State IG Accused of Averting Probes

¿ Using "highly irregular" procedures to personally exonerate the embassy's prime contractor of labor abuses.

¿ Interfering in the investigation of a close friend of former White House adviser Karl Rove.

¿ Censoring reports on embassies to prevent full disclosure to Congress.

¿ Refusing to publish critical audits of State's financial statements.

Among the e-mails obtained by the committee are exchanges in which staff members discussed Krongard's decision not to cooperate with the Justice Department on the embassy investigation.

"Wow, as we all [k]now that is not the normal and proper procedure," an investigator wrote to John A. DeDona, an assistant inspector general. DeDona forwarded the e-mail to Deputy Inspector General William E. Todd, saying, "I have always viewed myself as a loyal soldier but hopefully you sense my frustration in my voicemail yesterday."

Todd wrote back: "I know you are very frustrated. John, you need to convey to the troops the truth, the IG told us both Tuesday to stand down on this and not assist, that needs to be the message."

DeDona responded: "Unfortunately, under the current regime, the view within INV [the office of investigations] is to keep working the BS cases within the beltway, and let us not rock the boat with more significant investigations."

Waxman's letter also said that Krongard's actions have resulted in a "dysfunctional office environment in which you routinely berate and belittle personnel, show contempt for the abilities of career government professionals and cause the staff to fear coming to work." The letter said high personnel turnover has left the office with many senior-level vacancies and only seven of 27 investigator positions filled.

The embassy, whose cost of more than $600 million has made it the most expensive U.S. diplomatic mission in the world, has been the subject of repeated congressional questioning and allegations of wrongdoing in both construction and hiring practices.