WASHINGTON (AP) -- Postmaster General William Henderson today ordered a ban on special moving-expense payments for executives following a critical inspector general's report on the payment of $248,000 to relocate two top managers.
At the same time, one of those managers, Chief Financial Officer Richard Porras, announced his retirement.Postal officials confirmed last week that the agency had paid $142,000 to move one vice president 10 miles and about $106,000 to move another 30 miles, even though both continued to report to work at the agency's Washington headquarters.
Postal executives moving to new duty assignments usually have to change workplace and relocate at least 50 miles to be eligible for a relocation benefit, but the two negotiated exceptions when they were promoted in 1998.
Porras moved 10 miles to be closer to a Postal Service training academy and Washington Dulles International Airport. Controller John H. Ward moved 30 miles, three miles from headquarters.
After the payments became publicly known, Henderson asked the agency's inspector general to investigate and that office issued a critical report late Thursday.
Rep. John McHugh, R-N.Y., who heads the House Government Reform postal subcommittee, said today that the audit showed the agency abused its authority to grant exemptions to the moving rule.
Henderson issued a statement saying that "effective immediately, no deviations from our relocation policy will be granted when the move does not involve a change in the work location."
Henderson said the report raises a number of other issues that he is considering. And he announced that Porras had decided to retire so the agency can operate "without any unnecessary distractions."
The Postal Service, a semi-independent part of the government, does not use taxpayer money to fund its operations.
The average relocation of a postal executive costs about $80,000, the agency reported. The Postal Service moved about 1,200 officials in 1998, including eight who were exempted from the 50-mile rule.