Great Giveaway

A $4 million philanthropist

As a high-ranking employee of the Department of Energy during the Carter Administration, Paul Bloom, 41, zealously investigated violations of federal oil-pricing regulations--and forced guilty oil companies to ante up hefty fines.

But as Reagan Administration officials discovered last week, Bloom may also have been an overzealous philanthropist.

On Jan. 19, one day before he left office, he gave $4 million--none of it his own--to four charitable organizations.

The money came from a $100 million settlement that he had negotiated with the Amoco division of Standard Oil Co. of Indiana in February 1980 for allegedly overcharging customers. Under the agreement, Amoco placed $71 million into a special claims fund and was supposed to refund $29 million to utilities, railroads, bus lines and other major patrons. After reimbursing its clients, however, Amoco had $4 million left over, so the company sent a check for that amount to Bloom's office.

That gave Bloom an idea: Why not distribute this money to poor people? After consulting with department lawyers, Bloom decided to play Robin Hood. He gave $1 million each to the Salvation Army, the National Conference of Catholic Charities, the National Council of Churches and the Council of Jewish Federations, all of whom help needy, handicapped and elderly people to pay their fuel bills. Says Bloom: "I realized that certain consumers of heating oil, especially those without lawyers and lobbyists, would be frozen out. These are the people least able to compete in the claims process. It seemed like an exceedingly economical, non-red tape way to get the money to them."

The new Administration, however, takes a different view. When Secretary of Energy James Edwards discovered the donations, he promptly asked the four organizations to return the money. Edwards contends that Bloom did not obtain the permission of then Secretary of Energy Charles Duncan, and thus lacked the authority to make the gifts. Says Department Spokesman Phil Keif: "Secretary Edwards is not objecting to giving the money to low-income people. He just wants it returned so that a decision on how to disburse it can be made in the right way."

Bloom admits that he did not seek Duncan's approval but maintains nonetheless that he acted properly. Says he: "This was not taxpayers' money but Amoco's money that had been given to me to control. It was perfectly legal and proper."

Leaders of the four charities met with Department of Energy lawyers last week and agreed only to stop spending the funds until they decide whether to return the money. But the Energy Department has decided not to seek the estimated $1.5 million already distributed by the charities or to prosecute Bloom. If the groups refuse to return the remaining funds, the Justice Department may sue them--or it may not. Admits an Energy Department official ruefully: "It's ticklish."

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