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...February 4, Walsh was summoned to Califano's office, and found Califano, Champion, and HEW's General Counseldesignate Thomas Barrett in the office. Walsh says Califano asked him if he had begun the Souza investigation, and then told him that he should henceforth clear all investigations with the General Counsel's office. Califano also asked Walsh to wait until after Barrett had drawn up a plant for the investigation...
...chairman of the health subcommittee, asked Champion about the Souza case and Walsh's resignation. Champion replied that Walsh had simply been instructed to keep the General Counsel's Office informed of his activities, not to actually "clear his work" with the counsel. Champion also said that until the HEW Inspector General was installed in the then empty post--Congress had only created the post last year--Walsh was to report...
...directives from Califano and Champion to put the investigation under the General Counsel's Office were the result of pressure from California's governor or congressional delegation. The Congressional committees had been under pressure to go easy on probes into California Medicare fraud, so Talmadge and company reasoned that HEW could have been responding to similar pressure. Champion's ties to California also made them suspect dirty work at the corssroads...
...that hearing last week that Talmadge read a statement saying that while HEW "had not distinguished itself" in investigating fraud, he did not want to hold up Champion's nomination any longer...
Califano came up from his office in the new HEW building just a few blocks down Independence Avenue, and took the witness chair next to Walsh...