Another scandal over corruption, sex and drugs in the government of George W. Bush when federal investigators revealed today that officials in charge of handling billions of dollars in oil royalties over the years participated in the manipulation of contracts, had sex and illicit gifts received by employees of several U.S. oil companies
The inspector general of the Department of the Interior reports submitted today after an extensive two-year investigation, detailing how various officials of the office responsible for the management of oil royalties were involved in corruption in the handling of contracts, conflict of interest when working for government and provide services to private companies paid at the same time, accepting gifts (including trips to play golf, skiing, dinners and more) and even sex with employees of some of the biggest oil companies in the country.
In addition, at least 19 officials in the section responsible for marketing the oil and gas that some companies offer in lieu of royalty payments to the government in its offices in Denver nearly one-third of the 55 federal employees-not only received gifts and rewards for companies like Chevron, Shell, Hess among others, but the former head Gregory Smith used cocaine and had sex with his subordinate (one of which he sold cocaine).
The inspector general Earl Devaney wrote that investigations revealed "a culture of ethical failure" and described "a culture of substance abuse and promiscuity" of a group of 13 officials in Washington and Denver.
The inspector general's report says that several of the officials "frequently consumed alcohol, cocaine and marijuana and had sex with representatives of oil and gas companies."
The royalties in cash or in kind handled by these offices of the Department of Interior are paid to the government by companies in exchange for oil and gas on federal lands. The payments in kind (more than 4 billion annually) are resold by the government to energy companies or deposited in the Strategic Petroleum Reserve. The so-called Mineral Management Service collects around 10 billion in royalties in total each year and represents one of the largest sources of revenue to the federal treasury out of taxes, reported the New York Times.
Among the officials implicated, the highest-ranking Denett is Lucy, a former associate director of the administration of mineral revenue, who manipulated contracts to benefit a friend and former assistant, who retired this year came while the investigation. It turns out that her husband, Paul Denett, was the highest-ranking officer for procurement at the Office of Management and Budget of the White House until he resigned this month.
The detailed violations occurred during the Bush administration, from 2002 until at least 2006. There is also evidence that Chevron and other companies managed to discounts on their purchases of oil from the government after they were signed contracts with at least 118 documented instances of this kind of favour, representing a cost of 4.4 billion dollars to public.
The scandal broke out just when debate-both in Washington and in the electoral contest-the topic of expanding exploration and drilling of oil companies in coastal waters and territories federal government.
The director of the Mineral Management Service of the Department of the Interior, Randall luthier, commented that "we ask this investigation in 2006 after an employee presented allegations of ethical failures."
