Report on lavish Vegas trip spurs ouster of three top federal employees

The head of the General Services Administration, Martha Johnson, has resigned after it was discovered that she spent taxpayer money on Las Vegas attractions. NBC's Lisa Myers reports.

The head of the U.S. agency that provides products and services to support the federal government resigned Monday, after the agency’s inspector general reported excessive spending at a training conference in Las Vegas that included line items such as "mind reader," and "clown," according to a story first reported by The Washington Post.

GSA administrator Martha Johnson tendered her letter of resignation to the White House Monday and two of her deputies were forced out — Public Buildings Service chief Robert A. Peck and Johnson's top adviser, Stephen Leeds, White House officials told the Post. Four GSA employees who organized the four-day conference have been placed on administrative leave pending further action.

The report released Monday by the inspector general details the outlays at a GSA training conference for 300 employees held at a luxury hotel near Las Vegas in October 2010 that cost more than $835,000.


The costs included $147,000 in airfare and rooms at the hotel for six planning trips by a team of organizers. They also paid $3,200 for a mind reader and $75,000 on a training exercise to build a bicycle and $6,300 on commemorative coin sets.

In her resignation letter, Johnson said that the agency had made a "significant mis-step," in which "taxpayer dollars were squandered." She said she had launched an internal review, taken disciplinary action and instituted tough new controls to prevent similar problems in the future.

She resigned, "so that the agency can move forward at this time with a fresh leadership team," according to her letter.

Johnson was unanimously confirmed by the U.S. Senate as head of the GSA on Feb. 5, 2010.

The GSA manages contracts for government needs such as transportation, office space and communications. It is also tasked with developing cost-minimizing policies for the federal government.

White House Chief of Staff Jack Lew said in a statement that President Obama learned of the inspector general’s findings prior to his recent trip to South Korea, "and he was outraged by the excessive spending, question questionable dealings with contractors, and disregard for taxpayer dollars."

"He 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," the statement said.

The Repulican chairman of the House Oversight and Government Reform Committee responded to the news with a statement linking the spending scandal to administration policies.

"After President Obama lectured the private sector about not wasting funds on Las Vegas conventions, it's hypocritical that such a large agency with critical management responsibilities across government would hold this luxurious conference at the height of the recession and even spend thousands on custom made coins touting the stimulus," said a statement from Rep. Darrell Issa, R-Calif. 

"Employees congratulating themselves and promoting one of the most politically controversial initiatives of this Administration with taxpayer funds is indicative of the waste that exists in a bloated federal government."

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Typical Obama appointees. His wife and kids are in Vegas on our dime now.

  • 2 votes
Reply#1 - Mon Apr 2, 2012 5:59 PM EDT

Hey Moron, These TOOLS were appointed by your LOL "President".. He must have been Coked up and Drunk when he hired them. You should get you fact straight before you let your ignorance become visible.

    #1.1 - Mon Apr 2, 2012 6:04 PM EDT

    I'm amazed that you idoits are allowed to vote... cause ya can't read. "Johnson was unanimously confirmed by the U.S. Senate as head of the GSA on Feb. 5, 2010." It's probably Obama's fault that you're illiterate, too.

    • 3 votes
    #1.2 - Tue Apr 3, 2012 12:32 PM EDT

    Kevin in NY..you took the words right out of my mouth! She wasn't appointed solely by Pres. Obama, she was confirmed by the ENTIRE US Senate! There's no way that the naysayers can blame this on the Prez this time!! And I wonder how many of "those" people know exactly how much $ their workers spend..the GSA is HUGE! The President has many more important things to do than stand over the shoulders of Martha Johnson and staff.

    • 1 vote
    #1.3 - Tue Apr 3, 2012 1:12 PM EDT
    Reply

    How fricking old is that Hag? Did she need help boarding the airplane? She needed the luxury room in Vegas cause she was incapable of leaving it. Wow Typical Conservative behaviour. Ugly old hag, Inside and out!

      Reply#2 - Mon Apr 2, 2012 6:01 PM EDT

      Turd you shouldn't be making fun of anyone's age you old prick....what are you french? did you mean behavior?

        #2.1 - Tue Apr 3, 2012 6:59 PM EDT
        Reply
        Comment author avatarJerrioExpand Comment Comment collapsed by the community

        Obama was out "outraged??" what about when his own wench took half of Chigago to France for vacation

        that was spending more a day than the total of this Vegas spree, but it is different when it is his wench????

        Bmie is a typical two faced liar, we better throw the worthless BUM out before it is too ate.

          Reply#3 - Mon Apr 2, 2012 11:55 PM EDT

          These comments suck. No really, they do.

          • 4 votes
          Reply#4 - Tue Apr 3, 2012 9:06 AM EDT

          Agreed; they're finger-pointing, divisive and partisan.

          Why focus on such picayune nonsense when both parties deregulated Corporations and Banksters to the point where they could render most Americans "superfluous"?

          There remain insurmountable problems within the economy: few jobs at the bottom or the middle, yet great profit- resulting in most wealth stagnating at the top of an inverted economic pyramid in which the velocity of money has fallen near zero.

          There's no recovery.

          There wouldn't have been one under McCain either.

          Anyone believing the White House isn't a set for sock puppets bought and paid for by the rich well before the show even begins is dangerously naive- and probably also believes the Supreme Court rules based on the Constitution and precedent, even as they distort both beyond recognition and safety.

          • 2 votes
          #4.1 - Tue Apr 3, 2012 9:54 AM EDT
          Reply

          Wow... the agency that is supposed to oversee spending and come up with cost cutting measures spending lavishly on a trip...

          I'm shocked....

          • 1 vote
          Reply#5 - Tue Apr 3, 2012 9:32 AM EDT

          What TERRIBLE pictures, Brian Williams should be embarrassed that they even THOUGHT of using that as a stock photo.

          She actually was a very very good leader of GSA. It's just a shame that she's the scapegoat for an irresponsible and stupid Vegas trip by some of GSA's higher-ups. But, she herself was a huge proponent of telework, remote working, and modern social web practices. She will be sorely missed by those who valued her forward-thinking that our government desperately needs right now.

            Reply#6 - Tue Apr 3, 2012 9:37 AM EDT

            Scapegoat, fuse, whatever....even bothering with this ridiculously small expenditure astonishes me.

            Why bother; there are far more interesting and far larger drafts on national wealth- which are also attacks on civil rights.

            I'm referring to things like "The Department of Homeland Security" or the huge new facility under construction to monitor private communications- voice, data, texts, e-mails, you name it (see: http://www.wired.com/threatlevel/2012/03/ff_nsadatacenter/ ).

            This article is a red herring, boys and girls.

            It conveys nothing of import; worse, who appointed these people isn't mentioned, so we don't even know which "side" to be annoyed with.

            The government is corrupt and is continuing to consolidate power.

            Too late to worry, really- your window of opportunity closed about twenty years ago.

            Regardless..... this isn't journalism- but it is safe.

              #6.1 - Tue Apr 3, 2012 10:14 AM EDT
              Reply

              THOSE CONSERVATIVE TEA PARTIERS ARE SOOOOOOOOO OUT OF TOUCH WITH THE ORDINARY '' JOE THE PLUMMER '' L O L !!!!!!!! well we've got another one of the BUSH DYNESTY out. i say 40 more years , and maybe a republican tea partier will be allowed to step into the front lawn of the white house !!!!!!!

              • 1 vote
              Reply#7 - Tue Apr 3, 2012 9:42 AM EDT

              GSA, when yu leave D.C. turn out the lights and take B.O. with you, okay?

                Reply#8 - Tue Apr 3, 2012 10:09 AM EDT

                Government exists for one reason and that my friends is to spend taxpayers money be it Democrats or Republicans. The GSA is not the only Federal agency that spends money like a drunken sailor or that loses money through mismanagement look at the EPA, Fannie and Freddie MAC and theres always AMTRAC that has never turned a profit. I would like to see a published Government list of all the money sent overseas and to what amount each country gets! I bet we would all be shocked.

                  Reply#9 - Tue Apr 3, 2012 10:31 AM EDT

                  A point to consider: government does not exist to turn a profit.

                  Government exists to serve citizens- both corporate and private.

                  Services are services- not publicly held companies.

                  No one sane would argue that a standing military, police and fire departments, and so on and so forth are valid expenditures- within reason, of course (which we often exceed).

                  Also true: how our taxes are spent is determined by the representation you elected and continue to elect- so if it doesn't work to anyone's satisfaction (and it rarely has) then blame your own lack of involvement- or vigilance.

                  • 2 votes
                  #9.1 - Tue Apr 3, 2012 10:57 AM EDT
                  Reply

                  The President is outraged......that this came to light during the election cycle and conduct of one of his appointees embarassed him.

                  I hoped for change and all I got was this lousy Chicago politician

                    Reply#10 - Tue Apr 3, 2012 10:34 AM EDT

                    Actually, the appointees in question were all a product of George Bush's presidency, if anything this article gives a reason for more people to vote for Obama.

                    • 1 vote
                    #10.1 - Tue Apr 3, 2012 12:43 PM EDT

                    Nope, she was confirmed in 2010 after being appointed by President Obama. Re-read the article.

                      #10.2 - Tue Apr 3, 2012 2:18 PM EDT

                      Don't keep up with the news much do you, Green-bean? Life's tough when you go through it with blinders on.

                        #10.3 - Sun Apr 8, 2012 10:14 AM EDT
                        Reply

                        How much more of this is going on and we do not hear about...........lots, I would imagine!

                          Reply#11 - Tue Apr 3, 2012 10:51 AM EDT

                          "He 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,"

                          Can we add the people responsible for the loans to SOLYNDRA to this list, or would that extend the list of economical miscreants further up the ladder?? Do we have to add also the people who extended the bailout for GM which is yet to be repaid to the tune of $41 Billion??

                            Reply#12 - Tue Apr 3, 2012 11:23 AM EDT

                            Why would Obama care he spends more than that, they are just following his footsteps.

                            • 1 vote
                            Reply#13 - Tue Apr 3, 2012 12:15 PM EDT

                            haa??

                              Reply#14 - Tue Apr 3, 2012 3:21 PM EDT

                              The obama must have had his mouth open today and speaking of the economy as the stock market took a dive. Ever since this narcissist was the known recipient for the dimwit nod in mid-Sept 2008 he has killed the economy. Not one person has the same value for their holding except for the Goldman Sachs managers that donated to the obama campaign funds.

                              He and the Mooch (with 22 aides) have spent like Bernie Madoff did with other peoples money since the sucklings and the brain-dead have put him into office.... Even Bernie should have more followers than this pathetic parasite.

                                Reply#15 - Tue Apr 3, 2012 4:15 PM EDT

                                Another Obama appointee who doesn't give a s**t about spending taxpayer money. It must be contagious.

                                  Reply#16 - Wed Apr 4, 2012 10:10 AM EDT

                                  since she was appointed by a BUSH ; would you vote democrat now ?????????

                                    #16.1 - Wed Apr 4, 2012 9:01 PM EDT
                                    Reply
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