House Impeachment Inquiry Hears From White House Budget Staffer -- 2nd Update
November 16 2019 - 7:11PM
Dow Jones News
By Andrew Duehren
WASHINGTON -- House impeachment investigators heard from a top
career White House budget staffer behind closed doors on Saturday
as the probe examines why nearly $400 million in aid to Ukraine
this summer was held up.
Mark Sandy, deputy associate director for national-security
programs at the Office of Management and Budget, signed paperwork
initially holding up the aid on July 25, according to previous
testimony to impeachment investigators. He didn't appear for a
deposition initially scheduled for last week.
The House Intelligence Committee issued a subpoena for Mr.
Sandy's testimony, according to an official working on the
impeachment inquiry. Barbara Van Gelder, a lawyer for Mr. Sandy,
had said he would comply with a subpoena.
Before he signed off on the hold, Mr. Sandy sought an opinion
from OMB lawyers about the legality of the move, according to
people familiar with the matter. After he received legal guidance
that the hold could go forward, Mr. Sandy signed the paperwork,
according to the people. Mr. Sandy helps oversee funding for the
Defense Department, which provided $250 million of the nearly $400
million in aid to Ukraine. Lawyers from OMB are often involved in
complicated budgeting maneuvers.
The House impeachment inquiry, which began holding public
hearings Wednesday, is investigating whether the freeze on the aid
was conditioned on President Trump's request for Ukraine to
investigate former Vice President Joe Biden and 2016 election
interference. Mr. Trump has repeatedly denied that his request for
the investigations was related to the freeze on the funds.
Rep. Jamie Raskin (D., Md.), who attended the deposition on
Saturday, said investigators are focusing on how the administration
held up the money.
"We're in the process of collecting the details of how that
process took place within the budget bureaucracy," Mr. Raskin said.
"That's a technical part of this process."
Mr. Sandy, the first official from OMB to appear before
impeachment investigators, may reveal more details about how the
aid was held up and why it was ordered. Several political officials
from OMB, including acting director Russ Vought, have defied
subpoenas to appear. The White House has sought to prevent
administration officials from cooperating with the
investigation.
Republicans and administration officials said that Mr. Sandy's
testimony didn't support previous testimony that Mr. Trump
conditioned the aid on an investigation of the Bidens.
"We heard today behind closed doors in general terms that the
assumptions that Democrats have made, and certainly, the
allegations that they have made, have not been supported by the
witnesses' testimony here today," said Rep. Mark Meadows (R.,
N.C.), a close ally of the president who attended the deposition
Saturday.
A senior administration official said that the deposition on
Saturday amounted to a fishing expedition.
The order to hold the funds caught national-security officials
at several agencies off guard when it was first announced at a July
18 meeting. Several officials have testified that the legality of
the hold was discussed repeatedly at a series of meetings in
July.
The Government Accountability Office, Congress's nonpartisan
watchdog, is reviewing whether the hold followed legal procedures
for freezing the money. The administration ultimately released the
funds on Sept. 11 amid bipartisan pressure on Capitol Hill.
Michael Duffey, the associate director for national-security
programs at OMB, began carrying out the hold on the money in August
after officials began raising concerns about the legality of the
hold, according to people familiar with the matter and transcripts
of impeachment depositions.
Mr. Duffey, a political appointee and former executive director
of the Wisconsin Republican Party who began at OMB in May, began
signing the paperwork because he wanted more insight into OMB's
role, according to people familiar with his change. He also began
directly overseeing holding and releasing other foreign aid and
defense funds.
Mr. Duffey, also a former Pentagon official, didn't comply with
a congressional subpoena for his testimony this month.
Several former OMB officials have said that a political
appointee signing the paperwork for releasing funds is unusual and
breaks from precedent at the organization.
Write to Andrew Duehren at andrew.duehren@wsj.com
(END) Dow Jones Newswires
November 16, 2019 18:56 ET (23:56 GMT)
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