Report: NOAA fisheries fines lack controls

Federal investigators found a "significant" lack of controls and the risk of fraud in the administration of millions of dollars in commercial fisheries fines, after previously finding the money was improperly used to buy cars, boats and world travel.

The findings, contained in a final report by the inspector general for the National Oceanic and Atmospheric Administration, confirm years of complaints by commercial fishermen on what some have termed overzealous and abusive enforcement of federal fisheries rules.

The final report, issued last week, found that the so-called asset forfeiture fund lacks "appropriate controls" to assure that money collected from fishermen in civil, criminal and other penalties is received and accurately recorded -- so much so that accountants weren't able to determine its final balance. It also found that agents didn't properly record or pursue fines and penalties, resulting in $3.9 million in write-offs.

"Our review of NOAA's fine and penalty collection process identified significant internal control weaknesses that increase the risk of fraud," the report said.

NOAA fisheries officials, in a response to the inspector general's report, said it agreed with recommendations to fix agency deficiencies, many of which, it said, it had already corrected.

The report mirrors similar findings in a July 2010 Commerce Department investigation that also found spending abuses by the enforcement arm of the National Marine Fisheries Service. The department's inspector general looked into the matter after complaints from fishermen.

Commerce investigators also found the agency used money from fines to cover expenses of prosecuting fishermen, seen by some as a conflict of interest.

According to that report, nearly all nonpayroll expenses came from fishermen, including pay for administrative law judges who oversee violation hearings.