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GSA Head Resigns Over Spending GSA Head Resigns Over Spending

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White House / GOVERNMENT OPERATIONS

GSA Head Resigns Over Spending

April 2, 2012

General Services Administrator Martha Johnson is resigning and two deputies have been fired amid reports of excessive spending at a training conference, The Washington Post reports.

The conference featured a mindreader, a clown and a comedian. The resignation comes as  the agency’s inspector general is readying a report on the training conference, held at a luxury hotel outside Las Vegas in October 2010.

In her resignation letter, Johnson acknowledged that the agency, “has made a significant mis-step,” and the best route would be for her to resign.

 

Public Buildings Service chief Robert A. Peck and Johnson’s top adviser, Stephen Leeds, were forced out Monday, The Post reported.

Organizers spent $835,000 on the event, which was attended by 300 employees.

President Obama was outraged by the findings, said his Chief of Staff, Jacob Lew.

“The President was informed before his trip to South Korea, and he was outraged by the excessive spending, questionable dealings with contractors, and disregard for taxpayer dollars," Lew said in a statement.

He said Obama "called for all those responsible to be held fully accountable given that these actions were irresponsible and entirely inconsistent with the expectations that he has set as President.”

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