Ex-GSA Head Apologizes for $823,000 Las Vegas Spending Spree
Martha Johnson, who resigned this month as head of the General Services Administration, apologized Monday for a Las Vegas conference in 2010 that cost $823,000 and led to the ouster of the agency’s top leaders.
Johnson resigned; two top officials — Bob Peck, head of the agency’s public building department, and Stephen Leeds, Johnson’s chief of staff — were fired; and five other officials were put on administrative leave after GSA Inspector General Brian Miller reported that lavish spending was an accepted part of the agency’s culture. He highlighted the 2010 conference, which included private parties in luxury suites paid for with taxpayer funds.
The House Oversight and Government Reform Committee was holding the first of what’s expected to be at least four congressional hearings into the report. The official at the center of the scandal, Jeffrey Neely, repeatedly invoked his Fifth Amendment right to remain silent.
In a memo included in the inspector general’s report, Neely — who hosted a $2,700 party at the conference — allegedly wrote, “I know I’m bad … but why not enjoy it while we can? It ain’t gonna last forever.”
Rep. Darrell Issa, R-Calif., chairman of the committee, said the panel was intent on getting “answers to questions that should have been asked long, long, long ago.”
Johnson, who resigned April 2, testified that when she assumed the agency’s leadership in February 2010, defended herself, saying she eventually learned that its Western region training conference had over time “evolved into a raucous, extravagant, arrogant, self-congratulatory event that ultimately belittled federal workers and would stain the very work that other committed staff and I were preparing to do.”
“Leaders apparently competed to show their people how much entertainment they could provide, rather than how much performance capability they could build,” she said. “The expensive planning for that conference was well under way when I entered GSA, and I was unaware of the scope.”
Johnson said she stepped aside to “allow a new team to lead GSA as it rebuilds itself,” saying she was “extremely aggrieved by the gall of a handful of people to misuse federal tax dollars, twist contracting rules and defile the great name of the General Services Administration.”