Probe of Postal Board of Governors Uncovers No Expenditures Fraud

A probe of expenditures by the Postal Board of Governors, triggered by a former vice chairman’s admission of expense-account padding, found no evidence of illegalities by current board members, it was disclosed Tuesday.

The initial results of the investigation by outside lawyers were delivered to members of the board as they weighed methods, including retention of a recently established audit committee, to ensure no repetitions of the fraud.

The findings were presented by Joseph A. Califano Jr., a former Carter Administration Cabinet officer retained by the board to conduct the independent investigation of expense accounts and other finances of the body that sets policy for the U.S. Postal Service.

Padded Expense Account

Former board Vice Chairman Peter E. Voss pleaded guilty earlier this year to taking money in return for trying to steer a $250-million contract for mail-sorting equipment to a specific firm. Voss also pleaded guilty to padding his expense account by almost $44,000.

The board was told Tuesday that Voss had two post office phones in his office, hired employees at postal expense and used government funds to pay for their travel and attendance at seminars.

No other member of the board of governors, except the chairman, has used such privileges on a regular basis, said the report, except for one other governor who had a postal phone installed at home.

Lawyers reviewed a large sample of governors’ expense vouchers, including all of those submitted by Voss, and found “no evidence of any inaccuracies,” the members were told.