News

USPS Will Pay Postmaster General-Connected Company $120M

Louis DeJoy is the Postmaster General and has created an intricate web of financial conflicts which will ultimately cost $120 million to taxpayers over the next five years.

XPO Logistics, a freight transportation company, pays DeJoy and family businesses at least $2.1 million every year to lease four office buildings in North Carolina, The Washington Post reported.

DeJoy, who was the chief supply chain executive for XPO in 2014-2015 after New Breed Logistics bought DeJoy’s trucking company DeJoy owned since more than 30 years.

The Post reports that DeJoy and his families have sold between $65.4 and $155.3 millions worth of XPO shares since he was made postmaster general.

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The family business still leases four North Carolina offices to XPO.

USPS to pay $120 Million over 5 Years to XPO for operations in Atlanta and Washington D.C.

The procurement process for the XPO contract was competitively bid and DeJoy wasn’t involved, USPS spokesman Jeffery Adams said.

The Post reported that ethics officials cleared DeJoy’s office buildings leases before he took office in June 2020. They were rented to a contractor rather than the agency.

It looks still a little sketchy.

“There’s no question he’s continuing to profit from a Postal Service contractor,” Virginia Canter, chief ethics counsel at watchdog group Citizens for Responsibility and Ethics in Washington, told The Post. “He can comply with these technical legal requirements … but it does create an appearance issue about whether it’s in his financial interest to continue to make policy that would benefit contractors like XPO.”

RealClearWire permission granted this syndicated version.

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