GAO Finds Fraud in Commuter Program, Federal Workers Selling Transit Cards

[maddezmom]

Source: Washington Post

By Lyndsey Layton
Washington Post Staff Writer
Tuesday, April 24, 2007; Page A01

It's a perk of federal employment: a free monthly subsidy that pays for commutes on public transportation. But scores of workers have been taking the government for a ride, selling their benefits on the Internet and pocketing millions in cash each year.

The program, which covers 300,000 federal employees nationwide, has been abused by workers across a variety of agencies, the Government Accountability Office will report to Congress today. Workers in the Washington region alone have defrauded the government of at least $17 million a year, with the actual figure probably several million dollars higher, according to the GAO.

Employees have taken the benefit vouchers, known locally as Metrocheks, and turned them into a kind of black-market currency, selling them -- often at a discount off the face value -- to buyers who can use them to ride Metro, regional buses or commuter railroads.

Workers have been accepting the transit subsidies but driving to work, or claiming a subsidy far greater than their commuting costs and selling the excess, GAO investigators found. For example, one employee at the Department of Transportation claimed the maximum benefit of $105 per month, but his commute cost $54.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/04/23/AR2007042301563.html?nav=hcmodule

[Hestia]

1. The article proves that we the gov't needs one central

computer that has all the Treasury/monies data and post it on the web. There are way too many computer systems that do not talk to each other and this is wide area for fiscal abuse. Taxes would never have to be raised due to diligence on the part of the people.

[LiberalEsto]

2. This will be an excuse to kill the program

My husband receives this subsidy, and believe me, it is needed. He never drives to work, nor would he consider selling them. This program keeps cars off the roads and reduces pollution.

With increases in gas prices, food prices and energy costs, we are already stretched to the limit. Getting rid of this program would hurt, given that Metro constantly wants to raise fares.

The only reason the Misadministration allowed this study to be released is because it gives them the opportunity to get rid of something that benefits the middle class. Then the money can go to war profiteers like Halliburton.

[CreekDog]

3. Better computer systems won't fix this problem

Much of the abuse is from employees mis-reporting their mass transit expenses. However, frequent audits and penalties associated with misrepresentation should rein in most of the abuse.

[LiberalFighter]

4. According to the article I read in our local paper...

There is no accountability to the program.

The metrocheks are paper cards with magnetic stripes.

Identification is not required.

Metrocheks are not coded either on the card or digitally indicating department.

They receive both parking space and transit benefits at the same time.

[high density]

5. Page A01... $17 million dollars?

Yeah we can't look too closely at the billions being wasted every month in Iraq... let's focus on $17 million a year.