Besides raising questions about lax management, the situation caused concern about the bank's large exposure to Iraq.

But the station remained under a cloud for budget overruns and lax management, a chronic problem for more than a decade.

In other areas, the agency's lax management resulted in losses of funds to bad loans and in some cases fraud.

Mr. Pierce has blamed his former aides for favoritism and lax management at the $20 billion department.

Since then, it has addressed charges of lax management in the past and the absence of a detailed blueprint for the years ahead.

Asked about accusations of lax and irresponsible management, she said: "I'm sorry, I can't comment on that.

Over the years the two have sometimes tripped over each other, resulting in lax management and a shortage of accountability.

Some educators have alluded to widespread political cronyism in the selection of the staff as a reason for lax management.

It plans to focus on companies with lax management and underperforming assets.

The subcommittee's report also found poor record-keeping and lax management of department contracts, a finding also made earlier by the department's inspector general.