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B-222334 1 (1986-06-02)

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                                                               46
                 COMPTROLLER GENERAL OF THE UNITED STATES
                          WASHINTN D.C. Su0




                                        June 2, 1986

 B-222334




 The Honorable Patricia Schroeder
 Chairwoman, Subcommittee on
   Civil Service
Committee on Post Office  and
   Civil Service
House of Representatives

Dear Madam Chairwoman:

     This is  in response to your letter dated March 14,.
1986, requesting our  investigation and report concerning
arrangements between  the Tennessee Valley Authority (TVA)
and retired Admiral Steven White, who is  serving as
Manager of the TVA Office of Nuclear Power.  Your  letter
asked 13 questions concerning  this matter and payments to
Mr. Norman Zigrossi as  the Inspector General of TVA.
We have set forth hereafter  6 of the 13 questions which are
essentially legal, a summary of the TVA response  to each
question, and our analysis.  We have provided  copies of the
two TVA reports on the questions to your staff.   To the
extent that you believe additional audit work  is needed on
the remaining seven questions, we will be glad  to discuss
the matter further with your staff.

     Our opinion on the 6 legal questions is  advisory only
since, in accordance with the Tennessee Valey  Authority
Act of 1933, as amended, 16 U.S.C. § 831hv/the  TVA has final
settlement authority over all claims and expenditures.
However, consistent with our audit responsibilities  under.
the Government Corporation Control Act, 31 U.S.C.
11 9101-9109, and 16 U.S.C. § 831h(b)V/we are obliged  to
report to the Congress financial transactions which  we
believe were made without authority of law.

     By way of background, we note that in January  1986 the
TVA entered into certain contractual arrangements  for the
services of Mr. Steven A. White to fill the position  of
Manager of Nuclear Power.  The services of Mr. White  and up
to 12 additional personnel are provided through  a contract






    ~..93

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