Do As I Say, Not As I Purchase

Loyal readers of this blog might recall a recent Government Accountability Office (GAO) audit that found widespread abuses of the purchase card program throughout the federal government (e.g., the luxurious steak-and-cocktail dinner hosted by U.S. Postal Service employees that cost taxpayers over $13,000).  But if the GAO report didn't convince you that federal agencies need to do more to strengthen accountability in their purchase card programs, maybe this week's headlines will change your mind.

One of the more ironic stories of purchase card abuse comes to us from Milwaukee, Wisconsin, where a U.S. Forest Service employee, Suzanne Poetz, has pleaded guilty to stealing $300,000 from her agency's program.  As part of her plea, Poetz admitted to over 150 instances of theft.  But the best part of all?  In 1998, Poetz received a Hammer Award from Vice President Al Gore--for developing the Agriculture Department's purchase card program.  (The Hammer Awards were given to federal employees whose work "resulted in a government that works better and costs less").

Another example of purchase card abuse was highlighted in the Houston Chronicle over the weekend.  A review by the Chronicle showed that NASA employees have used their purchase cards to pay for iPods, video games, jewelry, karate gear, and even clothes from the agency's headquarters.  In addition, some agency employees may have broken the law by not holding competitive bids for larger purchases.  As POGO's Scott Amey pointed out, "You have to ask: is somebody trying to get around competitive requirements?"

POGO has long argued that inadequate oversight in the purchase card program exposes federal agencies to wasteful and fraudulent expenditures.  We've also issued a number of recommendations for improving oversight and accountability in the program.  Hopefully these latest scandals will serve as yet another wakeup call for agency officials throughout the government.      

-- Michael Smallberg