Smithsonian Official Quits After Records Destroyed

Sen. Charles E. Grassley (R-Iowa), who initiated the Senate Finance Committee's investigation, said, "It's hard to see how someone could have destroyed records after getting explicit instructions to preserve them for a congressional investigation. That makes you think there was something to hide. I intend to get a full explanation from the Smithsonian about why this happened, whether the Smithsonian handled it adequately, and whether it merits external review. I also want assurances that it won't happen again."

Minutes from the January meeting, obtained by The Post earlier this year, include three pages summarizing the executive committee's report on compensation of senior executives and changes made to Small's employment agreement but do not include comments from regents. The minutes are labeled "for administrative purposes only."

Hobbins played a key role at the Smithsonian. He was the primary liaison between the Smithsonian secretary and the Board of Regents, the body established by Congress to oversee what has become the world's largest museum complex. Federal funds and grants provide about three-quarters of the Smithsonian's $1 billion budget.

Hobbins shepherded many aspects of Small's employment through the bureaucracy. Many of those actions were sternly criticized by the independent review committee. In 1999, he drafted Small's initial employment agreement after the former Fannie Mae banker was selected to be the institution's 11th secretary. In 2000 and 2001, Hobbins gave Small signed, blanket travel authorizations, filling in the spot for "traveler's supervisor." Hobbins also was the official who was notified by Small in 2000 that a hypothetical mortgage payment would be used to collect a $150,000-a-year housing allowance. (Small had no mortgage payments because he owned his house outright.)

After the inspector general began her review, Hobbins was one of the officials in the secretary's office who said that Small had the right to waive any policy that applied to the secretary. Ryan and the independent panel found no authority for Small to do so.

Hired as a historian in 1967, Hobbins worked as assistant to the secretary for S. Dillon Ripley, Robert McCormick Adams, I. Michael Heyman and Small. He also briefly worked for acting Secretary Cristián Samper, who announced Hobbins's retirement in an e-mail to employees two weeks ago.

Hobbins was known for his loyalty to the office of the Smithsonian secretary, and the secretaries frequently acknowledged his dedication. In 1999, Heyman gave him an award with a citation that read, "Jim Hobbins has served the Smithsonian with enormous dedication, discretion, fair-mindedness and good will, acting as the Secretary's chief advisor, confidant, and institutional memory."

The inspector general's review found the unauthorized $4,800 bonus that Small gave Hobbins six months into Small's tenure. Ryan said the bonus did not qualify under Smithsonian policy for either "cash awards for sustained superior performance" or "special acts or services." At the January meeting, the regents found that the bonus, "while technically unauthorized, was justified."

Hobbins's salary under Small increased from about $138,000 in 2000 to $190,000 in 2006, a 38 percent increase over seven years. The inspector general's report on compensation said that the base pay for a Cabinet secretary in 2006 was $183,500.

Hobbins was instrumental in selecting Small, according to the independent review committee. Hobbins supported "a very small group of regents" in recruiting and hiring Small. "The record shows the agreement was drafted by Mr. Hobbins (who is not a lawyer), and provided to the General Counsel [Huerta] and other lawyers in the General Counsel's office before it was finalized, but after the terms had been worked out with Mr. Small," the independent panel said.

The review panel called the agreement "inadequate at best, with key terms and provisions both vague and internally contradictory."

Early this year, Huerta proposed changes to Small's contract to make clear that the housing allowance was additional income. Small replied that the negotiations were to be with Huerta and Hobbins only -- and that Sant was not to be notified.

"I do not want any of my comments passed along to Roger," Small told Hobbins and Huerta in an e-mail. "This is strictly a discussion that you, Jim and I are having."