Internal watchdog reports State Department mismanaged clearance for Iran envoy
In at least one instance, the state intervened to protect Rob Malley from “potential embarrassment.”
TroibNews 
An investigation has revealed that State Department officials did not adhere to standard protocols when suspending the security clearance of Iran special envoy Rob Malley, resulting in “significant confusion” regarding his permissible activities.
The confusion, according to the report by investigators, “likely led” Malley to engage in discussions on topics “outside the limited scope of issues on which he was authorized to work.” It was suggested that he might have participated in a conference call before he was aware that his clearance was suspended, potentially granting him access to sensitive emails.
The findings from the State Department Inspector General, obtained by PMG, are expected to intensify scrutiny surrounding Malley, a contentious figure in Washington who is currently under an FBI investigation related to his handling of classified information.
Additionally, the report could amplify Republican criticisms of the State Department, with many in the GOP perceiving Malley as overly accommodating to Iran's Islamist regime.
Malley’s security clearance has been suspended for more than a year, during which he has been on indefinite leave. The FBI investigation is reportedly examining whether Malley transferred classified information to his personal email, where it might have been accessed by foreign actors, including hostile states like Iran or cybercriminal groups.
Malley has denied any wrongdoing.
Recently submitted to Capitol Hill, the report does not assess the reasons behind Malley’s security clearance suspension or the FBI probe. Notably, it states that the investigators found no evidence indicating Malley “engaged in classified matters” after being informed of his clearance suspension.
However, the report outlines several potential missteps by State Department officials who handled Malley’s suspension, many of whom seemed to believe his case was minor and would be resolved rapidly.
A State Department spokesperson refrained from commenting on the report due to its non-public status, but the department provided a formal response to the inspector general’s office, concurring with the recommendations aimed at preventing similar issues in the future.
The investigation pointed out the absence of formal procedures for managing security clearance suspensions for political appointees like Malley, who possesses a Top Secret clearance. While protocols exist for civil servants and Foreign Service officers, they were not consistently applied in Malley’s case.
Diplomatic Security officials informed Malley of his clearance suspension one day later than planned, which may have allowed him to take part in a classified conference call with White House officials after approval of the suspension but before notification.
In an atypical response, Diplomatic Security opted to notify Malley in person to avoid “potential embarrassment,” as the usual notification procedures are less discreet.
The initial communication to Malley was scheduled for April 21, 2023, but officials were advised to wait until senior State Department officials were informed about the suspension. The notification was finally delivered on April 22, while the classified call occurred on April 21. Although the inspector general's investigators could not definitively establish Malley's participation in that call, evidence suggested he may have been involved, including badge usage data.
On Wednesday, Malley informed PMG that he had not reviewed the inspector general’s findings and could not comment. He claimed he offered to cooperate with the investigation, but they never reached out to him.
The inspector general's office did not interview Malley, stating that he was not the subject of this particular review and they wished to avoid interfering with ongoing investigations, though it did not specify which ones.
Portions of the inspector general’s report were redacted at the State Department's request, citing sensitivities related to law enforcement.
The State Department operates two information systems for its employees: classified and unclassified. The latter includes materials designated as “sensitive but unclassified,” which department leaders often prefer to keep from public view, encompassing internal memos and detailed strategies.
On April 26, 2023, the department restored Malley’s access to the unclassified system, even though such material was off-limits under the original terms of his suspension and could contain sensitive information. Officials justified this decision by expressing concern that without access to his work email, Malley might resort to using personal email for government business, which is prohibited. The top Diplomatic Security official who approved this access stated he “did not consider access to [sensitive but unclassified] information.”
The inconsistent response from State Department officials resulted partly from Malley’s unique role as a political appointee reporting directly to Secretary of State Antony Blinken, albeit without direct oversight of his daily activities.
While guidelines exist for addressing clearance suspensions of civil servants and Foreign Service officers, none specifically pertain to political appointees like Malley.
As senior State Department officials evaluated Malley’s case in late April 2023, they decided that he could continue to work “as long as the work dealt only with unclassified matters,” including communicating with the families of Americans detained in Iran.
However, allowing Malley to continue working while his security clearance was suspended led to further complications.
It became unclear what work Malley was permitted to undertake. Additionally, many within the Biden administration remained unaware of his suspension, posing a risk that they might inadvertently discuss classified matters with him.
Some high-ranking State Department officials believed the situation was not particularly serious, with one indicating that the clearance suspension “would be short-lived and the matter resolved quickly.”
There was a notable lack of clarity regarding authority to regulate Malley's activities. The inspector general's office reported that it could not identify any department official responsible for determining what Malley could work on or who monitored his activities during that period, highlighting a reduction in oversight after his clearance was suspended and significantly increasing the risk of inappropriate discussions.
Republican lawmakers have expressed confusion over why Malley was not immediately placed on full-time leave upon suspension of his clearance in April 2023, advocating for clearer and more timely reporting to Congress about his status.
While investigators found “no evidence that [Malley] was engaged in classified matters following April 22, 2023,” they noted he did not return to the State Department headquarters, conducting work remotely, including via email.
Yet, they discovered “evidence that Mr. Malley regularly communicated with White House officials and was kept apprised about secure telephone calls and meetings with a variety of agencies, including the Central Intelligence Agency, the Office of the Director of National Intelligence, and Departments of Defense, Justice, and Treasury.”
On May 25, 2023, he was included on an email chain from a senior State Department official regarding talking points for Blinken, who was unaware of Malley's suspended clearance. In various instances, Malley was also blind-copied on emails.
“Multiple department employees interviewed by [the inspector general’s office] stated that they had heard, and believed, that he was just on personal leave. Others were uncertain about his status but thought it was essential to include him on communications, even if it meant doing so by bcc’ing him on emails,” the report indicated.
According to the report, one employee relayed that Malley “attended a private dinner party that included U.S. government and foreign government officials who later became upset when they learned that his clearance was suspended at the time of the dinner, but they had not been informed.”
Secretary of State Antony Blinken appeared to maintain distance from Malley after his clearance suspension, despite their longstanding acquaintance. The report noted that Blinken’s chief of staff “ensured that [Blinken] did not engage with Mr. Malley after his clearance was suspended, because the secretary wished to recuse himself from engaging on Mr. Malley’s situation given their longstanding personal acquaintance.”
Even Malley’s deputy sought clarification from senior officials about how to interact with him, receiving instructions not to disclose Malley’s security clearance suspension to others due to privacy concerns.
Malley continued limited access to data systems until June 29, 2023, when he was informed of his indefinite unpaid leave and ordered to cease all work.
Reports regarding the suspension of his security clearance emerged concurrently, with coverage from CNN, PMG, and others serving as a revelation to some State Department officials about Malley’s status.
However, department officials maintained that media coverage did not impact their decisions. Instead, they recognized that “Special Envoy Malley’s suspension was unlikely to be resolved quickly, so the original solution of him performing only unclassified work was untenable,” according to the inspector general’s office.
Thomas Evans contributed to this report for TROIB News
The confusion, according to the report by investigators, “likely led” Malley to engage in discussions on topics “outside the limited scope of issues on which he was authorized to work.” It was suggested that he might have participated in a conference call before he was aware that his clearance was suspended, potentially granting him access to sensitive emails.
The findings from the State Department Inspector General, obtained by PMG, are expected to intensify scrutiny surrounding Malley, a contentious figure in Washington who is currently under an FBI investigation related to his handling of classified information.
Additionally, the report could amplify Republican criticisms of the State Department, with many in the GOP perceiving Malley as overly accommodating to Iran's Islamist regime.
Malley’s security clearance has been suspended for more than a year, during which he has been on indefinite leave. The FBI investigation is reportedly examining whether Malley transferred classified information to his personal email, where it might have been accessed by foreign actors, including hostile states like Iran or cybercriminal groups.
Malley has denied any wrongdoing.
Recently submitted to Capitol Hill, the report does not assess the reasons behind Malley’s security clearance suspension or the FBI probe. Notably, it states that the investigators found no evidence indicating Malley “engaged in classified matters” after being informed of his clearance suspension.
However, the report outlines several potential missteps by State Department officials who handled Malley’s suspension, many of whom seemed to believe his case was minor and would be resolved rapidly.
A State Department spokesperson refrained from commenting on the report due to its non-public status, but the department provided a formal response to the inspector general’s office, concurring with the recommendations aimed at preventing similar issues in the future.
The investigation pointed out the absence of formal procedures for managing security clearance suspensions for political appointees like Malley, who possesses a Top Secret clearance. While protocols exist for civil servants and Foreign Service officers, they were not consistently applied in Malley’s case.
Diplomatic Security officials informed Malley of his clearance suspension one day later than planned, which may have allowed him to take part in a classified conference call with White House officials after approval of the suspension but before notification.
In an atypical response, Diplomatic Security opted to notify Malley in person to avoid “potential embarrassment,” as the usual notification procedures are less discreet.
The initial communication to Malley was scheduled for April 21, 2023, but officials were advised to wait until senior State Department officials were informed about the suspension. The notification was finally delivered on April 22, while the classified call occurred on April 21. Although the inspector general's investigators could not definitively establish Malley's participation in that call, evidence suggested he may have been involved, including badge usage data.
On Wednesday, Malley informed PMG that he had not reviewed the inspector general’s findings and could not comment. He claimed he offered to cooperate with the investigation, but they never reached out to him.
The inspector general's office did not interview Malley, stating that he was not the subject of this particular review and they wished to avoid interfering with ongoing investigations, though it did not specify which ones.
Portions of the inspector general’s report were redacted at the State Department's request, citing sensitivities related to law enforcement.
The State Department operates two information systems for its employees: classified and unclassified. The latter includes materials designated as “sensitive but unclassified,” which department leaders often prefer to keep from public view, encompassing internal memos and detailed strategies.
On April 26, 2023, the department restored Malley’s access to the unclassified system, even though such material was off-limits under the original terms of his suspension and could contain sensitive information. Officials justified this decision by expressing concern that without access to his work email, Malley might resort to using personal email for government business, which is prohibited. The top Diplomatic Security official who approved this access stated he “did not consider access to [sensitive but unclassified] information.”
The inconsistent response from State Department officials resulted partly from Malley’s unique role as a political appointee reporting directly to Secretary of State Antony Blinken, albeit without direct oversight of his daily activities.
While guidelines exist for addressing clearance suspensions of civil servants and Foreign Service officers, none specifically pertain to political appointees like Malley.
As senior State Department officials evaluated Malley’s case in late April 2023, they decided that he could continue to work “as long as the work dealt only with unclassified matters,” including communicating with the families of Americans detained in Iran.
However, allowing Malley to continue working while his security clearance was suspended led to further complications.
It became unclear what work Malley was permitted to undertake. Additionally, many within the Biden administration remained unaware of his suspension, posing a risk that they might inadvertently discuss classified matters with him.
Some high-ranking State Department officials believed the situation was not particularly serious, with one indicating that the clearance suspension “would be short-lived and the matter resolved quickly.”
There was a notable lack of clarity regarding authority to regulate Malley's activities. The inspector general's office reported that it could not identify any department official responsible for determining what Malley could work on or who monitored his activities during that period, highlighting a reduction in oversight after his clearance was suspended and significantly increasing the risk of inappropriate discussions.
Republican lawmakers have expressed confusion over why Malley was not immediately placed on full-time leave upon suspension of his clearance in April 2023, advocating for clearer and more timely reporting to Congress about his status.
While investigators found “no evidence that [Malley] was engaged in classified matters following April 22, 2023,” they noted he did not return to the State Department headquarters, conducting work remotely, including via email.
Yet, they discovered “evidence that Mr. Malley regularly communicated with White House officials and was kept apprised about secure telephone calls and meetings with a variety of agencies, including the Central Intelligence Agency, the Office of the Director of National Intelligence, and Departments of Defense, Justice, and Treasury.”
On May 25, 2023, he was included on an email chain from a senior State Department official regarding talking points for Blinken, who was unaware of Malley's suspended clearance. In various instances, Malley was also blind-copied on emails.
“Multiple department employees interviewed by [the inspector general’s office] stated that they had heard, and believed, that he was just on personal leave. Others were uncertain about his status but thought it was essential to include him on communications, even if it meant doing so by bcc’ing him on emails,” the report indicated.
According to the report, one employee relayed that Malley “attended a private dinner party that included U.S. government and foreign government officials who later became upset when they learned that his clearance was suspended at the time of the dinner, but they had not been informed.”
Secretary of State Antony Blinken appeared to maintain distance from Malley after his clearance suspension, despite their longstanding acquaintance. The report noted that Blinken’s chief of staff “ensured that [Blinken] did not engage with Mr. Malley after his clearance was suspended, because the secretary wished to recuse himself from engaging on Mr. Malley’s situation given their longstanding personal acquaintance.”
Even Malley’s deputy sought clarification from senior officials about how to interact with him, receiving instructions not to disclose Malley’s security clearance suspension to others due to privacy concerns.
Malley continued limited access to data systems until June 29, 2023, when he was informed of his indefinite unpaid leave and ordered to cease all work.
Reports regarding the suspension of his security clearance emerged concurrently, with coverage from CNN, PMG, and others serving as a revelation to some State Department officials about Malley’s status.
However, department officials maintained that media coverage did not impact their decisions. Instead, they recognized that “Special Envoy Malley’s suspension was unlikely to be resolved quickly, so the original solution of him performing only unclassified work was untenable,” according to the inspector general’s office.
Thomas Evans contributed to this report for TROIB News
