Posted on behalf of Amber Dance

Employees at the US Minerals Management Service (MMS) engaged in illicit sex and cocaine use, alleges a 10 September report. Oh, and they fixed contracts, too.

Earl E. Devaney, inspector general for the Department of the Interior (DOI), has been after the service for years (see New York Times 2006). In particular, his new report says, employees at the Royalty-In-Kind (RIK) program held themselves above government ethical policies.

MMS collects royalties from energy companies, either as cash or as oil or natural gas and RIK is responsible for selling those in-kind payments on taxpayers’ behalf. Lowball prices companies paid MMS likely cost taxpayers millions, the report says.

Employees told investigators the ethics rules didn’t apply to them because their “unique” positions required them to socialize with industry reps (Washington Post).

That socializing allegedly included free tickets to sporting events and concerts, parties where officials were known as the “MMS chicks,” and the occasional one-night stand. Rep. Nick Rahall (D-West Virginia) calls the MMS staff activities “so outlandish that this whole IG report reads like a script from a television miniseries — and one that cannot air during family viewing time.” (Reuters).

The report provides fodder for politicians seeking to block President George Bush’s offshore drilling desires. “This all shows that the oil industry holds shocking sway over the administration and even key federal employees,” says Sen Bill Nelson (D-Florida). “This is why we must not allow Big Oil’s agenda to be jammed through Congress.” (Associated Press).

Devaney is quick to point out most MMS staffers are A-OK, writing in the report, “I believe that 99.9 percent of DOI employees are hard-working, ethical and well-intentioned…The conduct of a few has cast a shadow on an entire bureau.”