NCJ Number
72394
Date Published
1980
Length
132 pages
Annotation
The report by a Congressional committee documents a conflict of interest and other improprieties committed by an employee of the Bureau of Engraving and Printing (BEP) and addresses deficiencies in that agency's managment.
Abstract
The BEP, as part of the Treasury Department, is responsible for manufacturing U.S. currency, postage stamps, food coupons, and other Governmental financial instruments. In May 1978, employees of the BEP contacted the investigative subcommittee of the Senate Committee on Governmental Affairs to describe several incidents of mismanagement and inefficiency, particularly in regard to the business relationship between the American Bank Note Company (ABN) and the Bureau. The ABN, one of the largest companies in the world which prints financial instruments and sells machinery used to produce currency, has also printed food coupons and gasoline rationing coupons for the BEP. Confidential sources claimed that food coupon contracts let out to ABN had not been audited on a regular basis, that ABN profits from the contracts had been excessive, and that printing presses bought from ABN had never worked satisfactorily. Based on a year-long staff investigation and 3 days of public hearings, the report concluded that the former director of BEP and BEP's former assistant director for research and engineering did not adhere to the high standards of conduct expected of Government officials. They had engaged in activities which created an appearance of a conflict of interest and which, in some respects, constituted serious actual improprieties. The report details the activities of these two former officials and describes developments following the Senate hearings which culminated in both officials being convicted of conflict of interest charges and fined. The report also recommends improvements in the Treasury Department's conduct regulations. Other problems found in BEP management adversely affected efficiency, incuding outtmoded financial and accounting systems, labor shortages, and equipment malfunctions. The Treasury Department also failed to provide adequate supervision over BEP operations. The appendixes contain correspondence, a report on BEP programs to improve management and productivity, and related documents.