The most delicious words in the English language....

Karl Rove facing investigation that "could create a substantial new problem for the Bush White House"

Rats. You were right. It was too good to be true:

Scott J. Bloch, the head of the Office of Special Counsel, “who says he is investigating Karl Rove for allegations he influenced government activity for partisan purposes is himself facing allegations of similar behavior.” In April 2005, government watchdogs and others complained that “the White House appointee had allowed his office to ’sit on’ a complaint that then-White House National Security Adviser Condoleezza Rice used government funds to travel in support of President Bush’s re-election bid.”

UPDATE: CREW adds: “The fact that OSC has been charged with handling these matters suggests the possibility that the White House is orchestrating a cover-up of its illegal and improper activities.”

Update: David Corn at The Nation:

At the OSC, Bloch is supposed to protect whistleblowers. But he's been charged with reprising against those who challenge his agency and others. Before Bloch was appointed by Bush to take over the OSC, he was a deputy director and counsel at the Justice Department's Task Force for Faith-based and Community Initiatives.

"By most measures, his tenure has been an absolute failure," says Adam Miles, legislative representative at the Government Accountability Project. "He's been under pressure to start doing something." Miles notes that GAP did not initially expect the complaint it filed against Bloch in 2005 to go anywhere. "It was referred to a federal entity called the President's Council on Integrity and Efficiency," Miles recalls, "and we thought it would just rot there." But the case was handed to Pat McFarland, the inspector general for the Office of Personnel Management. McFarland is a former St. Louis detective who spent 22 years as a Secret Service agent before becoming IG at OPM in 1990.

McFarland's investigation of Bloch, Miles says, "hasn't been a totally transparent process but we're hearing it's reaching a conclusion--which could be motivation for Bloch to start this investigation into the White House. If OPM does turn up any adverse information on Bloch, it would be more difficult for the White House to get rid of him while he was actively investigating them." But this could cut the other way. If Bloch is the subject of an investigation, he might be inclined to treat the White House favorably to protect his own position. In either case, there seems to be a conflict of interest. Bloch, Miles says, "may not be the appropriate person to be conducting the investigation" of Rove and the White House.

It is a dizzying situation. The investigator investigating officials who oversee the agency that is investigating the investigator. Forget firewalls. This looks more like a basement flooded with backed-up sewage--with the water rising.