Evening star., 1953-04-09
GAO Rules
Cash Leaves
As:Improper
U. S. Seeks Return
Of Funds From
Some in Rent Office

has ruled as improper the cash
leave plan engaged in by 49 Of
flee of Rent Sterilization en-
ployeS and will try to recover
some of the money, it was dis
closed today.
In hearings released by a House
Appropriations subcommittee in
vestigating the ORS leave stu
alton, acting Controller General
Frank L. Yates said the GAO
would try to collect back pay
ment in cases where it is de-
termined the Government would
lose money by the transaction.
Mr.. Yates criticized the actions
of the employees who were per-
mitted to resign and draw cash
for their unused annual leave
and then Immediately rehired.
No Doubt as to Motive.
There is no doubt that the
shifting of employees from per-
manent to temporary positions
then back to permanent posi-
tions was done for the sole pur-
pose of making payments for
accrued annual leave" Mr..
Yates declared.
However, Mr.. Yates said that
as a result of the salary in
creaSes given Federal employees
since 1850, and the fact that an
employees cash leave is based on
his final salary, it would result
IN Increased costs to the Govern
ment if it tried to collect the
leave money paid to many of
these employees.
The GAO official said in those
cases where the Government
would gain by collecting the back
leave payments, a move would
be made to force the employees
to refund the money.
Action Wouldn't Pay.
IF a fiat position is taken that
all employees should repay the
amounts received in lump sum
leave payments, there would
necessarily have to be recredits
to the employees leave accounts"
Mr.. Yates declared. "The Gov
eminent would make a collec-
tlon with one hand and assume
q liability with the other. In
some cases the liability would
have to be paid of in the near
future"
The subcommittee was told
that the suspended chief counsel
OF the rent Office was permitted
to engage in the cash leave plan
in order to make q down pay
ment on a house.
Three of the 40 employees have
been suspended by Acting ORS
Director William G. Barr and
the final decision in their cases
will be made soon by Arthur S.
Flemming, director Of the Of
flee OF Defense Mobilization of
which ORS is a unit. The suS-
pended employees are Edwin D,
Dupree, jr., the general counsel;
Linda A. Matteo, personnel di-
rector, and John j. Madigan, ad-
ministrative assistant.
Paid Four Times.
The subcommittee was told
that Mrs. Matteo on four differ
ent occasions had drawn terminal
leave pay and then had been i'm
mediately rehired on various oc-
caSions during her Government
service.
Mr.. Barr testified that during
June, 1850, he first learned about
this practice.
II Immediately went to Mr.,
Wood (HouSing Expediter Tighe
Wood and asked him what about
this practice, that I knew
nothing about it -, Mr.. Barr
testified.
He stated he had forgotten
to inform me that some time
during the first week in June
our director of personnel, Mrs.
Matteo, had come to him and
said that the General Counsel
of our agency was in need of
funds to make a down payment
on a house and that there was
plan-this plan we are discuss
ing here-whereby that person
could receive funds equal to the
amount of leave that he had &C
cumulated. He informed me also
that he had asked Mrs. Matteo,
our director of personnel,
whether it was legal and Mrs.
Matteo had informed him that it
was.
Practice Reported General.
"I stated to Mr.. Woods that
In my opinion he should not
have permitted it to be done in
that case, that whether 1t was
legal or not I did not know. but