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...committee's two-month delay in voting on Champion's nomination, however, pointed up the superficial and generally unsatisfactory nature of the Senate confirmation process. In late February, the Finance Committee staff brought out serious allegations of malfeasance on the part of Champion and his boss, HEW Secretary Joseph A. Califano Jr. If true, charges that Califano and Champion tried to impede an HEW investigation of Medicare fraud in California--bowing to pressure from the state's governor and Congressional delegation--should raise questions about their integrity and interpretation of the public interest...
...Society--Joseph A. Califano Jr., for his Secretary of Health, Education and Welfare. Califano, a graduate of Holy Cross College and Harvard Law School, was known as a policymaker, a man who steered his own course. When he went looking for people to fill the sub-Cabinet posts at HEW, he wanted someone with financial expertise to serve as Undersecretary, the number two post in the department. He obviously wanted a Democrat, and preferably a liberal one, with some experience health, education or welfare, but he really didn't care who his nominees had supported in the primaries...
...them was Daley, who is now in Washington working on a citizens' review of the workings of Congress. Daly is very friendly with a lot of Washington biggies, including House Speaker Tip O'Neill, so apparently when he suggested that the Carter team consider Champion as Under-secretary of HEW, his suggestion was not considered lightly--particularly when other political heavyweights echoed the idea...
...problem was Flora Souza. Flora Souza is the president of Home Health Inc., a California health care company that HEW pays through the Medicare program. In early January, the Social Security Administration notified HEW's office of investigations that there might be fraud involved in the department's payments to Souza's companies. Enter John J. Walsh, director of HEW's office of investigations...
Walsh is a career investigator. From 1938 until 1953, he worked for the FBI, and from 1963 to 1976 for the Senate Government Operations Committee's permanent subcommittee on investigations. In 1976, he became HEW's first chief investigator; above all, he says, he wanted to maintain his independence from the rest of the department, especially its Office of the General Counsel (HEW's chief lawyer...