amtrak employees steal millions in food per year

7/31/2019 Amtrak Employees Steal Millions in Food Per Year

http://slidepdf.com/reader/full/amtrak-employees-steal-millions-in-food-per-year 1/3

TheBlaze

SEVEN PEOPLE, INCLUDING SUSPECTED GUNMAN, KILLED IN WISCONSIN SIKH TEMPLE SHOOTING

Crime

‘OUTRAGEOUS’: AMTRAK EMPLOYEES LIKELY STEALING $4-$7 MILLION INFOOD EACH YEAR

Posted on August 4, 2012 at 11:35pm by Erica Ritz

(Photo: AP)

A report by the Government Accountability Office has revealed that taxpayer-funded Amtrak has lost more than

$800 million in food and beverage sales over the last ten years, largely due to waste, theft, and a lack of proper

oversight.

The New York Times has more information:

The railroad’s food and beverage service has never broken even since it was required

by Congress to do so in 1981. The losses were the focus of a House Transportation and

Infrastructure Committee hearing on Thursday that reflected partisan views over how

Amtrak should be run. Republican lawmakers suggested that food services should be

privatized. Democrats questioned the need for the hearing, saying the railroad was

dealing with the losses.

Joseph H. Boardman, president and chief executive of Amtrak, confirmed the losses but

said the railroad was taking steps to address the problem. “We are still looking for ways to improve our cost recovery,” he said.

According to audits by the Government Accountability Office, an investigative arm of

Congress, and the railroad’s own inspector general, Amtrak loses about $80 million a

year selling food . Since 2002, Amtrak’s food service has lost $834 million.

Amtrak said it was increasing the use of credit cards for food sales to cut down on

cash thefts by employees, reducing staff, creating a better system to track inventory and

rt From the Government Accountability Office Reveals Amtrak Los... http://www.theblaze.com/stories/outrageous-amtrak-employees-li

8/5/2012



to collect revenue. It has also set up a three-person loss-prevention unit.

[...]

“It’s an outrageous cost to taxpayers,” said John L. Mica, a Florida Republican and

chairman of the House committee. “There has to be a better way. We can’t keep on paying

this subsidy.” [Emphasis added]

The interior of a state-owned Amtrak passenger car is seen in Glenville, N.Y. , on Thursday, May 31, 2012.

(Photo: AP)

So how is the subsidized rail line managing to lose more than $800 million dollars in food and beverage sales in just

ten years?

According to the report, Amtrak’s own employees are likely stealing between $4-$7 million annually, or $40-$70

million over ten years.

Similarly, while the line sells soft drinks for $2, they actually cost the taxpayer $3.40. Hamburgers sell for $9.50, but

cost the taxpayer a whopping $16. Therefore, even if Amtrak sold 100% of their inventory, it would still be

impossible for them to turn a profit.

One Amtrak employee defended the unsustainable budget, saying: “You may just see us handing out hamburgers,

but we do other things.”

Rep. John Mica (R-Fla.) held a press conference with a $1 burger from McDonald’s to demonstrate that if the private


8/5/2012



company can turn a profit with $1 burgers, a taxpayer-funded “Soviet-style” rail line selling $16 burgers should be

able to at least break even.

“You may even see me on an Amtrak train with a sign that says, ‘Don’t eat the food, it adds to deficit spending,’”

Mica joked.

But he’s serious about cutting taxpayer liabilities with Amtrak.

“They’re violating the law,” he said, “and I may look at some legal recourse to stop them from doing it.”

(H/T: Gothamist)

All information © 2012 TheBlaze LLC

YOU MIGHT ALSO LIKE

Proven Ways to

Regain Your

Mental

Sharpness After

Age 40

How to Get a

Free Lesson in

Trading Stocks

and Options

How Much are

You Over-Paying

for Your Auto

Insurance--You

May Be Shocked

Why Everyone

Should Get this

App to Manage

Their Digital

Music

Collections

How to Prevent

Bed Bugs from

Invading Your

Home


8/5/2012

amtrak employees steal millions in food per year

Documents