(Washington, D.C.) - Citizens Against Government Waste (CAGW) today applauded the Postal Rate Commission's (PRC) Shelley Dreifuss, acting director of the Office of the Consumer Advocate (OCA), and her team, for its March 20^th report, excoriating the USPS's ongoing mismanagement of its domestic nonpostal services, particularly Internet services, hybrids of the electronic and traditional mail services, and services ancillary to the provision of traditional postal services.  The OCA has made a compelling argument that the PRC has the legal right of prior review for the postal services commercial activities. 

"Had it reviewed this mishmash of money losers in advance, the postal service might have been prevented from getting into these businesses and saved tens of millions of dollars," CAGW Vice President Leslie K. Paige said.  "It's about time somebody demands and gets some straight answers from postal officials about the financial losses associated with these dead-end ventures."  The commercial ventures cited in the report were:  First Class Phone Cards; Retail Merchandise; Liberty Cash; Dinero Seguero; Sure Money; eBillPay; ePayments; USPS Online Payment Services; Pay @ Delivery; USPS Send Money; NetPost CardStore; NetPost Certified Mail; Electronic Postmark; Unisite Antenna Program; Returns @ ease; Mall Package Shipment Program. 

"OCA calculates an overall loss for the entire array of 'nonpostal' services of approximately $32.5 million for years 1995 to date," according to the report.  "[T]he Postal Service had projected revenues of $104 million for its e-commerce initiatives in FY 2001, but had realized less than 1 percent in actual revenues by the end of the first three quarters."  The OCA also argues, "it is evident that, without regulatory oversight, the Postal Service's procedure are haphazard, inconsistent, and deficient."  

"The OCA's report makes clear that postal management has spent a significant amount of time and ratepayers' money dabbling in unnecessary and inappropriate commercial businesses, even while posting massive losses, jacking up rates, and failing in its basic mission of delivering mail," Paige added.  "The OCA's report is even more trenchant when one considers that postal managers are currently petitioning the Bush Administration for $1.7 billion more for the next two years' security costs, on top of the $675 million they have already received." 

"Though members of Congress and the General Accounting Office have previously asked for an accounting of these matters, USPS has been either unable or unwilling to comply," Paige continued.  "Nobody has so far been able to get to the bottom of this morass.  The OCA is taking a stand, trying to put some teeth into the PRC's oversight capabilities.  It is way past time to bring these renegade business development branches at USPS under the control of some sort of supervisor.  The tens of millions of dollars that USPS claims to have lost will undoubtedly be just the tip of the iceberg."

"The OCA report amplifies the cognitive dissonance that occurs whenever postal executives discuss finances.  When Postmaster General Potter can sit before an appropriations subcommittee, his chief financial officer planted mutely by his side, and testify with a straight face that the postal service has aggressively cut costs, achieved record productivity, maintained superb levels of consumer service while losing multiple billions of dollars, you know there is a serious level of denial going on at L’Enfant Plaza," Paige concluded.  "This report, coupled with the OCA's March 6 volume, in which it shredded the postal service's claims of stellar customer satisfaction, is refreshing.  The OCA deserves the gratitude of millions of postal ratepayers and taxpayers."

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.