ENZI SAYS LEGAL SERVICES CORPORATION OVERSIGHT MUST BE STRENGTHENED, BETTER MANAGEMENT NEEDED

Washington, D.C. – U.S. Senator Mike Enzi (R-WY), Ranking Member ofthe Senate Health, Education, Labor and Pensions (HELP) Committee, today said that anew report by the General Accountability Office (GAO) confirmed that the LegalServices Corporation (LSC) needs additional governance and accountability measures toensure effective board oversight. “With my accounting background, I am particularly concerned that LSC is yearsbehind similar organizations in developing effective measures to monitor and controlspending,” Enzi said. “This lack of accountability is likely the cause of many of theimproper spending practices found in my investigation, like $14 cookies at boardmeetings, first class travel and expensive limousine services for board members, andexcessive bonuses. “LSC is responsible for safeguarding $348.6 million in taxpayer dollars, but GAOreports that it will take many years and much expense for LSC to bring its financialcontrols and management in line with best practices for accountability. I will seriouslyconsider the next steps and GAO’s suggestion that LSC could benefit from beingmodeled after other government agencies of the federal government.”Senator Enzi requested that GAO review LSC board oversight following his owninvestigation which revealed fiscal abuses, conflicts of interest, and generalmismanagement by the LSC board. “Federal resources for organizations like LSC are scarce, and we want to ensurethat every dollar they receive from the federal government is spent in the way Congressintended,” Enzi said. “I will be working with my colleagues on the HELP Committee aswell as the Finance Committee to modernize and strengthen LSC management.”The full GAO report, titled “Legal Services Corporation: Governance andAccountability Practices Need to Be Modernized and Strengthened,” GAO-07-993, isavailable at: http://www.gao.gov/cgi-bin/getrpt?GAO-07-993.