Tag: louis dejoy
Biden Dumps Two DeJoy Allies On US Postal Service Board

Biden Dumps Two DeJoy Allies On US Postal Service Board

President Joe Biden announced plans Friday to nominate two new members to the U.S. Postal Service Board of Governors, a potential first step in removing Postmaster General Louis DeJoy.

A Trump appointee, DeJoy became a political lightning rod during the 2020 elections as changes he made to the postal service slowed delivery times during a key period when voters were trying to mail in their ballots. Biden is replacing two of DeJoy's backers on the board, chair Ron Bloom and John Barger. However, the president would likely have to make additional appointments as terms expire in order for the board to replace DeJoy.

The president is nominating Daniel Tangherlini and Derek Kan to the board. Up to nine governors appointed by the President and confirmed by the Senate can serve on the board. And to give the board joint partisan representation, only five governors can belong to the same political party.

Tangherlini works as the managing director of the Emerson Collective, a private philanthropic firm. He served as the administrator of the General Services Administration during the Obama presidency and also as the chief financial officer of the Treasury Department.

"If confirmed, I look forward to serving and working to make sure the Postal Service is run as efficiently and effectively as possible," Tangherlini said in a statement.

Kan is an executive at Deliverr, an ecommerce fulfillment startup. During the Trump presidency, he was the deputy director of the Office of Management and Budget and also served as the under secretary for policy at the Transportation Department. He also worked as a policy adviser to Senate Republican Leader Mitch McConnell.

Kan said he "will work to strengthen the Postal Service so that it will continue to serve the American people well into the future."

Postmaster General Louis DeJoy

DeJoy Hangs On At Post Office As His Company Reaps Huge Bonanza

Reprinted with permission from Alternet

U.S. lawmakers and ethics advocates on Friday reiterated calls for firing Postmaster General Louis DeJoy after The Washington Post revealed that the United States Postal Service awarded a $120 million contract to XPO Logistics, a company he helped run and "with which his family maintains financial ties."

"Louis DeJoy is a walking conflict of interest," declared Rep. Gerry Connolly (D-VA). "He had no business being named postmaster general, and he has no business continuing to serve."

"It's long past time to #FireDeJoy," added Connolly, chair of the House Subcommittee on Government Operations, which has legislative jurisdiction over the Postal Service.

Connolly was far from alone in responding to the report by calling for DeJoy's removal.

"How in the world is Louis DeJoy still the postmaster general?" asked Rep. Joe Neguse (D-CO). "It is long past time to #FireDeJoy."

DeJoy's personal spokesperson referred most of the newspaper's questions to USPS—whose spokesperson "said that DeJoy did not participate in the procurement process for the XPO contract, which was competitively bid." The company's spokesperson noted that XPO was not awarded some other contracts it sought.

Under the contract that XPO got, it will take over two centers that organize and load mail. Dena Briscoe, president of the American Postal Workers Union branch for Washington and Southern Maryland, told the Post that the move felt like a "slap in the face" to workers.

"This is the work that they've been doing for years and years and years," Briscoe said, "and you're going to segregate it away from them, put in another building, give it to a company that previously had a [top executive] that is now our postmaster general. A lot of our members are taking offense to that."

As the Post detailed:

The new contract will deepen the Postal Service's relationship with XPO Logistics, where DeJoy served as supply chain chief executive from 2014 to 2015 after the company purchased New Breed Logistics, the trucking firm he owned for more than 30 years. Since he became postmaster general, DeJoy, DeJoy-controlled companies, and his family foundation have divested between $65.4 million and $155.3 million worth of XPO shares, according to financial disclosures, foundation tax documents, and securities filings.

But DeJoy's family businesses continue to lease four North Carolina office buildings to XPO, according to his financial disclosures and state property records.

The leases could generate up to $23.7 million in rent payments for the DeJoy businesses over the next decade.

Although the leases to XPO were cleared by government ethics officials before DeJoy took office last year, some experts are still critical—such as Virginia Canter, chief ethics counsel at watchdog group Citizens for Responsibility and Ethics in Washington (CREW).

"There's no question he's continuing to profit from a Postal Service contractor," Canter said. "He can comply with these technical legal requirements… but it does create an appearance issue about whether it's in his financial interest to continue to make policy that would benefit contractors like XPO."

Friday's calls for the USPS Board of Governors to fire DeJoy are just the latest from the past year. He has been accused of slowing down mail service before the 2020 election and now faces a criminal probe over GOP political donations; DeJoy has denied any wrongdoing on both fronts.

DeJoy's "14-month run as postmaster general has been a masterclass in cronyism and deception," Rep. Jimmy Gomez (D-Calif.) said in response to the Post reporting. "The amount of suspicion I had about him and his efforts to intentionally undermine delivery times at [USPS] could have filled the Grand Canyon. The Board of Governors should #FireDeJoy."

Rep. Bill Pascrell (D-NJ), who led previous calls for the board to oust the postmaster general, said Friday that "Louis DeJoy should've been fired long ago for his sabotage of USPS. He is under federal criminal investigation and now may be using your post office to wet his beak. The postal governors protecting him need to be fired first. This is an outrage."

DeJoy is spearheading a controversial 10-year reform plan for USPS that would involve cutting hours, slowing first-class delivery, and raising prices—an approach that has also provoked demands for his immediate ouster.

The 10-year plan was a key focus of a Board of Governors meeting Friday—the first that included all three members appointed by President Joe Biden and confirmed by the Senate.

"Ronald Stroman, the former deputy postmaster general and one of Biden's nominees, took the most aggressive approach in criticizing DeJoy's plan, saying the delivery slowdowns would hinder the agency's ability to provide prompt and reliable service without federal funding," reportedGovernment Executive.

According to the outlet:

He said the plan is "strategically-ill conceived, creates dangerous risks that are not justified by the relatively low financial return, and doesn't meet our responsibility as an essential part of America's critical infrastructure." USPS expects to save about $170 million annually from the changes, a small fraction of its operating budget.
"There is no compelling financial reason to make this change," Stroman said. "The relatively minor savings associated with changing service standards, even if achieved, will have no significant impact on the Postal Service's financial future."

Stroman accused DeJoy and the existing board members of abandoning the customers most loyal to and dependent on the Postal Service and said the plan would accelerate people and businesses turning away from the mailing system. He added that "rarely, if ever," has a USPS policy change received such widespread pushback.

DeJoy, for his part, acknowledged to the board that the plan involves some "uncomfortable changes," while doubling down on it: "We are confident we are headed in the right direction."

Sen. Tammy Duckworth (D-IL) disagrees. In a March letter urging DeJoy's firing, she wrote that his "pathetic 10-year plan to weaken USPS demonstrates that he is a clear and present threat to the future of the Postal Service and the well-being of millions of Americans, particularly small business owners, seniors, and veterans, who depend on an effective and reliable USPS to conduct daily business, safely participate in democracy, and receive vital medication."

USPS vehicles

Don’t Let The Republicans ‘Fix’ The Postal Service

It was surprising when Donald Trump declared he would make fixing the U.S. Postal Service one of the top personal priorities of his four-year White House adventure. It quickly became obvious, though, that he was using the word "fix" in the same way your veterinarian uses it when you bring in your dog.

Yes, Trump was saying, "Let's fix this puppy," and he wasted an inordinate amount of his presidential power and prestige in a failed attempt to neuter an agency that literally delivers for the people. Think about it: For a 55 cent stamp, America's extraordinary postal workers and letter carriers will take your piece of mail and deliver it by truck, car, airplane, boat, motorbike, mule — and, of course, by foot — to any address across town or across the country. The post office is a public system that works; it is both essential and effective. Indeed, the U.S. Postal Service ranks at the top of federal agencies in popularity, with 91 percent of the public approving its work. Thus, an uproar of protests (including by Republicans) spread across the country, killing Trump's attempt to gut the agency.

When it comes to bad public policy, however, failure is just a way of saying, "Let's try the back door." Trump was defeated, but he left behind an undistinguished Postmaster General named Louis DeJoy, who had only two qualifications for the job: He was a Trump megadonor, and he was a peer of corporate powers that've long wanted to privatize the Postal Service. In March, before the new Joe Biden presidency had taken charge of the postal system, DeJoy popped through the back door with his own "10-year Plan" to fix the agency.

Rhetorically, his plan promised to "achieve service excellence" by making mail delivery more "consistent" and "reliable." How? By consistently cutting service and reliably gouging customers. Specifically, DeJoy's plan was to close numerous mail processing facilities, eliminate jobs, reduce post office hours of service, and cut the standard of delivering first-class mail from three days to five. Oh, and to potentially raise stamp prices.

Delivering lousy service at higher prices is intended to destroy public support for the agency, opening up the mail service to takeover by private profiteers. That's the real DeJoy plan. And who gets joy from that?

Corporate ideologues never cease blathering that government programs should be run like a business.

Really? What businesses would they choose as the ethical model for governing our democracy? Pharmaceutical profiteers? Big Oil? Wall Street money manipulators? High-tech billionaires? Airline price gougers?

The good news is that the great majority of people aren't buying this corporatist blather but instead valuing institutions that prioritize the Common Good. Thus, by a 2-to-1 margin, Americans have stunned smug right-wing privatizers like DeJoy by specifically declaring in a recent poll that our U.S. Postal Service should not be "run like a business." Indeed, an overwhelming majority, including 49% of Republicans, say mail delivery should be run as a "public service," even if that costs more tax money.

In fact, having proven that this 246-year-old federal agency can consistently and efficiently deliver to 161 million homes and businesses — day after day, year after year — it's time to let the agency's trusted, decentralized, well-trained workforce provide even more services for our communities. One service it is uniquely capable of delivering is so-called postal banking. Yes, the existing network of some 31,000 post offices in metro neighborhoods and small towns across America are perfectly situated and able to provide basic banking services to the one out of four of us who don't have or can't afford bank accounts. The giant banking chains ignore these millions, leaving them at the mercy of check-cashing exploiters and payday-loan sharks that extract exorbitant profits for their Wall Street backers.

The post office can offer simple, honest banking, including small-dollar checking and savings accounts, very low-interest consumer loans, low-fee debit cards, etc. The goal of postal banking is not to maximize corporate profits but to serve the public. Moreover, there's nothing new about this: Our post offices served as banks for millions of us until 1967, when Wall Street profiteers got their enablers in Congress to kill the competition.

We the People own this phenomenal public asset. To enable it to work even better for us , rather than for the forces of corporate greed, go to AGrandAlliance.org.

To find out more about Jim Hightower and read features by other Creators Syndicate writers and cartoonists, visit the Creators webpage at www.creators.com.

It's Time to Dump, Depose and Defenestrate DeJoy

It's Time to Dump, Depose and Defenestrate DeJoy

Now that Postmaster General Louis DeJoy has confirmed reports that he is under investigation by the FBI for alleged campaign finance violations, ordinary postal customers who have suffered under his regime may rightly wonder why he is still in office. That is an urgent question — and has been an urgent question ever since President Joe Biden's inauguration — but it is worth examining how DeJoy got the job, and how he abused a position of constitutional trust.

The FBI probe concerns an alleged "straw donor" scheme undertaken by DeJoy to illegally funnel over a million dollars in excess contributions to the Republican Party and Donald Trump's presidential campaign. It's an obvious form of trickery designed to evade federal limitations on individual donations by urging others to support a campaign or candidate and then reimbursing them under the table. Corporate executives with political ambitions like DeJoy have committed this particular felony over and over again — and if DeJoy is indicted and convicted, he won't be the first suit sent to prison for it.

During and after the 2016 election, DeJoy raised upwards of a million dollars each for the Trump campaign and the Republican National Committee. For that he was named one of the party's three deputy finance chairmen — along with Michael Cohen, then still Donald Trump's personal attorney, and venture capitalist Elliott Broidy.

By then, Broidy had already been convicted on public corruption and bribery charges, while Cohen would soon plead guilty to campaign finance crimes as well as bank fraud. DeJoy would complete a dubious trifecta.

Last fall, a Washington Post investigation found that DeJoy had used the straw donor technique for over a decade to raise his profile as a Republican fundraiser in North Carolina. Former employees of New Breed Logistics, the supply chain firm he founded and then sold, said they had been pressured to make donations and repaid with bonuses and other compensation. The pattern dated back to the Bush administration — and appeared to have won at least two ambassadorial appointments for DeJoy's wife, Aldona Wos.

Yet while DeJoy's appointment as postmaster general was obviously greased by his massive donations, his alleged violations of election law are not the worst aspect of his regime. Even more troubling are major conflicts of interest that he has failed to resolve — and that some experts have described as potentially criminal.

When DeJoy sold New Breed to XPO Logistics, he held onto large amounts of stock and options in the merged company — which is a U.S. Postal Service contractor and might well profit from decisions made by him as postmaster. Policies promoted by DeJoy to diminish and even destroy postal delivery last year became controversial because of their effect on mail balloting — which his patron Trump blatantly sought to impede for partisan gain. But DeJoy is suspected of devising policies destructive to the Postal Service for his own self-serving purposes, too.

DeJoy and his family have invested tens of millions of dollars in companies, including XPO, that either contract with USPS, compete directly with USPS or both. Their investments in those competing firms, such as United Parcel Service, Forward Air and JB Hunt Trucking, are estimated between $30 million and $76 million, according to their own financial disclosures. Holding those interests in competing companies while serving in government is a serious violation of the law.

As Walter Shaub, former director of the Office of Government Ethics, said last year, "the idea that you can be a Postmaster General and hold tens of millions in stocks in a postal service contractor is pretty shocking." Except that the behavior of Trump, his family, his treasury secretary and many other conflicted employees lowered ethical expectations below zero.

Incredibly, DeJoy has only pretended to shed those conflicts since they were exposed last summer — by "divesting" his XPO holdings to his adult children. He continues to represent a holdover of the corrupt administration that voters ousted in 2020. And his plans to wreck the U.S. Postal Service remain a grave danger to an agency founded in Constitutional authority.

Biden could take action to have the Postal Service Board of Governors remove DeJoy from the board, which would mean he could no longer serve as postmaster general by law. Americans who depend on the mail for their livelihoods, medications and so much more need reform now. They can't wait until the last crooked Trump appointee is taken away in handcuffs.

To find out more about Joe Conason and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.