(Bloomberg News circulated the following article on February 11.)
OMAHA, Neb. — Union Pacific Corp. and other U.S. railroads should face stepped up scrutiny on safety, the transportation agency inspector general recommended Thursday after concluding current procedures are inadequate.
Inspector General Kenneth Mead advised the Federal Railroad Administration, which oversees rail safety, to set priorities using statistics such as accident frequency rather than relying on agency employee judgments. The 16-page report urged the agency to tighten ethics standards after former Administrator Betty Monro and a Union Pacific lobbyist went on vacation together.
“The department and FRA have been reviewing the inspector general’s report and will implement those recommendations that will ensure the continued safe operation of the nation’s railroads,” said rail administration spokesman Steve Kulm.
Mead opened his investigation after a former agency employee said top officials had told workers to relax safety enforcement against Union Pacific, the nation’s largest railroad.
The report concluded the agency’s enforcement actions were appropriate because fines rose for violations such as defective maintenance. The report found no conflict of interest involving Monro, who retired in December.
Union Pacific in November faced increased safety scrutiny after four crash related deaths in the San Antonio area. The oversight agency concluded the railroad failed to follow its own employee training rules in the region.