While it's true that miles earned on US government biz do not belong to the employee, it varies from agency to agency how employees can use the miles. In many agencies the employees can use them for business class upgrades while traveling on government duty. With every agency, the miles are not to be comingled with your personal miles. If they are, the government cconsiders all the miles theirs. Of course, what's allowed and what actually happens are not necessarily the same.
Perhaps the person traveling was assigned a new FF account by a government travel secretary or travel agent for their government miles. ???
There are many threads about use of miles earned on government travel. If anyone's interested, you might try a search in General Travel, Buzz and United.
[This message has been edited by letiole (edited 06-27-2001).]