Wide Postal Probe Set in Wake of Fraud

The governing board of the Postal Service on Tuesday ordered an investigation of how the agency spends money, four days after a former postal governor pleaded guilty to embezzlement.

In addition to the wide-ranging internal inquiry into how the agency buys equipment and its spending practices, the board of governors also directed a review to determine whether the process of selecting the current postmaster general, Albert V. Casey, was tainted.

“There is no indication that Mr. Casey is involved in any impropriety whatsoever,” said John R. McKean, the postal board chairman. “We don’t believe there is any corruption at all.”

Peter E. Voss, board vice chairman until he resigned, pleaded guilty last Friday in connection with a scheme to steer a $250-million contract to a company whose public relations consultant was paying him a fee.

McKean said in his statement that the Postal Service, as a multibillion-dollar corporation, is “a tempting target for those who are prepared to violate the law in return for self-enrichment.”

Recruitment Under Scrutiny

The scope of the internal investigation was broadened to include the circumstances of Casey’s selection, McKean said. This came after the governing board fired the executive search firm that recommended Casey.

The executive recruiter, William A. Spartin, had started a search for Casey’s successor in light of Casey’s intention to resign by the middle of August.

Government records show that Spartin was a director of the search company, MSL Inc., and was president of the public relations company, Gnau Associates, that was accused of funneling money to Voss.

Spartin is no longer with Gnau.

McKean said that “the factual information released by the government in connection with Mr. Voss’ guilty plea indicates that Mr. Spartin may have played a role in Mr. Voss’ efforts to interfere with the procurement” of the multiple-line optical character reader, a machine that sorts mail.

“Every Postal Service matter in which Mr. Spartin played any part needs to be carefully reviewed to ensure that the decisions were made strictly on merits,” McKean said.

McKean said that when he discovered the connection between Spartin, Voss and the selection of Casey as postmaster general, he ordered Casey to stay out of the process of awarding the contract for making the mail-sorting equipment. It was that decision-making process prosecutors said Voss was paid to influence.

Voluntarily Stepped Aside

Casey said in a March 20 memo that he was bowing out of the discussions about the mail-sorting system, “to ensure that there will not be even the appearance of a conflict arising from my participation in any aspect of this procurement.”

Casey delegated the job to Deputy Postmaster General Jackie A. Strange.

McKean gave credit to Strange “for her dedication, under great pressure, to upholding the integrity of the process.”

When it approved the competitive bidding plan for the $250-million sorters, the governors directed postal inspectors to monitor the process. “That monitoring proved Mr. Voss’ undoing,” McKean said.

Voss, aided by Spartin, headed the committee that selected Casey, and, McKean said, Spartin also was involved in Casey’s hiring of several senior postal managers.

As to the board-ordered review of postal matters involving Spartin, Brian Gettings, Spartin’s attorney, said: “Every postal service matter which involves Mr. Spartin has already been carefully reviewed . . . by the U.S. attorney’s office.” He said there was no indication that any problems were found.