RSS
Home
No Surprise Here
Print
Email
RSS
Subscribe
Randall B. Luthi. Director of Mineral Management Services
The Denver Post broke this shocking story about the inner-workings of the oil and gas industry. It paints a picture of corrupt government officials being in bed with sleazy oil company executives, literally. The investigation cost taxpayers $5.3 million.
The head honcho of the operation on the government side was Greg Smith. It’s reported that he was actively engaging in drugs (cocaine), and sex with young female co-workers. He also rigged government contracts, advocated lying to investigators, and accepted bribes from corporations. He was in charge of 65 employees. Two of whom reportedly accepted thousands in gifts and had sexual relations with corporate executives. Smith retired during the investigation and will not be charged with any criminal conduct.
Isn't America great!
Smith was an employee of the Minerals Management Service. This division of the Department of the Interior oversees all oil and gas royalties that result from federal leases. Smith headed the Royalty In Kind department. According to the RIK web site, revenues for the department in fiscal year 2006 were $3.75 billion. He worked out of an office on 6th Ave. and Kipling St., in Lakewood, Colo.
To see pictures of the corporate executives the M.M.S. has recognized for outstanding service, and to perhaps guess which men were involved in "conflicts of interest", click here.
To get a better understanding of how much money these crooks were put in charge of, here’s a blurb I found while reading Denver Biz Journal: “The Department of the Interior's Minerals Management Service awarded a new IT operations and support contract to Accenture LLP. The contract, including one base year with nine option years, becomes effective Dec. 1. Its total value could reach $90 million to $100 million over the 10-year life of the contract, according to a press release.”
A $90 million to $100 million contract isn’t even a big deal for these people. It didn’t even get a full article.
Cronyism and corruption, implored from the top-down, found in our oil and gas industry. In our own backyard, no less. The worst part though, the part that really should make you mad, is that only a fool was genuinely surprised when they read this story.
