Whistleblower: Oil watchdog agency 'cult of corruption' (Dan Simon, David Fitzpatrick)

HONOLULU, Hawaii (CNN) -- Bobby Maxwell kept a close eye on the oil industry for more than 20 years as a government auditor. But he said the federal agency he worked for is now a "cult of corruption" -- a claim backed up by a recent government report.

"I believe the management we were under was showing favoritism to the oil industry," Maxwell told CNN.{xtypo_quote_right} The inspector general's 27-page summary says that nearly a third of the roughly 60 people in Maxwell's former office received gifts and gratuities from oil industry executives. Two received improper, if not illegal, gifts at least 135 times, the report says. It goes on to describe a wild atmosphere in which some staff members admitted using cocaine and marijuana. In addition, two female workers at the Minerals Management Service were known as the "MMS chicks" and both told investigators they had sex with oil industry officials they were supposed to be auditing.{/xtypo_quote_right}

Maxwell is referring to a tiny agency within the Department of the Interior called the Minerals Management Service, which manages the nation's natural gas, oil and other mineral resources on federal lands.

A report, conducted by the Interior Department's inspector general and released earlier this month, found that employees at the agency received improper gifts from energy industry officials and engaged with them in illegal drug use and inappropriate sexual relations. It looked at activities at the agency from 2003 through 2006.

Maxwell said the report doesn't surprise him. The agency, he said, is corrupt "top to bottom."

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