ASA board calls for USDA investigation of checkoff program.The American Soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been Association is calling for USDA's Office of the Inspector General Office of the Inspector General (or OIG) is a common sub-agency within cabinet-level agencies of the United States federal government and serves as auditing and investigative arm of the agency's programs focused on identifying waste, fraud and abuse. to undertake an investigation of the soybean checkoff A system whereby an employer regularly deducts a portion of an employee's wages to pay union dues or initiation fees. The checkoff system is very attractive to a union since the collection of dues can be costly and time-consuming. due to "Serious ethical, legal, and financial allegations" [that] have been raised about how farmer checkoff funds and program activities are being conducted." ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and President John Hoffman says the allegations include: 1) the improper and wasteful expenditure of both checkoff and federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve ; 2) potential evasion of mandated salary and administrative spending caps by USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. ; 3)conflicts of interests at the United Soybean Board, which oversees the checkoff program; 4) use of checkoff funds for prohibited purposes by USB; and 5) wasteful and excessive spending by USB. According to an ASA statement, there are additional allegations concerning improper USB oversight and tolerance of actions that have taken place at the U.S. Soybean Export Council, an entity created by USB and ASA in October 2005. These include: 1) improper conduct by a USSEC USSEC U.S. Sustainable Energy Corp. USSEC United States Securities and Exchange Commission employee at USSEC functions; 2) the firing of whistleblowers; 3) improper employee relationships; 4) contracting violations; 5) management malfeasance The commission of an act that is unequivocally illegal or completely wrongful. Malfeasance is a comprehensive term used in both civil and Criminal Law to describe any act that is wrongful. ; and 6) the inability of ASA directors serving on the USSEC board to obtain an independent and objective investigation of the allegations. "ASA believes the national soybean checkoff, as currently structured and operated, is no longer responsive and accountable to soybean farmers," says the statement. "The failure of USB leaders to take decisive action on these particular matters is indicative of how USB is no longer accountable and responsive to the very soybean farmers who are paying funds into the checkoff program," Hoffman said. There have been questions raised about other checkoff programs in the past, and this latest development has the potential to cause USDA USDA, n.pr See United States Department of Agriculture. to scrutinize other checkoff programs that use grower dollars to fund various research and promotion efforts. Expectations are that some populist-minded lawmakers likely will seize on this latest development and start issuing statements and press releases on the need to focus on how these programs are operated overall. And, it will be interesting to see if the incoming Obama administration decides to wade into this matter or not. For its part, USB issued a statement which said: "The allegations made by [ASA] against the [USB] regarding mismanagement of farmer checkoff dollars are categorically untrue. Today, U.S. soybean farmers enjoy record demand both here and abroad for their soybeans, through the fiscally responsible efforts of the farmers who serve voluntarily on USB. If [USDA] deems it necessary, USB welcomes a USDA Office of Inspector General audit of any and all of its operations, contractor operations and projects. We would encourage all U.S. soybean farmers to learn more about how USB and the soybean checkoff program operate by visiting www.unitedsoybean.org, the only official website of USB and the soybean checkoff program. |
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