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Prepared Testimony of
Kenneth M. Donohue Sr.
Inspector General - Designate
before the Senate Committee on
Banking, Housing and Urban Affairs

Washington, DC
December 6, 2001

Chairman Sarbanes, Senator Gramm, and Members of the Committee:

Before proceeding further Mr. Chairman, please allow me the pleasure to introduce the members of my family that are with me today.

First, let me introduce my wife, Kathleen who currently works at the State Department and raised our wonderful sons, while I was traveling the world. Without her support and love I would not be here today.

Next is my eldest son, Kenneth Martin who is a military veteran and currently a police officer with the U.S. Mint; Timothy Patrick who is a special agent with the U.S. Secret Service; and finally, my son Brian Richard who is a die-hard Hokie of Virginia Tech and now a finance person with a worldwide computer corporation.

I have been blessed with this family that has made many untold sacrifices for me over the years. I am very proud and love them very much.

You can gather by their names that I am of Irish ancestry and can assure you that my foreign born parents would be pleased to see their youngest son sitting before this distinguished group of U.S. Senators.

As a child of immigrants - raised in a borough of New York - I know that when my parents sought their dream in America they found opportunity in the city. That opportunity must continue for others less fortunate.

I am deeply grateful to President Bush and Secretary Martinez for according me the honor of this nomination and, if confirmed, I will serve this position with enthusiasm and humility.

Chairman Sarbanes and Members of this Committee, I thank you for your willingness to schedule this hearing given the stress of other business during these very difficult times for our country.

During my twenty-one years of Federal law enforcement with the U.S. Secret Service, I have testified hundreds of times in Federal court and before grand juries relating to criminal investigations.

First and foremost, I was taught that a good witness should be brief and to the point.

Members of the Committee, I sit before you with admiration to you for your service to the citizens of this country. The potential opportunity to work with you in the future is an enormous privilege and responsibility.

I can assure you that I am up to the challenge.

In my previous role as Section Chief of a headquarters staff for the Office of Investigations at the Resolution Trust Corporation (RTC) and later as the Assistant Director, I spearheaded our efforts and successful outcome of working with the other related regulatory and Federal law enforcement agencies from both the Department of Justice and Department of the Treasury.

When I arrived at the RTC in 1980, we had very few employees assigned to investigations. Those numbers would later grow to approximately 500 staff members located throughout sixteen field offices that I indirectly supervised through four regional directors.

By 1996, with a congressional sunset mandate we successfully closed these offices and I returned to the Federal Deposit Insurance Corporation. As a member of the national bank fraud-working group we collectively addressed and reported our efforts to Congress on the investigation of the failed savings and loans.

This past governmental experience is not only relevant to my prospective position at the Department of Housing and Urban Development (HUD), but will prove to be extremely valuable in performing the duties of Inspector General.

My past five years have been in the private sector consulting on law enforcement and investigative issues. This also provides a strong foundation for the task that lies ahead, if I am confirmed. For example, I recently completed a multi-year contract with a classified program at the Central Intelligence Agency that inter-related with U.S. corporations.

I learned first-hand that the corporate world, even though guarded at times toward the Federal Government, has enormous respect for those government agencies that are responsive to the will and concerns of the American people.

I am aware that HUD had been designated as high risk by the General Accounting Office and criticized by its former Inspector General. If confirmed, I pledge to you and our citizens that I will be a strong manager and my office will commit to the task of aggressively investigating waste, fraud and abuse. I intend to recruit the best talent to this office and set the highest standards.

I will work with Secretary Martinez in achieving the shared goal of eliminating fraud, waste and abuse, and ensure that taxpayer dollars go to the programs intended. I will do this while jealously guarding the independence of the office of Inspector General.

If confirmed, I will maintain an open and forthright dialogue both with the Secretary and the Congress during my tenure.

This I pledge and this I promise.

Finally, I enjoy a close relationship with many other current Inspectors General and I will seek their advice and counsel.

In this regard, I want to acknowledge and thank the current Inspector General for the Treasury Tax Administration, Mr. David Williams, who has also served for the past six months as acting Inspector General at HUD.

Thank you for the opportunity to appear before you this morning. I stand ready to answer any questions you may have.

Last Modified: 07/03/06
Content Archived: March 17, 2010
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