PBGC Director Gordon Hartogensis today issued the following statement on news that former PBGC Director of Procurement Jeffrey Donahue pleaded guilty to one count of conspiracy to bribe a public official:
“Fraud, abuse, and any other illegal and unethical behaviors have no place in the federal government’s operations. They are unacceptable in any case — but especially when they involve the hard-earned dollars of the workers and retirees PBGC protects. I am committed to making sure the agency’s employees and contractors operate responsibly, transparently, and in accordance with the law, which is why I requested a full investigation into our procurement department and its oversight. We will continue working with the Inspector General’s office to uphold the high standards we’ve set for ourselves since my confirmation and to ethically and effectively carry out PBGC’s critical mission.”
Additional details on the actions that took place in 2015 and 2016 are available in this Department of Justice press release: https://www.justice.gov/opa/pr/government-official-and-contracting-executive-plead-guilty-bribery-conspiracy.
PBGC protects the retirement security of over 35 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private-sector pension plans. The agency’s two insurance programs are legally separate and operationally and financially independent. PBGC is currently responsible for the benefits of about 1.5 million people in failed pension plans and receives no taxpayer dollars. The Single-Employer Insurance Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Insurance Program is financed by insurance premiums and investment income. For more information, visit PBGC.gov.