[Possible Improprieties Relating to Legal Services Corporation's Personnel Practices]

GAO presented an advisory opinion in response to a request to examine possible improprieties relating to personnel practices within the Legal Services Corporation to determine whether: (1) Federal law prohibits compensation to members of the Corporation's Board of Directors who are appointed while the Senate is in recess; (2) payments made to those Board members in 1982 were consistent with law and accepted practices; and (3) amounts payable under an employment agreement concluded by the Corporation with its president in 1982 were excessive or in violation of the law. GAO determined that Federal law does not preclude payment to the Board members in question and that their 1982 compensation was not in excess of that prescribed by law. Whether these payments were consistent with law and accepted practices are matters which are the subject of an ongoing audit by GAO. The circumstances leading to the employment of the Corporation's president and related matters are also the subject of continuing audit. However, it is the opinion of GAO that provisions in his employment agreement which provide for payment of private club dues and severance pay exceed the limitations payable by law to civil servants. The president has not yet applied for such compensation, but should the president believe that he is entitled to payment under these provisions, he would be able to pursue his remedy in the courts.