David Williams, the former Vice President of the USPS Board of Governors, told the Progressive Caucus of Congress on Thursday that Mnuchin was leading the administration’s effort to politicize the Postal Service, seeking sensitive information about the USPS labor agreements. , prices and volume discounts – especially with customers like Amazon, UPS and FedEx.
“By statute, the treasury was made responsible for providing the postal service with a line of credit. The treasury used that responsibility to make demands that I believed would turn the postal service into a political tool, and end its long history as a political one. public infrastructure, ”Williams said in his first public remarks about his dismissal.
Williams’ remarks came when Democrats accused a member of the USPS Board of Governors of running the postmaster’s normal selection process to nominate the Trump donor who was eventually selected for the job, Louis DeJoy.
Democrats are investigating DeJoy’s selection as postmaster general in May – and whether Mnuchin and other Trump administration officials were involved in his appointment – in the wake of several austerity measures that Democrats accuse of causing unacceptable delays in mail delivery and put the risk The Post Office’s ability to handle the expected rise in post-in-votes in the November elections.
Democratic Reporter Raja Krishnamoorthi of Illinois and Katie Porter of California on Thursday sent a letter to USPS Board of Governors John Barger asking whether Republican board member DeJoy recommended going through the consulting firm that conducted the search. Lawmakers said they were told by individuals familiar with the process that DeJoy was not recommended by the consulting firm, Russell Reynolds Associates.
“It would have been irregular for a member of the USPS Board of Governors, such as yourself, to advise Mr. DeJoy without the consultation, investigation or support of contracting leasing company Russell Reynolds Associates,” Krishnamoorthi and Porter wrote in the letter. , which was obtained by CNN.
In a question-and-answer segment with the Progressive Caucus, Williams said it appeared to him that DeJoy came from Barger, and not from the consulting firm. Williams said he was concerned about DeJoy following both of his interviews with the board, and the board’s move to select DeJoy led to his decision to resign.
“He just stabbed me as a serious candidate,” Williams said. “At the dismissal, I told the chairman that this was one of the reasons. It turned out that he would be selected.”
DeJoy testified on Friday
DeJoy, who was previously CEO of a USPS contractor and a major donor to President Donald Trump, had argued that recent changes to the postal service were necessary to control postal costs. But this week, he halted those plans until after the election, though he did not say if any changes made, such as removing high-volume letters, would be reversed. At least 20 Democratic state attorneys across the country have launched a legal effort to stop the changes.
Republicans have accused Democrats of “fabricating a baseless conspiracy theory about the Postal Service” and that funding is not necessary. “The postal service does not need a bailout. They have enough cash on hand to get them through next year and have access to a $ 10 billion credit line if needed,” Rep. James Comer of Kentucky, the top Republican on the House Oversight Committee, said in a statement Wednesday.
Krishnamoorthi said in a statement that DeJoy’s appointment was “very irregular” and may have been influenced by political motives. “We need to get to the bottom of why Mr DeJoy was considered, given that he was apparently not one of the candidates recommended by the company that has contracted to make such recommendations, and did not undergo background checks, as appointed by … Williams, ‘he said.
Mnuchin says no role in selecting DeJoy
Senate Democrats also raise questions about DeJoy’s appointment and the delays in mail delivery.
Two First Chamber Democrats, Elizabeth Warren of Massachusetts and Bob Casey of Pennsylvania, said Thursday that they have opened an investigation into delays in mail order deliveries due to mail changes to the Postal Service.
And Senate Minority Leader Chuck Schumer sent a letter to the USPS Board of Governors on Wednesday accusing her of refusing to comply with a non-disclosure agreement for Russell Reynolds, the consulting firm, to discuss the selection process or discussing every involvement Trump and Treasury Secretary Steven Mnuchin had in his selection.
“This administration has repeatedly pointed out the role of Russell Reynolds in defending the selection of a Republican mega-donor without prior post-experience as Postmaster General, while at the same time blocking Congress’ ability to get shortfalls from the firm and to hide the role of Secretary Mnuchin and the White House in their search process, “Schumer wrote.
Mnuchin responded to Schumer in a letter Thursday, writing that he had no “role in Mr DeJoy’s recruitment or suggestion for the post of postmaster general.”
“In fact, I was surprised to learn that Mr. DeJoy was a candidate for the position when the directors updated me on the status of the selection process and informed me about their finalists,” Mnuchin wrote.
However, Mnuchin acknowledged that he had asked the Board of Governors, which selects the postmaster general, to keep him aware of the search process “as appropriate, as strong management is essential to the financial health of USPS.”
Documents obtained by a government watchdog group this week showed how Mnuchin was involved with the Board of Governors through the selection process, resulting in the appointment of DeJoy.
Mnuchin asked the board of directors in December 2019 to keep him ‘apprised’ in their search for a new leader, and he met with the board in February for an update on the search, according to documents released on Wednesday by the watchdog group Citizens for Responsibility and Ethics in Washington.
“In response to your request regarding the search for the next Postmaster General, the Post Services Board met with you on February 6 to provide an update on our search. The search process is ongoing for a candidate of the highest caliber,” he said. Chairman of the Postal Service Board of Governors, Robert Duncan, wrote in a March 31 letter to Mnuchin. Duncan, who testified next to DeJoy on Monday, was chairman of the Republican National Committee from 2007 to 2009.
“We intend to bring the search to a conclusion in the very near future,” Duncan wrote.
The Trump administration and USPS have touted DeJoy’s experience of the private sector, where he has spent decades working and executing massive logistics companies doing business with USPS.
A spokesman for the Postal Service did not respond to a request for comment.
This story was updated Thursday with additional developments.
CN Ms Phil Mattingly contributed to this report.
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