The White House’s nominee to run the Treasury Department’s anti-terrorism efforts oversaw a workplace culture that employees said tolerated favoritism and poor leadership, according to an internal staff survey obtained by the Washington Free Beacon.
Adam Szubin, who has headed Treasury’s Office of Foreign Asset Control since 2006, is awaiting Senate confirmation to become undersecretary of terrorism and financial crimes. Szubin has also been serving as acting undersecretary since January.
Szubin’s time at OFAC, particularly his work on Iran sanctions relief, has been a sticking point with some senators as they consider his nomination.
However, personnel issues under Szubin’s leadership at OFAC have received less notice. The relatively small office has shed dozens of employees over the past four years, according to reports.
The Treasury’s inspector general is currently conducting an examination into personnel procedures at OFAC, the office confirmed to the Free Beacon on Monday. An official said he was not aware of whether the audit was prompted by any employee complaints.
"The audit covers personnel actions that occurred between March 2013 and March 2015," said Richard Delmar, counsel to the Inspector General. "These actions include hiring, promotions, demotions, separations, and reassignments."
The examination began last March and a report is expected to be released next February.
OFAC was consistently rated negatively compared to other Treasury offices when it came to issues such as merit-based promotions, an atmosphere of favoritism, and senior leadership practices, according to a 2014 survey conducted by the Office of Personnel Management.
Nearly half of the employees surveyed said promotions within OFAC were not based on merit, and 57 percent said pay raises were not related to work performance.
A plurality—42 percent—disagreed with the statement that "arbitrary action, personal favoritism, and coercion for partisan political purposes" were not tolerated at the office. Just 21 percent of employees at the Treasury Department at large said the same about their offices.
While 41 percent of OFAC staffers said they had a high level of respect for senior leadership, just 24 said they were satisfied "with the policies and practices of your senior leaders." Forty-eight percent said they were not satisfied.
Fifty-one percent disagreed with the statement "senior leaders generate high levels of motivation and commitment in the workforce," compared to 36 percent of Treasury employees at large.
The Senate Banking Committee was expected to vote on Szubin’s appointment Tuesday afternoon, but the vote was abruptly postponed. A spokesperson for the committee cited scheduling conflicts and said the vote has not yet been rescheduled.
During Szubin’s last hearing, Sen. Tom Cotton (R., Ark.) pressed him on the legal basis for using the Iranian nuclear deal to allow foreign subsidiaries to do business with the regime.
President Barack Obama nominated Szubin to the undersecretary role in April, to lead the department’s efforts to combat terror financing. Prior to joining OFAC, he was senior adviser to the undersecretary for terrorism and financial crimes and a counsel at the Department of Justice.
A Treasury Department spokesperson did not provide a comment as of press time. This article will be updated if a statement is made available.
Update 10:10 A.M.: Following publication of this article, a Treasury Department spokesman sent the following statement:
"Acting Under Secretary Adam Szubin and leadership across the Office of Terrorism and Financial Intelligence (TFI) have focused deeply on our employees, and have worked hard to bolster employee development, engagement, and satisfaction," said a Treasury Department spokesperson. "OFAC is comprised of a staff of talented individuals, and our sanctions have become an increasingly effective national security and foreign policy instrument thanks in large measure to the careful work of our staff and OFAC leadership."
The spokesperson added that "OFAC continues to attract and retain the best and brightest professionals who are committed to public service and the national and foreign policy goals that OFAC’s work advances."