Postal Service Lost Millions to Worker Kickbacks, Bribes

Image: Postal Service Lost Millions to Worker Kickbacks, Bribes

Friday, 20 Dec 2013 05:52 PM

By Cynthia Fagen

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More than $13 million was awarded to a U.S. Postal Service contractor's two companies after he paid "cash and noncash bribes" to vehicle maintenance facility workers, according a probe by the Inspector General, The Washington Free Beacon reported Friday.

The report cited a total of 11 instances of workers accepting bribes, kickbacks, or steering contracts to family members. The names of the workers and the companies they fraudulently dealt with were redacted.

USPS officials said the bribes were a result of the lack of clearly defined oversight responsibilities.

"As a result, Postal Service agreements with suppliers completing vehicle repairs and maintenance are at risk of fraud, including potential conflicts of interest," the IG said, and blamed higher management for not performing periodic audits.

The IG also noted that nearly $19 million is wasted annually on inefficient and redundant methods of recording employees' daily work hours at the agency's Rural Delivery Operations, The Washington Examiner reported.

Almost 70 percent of workers want the timekeeping system automated to "improve operational oversight and supervisor productivity," the reported cited. USPS management agreed to develop a new automated timekeeping process.

The postal service ended the 2013 fiscal year $5 billion in the red.

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