Capital Briefs: NCUA Execs Put on Leave Over Allegations

Rocked by allegations of unfair hiring practices, the board of the National Credit Union Administration has put two of its top executives on administrative leave.

In addition, the board has ordered an investigation of employment irregularities detailed in a Sept. 8 report by the Office of Personnel Management.

The NCUA's executive director, Karl T. Hoyle, and its director of human resources, Dorothy W. Foster, are on leave with pay, pending the investigation. The West Coast regional director, Daniel Murphy, is serving as acting executive director.

The NCUA has established a task force of five agency executives to recommend corrective action based on the report's findings. "We must act responsibly, timely, yet fairly, in acting on this report," the board said in a written statement.

Office of Personnel Management auditors found that the NCUA had intentionally manipulated government rules for competitive hiring so that pre-selected candidates got jobs as examiners.

House Banking's general oversight and investigations subcommittee will hold a hearing Tuesday on NCUA's hiring practices.

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