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Kennedy, Colleagues Call For Further Investigation of Former PBGC's Director's Actions with Contract Awards

WASHINGTON, DC— Four U.S. senators have asked the Inspector General for the PensionBenefit Guaranty Corporation to continue investigating the corporation’s former director, basedon findings reported in a draft Inspector General report made public today.

The draft report indicates possible interference in contracting decisions by the former director in rwarding a total of $2.5 billion in assets held by the PBGC for real estate equity and privateequity investments. The draft report is posted with this news release at and

The letter urging further investigation was signed by Senators Edward M. Kennedy ofMassachusetts, Max Baucus of Montana, Charles E. Grassley of Iowa, and Michael Enzi ofWyoming. The senators have conducted oversight of the PBGC in their positions as Chairmenand Ranking Members of the Senate committees on Finance and Health, Education, Labor, and Pensions.

The text of the letter follows here.

May 14, 2009

Rebecca Anne BattsInspector GeneralPension Benefit Guaranty CorporationOffice of Inspector General1200 K Street, N.W.Washington, DC 20005

Dear Inspector General Batts:

Thank you for your recent investigation of and report on former Director Charles E.F.Millard’s involvement in the Pension Benefit Guaranty Corporation’s (PBGC) implementation ofits investment policy. This report brought to light very troubling actions regarding Mr. Millard’sinvolvement in the procurement process, and we look forward to seeing the extent to whichPBGC carries out your recommendations.

We write to request that your office conduct further investigation into Mr. Millard’s latercontacts with executives at companies that were awarded strategic partnership contracts. Werefer in particular to e-mails between Mr. Millard and a top executive at Goldman Sachs, whichwas awarded $700 million of PBGC assets for private equity investments. In e-mails that weresent within two weeks after the award was announced, Mr. Millard writes to one Goldman Sachs executive regarding his job prospects, “Good to see you today. Thanks for speaking with Dennis Kass, and for your offer to get in touch with” several non-Goldman Sachs investment firm executives. He later asks the executive for contact information for an executive at JennisonAssociates, an investment firm.

After the Goldman Sachs executive confirms on November 12, 2008 that severalexecutives are interested in meeting Mr. Millard, he responds “Ur grt. Tx. Will send info soon.”Mr. Millard later e-mails several executives at another investment firm about their interest inhim. He did not hear back for a period of weeks due to one of the executives’ illness, until theGoldman Sachs executive e-mailed him, “[The Executive] said he really likes you and if timeswere better he would have hired you already…. He definitely likes you – is just not in a rush due to the terrible markets. Hope that helps.”

This correspondence clearly shows Mr. Millard seeking placement assistance in theweeks following the contract announcements. We do not know the extent to which theseconversations took place in personal e-mails or telephone calls, and request that your officefurther examine this matter. Thank you for your prompt attention to this matter, and we wouldappreciate an initial response by no later than May 29, 2009.


Edward M. KennedyChairmanHELP Committee

Max BaucusChairmanCommittee on Finance

Michael EnziRanking MemberHELP Committee

Charles E. GrassleyRanking MemberCommittee on Finance