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