Proposal To Change Federal Role in Consolidated Rail Corporation

The Senate is considering or will soon consider a proposal for changing the scope of Federal involvement in the Consolidated Rail Corporation (Conrail). The proposal would establish a board to determine Conrail's profitability. This board would be comprised of the Secretaries of Transportation and the Treasury, the Chairmen of the U.S. Railway Association and the Conrail Board, and the Comptroller General. The Comptroller General's participation in this board's executive decisions could create a conflict of interest or the appearance of such a conflict because of the GAO responsibilities to review and evaluate Conrail activities. GAO has consistently opposed legislation giving the Comptroller General executive authority over programs and activities he audits on behalf of Congress. If the Comptroller General is made a member of this board, Congress would no longer be able to obtain fully objective audit and review information from GAO on certain transportation matters. GAO believes it can best serve Congress by independently reviewing Conrail's profitability. It strongly urges that the proposal be amended to exclude the Comptroller General from membership in the board determining Conrail's profitability.