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Office of the Chancellor / Public Affairs
Thursday, September 18, 2003
 

Oakland Tribune 9-18-03

Audit of Berkeley lab shows no crime in $3 million payment
By Ian Hoffman

 

A new audit of the global data network for the U.S. Department of Energy shows its manager at Lawrence Berkeley Laboratory had no illegal intent when he steered an unauthorized payment of $3 million to a federal contractor.

James F. Leighton, longtime chief of the Energy Science Network, or ESnet, remains on paid investigative leave while Berkeley lab executives decide on their response to the improper transfer.

"There was no intent to pocket any money. There's no indication whatsoever of that," said lab spokesman Reed Edwards.

The audit found that, after Qwest Telecommunications assumed leases for the network's high-speed lines in 2000, the Denver-based company invoiced the lab three times for $1 million each, for "accelerated" development of the network.

"We paid for the three invoices on the promise of work to be done and it wasn't," Edwards said.

The $3 million sat untouched in a Qwest account for three years, until a company executive notified the lab last month and offered to return it.

"It would appear that it was left there with the understanding that it would be used down the road for other ESnet work," Edwards said.

Lab managers are studying changes in procurement practice to prevent a single individual from authorizing such payments without greater checks and balances. And they're debating what to do about Leighton, whom Edwards described as "thought of very highly, both in the laboratory and the Department of Energy."

"I think there was a very high trust level," Edwards said, in explaining how the payments were made so easily.

Leighton could not be reached Wednesday for comment.