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FOR IMMEDIATE RELEASE
OCTOBER 19, 2001
1:08 PM
CONTACT:  Sierra Club
Allen Mattison, 202-675-7903
Investigation Finds Forest Service Hides Money Losses With "Totally Unreliable" Accounting
New Government Report Discovers "Serious Accounting and Financial Reporting Deficiencies"
 
WASHINGTON - October 19 - The Sierra Club today applauded a new General Accounting Office (GAO) report exposing the U.S. Forest Service's financial mismanagement of America's National Forests. The GAO attempted to investigate how much money taxpayers lost by subsidizing logging on our National Forests, but was stymied by what it called the Forest Service's "totally unreliable" accounting practices."

"The Forest Service mismanages our National Forests so badly that government investigators can't even figure out how much of our tax money they're losing," said Sean Cosgrove, Sierra Club's forest policy specialist. "The billions of tax dollars lost on timber industry logging would be much better spent restoring our damaged National Forests. Reading this report on the Forest Service's gross mismanagement, the only sensible conclusion is to end commercial logging in America's National Forests."

In March 2000, Representatives Cynthia McKinney (D-Georgia) and George Miller (D-California) requested that the GAO investigate how much money the U.S. Forest Service's Timber Sales Program lost in 1998 and 1999. After a year and a half of investigation, the GAO concluded: "ultimately it was the serious accounting and financial reporting deficiencies that existed at the Forest Service during fiscal years 1998 and 1999 that precluded us from making an accurate determination of the total federal costs. ... These deficiencies rendered the Forest Service's cost information totally unreliable." (GAO-01-1101R Forest Service Timber Costs)

A previous GAO study of data from 1992-1997 found that the Forest Service lost $2 billion in tax money subsidizing timber industry logging in our National Forests. As logging in our National Forests continues, taxpayers continue to lose money.

"Americans love to take their families hiking, hunting, fishing and birdwatching in our National Forests, and these forests provide clean drinking water to 60 million people," Cosgrove said. "But no one wants to take their kids hiking through a clearcuts, and communities can't drink water from a stream polluted by logging roads run-off."

America's 155 National Forests draw 835 million visitors a year to their 4,400 campgrounds, 121,000 miles of trails and 96 wild-and-scenic rivers. Some 10,000 different plants and 3,000 kinds of fish and wildlife -- including 230 endangered species -- rely on National Forests for habitat. A study conducted last year by the independent economic analysis firm ECONorthwest found that recreation in America's National Forests generates 25 times more income for the U.S. economy than does logging on those lands. The Sierra Club's campaign to end commercial logging on our National Forests is committed to protecting America's wild heritage for our families and for our future.

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