WASHINGTON – In the weeks before Republican donor Louis DeJoy was installed as postmaster general, Treasury Secretary Steven Mnuchin held a series of one-on-one meetings with members of the Postal Service Board of Governors, several people familiar with the meetings told NBC News.
Those people said Mnuchin met with Republican board members, as well as with Robert Duncan, the chairman of the council, who was once chairman of the Republican National Committee.
All six members of the current Postal Service board were appointed by President Donald Trump, although two members, Donald Moak and Ron Bloom, were recommended for nomination by Democrats.
NBC News tried to reach the three Republican board members who were in their messages during DeJoy’s interview process to ask about the nature of their meetings with Mnuchin, but it received no response. Neither the Treasury department nor the Postal Service would comment on the meetings or even confirm that they happened.
Because Mnuchin’s meetings were private one-on-one talks, they were not subject to government in the Sunshine Act, which requires federal agency meetings to be made public. Yet many on the board were aware of the meetings, one person said. Mnuchin requested briefings before a decision was made, which the person called “unusual”. There was also discussion with Mnuchin about the ‘need to move fast’ over a selection, the person said.
White House as Treasury involvement in the Postal Service is a violation of its charter as an independent, non-political public entity, said Tim Stretton, a policy analyst for the nonpartisan Project on Government Oversight. The Postal Service operates on its own revenue separately from each process of federal appropriations.
Trump has rail against the Postal Service while openly suing Amazon founder Jeff Bezos, whose giant online retailer at the Postal Service relies on many of its supplies.
Mnuchin’s non-public meetings with Post Office board members add to a broader narrative on financial and political conflicts of interest by DeJoy and some newly appointed board members, as well as White House influence over the Post Office.
Dave Williams, a former vice president of the council who resigned in May, told members of the House Progressive Caucus on Thursday that Mnuchin was actively engaged in the council’s activities.
Before they were confirmed, Republicans nominated to the board had to meet with Mnuchin and “kiss the ring,” Williams said.
Once confirmed, Williams said, board members would continue to hear from Mnuchin, who “would convey his approval and disappointment over their performance.”
He added, “I have never seen such a thing.”
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Williams told lawmakers he resigned “when it became clear to me that the administration was politicizing the Postal Service with the Treasury Secretary as the main figure for the White House in that attempt.”
As for DeJoy, Williams said, “he did not stab me as a serious candidate” when he sat down for two interviews with the board. But, Williams said, “it turned out he would be selected.”
DeJoy has been embroiled in controversy in recent weeks after initiating a series of cuts and other operational measures at the Postal Service, such as ending overtime and dismantling e-mail processing equipment.
Critics have warned that such measures could affect the Post Office’s ability to handle a predicted sharp rise in messages before November 3. Trump has rejected the practice of post-voting several times, claiming without proof that it leads to voter fraud.
Under fire from lawmakers and the public, DeJoy announced this week that he would abstain from further operational changes until after the election.
Mnuchin, meanwhile, is defending himself in response to a letter from First Chamber Minority Leader Chuck Schumer, DN.Y., Wednesday to Duncan, the council’s chairman, seeking more information on how DeJoy was elected. Mnuchin said he played no role in the recruitment of DeJoy, a major donor to Trump who is the first postmaster in 20 years with no experience at the bureau.
Russell Reynolds, the search company used to select DeJoy, refuses to cooperate with his investigators, citing a non-disclosure agreement, Schumer said. He demanded that the company be released from the agreement and that the administration provide a “comprehensive explanation” of the role that Trump and Mnuchin play in the search process.
Williams told lawmakers that DeJoy was recommended by a Republican board member, John Barger.
DeJoy is scheduled to testify before the Senate Homeland Security Committee on Friday and the House Committee on Monday, when Democrats are expected to ask for more information about the changes he has introduced, including the removal of blue mailboxes and sorting machines at postal facilities across the country. Duncan will also testify Monday.
Any undue influence by the White House and the Treasury Department over the financial and appointment decisions of the Postal Service – an independent, nonpartisan organization that provides essential services to all U.S. citizens – is a major violation of the council’s charter, he said. experts on government.
“It would be very invalid and would seriously undermine the independence of the Postal Service,” said Tim Stretton, a policy analyst for the Project on Government Oversight, a nonpartisan government watchdog.
Mnuchin this year backed a Postal Service austerity report he commissioned last year, while also trying to block federal funds to wallow in the agency, which is financially struggling even for the coronavirus pandemic. The report recommended changes, including reducing labor, increasing postage costs and reducing the types of packages delivered.
Before DeJoy was appointed last spring, Congress approved a $ 10 billion loan to the Postal Service as part of the multitrillion-dollar CARES Act to compensate for the agency’s losses related to the coronavirus after Mnuchin blocked legislators’ efforts to to provide the money as a subsidy. Mnuchin has not released the money for months.
Mnuchin reached an agreement last month to release the loan, negotiating specific terms with the board, although it is intended to operate independently of the executive department. Under the conditions: The Postal Service had to disclose its proprietary, negotiated service agreements with Amazon and other outfits to the Treasury Department.
The Postal Service, amid the coronavirus, became “desperate” for a money infusion, and “Treasury gained the upper hand,” said Stephen Crawford, a board member of President Barack Obama’s administration.
