A Message To Employees
Dear SEPTA Employees,
Today is a difficult day at SEPTA. Federal law enforcement officials have just announced that seven former employees face bribery and fraud charges, based on misuse of Authority-issued procurement cards uncovered during an investigation by SEPTA. Two vendors have also been charged. We are sharing a press release from the U.S. Attorney’s Office for the Eastern District of Pennsylvania with further details: [LINK to release].
We first became aware of the allegations of improper usage of these cards in 2019. Based on tips from employees, our Internal Audit team investigated and brought their findings to SEPTA Inspector General D. James Bannan, who shared the information with federal authorities. Over the last two years, SEPTA has cooperated fully with the FBI and the U.S. Attorney’s Office. The result has been a thorough, detailed, and expert review of this alleged criminal activity, and we are confident that the individuals who engaged in wrongdoing are being held accountable.
The former employees who are charged were managers and supervisors. They have all either resigned or retired. In addition to facing serious federal criminal charges, they will also lose their SEPTA pensions and related retirement benefits.
Our internal investigation indicated that procurement cards were abused by these individuals, who circumvented the normal purchasing procedures and controls. This investigation prompted a top-to-bottom review of both our procurement card manual and our review processes. We made swift changes to strengthen internal controls, and we also engaged security experts to conduct an independent review of our policies and procedures.
Additionally, we have established a clear framework for the use of procurement cards, alongside enhanced ethics training and oversight. Our new policies clearly outline progressive disciplinary action for violations – up to and including termination of employment.
We believe in the integrity and honesty of our workforce. Unfortunately, the actions of these few employees disparage not only SEPTA, but the hard work and dedication you bring to serving our customers every day.
As we look to position SEPTA for success in the future, we are focused on our own accountability. While these cases do not represent who we are as an organization, we acknowledge where we have fallen short, and we are confident we have addressed these issues.
We must continue to do all we can, every day, to earn and preserve the trust of our customers, the taxpayers and the elected officials who support us. When we see something that is wrong, we all have a responsibility to help get it right. If you find yourself in this position, you can call the confidential tip line for the SEPTA Office of Inspector General at (215) 580-3797. Your personal information will never be shared.
We are building a strong and resilient organization. The changes that have been put into place in response to this alleged bribery and fraud will help us continue to become more efficient and accountable, and better position us to serve our region.
Pasquale T. Deon, Sr. Leslie S. Richards
Board Chairman General Manager/Chief Executive Officer