Government officials handling billions of dollars in oil royalties partied, had sex with and accepted golf and ski outings from employees of energy companies they were dealing with, federal investigators said Wednesday.
The alleged transgressions involve 13 former and current Interior Department employees in Denver and Washington. Their alleged improprieties include rigging contracts, working part-time as private oil consultants, and having sexual relationships with - and accepting golf and ski trips and dinners from - oil company employees, according to three reports released Wednesday by the Interior Departments inspector general.
The investigations reveal a culture of substance abuse and promiscuity by a small group of individuals wholly lacking in acceptance of or adherence to government ethical standards, wrote Inspector General Earl E. Devaney, whose office spent more than two years and $5.3 million on the investigation. Sexual relationships with prohibited sources cannot, by definition, be arms-length, Devaney said.
The reports describe a fraternity house atmosphere inside the Denver Minerals Management Service office responsible for marketing oil and natural gas that energy companies barter to the government in lieu of cash royalty payments for drilling on federal lands. The government received $4.3 billion in such royalty-in-kind payments last year. The oil and gas is then resold to energy companies or put in the nations emergency stockpile. read on
In three reports delivered to Congress on Wednesday, the departments inspector general, Earl E. Devaney, found wrongdoing by a dozen current and former employees of the Minerals Management Service, which collects about $10 billion in royalties annually and is one of the governments largest sources of revenue other than taxes. A culture of ethical failure besets the agency, Mr. Devaney wrote in a cover memo.
The reports portray a dysfunctional organization that has been riddled with conflicts of interest, unprofessional behavior and a free-for-all atmosphere for much of the Bush administrations watch. The reports portray a dysfunctional organization that has been riddled with conflicts of interest, unprofessional behavior and a free-for-all atmosphere for much of the Bush administrations watch read on
(h/t Murray W)