A federal investigation suggested Anthony Babauta, the former assistant secretary of the Interior for Insular Affairs, engaged in "inappropriate" behavior with employees, including one working with U.S. Virgin Islands, according to a report released this month by the Office of Inspector General.
Babauta resigned his position in January 2013 after the investigation was launched. The results were forwarded to the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands. On July 30, 2013, the U.S. Attorney’s Office declined the case for criminal prosecution. A public version of the report was released June 4.
In an interview with the Guam Pacific Daily News, Babauta denied any wrongdoing.
"My official acts and decisions as assistant secretary of the Interior for Insular Areas were legitimate endeavors to improve the quality of life for areas under my responsibility," he said.
The Office of Inspector General received allegations Babauta might have directed OIA grants and contracts to friends as well as reports that he mistreated his employees through discrimination and sexual harassment, misused government equipment and personnel, and took personal trips under the guise of government travel.
Insular Affairs is the Interior Department office that coordinates federal policy in the territories of the U.S. Virgin Islands, American Samoa, Guam and the Commonwealth of the Northern Mariana Islands. It also administers U.S. federal assistance provided to the Freely Associated States of the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau under the Compacts of Free Association.
The investigation found that, against the advice of his staff and grant specialists, Babauta directed the award of two grants to the University of Guam to support the Micronesian Center for a Sustainable Future. Both grants went to Babauta’s former employer, a senior official at the university, and the school subsequently hired Babauta’s friend as the project coordinator. The university allowed the project coordinator to expend $32,636 in grant funds on unallowable expenses, many of which were of personal benefit to the project coordinator, the Inspector General’s report said.
In its interview with the Guam newspaper, Babauta said the grants were legitimate and not based on his personal relationship with the University of Guam official, but agreed that the situation created the appearances of a conflict of interest.
The report said the investigation found no evidence that Babauta used government travel for personal gain, but there were trips for government business in which he appeared to benefit personally.
Interviews with current and former OIA employees support the allegation that Babauta made inappropriate comments to employees and conducted himself unprofessionally at times, particularly in reference to a female employee for the Virgin Islands. None of the people interviewed are named; the woman in question is referred to as "the OIA Virgin Islands employee."
According to the report, an OIA employee in the grants division described Babauta as a bully. When asked about the allegations of sexual harassment, the report says: "He said that at an OIA holiday party in 2011, Babauta walked into the room and put his hands on the shoulders of an OIA U.S. Virgin Islands employee and whispered something in her ear. When Babauta left the room, the OIA Virgin Islands employee, who appeared intoxicated, became very upset and said: “I’m not his … [expletive deleted] wife.”
Both Babauta and the "OIA Virgin Islands employee" denied that anything inappropriate had taken place, the report said.
"When interviewed, the OIA Virgin Islands employee said that Babauta had never sexually harassed her, and she never had any incidents with him that caused her concern,” the report said, continuing, “She acknowledged that she drank a glass of wine and became emotional at the holiday party but did not recall saying: ‘I’m not your … wife.’ She explained that she was upset because she did not want to perpetuate a rumor that she and Babauta had a relationship outside the office, which she said was not true. When asked about reports that Babauta touched her shoulders, she said his actions were more like a pat on the shoulder, and she was not offended by it."
The OIA Virgin Islands employee, who is Asian, was asked if she ever heard Babauta make any disparaging comments about any ethnic group or gender, and she responded that he called her “Big China” but stopped at her request, the report says, adding, "She did not believe Babauta was being mean or malicious when calling her that name. "
The grants division employee also reported that when he, Babauta, and an OIA employee in the technical assistance division returned to the office on one occasion, Babauta observed a female employee wearing “spiked heels” and commented: “I’ve always thought that a woman should have a pair of whore shoes to wear.” The employee later clarified that Babauta said “hooker” shoes.
The OIA grants division employee also said Babauta had mistreated two male employees in the office. The grants division employee also recalled hearing Babauta say he would only hire minorities and women to work on his staff.
A woman identified as Babauta’s girlfriend was interviewed about a trip they had taken to the U.S. Virgin Islands. She told the investigators she had traveled with Babauta to the U.S. Virgin Islands sometime after he was took the position in 2009. She did not recall the date. Babauta did travel to the territory in November 2009 to meet with lawmakers and tour the Career and Technical Education Center on St. Croix.
According to the girlfriend, Babauta had someone pick her up from the airport and then drive them around the entire weekend. She did not know the name of the driver but said he appeared to be an island native who worked for Babauta or knew him well. She vaguely recalled Babauta sending his driver to deliver something to her office, but she could not recall the specifics.
The 33-page report can be read in its entirety here.
