U.S. Secretary of Transportation Norman Y. Mineta announced the Department of Transportation would implement recommendations to strengthen its oversight of Amtrak in light of a new Government Accountability Office (GAO) report that found widespread managerial problems within the company.

Secretary Mineta, who said he agreed with the GAO's findings, also called on Amtrak to take quick steps to address the recommendations made in the November 3rd GAO report that require Board or management action.

"For the past several years, I have been urging Amtrak to clean up its act and become more accountable to taxpayers and the traveling public," said Secretary Mineta. "I hope this report will be a turning point for Amtrak. There simply is too much at stake to let the company deteriorate any further."

Mineta directed the Department's Federal Railroad Administration (FRA) to require Amtrak to submit its plans to improve financial reporting and management practices. The agency will monitor progress on the plans and issue a new annual report to Congress on how well Amtrak is improving its financial practices, Mineta added.

The Secretary said Amtrak also would be required to demonstrate how it will improve its acquisition practices before receiving federal taxpayer grants. The FRA will award grants to Amtrak once it demonstrates that it has reformed its acquisitions practices.

Amtrak also will be required to develop and share with the Department clear measures of overall corporate performance. The Secretary said that these new measures will be used to help the Department issue annual reports to Congress on Amtrak's progress in making needed reforms. These reports will include recommendations for ways Congress can help Amtrak reform, Mineta added.

"The American people have a right to expect more out of Amtrak, a company they have been asked to pour billions of federal tax dollars into over the last three decades," said Secretary Mineta. "The problems outlined in the GAO report demand attention and require that we finally make the tough choices needed to save Amtrak and improve intercity passenger rail service in this country."