As Council Launches Probe, Gandhi's Job Appears Less Secure

The D.C. Council approved emergency legislation yesterday to create a special committee to investigate the scandal at the Office of Tax and Revenue, but the biggest question on council members' minds is whether Chief Financial Officer Natwar M. Gandhi should resign.

The fiscal chief said he forced the resignations of his top managers because they failed to catch a scam that authorities say resulted in the theft of at least $20 million, and possibly more than $30 million, through phony property tax refunds.

But Gandhi's critics note that some questionable refunds were issued during his watch as director of the tax office, before he became CFO. An analysis by The Washington Post identified $2.46 million in such refunds, which were issued without required court orders, sometimes to fake companies.

"Isn't what's good for the goose good for the gander?" asked council member Jim Graham (D-Ward 1).

Council member Kwame R. Brown (D-At Large) said simply, "Gandhi has got to go."

Neither Brown nor any other council member has officially called for Gandhi's resignation.

"That's the job of the mayor," Brown said.

Mayor Adrian M. Fenty (D), who can fire Gandhi for cause, is supporting the chief financial officer because of his overall accomplishments, said Carrie Brooks, the mayor's spokeswoman. Fenty would need two-thirds of the council to agree.

Council Chairman Vincent C. Gray (D) said the issue isn't so easily resolved. "No one has said, 'Mr. Chairman, we have to remove the chief financial officer,' " he said. "I think it's on everyone's minds, but how do you move on a groundswell and weigh . . . what he's done for the city and how this could affect the city?"

Gandhi, whose job was created by Congress, has enjoyed national acclaim. The scandal does not endanger the city's bond rating, Wall Street analysts have said, because the amount is a blip in the city's multibillion-dollar budget. Wrong moves by city leaders -- an abrupt decision to remove Gandhi and then a bad choice of a replacement -- could affect that status, Gray said. "That's not an excuse to keep somebody, but it has to be a factor."

Council member Mary M. Cheh (D-Ward 3) said that she understands Gray's point but that Gandhi might have made a rash decision to dismiss his top managers.

The emergency legislation gives the council the power to subpoena witnesses and to hire legal counsel and consultants. Gandhi's office was created by Congress in the mid-1990s, but Gray said the council will exercise its oversight authority.