U.S. Representative John Boozman (R-AR) is calling on the Secretary of Treasury, Henry Paulson, to ensure taxpayer dollars given to American International Group (AIG) to stabilize the business is used in an efficient, responsible manner.

Boozman’s letter to Secretary Paulson follows actions by the Department of Treasury that gave the company $85 billion.

During a hearing by the House Committee on Oversight and Government Reform lawmakers learned of a lavish, week long spa retreat taken by AIG executives after the government gave those funds.

Boozman also requested the termination of former president of AIG’s financial products division, Joseph Cassano, and advised that he should not be given any executive compensation.

The bailout of AIG occurred before Congress approved the Economic Stabilization Act, which included strict oversight to ensure that the public trust is kept and taxpayer dollars are protected.

The following is a portion of the letter:

Dear Secretary Paulson:

As I am sure you are aware, the House Committee on Oversight and Government Reform held a hearing on October 7, 2008 regarding the $85 billion government bailout of American International Group (AIG). During this hearing, it became aware that just one week after the government extended taxpayer money to ensure that AIG would not fail and cause a market crisis, AIG executives embarked on a week long retreat at the St. Regis Resort in Monarch, CA spending over $440,000 on banquets, bar tabs, spa treatments and golf. In addition, the hearing also revealed details of a compensation package given to Mr. Joseph Cassano, the former president of AIG’s financial products division. Mr. Cassano, who was fired on February 29, 2008 after his division lost over $11 billion, received a $34 million bonus and was kept on in a consultant’s role to the tune of $1 million per month. When asked why Mr. Cassano was receiving this exorbitant salary after being responsible for billions of dollars worth of losses to the company and why he was subsequently not terminated from his consultant role, former CEO Martin Sullivan responded that AIG needed to, “retain the 20-year-knowldege of the transactions.”

Mr. Secretary, both of these situations are completely unacceptable and show a complete and utter disregard for the taxpayer dollars that were handed over to AIG to ensure they would not collapse. Therefore, I respectfully request your immediate attention to this matter by ensuring that Mr. Cassano is terminated immediately, without any type of executive compensation. In addition, I urge you to demand the $440,000 spent on a lavish retreat for the remaining company executives be returned to the taxpayer at once.