DeJoy maintains financial ties to former company as USPS awards it new $120 million contract

[Galraedia]

Source: Washington Post

The U.S. Postal Service will pay $120 million over the next five years to a major logistics contractor that Postmaster General Louis DeJoy previously helped lead and with which his family maintains financial ties, according to DeJoy’s financial disclosure statements and a federal contracting database.

The new contract will deepen the Postal Service’s relationship with XPO Logistics, where DeJoy served as supply chain chief executive from 2014 to 2015 after the company purchased New Breed Logistics, the trucking firm he owned for more than 30 years. Since he became postmaster general, DeJoy, DeJoy-controlled companies and his family foundation have divested between $65.4 million and $155.3 million worth of XPO shares, according to financial disclosures, foundation tax documents and securities filings.

But DeJoy’s family businesses continue to lease four North Carolina office buildings to XPO, according to his financial disclosures and state property records.

The leases could generate up to $23.7 million in rent payments for the DeJoy businesses over the next decade, according to a person who shared details of the agreements with The Washington Post but spoke anonymously to discuss confidential financial arrangements. In 2018, when DeJoy sat on the company’s board, XPO reported similar figures with the Securities and Exchange Commission. The leases run until 2025 and can be extended until 2030, according to those filings.

Read more: https://www.washingtonpost.com/business/2021/08/06/usps-dejoy-xpo-logistics/

[Blue Owl]

1. This fucking shit is pure Slobfather cronyism

He should be forced to pay for the USPS’s failures out of his own goddamned pocket

[padah513]

2. If they couldn't fire him without cause then they just got a big one.

[liberalla]

8. Yes indeed! DeJoy just provided the ammunition to investigate/ terminate...

He definitely should be under an ethics investigation! I just hope there are things going on in the background that we don't know about... and that we will see some action soon.

[bucolic_frolic]

3. DeJoy should be separated from USPS and

the financial ties sorted out. But I do understand, there are only so many logistic companies that can manage USPS volume, this one is already entrenched and do you really want to start over with another one, so I doubt this will be unwound. But this seems on the surface to be naked favoritism, corruption, feeding at the semi-public trough.

[Karma13612]

4. Well, it's pretty obvious

That if you can’t end the contract (which I fully understand due to the reasons you stated), then you get rid of the other half of the conflict of interest.

The title “PMG” and “DeJoy” need to part ways.

Yup, he needs to be off the Board, out of the Government side of the USPS. For good.

Some parts of our government seem to be really buttoned up and run well. Others just seem to be fraught with corruption and lack of oversight. Or worse, there is no incentive to fix the obvious infractions. Enforcement of rules and laws must be made a priority.

[Ramsey Barner]

5. Conflicts of interest don't apply to Republicans. /nt

[llashram]

6. of couse

HE maintains financial ties...is the repthuglikkkan way. Hell Ivanka was an advisor to the disaster called her 'father' trump, yet she and kushner earned 640million$$$ off the WH brand. Why do you think that sucker trump keeps 'the seal on his podium? His idiot followers think they are sending some kind of president-in-exile money to overthrow the democratically elected POTUS. Goddamn, the ignorance is overwhelming in this country and dejoyless needs to be voted out ASAP.

[samsingh]

7. why are we allowing this corruption to continue?

[ProfessorGAC]

9. Not Sure It's Corruption

First, DeJoy never worked for XPO. He ran a company called New Breed which was bought by XPO for $615 million, including assumption of debt. It was a cash deal. No stock exchange.
DeJoy had $25-30 million of New Breed stock. He was paid in cash, except...there's a tax loophole that allows someone to take that cash & use 50% to buy the acquiring companies stock.
So, he ended up with $12.5-15 million in XPO stock. Their reasons for buying NewBreed had nothing to do with him or his "business acumen". He was a triviality to XPO.
The day XPO took over, he was sent packing. No transition office, no consulting contract, no emeritus status position. "We're running things now, goodbye."
So, quite literally, DeJoy never worked a single day for XPO. And, his holdings represent under 0.1% of their market cap. He was no influence over XPO operations or decisions.
On top of all that, the USPS has had contracts of one kind or another with XPO for at least 25 years. The corporate relationship has been around far longer than DeJoy.
Look, I loathe him too. And, his tactical plan for financial improvement is the stuff my dog would find ridiculous.
But, I don't think this a corruption charge that can stick.
Long standing relationship between the 2 companies: he's nothing at XPO. It may smell funny, but I don't think there's any cause for termination.

[oasis]

10. DeJoy's as crooked as they come.He's gotta go.