Report slams DeJoy's conflicts of interest
- By FederalSoup Staff
- Oct 21, 2021
A new report from a government watchdog group finds possibly serious—and previously undisclosed—conflicts of interest at the top leadership of the Postal Service.
Louis DeJoy has been a very controversial, and much-disliked by employee unions and advocates, postmaster general at the nation’s mail service. But documents recently obtained and analyzed by Citizens for Responsibility and Ethics in Washington (CREW) show, according to the organization, more deeply problematic issues with his leadership.
In short, in order to serve at the pinnacle of the Postal Service, Dejoy should have been required to immediately end his multimillion-dollar financial interests in related, and sometimes USPS-contracted, private-sector concerns, CREW finds.
“The United States Postal Service seriously mismanaged Postmaster General Louis DeJoy’s conflicts of interest from the start, according to documents obtained by CREW via a Freedom of Information Act lawsuit,” a CREW release states. “The documents show that USPS’s initial decision to allow DeJoy to recuse from matters involving his former company XPO Logistics rather than divesting from the conflict-creating assets was clearly insufficient, given DeJoy’s role as the head of the agency and his later divestment.”
CREW said DeJoy, when he took the helm at USPS, retained anywhere from a $35 million to $75 million interest in these delivery and logistics operations.
CREW emphasizes that DeJoy did ultimately get out of many of the relevant investments—but the manner in which he did so bears further scrutiny, including a look into potential violations of criminal codes, according to the group. Further, USPS delayed in releasing the documents—raising the possibility of a coverup.
“He was allowed to continue holding millions of dollars in shares of a USPS contractor, which was awarded additional contracts before he ultimately divested, resulting in significant possible criminal exposure for him, and immensely damaged public trust,” CREW states.
For more detail, see the documents attached to the report on www.citizensforethics.org.