Radio Marti’s Research Department

submitted a draft annual plan to OCB for the research department. The

draft plan noted that research had initiated a number of streamlining

efforts, including not filling or abolishing seven positions and proposing

reductions in the budget of the Miami Research Office.1

 However, the

Director noted that similar attention had not yet been given to the

analytical unit and questions of cost and efficiency of that unit existed.

Although alternatives such as assigning the analysts to other parts of the

station were presented, the Director stated that he was not in favor of

abolishing the unit.

• In January 1994, the Acting Director of OCB reported to the International

Broadcasting Bureau what OCB had done to implement Vice President

Gore’s recommendations for “reinventing government.” The reported

efforts included (1) reducing the number of employees from 278 to 254

and (2) identifying potential budget cuts of $4 million for fiscal years 1994

and 1995. The Acting Director stated that further streamlining would be

1

The Miami Research Office’s responsibilities included interviewing persons recently arriving in the

United States from Cuba and obtaining information on key issues in Cuban society.

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Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

considered by reorganizing parts of OCB, eliminating several more

positions, and changing several full-time positions to part-time.

• In February 1994, the Director of Radio Marti’s Research Department was

asked to identify which of the Department’s personnel and operations

were essential, should budget pressures increase in fiscal year 1995. The

Director stated that (1) the Information Resources Branch and Media

Monitoring were the most important to Radio Marti’s operations and

(2) depending on the severity of budget cuts and the impossibility of

finding other budget savings, it could be necessary to consider reducing

staff in the analytical unit. However, the Director had stressed in related

documentation that absent the most pressing budgetary requirements, a

surrogate radio operation, such as Radio Marti, would continue to need a

reliable research capability.

• In March 1994, the Advisory Panel on Radio Marti and TV Marti issued its

report, which concluded that (1) Radio Marti provided competent

broadcasting of important information not otherwise available to the

Cuban people; (2) although Radio Marti had endeavored to observe

standards for objectivity, improvement was needed because of politicized

journalistic decisions and an oversized and growing share of coverage

devoted to the Cuban-American community; and (3) annual savings of

$6 million to $10 million per year could be achieved in OCB by downsizing

management and production processes.

First Reinvention Plan On March 24, 1994, the Director of OCB submitted OCB’s reinvention plan to

the USIA Director. The plan recommended that OCB be restructured to

streamline its operations and to achieve significant financial savings for

fiscal years 1994 and 1995, in accordance with recommendations

contained in the Vice President’s report on reinventing government.

Overall, the plan proposed eliminating 10 positions, including all 

4 positions in the research analytical unit in Radio Marti’s Department of

Research. According to the plan, that unit, composed of three GS-14

employees and one GS-13 employee, was established in 1985 to provide a

means of obtaining and analyzing information about Cuba. However,

according to the plan, OCB had employed people in the news and programs

departments with a vast knowledge of Cuba and first-hand information

was available from other means. The plan concluded that it no longer

made sense to have research analysts do much of the same work being

done elsewhere in the organization. Projected savings in salaries and

benefits were $345,000 in fiscal year 1995.

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Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

One of the proposed positions to be eliminated was that of the Director of

Audience Research. The plan noted that (1) in October 1992, the

responsibility for quantitative research work was transferred to USIA’s

Office of Research and (2) OCB’s Office of Program Evaluation did all of

the qualitative analyses necessary to support the program. The plan also

proposed eliminating a producer and a writer position in TV Marti and an

administrative officer position in OCB and allowing two temporary

positions to expire. According to the plan, eliminating the positions was

necessary to streamline operations in addition to other steps being taken,

such as imposing a hiring freeze in OCB, curtailing overtime, and reducing

administrative and personnel staff.

USIA’s Director approved the plan on March 31, 1994. However, on April 4,

1994, USIA’s Director put the implementation of the plan on hold, citing the

need to consider the impact of other studies on OCB. Nevertheless, efforts

to streamline and downsize continued in OCB. Specifically, in

mid-April 1994, the Director of OCB forwarded a proposal that would have

eliminated 33 OCB positions and saved $3.08 million, in addition to the

$4 million proposed in the reinvention plan. Top USIA management’s

support for the reinvention plan also continued. For example, in July 1994,

USIA’s Director responded to the Advisory Panel’s recommendations for a

leaner management and production process by stating that (1) OCB had

proposed reducing management and production ranks for a savings of

$4 million by the end of fiscal year 1995 and (2) reductions would be

accomplished through a combination of attrition and elimination of

encumbered positions.

Amended Reinvention

Plan

The Director of OCB submitted an amended version of the reinvention plan

to USIA’s Director on March 22, 1995. As background, the amended plan

noted that (1) the original plan was placed on hold, but in the interim,

OCB’s fiscal year 1995 funding was reduced by $2 million; (2) since late

1992, OCB had taken a number of steps to trim its budget, including

imposing a hiring freeze, reducing 34 staff positions through buyouts and

attrition, and cutting travel and telephone costs by 30 percent and

18 percent, respectively; and (3) consistent with the original plan, an

administrative officer, a TV news writer, and two temporary positions

were abolished.

Proposals in the amended plan included recategorizing Deputy Director

positions in several departments, restructuring the news department to

improve efficiency and supervisor/employee ratios, and transferring the

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Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

Cuban media monitoring function to the Department of Programs. The

amended plan also indicated that the research analytical unit was not

essential and that phasing it out, along with the audience research

position, would save over $650,000 annually. The amended plan was

approved by USIA’s Director on March 22, 1995, but implementation was

placed on hold. The USIA Director told us he approved the reinvention plan

because it had a convincing argument that there was no longer a need for

the research positions but suspended implementation because of the

analysts’ allegations of reprisals.

The amended plan had indicated that OCB would not be able to prevent

budget shortfalls in fiscal year 1995 without eliminating five of the

positions discussed in the original plan (four research analyst positions

and one Director of Audience Research position), as well as the two

supervisory positions of the four analysts (Director and Deputy Director of

Research). However, according to OCB’s budget officer, by using funds

carried over from prior years and by reprogramming funds, OCB had

sufficient funds for Radio Marti in fiscal year 1995. OCB provided the data

on Radio Marti’s budget that is shown in table 1.

Table 1: Sources of Radio Marti

Funding for Fiscal Years 1990-95 Fiscal

year Appropriationa Carryoverb Recoveriesc Obligations Balance

1990 $12,537,000 $918,516 $7,216 $12,481,482 $981,250

1991 15,069,000 981,250 822,101 15,538,250 1,334,101

1992 18,488,000 1,334,101 0 16,267,529 3,554,572

1993 15,873,000 3,554,572 197,160 15,891,646 3,733,086

1994 14,000,000 3,733,086 204,114 16,092,547 1,844,653

1995 13,130,000 1,844,653 1,060,000 15,672,660 361,993

aOCB appropriations have typically been no-year funds that are available for obligation for an

indefinite period of time.

bUnobligated funds that are carried over into the next fiscal year.

cDeobligated funds that become available for other purposes.

According to OCB’s budget officer, the statement in the amended plan

concerning budget shortfalls was not “technically” correct, but she

believed it was consistent with management’s concerns about anticipated

reductions in overall appropriation levels and potential shortfalls in the

salaries account if the reinvention plan was not implemented. She noted

that the failure to implement the plan forced OCB to request congressional

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Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

approval for reprogramming funds, primarily to cover the unanticipated

salary costs of positions scheduled for elimination. Although most of the

$1.06 million in fiscal year 1995 recoveries became available to cover those

salary costs, OCB management has characterized the use of budget

recoveries for such purposes as poor fiscal management.

Limited Cost-Benefit

Data

Although objectives of OCB’s 1994 and 1995 reinvention plans were to

eliminate nonessential and costly positions, OCB developed only limited

cost-benefit data on the research function to justify its elimination. OCB

management defended the lack of cost-benefit analyses, stating that

(1) the Vice President’s vision for reinventing government did not require

such analyses and (2) the plan was based on management’s decisions to

prioritize news and programs as the most essential elements of broadcast

operations. Concerning the issue of essentiality, several key OCB and Radio

Marti officials also defended the plan based on their belief that the

research analytical unit was not essential to the operations of Radio Marti.

Others, however, strongly defended the analysts as being an important and

readily available resource.

Our review indicated that OCB had developed the following cost data.

• In November 1993, the Deputy Director of Radio Marti estimated that

(1) each issue brief and background report prepared by the research

analysts in fiscal year 1990 cost about $4,100, (2) each report of Cuban

radio news prepared by the media monitors cost about $190, and (3) each

information request handled by the information specialists cost about

$330. He concluded that the per unit cost to Radio Marti of some of the

research work was very high, but he also noted that his analyses did not

consider intangible, and therefore unquantifiable, services that some of the

research staff performed. Such services included regular research

assistance to the news department and briefings for program staff.

• Other OCB information indicated that the number of backgrounders and

issue briefs prepared by the research analytical unit increased from 63 to

104 from 1991 through 1993. The costs of the outputs in 1992 and 1993

were calculated by OCB to average between $3,000 and $3,200 each and

criticized as being high. However, OCB had not determined costs for other

services, such as external analyses, for comparative purposes.

OCB officials noted that they did not examine the cost-benefits of Radio

Marti’s Field Research Unit in Miami, Florida, as part of the reinvention

plan. The unit, which includes five permanent staff and seven contractors,

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Appendix II 

Efforts to Streamline and Reinvent Office of

Cuba Broadcasting

has primary responsibility for interviewing new arrivals from Cuba to

develop information about the current situation in Cuba and to maintain a

database for follow-up and use by program and news staff. Although the

unit’s budget was reduced significantly in late 1992, an examination of

reinvention issues in June 1995 by an official in USIA’s International

Broadcasting Bureau indicated that opportunities for reductions may exist

in the Miami unit.

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Appendix III 

Issues Concerning the Role of Research

Although OCB’s reinvention plan was consistent with overall efforts to

streamline government, it caused controversy by attempting to eliminate

staff that had been the focus of policy disputes within Radio Marti for

years. OCB documents show that the policy disputes have centered around

(1) the role of the analysts in ensuring policy compliance and

(2) management’s decisions to exclude the analysts from on-air

programming. The analysts believe that OCB management’s actions to

remove them from on-air programming represented one of many steps by

management to (1) “marginalize” the analytical unit and (2) eventually

abolish their positions under the guise of reinvention.

Policy Compliance

Function

Our review indicated that the role of Radio Marti’s research function was

defined in April 1986. The mission of the Research and Analysis Division,

which at that time was part of the Research and Policy Department,

included reviewing completed program scripts for both content and policy

compliance. The group primarily prepared quarterly situation reports on

Cuba and special reports, supported public affairs programs, and briefed

staff. In January 1990, a new mission statement for research was prepared.

The objective of the new statement was to better integrate research into

broadcasting functions through daily support. The statement noted that

(1) the analysts and other research staff would assist, advise, and support

the news and program departments and (2) the Cuba situation reports

would be replaced by a series of more timely issue briefs, backgrounders,

topic analysis, and other publications. However, the stated mission

objectives for research did not include a policy compliance role.

Shortly thereafter, Radio Marti’s then Director presented a discussion

paper to department heads on the roles and mission of Radio Marti as it

completed its 5th year on the air. The Director concluded that the research

analysis function had developed a substantial capability, but it had not

been satisfactorily meshed into providing timely responses to news and

programs. He also concluded that the final responsibility for program

content, as well as policy compliance, should be vested with the news and

program units, and not with the analysts, as it had been earlier.

Although Radio Marti’s former Director made this decision, “policy

compliance” problems began to significantly affect relations between the

research department and the news room. For example, news staff accused

the analysts of monitoring and changing their work and questioning their

professional judgment. The seriousness of the issue was reflected in a

June 1994 memorandum from several news room personnel to the

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Appendix III 

Issues Concerning the Role of Research

Director of OCB, in which concern and frustration about “repeated attacks”

on Radio Marti’s news programs were expressed.

On-Air Analysis

Function

Beginning in May 1990, employees of the analytical unit were included as

on-air analysts by Radio Marti, both in regularly scheduled news programs

and in topical programming. However, at an April 1992 meeting of the

Advisory Board for Cuba Broadcasting, questions were raised as to

whether personal opinions were being expressed by the research analysts

during the programs. Although it was questioned whether employees

could be expected to offer political analyses without expressing personal

opinions, one board member believed that the fundamental charter of OCB

was being breached by allowing personal opinions to be aired on Radio

Marti. Debate over this issue continued within OCB, and effective

December 31, 1992, the analysts were removed from on-air programs.

Allegations by

Research Staff

The research analysts have made accusations about the quality and

content of Radio Marti’s broadcasts. In some cases, the allegations were

directly linked to questions about changes in the roles and responsibilities

of the analysts. For example, in June 1994, the Chairman, House

Committee on Government Operations, Subcommittee on Legislation and

National Security, wrote and asked the USIA Director to review allegations

the Subcommittee had received. Allegations were political bias,

censorship, distortion of information, and selective reporting by Radio

Marti; cronyism, particularly in the hiring of the former Radio Marti news

director; and retaliation against employees in Radio Marti and others who

had criticized broadcasts as not meeting standards. Approximately 

200 examples of alleged censorship and distortion of information practices

were enclosed in the Chairman’s letter. Highlighted examples included a

November 1993 broadcast that allegedly distorted the views of the

President of the European Parliament on the impact of the U. S. embargo

on Cuba. According to the letter, the President had stated that the

embargo was an obstacle to political evolution in Cuba, but Radio Marti

had incorrectly reported that he was criticizing Fidel Castro. Allegations of

selective reporting included emphasizing the interests of certain Cuban

exile organizations in the United States rather than those of the Cuban

people.

The allegations of reprisals in the Chairman’s letter focused on the

research analytical unit, stating that the unit’s ability to help ensure that

Radio Marti accomplished its mission had been impaired by banning them

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Appendix III 

Issues Concerning the Role of Research

from on-air appearances and other punitive actions. The Chairman was

also concerned about the proposal to eliminate the analytical unit. In

August 1994, USIA’s Director responded to the Chairman, stating that (1) as

to the allegations of political bias, there appeared to be instances where

news decisions were questionable and different choices might have been

made and (2) concerning the allegation of cronyism, an error in personnel

procedures had occurred in 1991 in the hiring of the news director.

However, USIA’s Director stated that the fact that the research analysts

were no longer on-air was not related to any kind of retaliation but based

on management’s decisions and guidelines. Concerning the allegations of

retaliation, the Director noted that the USIA Office of Inspector General

(OIG) was investigating them. (Appendix VI contains information on the

status of the OIG investigation and a related grievance filed by the analysts

with their employee union.)

Although the Director’s response to the Chairman did not react to the

specific examples of alleged distortions in reporting, OCB prepared

separate responses to each of the approximately 200 allegations,

concluding that most were unfounded. For example, OCB noted that its

analyses of the allegation concerning statements by the President of the

European Parliament concluded that (1) there was no gratuitous critique

of Fidel Castro and (2) the President was properly quoted on the likely

economic transformations if the embargo was lifted. OCB provided

supporting documentation for its analyses, but one of the analysts has

charged that the documentation had been altered to support OCB’s

position.

Page 17 GAO/NSIAD-96-110 U.S. Information Agency
Appendix IV 

Reasons for OCB Director’s Resignation

Mr. Richard Lobo resigned as OCB Director on May 26, 1995. According to

Mr. Lobo, the major reason for his resignation was his frustration from his

unsuccessful attempts to streamline OCB and implement the reinvention

plan. He also cited his perceptions of a general lack of support for OCB

within USIA as being a factor. Mr. Lobo said that his superiors (the USIA

Director and the Associate Director for International Broadcasting) had

directed him to reform OCB and that he viewed that directive as being

consistent with the recommendations of the March 1994 Advisory Panel on

Radio Marti and TV Marti, which called for a leaner management and

production process. In considering options for streamlining, he believed

the biggest item available for reduction was staffing. However, he also saw

the focus of Radio Marti operations as being news and programs and he

tried to protect those functions as much as possible.

In preparing the reinvention plan, Mr. Lobo said that he built on the

streamlining efforts already underway in OCB when he assumed his

position. In regard to the efforts to eliminate the analyst positions, he said

that several factors led him to conclude that the analytical unit had

become nonessential, including its costs, the limited usefulness of its

products, the development of Cuba expertise within other OCB units, and

the availability of similar expertise on the outside at less cost. Overall, he

concluded that the unit had become a “luxury” that was no longer needed.

Mr. Lobo said that several OCB officials agreed with him, including news

department staff who had complained that the analyst’s inputs were

frequently late and not essential. When asked if anyone expressed strong

support for retaining the analysts, he said “not really.” He also said that he

and his superiors fully recognized that the analysts would probably claim

that the actions to eliminate their unit were in retaliation for their past

accusations of biased and slanted broadcasting by Radio Marti.

Page 18 GAO/NSIAD-96-110 U.S. Information Agency
Appendix V 

Progress in Monitoring Compliance With

Voice of America Standards

For several years, there have been allegations that political bias has

undermined Radio Marti’s news and information broadcasts. In our

September 1994 report on the need to strengthen Radio Marti’s program

review processes,1

 we concluded that (1) although USIA’s Office of

Program Review was intended to be a primary tool for ensuring that

broadcasts meet Voice of America (VOA) standards, it had not fulfilled that

role and (2) the external review panel had limited effectiveness and

credibility due to weaknesses in OCB’s procedures for considering the

panel’s comments and suggestions. We recommended that procedures be

adopted to ensure that OCB systematically considers and acts on the

panel’s suggestions for improved programming.

Since our report, progress has been made in monitoring efforts designed

to ensure that Radio Marti’s broadcasts meet VOA standards. However,

some weaknesses in monitoring remain, as the following shows.

• The International Broadcasting Bureau’s Office of Program Review has

only one analyst that monitors Radio Marti’s broadcasts. The analyst’s

reports are detailed and, in some cases, have identified examples of

program segments that have not met standards.2

 However, the overall

scope of the monitoring has been limited because the (1) reviews have not

consistently included conclusions as to whether broadcasts meet

standards and (2) coverage of broadcasts has been for only about 2 hours

each day. Program Review officials have also identified other limitations

such as an inadequate OCB program logging system that hinders them when

identifying the composition of broadcasts and monitoring trends in

broadcasting.

• The Office of Program Review tracks the implementation of

recommendations made by the external review panel during its quarterly

reviews of Radio Marti’s broadcasts. However, reviews of individual

programs by Program Review staff have indicated that OCB has not fully

implemented the panel’s recommendations. OCB management cited

resource availability, among other considerations, as a reason for rejecting

some of the panel’s recommendations.

• OCB’s Office of Program Evaluation coordinates meetings of the external

review panel and compiles a fully documented summary of each review

that is made available to OCB’s Programming Development Committee for

consideration and follow-up action. OCB management considered these

1

Radio Marti: Program Review Processes Need Strengthening (GAO/NSIAD-94-265, Sept. 23, 1994).

2

For example, in February 1995, the analyst reported that a segment of Radio Marti’s breakfast show,

Early in the Morning, did not meet standards due to broadcastings of individual opinions without

airing opposing or different points of views.

Page 19 GAO/NSIAD-96-110 U.S. Information Agency
Appendix V 

Progress in Monitoring Compliance With

Voice of America Standards

summaries to be an important source of critical feedback and believed

that policy compliance was implicit in the panel’s reviews. However, the

panel’s summaries have not specifically or categorically indicated whether

or not Radio Marti’s broadcasts have complied with VOA standards.

One of the members of USIA’s Broadcasting Board of Governors has also

reviewed products of the external review panels and has concluded that

the composition of the panels is not sufficient to assure critics and the

general public that programming conforms to acceptable journalistic

standards. He noted that the most damaging allegation was that Radio

Marti’s programming (1) did not adhere to its legislative mandate and

(2) was improperly controlled by outside persons or interests to further

their own agendas. Although he did not believe that the allegations were

true, he proposed reforms to detect and stop any lack of balance in

programming. One proposal included appointing a “distinguished and

unimpeachable” panel of outside reviewers to examine the content of

Radio Marti programming and pronounce on its objectivity and balance.

Other Board members have also expressed concerns about past criticisms

of the external review panels. The Board continues to study the options

available to it for evaluating and reviewing Radio and TV programming.

The continued importance of monitoring Radio Marti’s compliance with

standards was recently reflected in analyses conducted by the Office of

Program Review for the Broadcasting Board of Governors and VOA.

Analyzed were two segments of Radio Marti’s broadcasts dealing with

issues related to the downing of two aircraft by the Cuban government in

February 1996. The analyses concluded that the broadcasts were

inconsistent with Radio Marti’s editorial policy and guidelines.

Page 20 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VI 

Inspector General’s Investigation and

Related Matters

The USIA OIG began its investigation into allegations of management

reprisals at OCB in June 1994. The impetus of the investigation was an

earlier audit of OCB’s hiring practices,1

 which had focused on reviewing

allegations contained in an April 1993 anonymous letter entitled “Problems

at Radio Marti.” OIG concluded that the employees named in the

anonymous letter had met the qualifications for their positions and that

the former news director’s appointments had been inconsistent with OCB

personnel policies. OIG attributed certain information in the audit report to

the Deputy Director of Radio Marti and later the Deputy Director alleged

that he had suffered reprisals from management because he had

cooperated with the OIG audit.

OIG officials told us that they tried to focus only on allegations by the

Deputy Director, but their investigation began to draw in matters related

to the role of the research analysts and other issues. OIG interviewed

and/or contacted over 20 people as part of its investigation, but it had not

issued a final report on its findings as of mid-April 1996. However, in

July 1995, OIG provided congressional requesters preliminary information

and copies of affidavits that it had developed during its investigation. The

publication of that information in the press resulted in severe criticism of

OIG.

2

Concerning the controversy surrounding its release of information, the

Inspector General said that her office was initially contacted by

congressional staff in January 1995. She also said that (1) OIG officials

briefed the staff on the status of the investigation on at least two occasions

and (2) a written request was received in July 1995 for more information

on the investigation’s results. The Inspector General and the Assistant

Inspector General for Investigations both believed that the release of the

information was consistent with the OIG operations manual, which states

that OIG’s duties and responsibilities include keeping Congress fully and

currently informed concerning fraud and other serious problems, abuses,

and deficiencies relating to the administration of Agency programs.

Referral to President’s

Council on Integrity

and Efficiency

On July 24, 1995, USIA’s Director referred the conduct of OIG’s investigation

to the President’s Council on Integrity and Efficiency. The Director’s press

release stated that the matter was referred to the Council because of his

concerns about the premature release of incomplete information and the

1

Review of Allegations Concerning Radio Marti Employees, 93-A-52/ARR-94-09, May 19, 1994.

2

According to the Inspector General, her office did not release the information to any unauthorized

individuals, including the news media.

Page 21 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VI 

Inspector General’s Investigation and

Related Matters

impartiality of the process. According to an official on the Council’s

Committee on Integrity, several allegations were received concerning the

conduct of USIA’s Inspector General. The Committee has referred all of the

administrative-related allegations concerning USIA’s Inspector General to

the U.S. Agency for International Development’s Office of Inspector

General to determine what (1) actions, if any, had already been taken

concerning the allegations and (2) additional actions, if any, should be

considered.

Grievance Filed With

Employee’s Union

The research analysts filed a grievance with their employee union

(American Federation of Government Employees Local 1812), stating that

the proposal to eliminate their positions was an act of reprisal. According

to the grievance, the decision in 1992 to prohibit the direct participation of

research staff in programs and news casts undermined the ability of the

analysts to contribute directly to Radio Marti’s compliance with its

broadcast mandates. The grievance also stated that (1) the continuous

attempts by OCB’s management to undermine the research analysts’

positions had resulted in the degradation of their professional capabilities

and constituted ongoing job harassment and (2) the harassment may have

taken place for political motives and due to external pressure on OCB’s

managers.

A decision on the grievance had not been reached as of mid-April 1996.

Arbitration began in mid-March 1996.

Internal Review by

USIA

A June 1995 examination of issues related to the grievance by an official in

the International Broadcasting Bureau for the Bureau’s Director of

Personnel found that

• since 1988, there have been substantial interpersonal and professional

conflicts involving the research analysts, the former Director of News, and

OCB management;

• the research analysts had perceived wrongdoing on numerous fronts,

covering violation of policy, the broadcasting charter, and improper

personnel actions;

• when viewed as a pattern, considering issues outside the staff reductions,

the credibility of the reprisal concept becomes substantial; and

• two senior level management officials believed that the grievance was

correct and had provided sworn affidavits to the USIA OIG.

Page 22 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VI 

Inspector General’s Investigation and

Related Matters

However, the examination concluded that substantial documentation

showed that OCB management had proceeded prudently and pragmatically

when identifying reductions as part of the reinvention process. Moreover,

the examination determined that (1) management considered reducing the

level of support provided by the research department and determined that

while some reduced level of support could be useful, the positions were

not essential and could be eliminated; (2) the reinvention plan was

approved with the understanding that allegations of impropriety would

result; and (3) no “smoking gun” existed that proved or showed that the

elimination of the research analyst positions was an act of retribution.

Page 23 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VII 

Comments From the Broadcasting Board of

Governors

Note: GAO comments

supplementing those in the

report text appear at the

end of this appendix.

See comment 1.

See p. 3.

See comment 2.

See p. 8.

See comment 3.

See p. 9.

See comment 2.

Page 24 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VII 

Comments From the Broadcasting Board of

Governors

See p. 10.

See comment 2.

See p. 20.

See comment 2.

Page 25 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VII 

Comments From the Broadcasting Board of

Governors

Page 26 GAO/NSIAD-96-110 U.S. Information Agency
Appendix VII 

Comments From the Broadcasting Board of

Governors

The following are GAO’s comments on the Broadcasting Board of

Governors’ letter dated April 4, 1996.

GAO Comments 1. Our objective was to provide information on several issues related to

the operations of the Office of Cuba Broadcasting. We were not asked by

our congressional requesters to judge the merits of allegations made

against Radio and TV Marti programming and management. As we note in

our report, many of the allegations are under review by the USIA OIG and

grievance examiners.

2. The report has been modified in line with this suggestion.

3. We have changed the partial organizational chart in this report to show

the Board’s responsibilities.

(711142) Page 27 GAO/NSIAD-96-110 U.S. Information Agency
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