Report of Erroneous Information from CDC on CFS

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Report of Erroneous Information from CDC on CFS Research Allocations

1996–98

I am Dr. C. Reeves. I am Chief of the Viral Exanthems and

Herpesvirus Branch, Division of Viral and Rickettsial Diseases,

National Center for Infectious Diseases, Centers for Disease Control

and Prevention. I am directly responsible for CDC's chronic fatigue

syndrome (CFS) research program.

I believe CDC has provided erroneous information to Congress, DHHS

and patient groups concerning support of CFS research. I have

attempted to rectify this within CDC. I am noting for the record

that my providing this testimony is covered by the Whistle Blower

Act, and I request protection under the Act.

In 1997, The CFIDS Association of America and Dr. Arthur Lawrence

(Office of the Assistant Secretary for Health, DHHS) requested

details concerning CDC's 1996–1998 allocations for CFS. An

appropriate was not received until February 1998, and serious

questions were immediately raised concerning the veracity of the

figures. I believe CDC's replies to these questions contain

intentional misrepresentations.

CFS Research Support Fiscal Year 1996

CDC's reports to DHHS, Congress and the CFIDS Association of

America state that $1.2 million was used to support CFS laboratory

studies in 1996. Indeed, on the last day of FY [fiscal year] `96,

$1.2 million of laboratory equipment and supply costs incurred by

the Measles and Polio Eradication Programs were charged to CFS. When

Ms. Kenney asked Dr. Mahy (Division Director and my immediate

supervisor) to justify this at the April 1998 DHHS CFS Coordinating

Committee meeting, he told her the money was used to support CFS

laboratory research. He asked me to verify this, and I stated that

the 1996 CFS Research Program did not include a laboratory effort.

When Congressman Porter asked CDC to explain this discrepancy, he

was told that the 1996 CFS Research Program included studies of

enteroviruses, Borna disease virus and herpesviruses. When Dr.

[] Broome (Acting Director of CDC) testified to Congress, she

was queried as to CFS expenses for supplies and equipment and stated

that 1996 costs were significantly higher because CDC was

investigating the potential role of infectious agents in the

etiology of CFS. She further stated that a portion of the costs were

used to establish a new laboratory in my Branch.

This information is not true. CDC's most recent publication

concerning laboratory studies of CFS was published in 1995. Actual

laboratory work was accomplished between 1993–94. This work involved

testing performed in 12 different CDC laboratories and was done at

no cost to the CFS program. Analysis showed that there was no need

to conduct similar laboratory studies. Dr. Mahy, my Division

Director, was well aware of this because he conducts a detailed

annual review of all programs. In addition, Dr. Mahy held a peer

review of the CFS program in August 1996, during which we discussed

laboratory studies and plans in detail. Finally, I informed Dr. Mahy

on at least two occasions during preparation of the requested budget

reports that no CFS laboratory work was conducted in 1996.

The $1.2 million that CDC falsely indicated was used to support CFS

laboratory research in 1996 only represents part of the

misrepresentation that fiscal year. Dr. Mahy's Division appears to

have used an additional $1.4 million of monies they reported as

supporting CFS research in my Branch for unrelated activities. These

monies encompassed [approximately] $600,000 to support staff

elsewhere in the Division (this was in addition to overhead staff

shown in the materials given to Congress) and [approximately]

$900,000 for various contracts ($200,000 measles program agreements

with other agencies, $200,00 to the respiratory & Enterovirus Branch

for management and professional services; $228,000 epidemiology and

laboratory fellowships, $315,000 printing services contracts).

Unrelated projects have been charged as CFS in previous years. In

1995, CDC reported [approximately] $6 million was used to support

CFS research. After overhead, about $4 million should have been

available for program. Again, on the last day of the fiscal year,

Dr. Mahy's Division charged $2.6 million used in unrelated studies

against CFS.

CFS Research Support Fiscal Year 1997

CDC's reports to DHHS, Congress and The CFIDS Association of

America state that my Branch used $3.4 million for CFS research

during 1997. However, I can only account for $2.8 million. At the

end of FY `97, Dr. Mahy's Division Administrator withdrew or

withheld $340,000 to cover other programs ($150,000 in orders for

equipment, $20,000 in supplies for the laboratory and $167,000 for

personnel contracts). However, the withheld monies were shown as CFS

research costs in the reports. The withheld monies represented about

half of what was needed to fully establish a CFS Molecular

Epidemiology Laboratory (recommended during 1996 peer review and

suggested in FY 97 Congressional language). The withheld funds

($340,000) had to be covered by the CFS Research Program from the

FY `98 allocation.

As with 1996 expenses, this was not a simple accounting artifact or

an oversight due to lack of information. My Branch had worked

throughout the year to provide Dr. Mahy with accurate 1997 budget

estimates. This culminated on October 17, 1997, when Dr. Mahy asked

me for a detailed breakdown of CFS research expenditures. I noted

that what we had actually spent on CFS was significantly less than

what CDC was planning to put forward. He stated that " we were at

cross purposes " and that the only figures that would be given out

were $3.4 million in direct research costs.

Indeed, my Branch's entire FY `97 research allocation was $1.7

million, inclusive of CFS. On August 4, 1997, I met with Dr. Mahy's

Administrative Officer to clarify this. He told me, although they

had received an allocation of $4.2 million for CFS, that he could

not pass the entire allocation to the CFS Program because some

branches had insufficient budgets and Dr. Mahy had always made up

such deficits with CFS and other similar monies. I can provide the

names of the five individuals who attended this meeting.

CFS Research Support Fiscal Year 1998

An identical pattern is occurring in 1998. Dr. Broome reported to

Congress that CDC had allocated $5.8 million for CFS and that $3.4

million would directly support research in my Branch. My entire

Branch FY `98 allocation from Dr. Mahy is $2.5 million and this must

support research involving 32 FTS's [full-time equivalent staff

members] in Papillomaviruses, Herpesviruses and Poxviruses, in

addition to CFS. I sent five memos to Dr. Mahy's Administrative

Officer over the last week to obtain clarification and was finally

told that he would drop by some time and discuss it with me.

In addition to these apparently intentional misrepresentations of

CDC's allocation for CFS research, I believe CDC has grossly

misrepresented overhead costs for Dr. Mahy's Division. During her

testimony to Congress, Dr. Broome stated that a Committee Management

Specialist was required full-time to support Dr. Mahy's duties as co-

chair of the CFS Coordinating Committee. In my opinion, this reply

is insulting. The Committee has met three times with Dr. Mahy as co-

chair (May 1997, October 1997, April 1998). The Committee Management

Specialist in question ( Ross) was not certified until July

1997 and left for another position at CDC before the April 1998

Committee meeting. Her principal daily duties during 1997 and 1998

were to serve as Dr. Mahy's secretary. In addition, a separate

Committee Executive Secretary was responsible for many of the duties

Dr. Broome indicated for the Committee Management Specialist.

Finally, as a benchmark, CDC's CFS Research Program (for which I am

responsible) charges 75% of a Secretary and 10% of a Program Analyst

FTEs to CFS. In addition to daily administration, they cover

responses to approximately 450 direct contacts monthly.

Summary & Conclusion

In summary, I believe that CDC has intentionally misrepresented

monies allocated to CFS research and I cannot ethically support

this. The misrepresentations involve systematically charging between

$400,000 and $2 million incurred by unrelated activities to CFS

between 1995–97 and reporting to DHHS, Congress and patients that

the monies were used for CFS research. Previous administrators under

Dr. Mahy could be interviewed to explore this in more detail for

years in which Congress specified a CFS appropriation. The

misrepresentations also involve charging inappropriate Division

overheads to CFS. The misrepresentations have been compounded by

intentionally ignoring technical information from Program concerning

expenses and knowingly transmitting inaccurate figures and

information. I am responsible for the CFS Research Program and

cannot manage this responsibility in an acceptable fashion unless

CDC provides Program the same support it tells the public is

available.

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