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Amtrak: ‘Fraud, waste, and abuse are long-standing problems’

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Posted by henry6 on Thursday, February 23, 2012 11:50 AM

PNWRMNM

Henry,

If you would click on colored word "report" in the first paragraph that starts "FTA" in the original post it will take you to the report which was written by Amtrak's Office of Inspector General.

Mac

But Mac, it doesn't matter what the report written by Amtrak's Office of Inspector General said.  What matters is who this people are here reporting it and what their agenda is.  Again I say the facts might be right but not complete or are highlighted by the reporter and publihser because it supports their point  of view in someway or another.  Are they Mica supporters?  Are they highway lobbyists?  Are they a right or left wing think tank?  Are they non partisan or bi partisan politically?  Are they representing NARP or the concrete makers and oil refineries or Ford Motor or EMD?  We don't know.  All I am hearing here is to see what they say.  And what they say may be correct but incomplete or otherwise tainted.

 

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Posted by PNWRMNM on Thursday, February 23, 2012 11:09 AM

Henry,

If you would click on colored word "report" in the first paragraph that starts "FTA" in the original post it will take you to the report which was written by Amtrak's Office of Inspector General.

Mac

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Posted by henry6 on Thursday, February 23, 2012 10:43 AM

Sam1

The Caller and Betsi Fores has simply flagged the report.

That is still not enough to identify either the publisher nor the reporter.  Still don't know who they are and why they are hitting on this report.  Are they left or right or non partisan?  Are they backed by the highway lobby, the restaurant lobby, pro rail lobby, or?  What is their authority or stance?  As I said, they may be right but for the wrong reasons.  Are they bring this information forward to suggest improvements and oversight that would benefit Amtrak or are they out to destroy Amtrak and passenger trains? 

RIDEWITHMEHENRY is the name for our almost monthly day of riding trains and transit in either the NYCity or Philadelphia areas including all commuter lines, Amtrak, subways, light rail and trolleys, bus and ferries when warranted. No fees, just let us know you want to join the ride and pay your fares. Ask to be on our email list or find us on FB as RIDEWITHMEHENRY (all caps) to get descriptions of each outing.

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Posted by Anonymous on Thursday, February 23, 2012 9:59 AM

henry6

What do we know about The Caller and Betsi Fores?  Is it a government watchdog agency, is it a political agency.  The accusations outlined above could be charged against any restuarant or restuarant chain for instance.  And the idea of Congressional micromanagment and looking for controlling costs are investor mantra while complaints against government controls is always heard from the Right.  I'm not saying that there is no merit in anythng stated, I just quesiton the agenda of the writer and the publication.  And no, I haven't read the whole thing.  I will if anyone can identify the publication and writer better. 

The report, which is entitled Food and Beverage Service: Further Actions Needed to Address Revenue Losses Due to Control Weaknesses and Gaps, Report E11-03, issued on June 23, 2011, was produced by the Office of Inspector General, National Railroad Passenger Corporation.  In the corporate world it would be know as Internal Audit or something similar.

The Caller and Betsi Fores has simply flagged the report for reasons unknown.

The compensation package for most corporate managers contains a pay for performance clause.  That is to say, a portion of their pay is linked to the achievement of their goals and the goals of the company. Controlling costs, including the cost of fraud, is very important, as is generating revenues, if the mutual desirable goals are to be achieved. If the management team fails to do so, their compensation package will be less than expected.     

Amtrak is a government entity.  It has little incentive to control costs?  As long as they don't rocke the political boat, their jobs are secure. This is just one more reason why passenger rail in the United States should be privatized.   

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Posted by henry6 on Thursday, February 23, 2012 8:46 AM

What do we know about The Caller and Betsi Fores?  Is it a government watchdog agency, is it a political agency.  The accusations outlined above could be charged against any restuarant or restuarant chain for instance.  And the idea of Congressional micromanagment and looking for controlling costs are investor mantra while complaints against government controls is always heard from the Right.  I'm not saying that there is no merit in anythng stated, I just quesiton the agenda of the writer and the publication.  And no, I haven't read the whole thing.  I will if anyone can identify the publication and writer better.

RIDEWITHMEHENRY is the name for our almost monthly day of riding trains and transit in either the NYCity or Philadelphia areas including all commuter lines, Amtrak, subways, light rail and trolleys, bus and ferries when warranted. No fees, just let us know you want to join the ride and pay your fares. Ask to be on our email list or find us on FB as RIDEWITHMEHENRY (all caps) to get descriptions of each outing.

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Posted by oltmannd on Thursday, February 23, 2012 8:00 AM

Yes, Congress has been very parochial when dealing with Amtrak.  They have tended to dictate routes w/o regard to the costs incurred, then hammer Amtrak over costing so much.

But, even with that, these articles, and many other things point to lots of fertile, unplowed ground w.r.t. Amtrak's operating efficiency.

You get what you reward:  This means that Amtrak's management - at all levels - needs incentives for finding and implementing efficiencies.  Without this, no one will risk it because change always has some risk and pain, and who would risk pain without the chance for a reward?  That's just basic human nature.

Serving food is not a core competency:  Neither is making beds and cleaning bathrooms....and it shows.  Leave that work to those who are best at it.  Contract out the food service - lock, stock and barrel.  I'll bet there's someone out there who can make a buck at it, and pay Amtrak some for the privilege.  (anyone remember the Empire Service/Subway debacle?)

Doing any of this is hard, partly because I believe Amtrak has "poison pill" style labor deals that require years of pay if work goes away.  This works in a de-facto sense for managment as well.  "As long as there is someone to supervise, I'll have my job. (See "you get what you reward") This also provides the rationale for not ever changing anything since the time to the first nickel saved is years away.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by samfp1943 on Thursday, February 23, 2012 7:08 AM

PNWRMNM

Sam,

The authors of this report did not "document" any particular amount of loss. They simply applied restaraunt industry average losses as a percent of sales to ATK sales.

All this report did was keep two sets of bureaucrats employed rearanging deck chairs on the Titanic.

Mac McCulloch

Mac:

      I totally agree with your points. My reasoning for posting the article was to point to the discussion by Congressman Mica, and his efforts to derail (?) AMTRAK and its funding stream and get it  eliminated (?) as an entity.  Or so it would seem from his public comments and other stories in the media. ( my impression).  

     Personally, I think AMTRAK is a necessity in these times.  The public needs an alternative to privately owned Transportation for inter city travel.  The Bus network has become spotty and un- reliable for dependable scheduled transport. Air travel is no where near the convenient level that preceded the events of the last few years(9/11 aftermath and the TSA )  Gasoline is becoming pricier and pricier) .

    The claims made by the article while not back by the 'vetting' process of background information, at the least becomes ammunition for those who would attempt to paint AMTRAK as problematic any way they can. So the argument is out there, and needs to be discussed (my points).  

     Like most media articles the tendency is to paint claims in the worst possible light and then let those who would , argue them.   It is analogous to the position of a Defendant in a divorce; the Defendant who is left answering the claims of the Plaintiff, regardless of their level of truth or reality.    Ultimately, the only winners are the 'Suits'[Lawyers] who are paid, win or loose.

     AMTRAK deserves to be able to answer claims made against it at what ever level it can, why not in a venue that is at least rational?  My reasons for posting the original article.

 

 


 

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Posted by PNWRMNM on Wednesday, February 22, 2012 10:31 PM

Sam,

The authors of this report did not "document" any particular amount of loss. They simply applied restaraunt industry average losses as a percent of sales to ATK sales.

All this report did was keep two sets of bureaucrats employed rearanging deck chairs on the Titanic.

Mac McCulloch

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Amtrak: ‘Fraud, waste, and abuse are long-standing problems’
Posted by samfp1943 on Wednesday, February 22, 2012 9:27 PM

The Thread title is the title of the article published in The Daily Caller .

Published: 10:41 AM 02/20/2012 By Betsi Fores

Admittedly it is not a regular news resource, but the article should definitely cause some discussions on this Forum.  I am starting a new Thread so as not to co-opt henry6's Thread on the "Privatization of AMTRAK" in this same section.

 The apparent basis of the article is noted in the article as following:

FTA:"...In a report released last year, the Office of the Inspector General documents the fraudulent sales schemes in the food and beverage service on Amtrak trains by Amtrak employees, costing the government-assisted corporation, and taxpayers, up to $7 million..."

FTA:"...the study found that Amtrak employees routinely add “food items to the meal checks of first class passengers, who eat free, and then sold the same food to other passengers,” in effect counting food items twice..."

FTA:"...According to Ted Alves, the Inspector General of the National Railroad Passenger Corporation, the money would “move [Amtrak] toward its long-term goal of providing efficient, high quality passenger rail service that is cost and trip time competitive with other modes...”

FTA:"...However, DeHaven notes that, “congressional micromanagement has prevented Amtrak from cutting routes and reducing other costs” meaning improved efficiency, effectiveness, accountability are unlikely under continued government management..."


These are only a few of the quotes from the article which makes a number of accusations referencing employee misconduct and behaviors that cost the Corporation millions. Please read the whole article before commenting.
 
Many Posters here are aware of the problems that seem to be legion where Amtrak is concerned. Not to mention the way Federal financing is doled out to Amtrak.  Least of all Congressional oversight which has a characteristic almost  a political schizophrenia where the Congressional handling of AMTRAK is concerned.My 2 Cents

 

 


 

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