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* Former GSA chief accepts responsibility, apologizes

* Conference organizer invokes right not to answer questions

By Thomas Ferraro

WASHINGTON, April 16 (Reuters) – An annual federal training

conference deteriorated during the past decade from a productive

gathering into “a raucous, extravagant, arrogant,

self-congratulatory event,” an ousted U.S. government

administrator said on Monday.

Testifying at a U.S. congressional hearing, Martha Johnson,

who resigned under pressure this month as head the General

Services Administration, accepted responsibility and apologized

to the American people.

“I will mourn the rest of my life the loss of my appointment

and its role in leading a vital and important part of the

government,” said Johnson, who sought to mitigate her role by

saying she was not immediately aware of the abuses.

The hearing by the Republican-led House of Representatives

Oversight Committee examined the 2010 GSA western regional

training conference in Las Vegas for 300 workers that cost

taxpayers $823,000, featured a comic, a clown and a mind reader

and exploded this month into an election-year spending scandal.

“Wasteful spending is a problem that transcends multiple

administrations and multiple Congresses,” committee chairman

Darrell Issa said in his opening statement.

“But it’s incumbent on the present administration and the

current Congress to mandate a culture that prevents this type of

waste and mismanagement,” Issa said.

Jeff Neely, the senior government official who organized the

conference, was subpoenaed to appear at the hearing, the first

of four such proceedings on both sides of the Capitol this week.

But Neely invoked his constitutional right not to answer any

questions.

The GSA, with nearly 13,000 employees, manages federal

buildings and purchases government supplies.

The GSA’s office of inspector general this month released a

yearlong investigative report into the conference, finding a

number of concerns that drew questions and criticism about the

gathering from Republicans and Democrats.

Fallout intensified with release of a spoof video from the

conference in which a federal employee performed a rap song

about wasteful spending and jokes he will never face internal

investigation.

Issa criticized the administration for failing to expose the

wasteful spending at the conference earlier, noting top GSA

officials were informed of the inspector general’s investigation

nearly a year ago.

“Why did it take eleven months for the Obama administration

to take meaningful action?” Issa said.

“The inspector general briefed the administration with

details about the specific action of those responsible for gross

waste, yet documents show that some political appointees

believed even this year that the report could be kept private

and the outrageous details dealt with quietly,” Issa said.

“Some of those same senior political officials approved a

bonus for Jeff Neely,” Issa said.

Johnson became head of the GSA in February 2010. She was

nominated to the post by President Barack Obama and confirmed by

the Senate without opposition.

She noted in her testimony that she served with the GSA for

five years during the administration of another Democratic

president, Bill Clinton.

Johnson said during her first GSA tour, the agency had a

strong leadership team that produced value for the U.S.

government.

“When I returned to the GSA in February, 2010, the agency

was not the same,” Johnson said, adding that a quarter of the

executive positions were vacant, labor relations were

acrimonious and “strategy was non-existent.”

“What I did not know until much later was there was yet

another problem,” Johnson said.

“The western regions’ conference, which had been an

economical, straightforward set of training sessions in the late

1990s, had evolved into a raucous, extravagant, arrogant,

self-congratulatory event that ultimately belittled federal

workers,” Johnson said.

“Leaders apparently competed to show their people how much

entertainment they could provide, rather than how much

performance capability they could build,” Johnson said.

The inspector general report on the conference cited catered

parties in officials’ hotel rooms as among the many questionable

expenses.

In addition, it said $130,000 worth of scouting trips before

the conference were wasteful and cited a $75,000 contract to an

outside vendor for a team-building exercise that included the

purchase of 24 bicycles.

(Reporting By Thomas Ferraro; Editing by Cynthia Osterman)