Ethical failures highlighted in report on drilling watchdog

A NEW report by the US Interior Department has found staffers at an agency which oversees offshore drilling accepted tickets to sports events, lunches and other gifts from oil and gas companies and used government computers to view pornography.

The report, by the department's acting inspector general, found staff in the Louisiana office of the Minerals Management Service violated a number of federal regulations and agency ethics rules. The report follows up on a 2007 investigation that revealed what then-Inspector General Earl Devaney called a "culture of ethical failure" and conflicts of interest at the minerals agency.

Interior secretary Ken Salazar called the latest report "deeply disturbing" and said it highlighted the need for reforms he has proposed, including a plan to abolish the minerals agency and replace it with three new entities.

The report "is further evidence of the cosy relationship between some elements of MMS and the oil and gas industry," Mr Salazar said. "I appreciate and fully support the inspector general's strong work to root out the bad apples in MMS."

Mr Salazar said several employees cited in the report have resigned, were fired, or referred for prosecution. More employees may be fired, disciplined or referred for criminal prosecution as warranted, Mr Salazar said.

However, he stressed that the report by Mary Kendall, Interior's acting inspector general, only applied to actions taken between 2000 and 2008.