My Travels: OIG Inspection of Embassy Tokyo

Overview:

Japan has the world's third-largest economy, having achieved remarkable growth in the second half of the 20th Century after the devastation of the Second World War. Its role in the international community is considerable. It is a major aid donor, and a source of global capital and credit. More than three quarters of the population live in sprawling cities on the coastal fringes of Japan's four mountainous, heavily wooded islands. Japan's rapid post-war expansion - propelled by highly successful car and consumer electronics industries - ran out of steam by the 1990s under a mounting debt burden that successive governments have failed to address. Japan's relations with its neighbors are still heavily influenced by the legacy of Japanese actions before and during the Second World War. Japan has found it difficult to accept and atone for its treatment of the citizens of countries it occupied.

Crown Prince Naruhito succeeded to the throne as emperor when his father Akihito abdicated on the last day of April 2019, after a reign of 30 years. Akihito had no political power, but played an important role in working to heal the wounds of a war waged across Asia in the name of his own father, the Emperor Hirohito. He also promoted a more approachable image of the imperial family among the Japanese public, a style that the new emperor is expected to continue. Emperor Naruhito, who studied at Oxford University, has said that his reign will bear the name Reiwa, which "beautiful harmony".

This scion of a political dynasty was elected leader of the conservative Liberal Democratic Party on the resignation of Yoshihide Suga, who had beaten him to the post and the premiership a year earlier. Mr Suga resigned over his handling of the coronavirus pandemic, allowing the former foreign minister to take over. Mr Kishida is seen as more liberal than his recent predecessors and is expected to steer the government slightly to the left after winning a snap election in October 2021.

Source: BBC Country Profile

OIG Team:

OIG inspected the U.S. Embassy in Tokyo from January 6 through March 27, 2015. Members of the team also inspected U.S. Consulates in Sapporo, Osaka-Kobe, Fukuoka, and Naha and the American Presence Post in Nagoya from February 12 to March 9, 2015. Eileen A. Malloy was Team Leader. She was the Ambassador to Kyrgyzstan and before that CG in Sydney. Paul Cantrell, at the last minute replaced Caroline Mangelsdorf, as the Deputy Team Leader other teammates included David Bocskor (SY) Ronda Capeles (Mgmt), Calvin Carlsen (SY), Brett Fegley (IT), Michael J. Hurley (PD), Dolores J. Hylander (IT), John Philibin (SY) Lisa Piascik (CONS), Keith Powell (CONS), Richard Sypher (SY), Timothy Wildy (Lead Mgmt), Seth Winnick, and Jack Zetkul both POL. The 16 team members were pretty spread out between the ANA Intercontinental, where we stayed, near the embassy and the Marriott. The hotel was in the Roppongi area with a huge mall (Ark Hills) with a concert hall and many restaurants. Both Tim and Ronda split travel out to the Consulates and I was content to just stay in Tokyo.

American Embassy Tokyo:

Caroline Bouvier Kennedy was Ambassador. Paul A. Wedderien was the Management Counselor, very experienced and well respected. The FMO was Neil Eynon. Neil ended up being the USDO at CGFS/BKK and then the Budget Chief for the NEA/SCA bureau.

Findings:

OIG made 65 recommendations intended to improve Embassy Tokyo’s operations and programs. The report addresses the need to improve strategic planning, streamline the organization of embassy staff, and eliminate unnecessary positions. OIG recommended the embassy terminate a few services and benefits that either are not justified or are contrary to regulations. The report also recommends strengthening management controls, communication security, and the oversight of grants management. Although the embassy’s management section has made significant progress on cost containment, senior managers should pay greater attention to management controls over travel and official residence allowances. The OIG team identified $122K in cost savings and $2.3 million in funds put to better use during the inspection.

In 2014, to contain cost, the embassy transferred 70 percent of its voucher processing to the Department’s Post Support Unit (PSU). The cost to process a voucher in Japan was three times higher than at PSU. The transfer resulted in the elimination of at least two voucher examiner positions.

In terms of Financial Management there were inconsistencies in billing methods for Official Residence Employees (ORE) staff working representational events. OIG counseled the staff to use one procedure and reminded the financial management staff that no more than 50 percent of guests on any representational event guest lists should be Executive Branch employees. ORE salaries were paid directly to staff electronic funds transfer directly to their bank accounts. The ORE staff are not considered employees of the embassy but personal staff of the AMB and DCM and therefore needed to establish an alternative procedure to allow to pay their staffs directly. This is a continuing issue for many embassies which requires the DoS Assistant Secretary for Management to rule over L to change the regulations.

Being a political appointee Ambassador Kennedy knew very little about the State Department regulations regarding procurement, travel or representation. In reviewing payment vouchers we discovered the embassy had purchased 100 copies of her book "Poems to Learn By" as representational gifts. Also, there were issues with claims being made on a couple of travel vouchers for herself, Chief of Staff and husband with questionable personal versus official travel and routing, excessive claims for transportation or no receipts attached. The Ambassador ended up reimbursing the USG immediately for these unauthorized expenses without any objection.

The embassy disclosed that the former Class B cashier resigned in January 2015 to avoid disciplinary action for abusing accommodation exchange services. The U.S. Disbursing Officer at CGFS/Bangkok had actually discovered the wrongdoing on the part of the Cashier. The regional security officer investigated the incident and referred the case to Diplomatic Security/Office of Special Investigations, which deemed the case a violation of cashier regulations and an administrative error rather than a criminal offense. Subsequently, the financial management officer discovered a shortage of $700 in the former cashier’s accountability and declared a fiscal irregularity.

The embassy was also providing in-house accommodation services without documenting the reason for providing this service and without the Ambassador’s approval as required by regulations. The FMO needed to conduct a review of cash requirements to determine an adequate level of the cashier’s permanent advance.

Human Resources: The locally employed staff position descriptions needed to be updated and many of the performance reviews by supervisors were not completed by the prescribed due date. Eligible family members were double dipping and receiving the post allowance which was terminated. We recommended that Equal Employment Opportunity and discriminatory harassment training be provided to mission staff and that supervisors must report all allegations of sexual harassment to the Office of Civil Rights.

General Services: The embassy needed to designate, train, and certify contracting officer’s representatives for contracts. Also, should terminate all shuttle services that have not been justified in accordance with regulations. The Mission’s Motor Vehicle Policy should be updated to include constituent post specific information, other agency use, detailed operating procedures, vehicle safety standards, and liability limits. The embassy leased 68 residential units, including two principal officer’s residences and eight units under the living quarters allowance (LQA) program. The embassy needed to establish procedures to review leases and conduct residential safety, health, and fire prevention inspections on all LQA program housing and update the Housing Handbook.

Facilities: Mission Japan’s Government-owned properties include the embassy office building, three consulate office buildings, the chief of mission residence, the deputy chief of mission residence, a warehouse, the Marine security guard quarters, domestic servants’ quarters, recreational facilities, a language school and director’s residence, one principal officer residence, and 179 residential units. The embassy leases two consulate office buildings and two American centers. Major renovations to these facilities had been delayed due to funding limitations. The embassy was working to secure funding to for renovating facilities and replacing the heating and air conditioning systems in the chancery and at consulate office buildings.

The issue of domestic staff being housed in a U.S. Government-Owned facility was brought up with the Office of Legal Counsel in 2008. The legal opinion cautioned that the legality of operating living quarters for private domestic servants of U.S. Government employees on U.S. Government premises is highly doubtful under Federal appropriations/employment law. We recommended that the embassy terminate housing its private domestic staff of its direct-hire officers in a separate Government-owned facility.

Highlights:

Doris joined me midway through the inspection and we were able to see more of Tokyo and especially how to travel on the Tokyo Metro which included nine lines and 180 stations. We visited the Meiji shrine, Kaminarimon Gate and Sensoji Temple, Imperial Palace garden, famous Ginza and Akihabara shopping areas, Hamarikyu Garden and the cherry blossoms in Ueno Park. We even attended a performance at the Kabuki theater. Doris was able to take a couple of separate sightseeing tours of Tokyo as well. See the attached blog for pictures of the sites in Tokyo as well as our trips to Nikko and Kyoto.

Japan - Tokyo - March 2015 | Doris and Bill (dorisandbilltraveladventures.blogspot.com)

I made a day trip out to Shibamata just a 30-minute train ride.