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Tags: USPS | PostmasterGeneralLouisDeJoy | XPO

Records: USPS Has Paid DeJoy's Former Company Millions

postmaster general louis dejoy
Postmaster General Louis DeJoy (Tom Williams-Pool/Getty Images)

By    |   Thursday, 03 September 2020 01:00 PM

The U.S. Postal Service has paid Postmaster General Louis DeJoy’s former company and its subsidiaries about $14 million in the past 10 weeks, The New York Times reports.

Over the past seven years, the newspaper reports that the Postal Service has paid XPO Logistics, DeJoy’s former employer, about $286 million.

According to The Times, DeJoy still holds at least a $30 million stake in the company.

An XPO Logistics spokesman told The Hill that recent payments were part of a contract the company inked with the Postal Service last December, which is before DeJoy was named postmaster general in June.

But since DeJoy took over as postmaster general, records indicate that payments to his former company have increased. In the past 10 weeks, payments totaled about $14 million.

According to a public records request made by The Times, the Postal Service paid XPO about $3.4 million during the same time frame in 2019 and $4.7 million during the same period in 2018.

Records show the mail service has paid DeJoy’s former company and its subsidies between $33.7 million to $45.2 million each year since 2014. XPO manages transportation and provides support during peak times, according to records.

The newspaper reports DeJoy’s stake in XPO to be worth anywhere between $30 and $75 million. He was also awarded $1.86 million in rent last year through a leasing agreement that he made while still working at the company, according to the Times.

Some Democrat lawmakers have criticized DeJoy for his financial ties to the company while he serves as postmaster general.

But Postal Service spokesperson David Partenheimer said in a statement to The Hill that DeJoy recuses himself from any decision-making involving XPO to adhere to government ethics rules.

“The Postmaster General correctly stated that he has 'nothing to do with' XPO’s contracts with the Postal Service,” Partenheimer said. “The contracting officers making contracting decisions about work with XPO are many levels below the CEO on the organization chart.”

He also noted that XPO’s contracts “represent a very small part of the Postal Service’s business” adding the company was “not one of our top 50 contractors last year or this year.”

XPO issued its statement on its relationship with the Postal Service last month. XPO called the Postal Service “a customer, not a competitor.”

The House Oversight Committee subpoenaed DeJoy for documents related to Postal Service reforms and his personal finances on Wednesday.

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Politics
The U.S. Postal Service has paid Postmaster General Louis DeJoy's former company and its subsidiaries about $14 million in the past 10 weeks, The New York Times reports. Over the past seven years, the newspaper reports that the Postal Service has paid XPO Logistics, DeJoy's...
USPS, PostmasterGeneralLouisDeJoy, XPO
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2020-00-03
Thursday, 03 September 2020 01:00 PM
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