Picture of China Oceanwide Holdings logo

715 — China Oceanwide Holdings News Story

0.000.00%
hk flag iconLast trade - 00:00
FinancialsHighly SpeculativeMicro Cap

Help wanted: Staff shortages under Trump slow policy changes (updated)

(Adds NHTSA statement in paragraph 18) 
    By David Shepardson 
    WASHINGTON, Oct 6 (Reuters) - Hundreds of government 
employees file in and out of the U.S. agency for auto safety in 
Washington every working day, investigating potentially 
dangerous vehicles and managing a $900 million annual budget. 
    But an administrator is not among them - nobody has been 
nominated to the top job since President Donald Trump took 
office.  
    Also missing from the roughly 550 people on the payroll of 
the National Highway Traffic Safety Administration, or NHTSA, 
are a permanent chief counsel, director for government affairs, 
chief financial officer and enforcement chief. 
    While a deputy administrator was appointed last week, slow 
progress in bringing in senior politically appointed officials 
has nearly frozen key decision-making at the agency, according 
to five former NHTSA officials, consumer groups, lawmakers and 
some business leaders. 
    They said that without leadership in place NHTSA has either 
pushed back or failed to act on rules setting new standards for 
improving how buses fare in rollover crashes, a system to remind 
passengers in rear seats to wear seat belts, and new tire 
standards. 
    Eight months into Trump's presidency, senior positions in 
many government agencies across Washington remain vacant, 
including roles at the State Department, the Department of 
Energy, the Environmental Protection Agency and throughout the 
Transportation Department that oversees NHTSA.  
    Some of the vacancies are the result of Trump's efforts to 
slim down the federal bureaucracy. Others are simply waiting to 
be filled.  
    The White House blames Democrats for dragging out the 
confirmation process for its nominees, and says vetting picks 
has been more complicated than usual because many come from the 
business world rather than government. 
    While many companies applaud Trump's moves to roll back 
federal bureaucracy, some also complain that delays in bringing 
aboard political appointees is hindering government decisions 
that could impact business.  
    The frustration extends to some U.S. diplomats, 
private-sector lawyers and others who regularly deal with 
government agencies, according to interviews. 
     
    'IN A STALL' 
    In September, the U.S. Tire Manufacturers Association urged 
Trump in a letter to accelerate his efforts to nominate a NHTSA 
administrator so the agency can comply with a 2015 road safety 
law passed by Congress. 
    The law ordered NHTSA to write regulations setting minimum 
tire standards for fuel efficiency and traction in wet 
conditions and create an online database for consumers to check 
for tire recalls. 
    U.S. manufacturers and consumer groups support the 
regulations, drawn up in response to vehicle deaths linked to 
faulty tires, because they will raise standards and make the 
U.S. market less accessible to poorly made versions. 
    "We don't want the U.S. to be kind of the dumping group for 
the really low technology because there isn't a standard to 
meet," said Dan Zielinski, the association's senior vice 
president.  
    Two former NHTSA leaders and consumer groups say the agency 
is also moving slowly on other regulatory issues, such as 
improving side impact standards. 
    "This agency is in a stall ... They are not going to do very 
much without political leadership," said Joan Claybrook, a 
former NHTSA administrator under President Jimmy Carter and a 
prominent consumer advocate. 
    NHTSA said in a statement Friday that safety is its top 
priority. The agency is "committed to meeting all obligations as 
required" by the 2015 law. NHTSA has an ongoing review of all 
regulatory actions as part of an administration-wide effort. 
    A White House spokeswoman declined to comment on NHTSA but 
said "capable and professional staff" are filling essential 
positions throughout the government on an acting basis until 
confirmations go through. 
    Leadership shortages extend beyond the NHTSA. The White 
House had by Oct. 4 nominated 387 political appointees for 
civilian positions in the executive branch and 160 have been 
confirmed by the U.S. Senate, according to the non-partisan 
Partnership for Public Service. 
    Both numbers were well below those in the first eight months 
under at least the last four presidents. In the same period of 
Barack Obama's presidency, 497 candidates were nominated and 337 
confirmed. 
    One senior administration official said it aims to have all 
top positions - those at the level of assistant secretary and 
above - nominated by year's end. 
    Still, some political appointee jobs are expected to stay 
empty, the White House spokeswoman said. "The federal government 
has grown unrestrained for decades because politicians have been 
too afraid to 'drain the swamp'," she said. 
    Follow Trump's impact on energy, environment, healthcare, 
immigration and the economy at The Trump Effect https://www.reuters.com/trump-effect 
 
    'BEHIND THE CURVE' 
    In many cases, dire warnings from opponents that Trump's 
delays in putting forward political nominations for approval 
would cause chaos have proven overblown.   
    But there are examples of government slowing down because 
mid-level employees do not have the authority or are unwilling 
to make decisions. 
    At the Committee on Foreign Investment in the United States 
(CFIUS), which analyzes proposed transactions to ensure they do 
not harm national security, private-sector lawyers complain of 
slow decisions on big deals. 
    "There is an unwillingness for the staff people to make a 
decision," said Michael Gershberg, a trade and investment 
attorney with Fried Frank.  
    A lobbyist who works on CFIUS deals said some companies have 
had to refile proposals because CFIUS failed to reach a decision 
within 75 days. That drives up legal and financing fees and 
creates uncertainty about the deal.     
    Deals that have been refiled include a bid by Jack Ma's Ant 
Financial to buy MoneyGram  MGI.O  and Zhongwang USA's $2.33 
billion bid for Aleris Corp  ALSD.PK . 
    The Senate last week confirmed Heath Tarbert, who is 
expected to oversee CFIUS, as an assistant secretary of the 
Treasury. 
    At the State Department, only six of the top 40 jobs have 
been filled, and no confirmed officials are in place to run 
regional bureaus that handle foreign relations. Instead, they 
are in the hands of career diplomats with limited authority. 
    The United States does not have an ambassador in place in 
such key allied countries as South Korea, Jordan, Qatar and 
Saudi Arabia.  
    "We're pretty much frozen in amber here," one official said. 
    A congressional aide said it was hard to determine the 
precise impact of the vacancies. 
    But he added that U.S. policy in the North Korea missiles 
crisis would likely be helped by an ambassador in Seoul, a fully 
empowered assistant secretary of state for East Asia and an 
active special envoy for North Korea.  
    "That's just one example in the region with the most 
prominent national security crisis, and really one of the most 
serious in a long time," he said. 
    Deputy Secretary of State John Sullivan, testifying in 
Congress on Sept. 26, addressed the slow pace of filling posts. 
    "We're behind the curve. We should be ahead of the curve. 
And we're doing all we can to catch up," he said. "Our work is 
getting done. It would be better done if we had those positions 
filled."     
 
 (Additional reporting by Roberta Rampton, Diane Bartz and 
Warren Strobel; Editing by Kieran Murray and Paul Thomasch) 
 
Keywords: TRUMP EFFECT/STAFF

Recent news on China Oceanwide Holdings

See all news