Museum Ousts Gary Beer For Excess Expenses

The review of Beer's expenses from 2000 to 2005 also found that a subordinate routinely approved Beer's expenses, and that the unit followed no written expense-account policy.

"Such practices do not set the proper tone, especially for an entity that is part of a nonprofit organization," Ryan said.

The investigation found that Beer charged the Smithsonian for use of a limousine service about 160 times, costing $30,000. Some of the limousine charges were for trips in Washington, though the Smithsonian also paid $28,000 for his use of a parking garage -- and $40 for two parking tickets.

Ryan did not recommend that Beer reimburse most of the limousine charges, though she deemed them to be unauthorized under Smithsonian policy.

Beer contended that a car service was more efficient and that the unwritten Smithsonian Business Ventures policy permitted use of a car service. Ryan noted that other Smithsonian executives knew that he was using chauffeured cars.

Sen. Charles E. Grassley (R-Iowa), who had requested a review of Smithsonian expenses, criticized the inspector general for letting Beer off the hook for the charges. "It is clear that just like former Secretary [Lawrence] Small, Mr. Beer thought he was entitled to champagne," Grassley said in a statement. "The CEO of SBV must have thought he was living in the emerald city when he paid the Oz and Oz Town Car Corporation and other limousine services tens of thousands of dollars to provide him a gold-plated ride."

Samper ordered a review of the Smithsonian travel regulations to comport with Federal Travel Regulations and said he would review policies regarding the use of car services. He also said he had appointed a task force to review the structure of the eight-year-old Smithsonian Business Ventures.

Rep. Vernon Ehlers of Michigan, the ranking Republican on the House committee, suggested disbanding Smithsonian Business Ventures, changing its name or reconfiguring it to prevent it from being something "autonomous that can run wild, as this one has done."

The investigation of Beer's compensation and expenses has been mired in controversy since it was launched in March last year. Ryan's predecessor launched the investigation, but resigned after then-Secretary Lawrence M. Small called her and asked her not to conduct the review.

The Beer report had been due in the spring. But, in recent months, Ryan has been battling with Beer's outside attorney, Kiernan, a white-collar criminal defense attorney and ethics specialist at Zuckerman Spaeder LLP.

Ryan said documents kept by Smithsonian Business Ventures, which Beer oversaw, were a mess, making the investigation "protracted and difficult."

Kiernan said it was Smithsonian Business Ventures' fault for the disarray of documents, most of which are filed away in 800 cardboard boxes in storage. The inspector general's "recommendations rest on the legally unsupportable premise that Mr. Beer should be held personally responsible for the Smithsonian's failure to locate years-old accounting records."

The inspector general also found that SBV did not have a written policy regarding business expenses.

Beer told the inspector general that the unit did have a policy, but it was not written and was different from Smithsonian policy.

Beer was not required to submit formal vouchers or expense-account reports required by other Smithsonian Business Ventures employees, the controller, Robert Schelin, told the inspector general.

Beer's attorney submitted to the investigators a sworn declaration from Schelin asserting that "in his view all expenses submitted were reasonable, in furtherance of SBV's mission and supported contemporaneously by adequate documentation."

The inspector general found a repeated practice of paying advances on Beer's credit card. Ryan pointed to a memo sent by Beer's assistant to the controller in December 2004. "The balance due on [the] account is 7,237.09, which is due by Jan. 6, 2005. Do you want to issue a check for $10,000?" The controller responded with a handwritten note, "Approved for Payment; Bills to be reconciled."