Federal Investigation Supports CAGW Charges of Rampant Waste, Abuse

(Washington, D.C.) Citizens Against Government Waste (CAGW) applauds the Postal Service Board of Governors for retiring Karla W. Corcoran as Inspector General of the United States Postal Service.  For four months, CAGW has called for her termination, cataloging the litany of abuses perpetrated during her seven-year tenure.

The Washington Post reported that the President’s Council on Integrity and Efficiency [PCIE] found that Corcoran “followed a pattern and practice of unprofessional conduct in the management of the USPS OIG [Office of the Inspector General], used questionable judgment in areas within her discretion, extravagantly expended USPS funds, and engaged in personnel practices which were either questionable or not in accord with USPS policy.”

“The Office of Inspector General was created for the express purpose of rooting out waste and fraud in the U.S. Postal Service,” CAGW President Tom Schatz said.  “It adds insult to injury to see the inspector general engaging in the kinds of activities it is supposed to prevent. The departure of Karla W. Corcoran should give taxpayers and postal ratepayers a sigh of relief.”

At a cost of $1 million each, Corcoran directed three “team-building” retreats where all 750 employees of the OIG gathered to dress up in costumes, stage mock trials, and participate in awards ceremonies.  Other examples named in the report include: spending $41,796 on mechanical shades for two conference rooms, paying $100,000 in cancellation fees for moving a meeting eight miles from the original site, creating offices for departing senior staff members, and forcing the retirements of employees who refused to cover up extravagant expenses.

Corcoran says she is a scapegoat for the widely-publicized financial troubles of the Postal Service.  She claims her office has identified more than $2.2 billion in savings.

“Ms. Corcoran misrepresents the accomplishments of her agency,” Schatz continued.  “In truth, the OIG under her leadership has been substandard, and the PCIE report supports our claims.”

CAGW noted in early August that the IG was inflating the savings figures from its recommendations.  The IG claimed it identified $20.8 million in “unrecoverable costs,” a vaguely-defined category that is not used by any other inspector general in the federal government.

“The inspector general has lost her credibility,” Schatz concluded.  “Taxpayers and postal ratepayers deserve to have a watchdog with unassailable credentials.  CAGW is proud to have played a role in Corcoran’s removal, and will keep a watchful eye on all changes at the inspector general’s office.”       

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