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Government Waste Media Articles

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Biden admin whistleblowers claim ‘billions of taxpayer dollars’ used by gov contractor to traffic children on the border
2024-07-09, New York Post
https://nypost.com/2024/07/09/us-news/biden-admin-whistleblowers-claim-billio...

The Biden administration’s Office of Refugee Resettlement failed to vet sponsors responsible for caring for unaccompanied children apprehended crossing the border, whistleblowers told Senators Tuesday, describing several cases of apparent human trafficking involving the minors and their sponsors. [Whistleblower Deborah] White revealed that she and her colleague, Tara Rodas, first discovered a case of trafficking involving minors crossing the border in June 2021, but even after reporting it, “children continued to be sent to dangerous locations with improperly vetted sponsors.” “Children were sent to addresses that were abandoned houses or nonexistent in some cases,” White said. “In Michigan, a child was sent to an open field, even after we reported making an 911 call after hearing someone screaming for help, yet the child was still sent. When I raised concerns about contractor failures and asked to see the contract I was told, ‘You’re not gonna get the contract and don’t ask for it again.’” White ... described the case of a 16-year-old girl from Guatemala, whose sponsor claimed to be her older brother. “He was touching her inappropriately. It was clear her sponsor was not her brother,” Rodas said, noting that the girl “looked drugged” and as if “she was for sale” on her sponsor’s social media postings. The sponsor had other social media accounts containing child pornography, according to Rodas, explaining that it keeps her up at night.

Note: Watch our Mindful News Brief video on how the US government facilitates child trafficking at the border. For more along these lines, see concise summaries of deeply revealing news articles on immigration corruption and sexual abuse scandals from reliable major media sources.


New Bipartisan Bill Allows Military Contractors To Fleece Taxpayers
2024-05-21, The Lever
https://www.levernews.com/new-bipartisan-bill-allows-military-contractors-to-...

After receiving more than $3.8 million in 2024 campaign donations from political action committees and individuals associated with the military industry, members of the House committee overseeing Pentagon spending just inserted two provisions into an upcoming bill that would exempt many more private products and services from competitive pricing guidelines and provide contractors far more leeway in what they can charge the Defense Department. Last year’s Pentagon spending bill totaled nearly $884 billion. Over the past decade, more than half of that budget has gone to military contractors. Many of the top military contractors — including Boeing, RTX Corporation, Lockheed Martin, General Dynamics, and Northrop Grumman — have seen sizable stock-value increases since the war in Gaza began in October 2023 while shooting down shareholder efforts at increased transparency. The provisions in the 2025 Pentagon spending bill are part of the 344-page National Defense Authorization Act of 2025 (NDAA). The provisions in question — Sections 811 and 812 — make good on a wishlist of policy changes that many military companies have been lobbying on for years. “As a member of the House Armed Services Committee, I’m disappointed to see provisions in the NDAA that would allow contractors to further obscure pricing data,” Rep. Ro Khanna [said]. “This would lead to more inflated costs and waste taxpayer money when we could be investing it instead.”

Note: Learn more about unaccountable military spending in our comprehensive Military-Intelligence Corruption Information Center. For more, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


7 Ridiculous Examples of Government Waste in 2023
2024-01-12, Foundation for Economic Education
https://fee.org/articles/7-ridiculous-examples-of-government-waste-in-2023/

In his annual Festivus report—named after the fictional Seinfeld holiday—Senator Rand Paul tallies up some of the most egregious examples of government waste from the year. In all, Paul identified $900 billion in government waste from 2023. The national debt continues to skyrocket. One of the many problems with carrying such a heavy debt burden is the sheer volume of money that needs to be spent on interest. The U.S. Department of the Treasury spent $659 billion(!) in Fiscal Year 2023 just on interest payments. The Department of Homeland Security’s Cybersecurity Infrastructure Security Agency (CISA) has been pursuing some ... creative training programs. In a federally funded workshop last year, CISA employees focused on “effective strategies to build and sustain psychological safety that allows individuals to show up to work as their authentic and best selves.” “Ironically, the workshop coincided with CISA’s efforts to suppress protected speech on social media platforms,” Paul notes. “Even I was censored at the behest of our government speech minders. And all while I thought I was being my best self.” In addition ... CISA has been hard at work creating not one, but two graphic novels about “disinformation” as part of their “Resilience Series.” The first one covers foreign interference in elections. The second covers COVID vaccines. “There is nothing comical about wasting taxpayer money to justify censorship of constitutionally protected speech,” Paul notes in his report.

Note: Read more about CISA's role in manipulating and controlling public discourse. For more along these lines, see concise summaries of deeply revealing news articles on government corruption and censorship from reliable major media sources.


US did not properly track more than $1 billion worth of weapons sent to Ukraine, watchdog report finds
2024-01-11, CNN News
https://www.cnn.com/2024/01/11/politics/pentagon-tracking-weapons-ukraine-rep...

The Pentagon did not properly track $1 billion worth of military equipment sent to Ukraine, according to a watchdog report. The report from the Pentagon Inspector General says that while the Defense Department has improved its ability to track military aid sent to Ukraine, it “did not fully comply” with requirements and much of the equipment sent is “delinquent,” meaning it’s not possible to complete an inventory of everything sent. Among the items that are designated for enhanced end-use monitoring (EEUM) are weapons like Javelin and Stinger missiles, night-vision devices, AIM-9X missiles, and Advanced Medium-Range Air-to-Air Missiles. According to the IG report, roughly $1.005 billion of the total $1.699 billion of equipment subject to end-use monitoring was not inventoried as of June 2023. The new report comes at a critical moment for Ukraine aid, as Congress debates whether to authorize a supplemental package of more than $60 billion in aid. While delinquency could suggest weapons had been stolen or diverted away from Ukrainian forces, the inspector general said it was outside the scope of its probe to determine what had happened to the weapons that were not properly tracked. “The DoD OIG now has personnel stationed in Ukraine,” the report says, “and the DoD OIG’s Defense Criminal Investigative Service continues to investigate allegations of criminal conduct with regard to U.S. security assistance to Ukraine.”

Note: Learn more about unaccountable military spending in our comprehensive Military-Intelligence Corruption Information Center. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


As U.S.-funded Wars Rage In Israel And Ukraine, Pentagon Watchdog Warns Of Military Failures
2023-12-06, The Intercept
https://theintercept.com/2023/12/06/pentagon-military-failures-waste/

The Department of Defense’s Office of Inspector General issued a report that details widespread failures in the Pentagon’s operations. In a semiannual report to Congress, the watchdog found a breakdown in the process to provide care for sexual assault survivors, damaged artillery earmarked for Ukraine, and continued failures to monitor the Defense Department’s single most expensive program, the scandal-ridden F-35 fighter jet. Taken together, the inspector general’s findings paint a picture of a sprawling military-industrial complex that, while providing billions in aid to foreign militaries, has failed to solve long-standing issues that result in extreme levels of taxpayer waste. In October, President Joe Biden asked Congress to approve $75 billion in combined security assistance for Israel and Ukraine. The request would add to the $44 billion in security assistance already pledged to Ukraine since Russia’s invasion, and the tens of billions of dollars in security assistance delivered to Israel over the past five years. Just last month, the Department of Defense failed its sixth straight audit, underscoring the lack of oversight of the funds that Congress forks over to the armed forces every year. The inspector general also reported that the Defense Department’s protocols for protecting its employees are not routinely followed. The Pentagon’s medical treatment facilities failed to consistently triage and record care administered to survivors of sexual assault. 

Note: For more along these lines, see concise summaries of deeply revealing news articles on war and military corruption from reliable major media sources.


All aboard the gravy train: an independent audit of US funding for Ukraine
2023-06-27, The Grayzone
https://thegrayzone.com/2023/06/27/gravy-train-independent-audit-ukraine/

In the roughly 16 months since Russia's February 2022 escalation of the Ukraine conflict, the US government has approved several multi-billion dollar spending packages to sustain the Kiev military's fight against Moscow. Though many Americans likely believe that US dollars allocated for Ukraine are spent directly on supplies for the war effort, the lead author of this report, Heather Kaiser, conducted a thorough review of Washington's budget for the 2022 and 2023 fiscal year and discovered that is far from the case. US taxpayers may be shocked to learn that as their families grappled with fears of Social Security's looming insolvency, the Social Security Administration in Washington sent $4.48 million to the Kiev government in 2022 and 2023 alone. In another example of bizarre spending, USAID paid off $4.5 billion worth of Ukraine's sovereign debt through payments made to the World Bank – all while Congress went to loggerheads over America's ballooning national debt. (Western financial interests including BlackRock Inc. are among the largest holders of Ukrainian government bonds.) Calculating the total dollar amount that the US has given to Ukraine is incredibly challenging for multitude of reasons: there is a lag in reporting expenditures; covert money given by the CIA (Title 50 Covert Action) won't be publicly disclosed; and direct military assistance in the form of military equipment is not calculated in the same manner as raw cash.

Note: The above article doesn't provide a total figure. Congress approved $113 billion in aid to Ukraine in 2022. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.


Lockheed Martin Got $106 From the Average Taxpayer, While Renewables Got Just $6
2023-04-17, Truthout
https://truthout.org/articles/lockheed-martin-got-106-from-the-average-taxpay...

The average U.S. taxpayer in 2022 spent over four times as much on Pentagon contractors than on primary and secondary education, according to the annual Tax Day analysis published in recent days by the Institute for Policy Studies’ National Priorities Project. NPP found that, on average, American taxpayers contributed $1,087 to Pentagon contractors, compared with $270 for K-12 education. The top military contractor — Lockheed Martin — received $106 from the average taxpayer, while just $6 went to funding renewable energy. According to the analysis, the average 2022 U.S. taxpayer: Paid $74 for nuclear weapons, and just $43 for the Centers for Disease Control and Prevention; Spent $70 on deportations and border control, versus just $19 for refugee assistance; Contributed $20 for federal prisons, and just $11 for anti-homelessness programs; and Gave $298 to the top five military contractors, and just $19 for mental health and substance abuse. “The main message? Our government is continuing to invest too much in the military, and in militarized law enforcement, and not nearly enough on prevention, people, and our communities,” NPP said. NPP’s analysis comes just over a month after the White House released President Joe Biden’s $1.6 trillion budget request for fiscal year 2024. More than half of that amount—$886 billion — would go to the military.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.


Two Decades and $90 Billion US Dollars Later: Dissecting the Afghan Military’s Total Collapse
2023-03-27, MintPress News
https://www.mintpressnews.com/90-billion-us-dollars-sigar-report-afghanistan/...

In February, the Special Inspector General for Afghanistan Reconstruction (SIGAR) published an extensive investigation into the spectacular collapse of the Afghan National Defense and Security Forces’ (ANDSF), which the U.S. spent two decades and $90 billion building. In common with previous SIGAR reports, it offers a remarkably uncompromising, no-punches-pulled assessment, exposing corruption, incompetence, lies, and delusion every step of the way. The Pentagon and State Department rejected SIGAR’s jurisdiction over them, declined to review interim drafts of the report, denied access to their staff, and “mostly” refused to answer requests for information. The Afghan government and military, their trainers and the Pentagon alike were all heavily incentivized to lie to one another, and political leaders in Washington, who were in turn motivated to mislead the public. As prior SIGAR reports also found, so much money and equipment were flowing into Afghanistan without any supervision whatsoever, and weaponry and other aid were misused, stolen or illegally sold off with ease by Afghans, U.S. personnel and Pentagon contractors. SIGAR ominously warns that a similar absence of accountability is evident in the “unprecedented” U.S. arms shipments to Ukraine since Russia’s invasion on February 24, 2022. Despite U.S. leaders promising a keen eye is being kept on the weapons shipments, SIGAR’s report makes clear these same officials did not even know what was being sent to Afghanistan. Is the same true for Kiev?

Note: For more along these lines, see concise summaries of deeply revealing news articles on military corruption and war from reliable major media sources.


After 20 Years, the Department of Homeland Security Is a Money-Guzzling Failure
2023-03-13, Newsweek
https://www.newsweek.com/after-20-years-department-homeland-security-money-gu...

In March 2003, the newly christened Department of Homeland Security, or DHS, opened its doors. The department took everything from immigration enforcement and counterterrorism to airport security and disaster response under one gargantuan bureaucracy. Despite these wide-ranging missions, the department's unifying logic in the post 9/11 era has been to wage the so-called war on terror at home. The result has been systemic abuse of minority communities, a dangerous militarization of American life, and a massive waste of money that sapped resources from addressing the real threats to our homeland. DHS agencies have militarized U.S. streets, sending officers in tactical gear to respond to civilian protests and conducting surveillance of U.S. citizens engaged in constitutionally protected activities. There are stories of DHS drones surveilling Indigenous water and land protectors and DHS forces spying on Black Lives Matter protesters. DHS even monitored journalists who reported on the department's tactics. None of these abuses have come cheap. Since its founding in 2003, the U.S. has spent $1.4 trillion on the agency. That's more than seven times what the government spent over the same period on the Centers for Disease Control and Prevention (CDC), including the CDC's COVID-19 pandemic response—and more than five times more than on the Environmental Protection Agency. The [DHS] was supposed to be about making the U.S. safer. But it has failed.

Note: A thorough investigation reveals details on the DHS "Disinformation Governance Board," an unsuccessful effort in 2022 to police online speech it considers inaccurate and dangerous. Now, the DHS board and its key subcommittees are undergoing sweeping changes as public concern grows over social media censorship and government overreach.


Another Year, Another Failed Pentagon Audit
2022-11-18, Yahoo News
https://www.yahoo.com/now/another-another-failed-pentagon-audit-235617067.html

The Department of Defense underwent its fifth annual financial audit this year, and for the fifth time in a row, it failed. This year’s audit involved a team of 1,600 analysts who visited 220 sites in person and 750 sites virtually as they reviewed the Pentagon’s $3.5 trillion in assets and $3.7 trillion in liabilities. The overall audit was broken down into 27 units, of which nine received “clean” or passing grades, one received a modified grade, which can pass once an identified issue is resolved, and the rest received disclaimers due to a lack of complete data. The cost of the audit was estimated to be $218 million. Defense Department Comptroller Mike McCord said the results were similar to last year’s. “We failed to get an ‘A’,” he told reporters earlier this week. “The process is important for us to do, and it is making us get better. It is not making us get better as fast as we want.” McCord said he expects to see steady improvement in the use of financial controls at the Pentagon, but there are still challenges ahead. “Valuing properties is probably the hardest thing for us to do,” he said. Dive into the fiscal year 2022 Defense Department audit here.

Note: Every company is expected to account for every dollar spent, yet the largest branch of government cannot account for literally trillions of dollars. Read other major media news articles showing incredible corruption in the Department of Defense to the tune of trillions of dollars. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


What happens to weapons sent to Ukraine? The US doesn’t really know
2022-04-19, CNN News
https://www.cnn.com/2022/04/19/politics/us-weapons-ukraine-intelligence/index...

The US has few ways to track the substantial supply of anti-tank, anti-aircraft and other weaponry it has sent across the border into Ukraine, sources tell CNN, a blind spot that’s due in large part to ... the easy portability of many of the smaller systems now pouring across the border. In the short term, the US sees the transfer of hundreds of millions of dollars’ worth of equipment to be vital to the Ukrainians’ ability to hold off Moscow’s invasion. But the risk, both current US officials and defense analysts say, is that in the long term, some of those weapons may wind up in the hands of other militaries and militias that the US did not intend to arm. “We have fidelity for a short time, but when it enters the fog of war, we have almost zero,” said one source briefed on US intelligence. “It drops into a big black hole.” In making the decision to send billions of dollars of weapons and equipment into Ukraine, the Biden administration factored in the risk that some of the shipments may ultimately end up in unexpected places, a defense official said. The Biden administration and NATO countries say they are providing weapons to Ukraine based on what the Ukrainian forces say they need, whether it’s portable systems like Javelin and Stinger missiles or the Slovakian S-300 air defense system that was sent over the last week. For decades, the US sent arms into Afghanistan. Inevitably, some weapons ended up on the black market including anti-aircraft Stinger missiles, the same kind the US is now providing to Ukraine.

Note: CBS released a documentary revealing that most weapons sent to the Ukraine never made it to their intended destination. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


Staggering Costs – U.S. Military Equipment Left Behind In Afghanistan
2021-08-23, Forbes
https://www.forbes.com/sites/adamandrzejewski/2021/08/23/staggering-costs--us...

The U.S. provided an estimated $83 billion worth of training and equipment to Afghan security forces since 2001. This year, alone, the U.S. military aid to Afghan forces was $3 billion. Putting price tags on American military equipment still in Afghanistan isn't an easy task. In the fog of war – or withdrawal – Afghanistan has always been a black box with little sunshine. Not helping transparency, the Biden Administration is now hiding key audits on Afghan military equipment. This week, our auditors at OpenTheBooks.com reposted two key reports on the U.S. war chest of military gear in Afghanistan that had disappeared from federal websites. 1. Government Accountability Office (GAO) audit of U.S. provided military gear in Afghanistan (August 2017). 2. Special Inspector General For Afghanistan Reconstruction (SIGAR) audit of $174 million in lost ScanEagle drones (July 2020). An unnamed official told Reuters that current intelligence assessment was that the Taliban took control of more than 2,000 armored vehicles, including American Humvees, and as many as 40 aircraft that may include UH-60 Black Hawks, scout attack helicopters and ScanEagle military drones. "We don't have a complete picture, obviously, of where every article of defense materials has gone, but certainly a fair amount of it has fallen into the hands of the Taliban," White House national security adviser Jake Sullivan said.

Note: There was no good reason to so rush that departure out of Afghanistan that a huge amount valuable military weapons and equipment was left behind for the Taliban to use. Could it be that certain rogue elements at high levels in government wanted them armed to keep the conflict going and keep the money flowing into the pockets of those who benefit from war? For more along these lines, see concise summaries of deeply revealing news articles on war from reliable major media sources.


We Failed Afghanistan, Not the Other Way Around
2021-08-18, Matt Taibbi on Substack
https://taibbi.substack.com/p/we-failed-afghanistan-not-the-other

From Vietnam to Iraq to Afghanistan, the pattern of American officials showering questionable political allies abroad with armfuls of cash is a long-established practice. However, the idea that this is the reason the “missions” fail in such places is just a continuation of the original propaganda lines that get us into these messes. It’s a way of saying the subject populations are to blame for undermining our noble efforts, when the missions themselves are often preposterous. The lion’s share of the looting is usually done by our own marauding contracting community. Contractors [in Afghanistan] made fortunes monstrously overcharging the taxpayer for everything from private security, to dysfunctional or unnecessary construction projects, to social programs that ... had no chance for success. The Special Inspector General for Afghan Reconstruction (SIGAR) some years ago identified “$15.5 billion of waste, fraud, and abuse ... in our published reports and closed investigations between SIGAR’s inception in 2008 and December 31, 2017,” and added an additional $3.4 billion in a subsequent review. All told, “SIGAR reviewed approximately $63 billion and concluded that a total of approximately $19 billion or 30 percent of the amount reviewed was lost to waste, fraud, and abuse.” Thirty percent! If the overall cost of the war was, as reported, $2 trillion ... a crude back of the envelope calculation for the amount lost to fraud during the entire period might be $600 billion.

Note: For more along these lines, see concise summaries of deeply revealing news articles on military corruption and war from reliable major media sources.


Pentagon Fails Audit Yet Again, Could Pass Around 2027, Comptroller Says
2020-11-16, US News & World Report/Reuters
https://www.usnews.com/news/us/articles/2020-11-16/pentagon-fails-audit-yet-a...

The Pentagon failed its comprehensive audit in fiscal 2020, the third year it has failed since the first audit was conducted in 2018, reflecting system and accounting problems across its vast bureaucracy that could persist until 2027, the department's comptroller said. "The process of getting to a clean opinion for federal agencies, it can take a long time," said Thomas Harker, who is also undersecretary of defense and chief financial officer. After the first audit of the Pentagon's nearly $3 trillion worth of assets in fiscal 2018, then-Acting Secretary of Defense Patrick Shanahan said the department received an opinion of "disclaimer," a term used by auditors for findings that do not meet accounting standards. Harker said the Department of Homeland Security took a decade to pass a comprehensive audit, and the Pentagon could take just as long, making the possible date for its first clean audit somewhere around 2027. Coronavirus-related travel restrictions hampered the auditing process this year as auditors had to resort to video feeds or photographs to execute due diligence, Harker said. Around 1,400 auditors tested the systems and record-keeping processes on weapons systems, military personnel and property around the world in 100 site visits, 530 virtual visits and samples. The process resulted in 24 standalone audits, comprising the overall audit. Fees for the audit were $203 million this year.

Note: Every business in the U.S. is required to account for every dollar in their budget, yet the Pentagon cannot account for trillions of dollars in violation of the US Constitution Article I Section 9 Clause 7. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


How Healthcare Costs Hurt American Workers and Benefit the Wealthy
2020-02-20, Time
https://time.com/5785945/health-care-problems-america/

The percentage of national income that is absorbed by health care has grown over the past half-century, from 5% in 1960 to 18% in 2017, reducing what is available for anything else from 95% in 1960 to 82% today. The costs of health care contribute to the long-term stagnation in wages; to fewer good jobs, especially for less educated workers; and to rising income inequality. American health care is the most expensive in the world, and yet American health is among the worst among rich countries. The U.S. has lower life expectancy than the other wealthy countries but vastly higher expenditures per person. In 2017, the Swiss lived 5.1 years longer than Americans but spent 30% less per person; other countries achieved a similar length of life for still fewer health dollars. How is it possible that Americans pay so much and get so little? The money is certainly going somewhere. What is waste to a patient is income to a provider. The industry is not very good at promoting health, but it excels at promoting wealth among health care providers. Employer-based coverage is a huge barrier to reform. So is the way that the health care industry is protected in Washington by its lobbyistsfive for every member of Congress. Our government is complicit in an extortion that is an important contributor to income inequality. Through pharma companies that get rich by addicting people, and through excessive costs that lower wages and eliminate good jobs, the industry that is supposed to improve our health is undermining it.

Note: For more along these lines, see concise summaries of deeply revealing news articles on health from reliable major media sources.


U.S. Taxpayers Each Spent More Than $8,000 on Iraq War, for $2 Trillion Total
2020-02-05, Newsweek
https://www.newsweek.com/iraq-war-cost-taxpayers-2-trillion-1485784

The War in Iraq cost nearly $2 trillion, roughly $8,000 per U.S. taxpayer, representing 9 percent of the national debt. The current cost to the federal government for conflict zone operations in Iraq is an estimated $1.922 billion ... according to an analysis and a January report from The Cost of Wars project. Without a war tax and few war bonds, direct war spending on post-9/11 wars by the Pentagon resulted in interest payments of about $444 billion, the report estimated. The author warns even if the fighting stopped today, and the Trump Administration pulled out of all ongoing fights in the "Global War on Terror," those cumulative interest payments would continue to rise. If all war spending stopped today the existing war debt would "rise ... to $6.5 trillion by 2050," according to the report's estimates. Over the last 18 years of engagements in South Asia and the Middle East, the American "government has financed this war by borrowing funds," writes Heidi Peltier, the author of the report. War is more costly than just boots on the ground and equipment brought to the theaters of conflict. The physical and emotional trauma incurred by soldiers and those living in war zones is oftentimes incalculable. 4.1 million veterans who served in wars post-9/11 are receiving medical benefits, among other compensation nearing $199 billion, according to reports from the Department of Veterans Affairs.

Note: Read the summary of a highly decorated US general's important book "War is a Racket." He makes clear that the reason we have so much war has little to do with national security and everything to do with padding the pockets of those in the military-industrial complex. For more along these lines, see concise summaries of deeply revealing news articles on war from reliable major media sources.


Pentagon Racks Up $35 Trillion in Accounting Changes in One Year
2020-01-22, Bloomberg
https://www.bloomberg.com/news/articles/2020-01-22/pentagon-racks-up-35-trill...

The Pentagon made $35 trillion in accounting adjustments last year alone - a total that’s larger than the entire U.S. economy and underscores the Defense Department’s continuing difficulty in balancing its books. The latest estimate is up from $30.7 trillion in 2018 and $29 trillion in 2017, the first year adjustments were tracked in a concerted way. The figure dwarfs the $738 billion of defense-related funding in the latest U.S. budget. The Defense Department acknowledged that it failed its first-ever audit in 2018 and then again last year, when it reviewed $2.7 trillion in assets and $2.6 trillion in liabilities. While auditors found no evidence of fraud in the review of finances that Congress required, they flagged a laundry list of problems, including accounting adjustments. There were 546,433 adjustments in fiscal 2017 and 562,568 in 2018, according to figures provided by Representative Jackie Speier, who asked the Government Accountability Office to investigate. The GAO estimated based on a sample that at least 96% of 181,947 automatic adjustments made in the fourth quarter of fiscal 2018 “didn’t have adequate supporting documentation.” “In layman’s terms, this means that the DoD made adjustments to accounting records without having documentation to support the need or amount for the adjustment,” said Dwrena Allen, spokeswoman for the Pentagon’s inspector general.

Note: $35 trillion is much more than the entire GDP of the US for 2020 ($21 trillion). A search shows that Bloomberg and Yahoo! News were the only ones to cover this shocking news. Why would that be? All businesses large and small are required to account for every dollar, while the Pentagon gets away with trillions of dollars of financial mismanagement. Explore what a top US general had to say about this on this webpage. You can also find this article on this webpage. For more, see concise summaries of revealing news articles on military corruption from reliable major media sources.


The Pentagons Bottomless Money Pit
2019-03-17, Rolling Stone
https://www.rollingstone.com/politics/politics-features/pentagon-budget-myste...

Despite being the taxpayers greatest investment - more than $700 billion a year - the Department of Defense has remained an organizational black box throughout its history. Its repelled generations of official inquiries, the latest being an audit three decades in the making, mainly by scrambling its accounting into such a mess that it may never be untangled. Ahead of misappropriation, fraud, theft, overruns, contracting corruption and other abuses that are almost certainly still going on, the Pentagons first problem is its books. Its the worlds largest producer of wrong numbers. At the tail end of last year, the Department of Defense finally completed an audit. At a cost of $400 million, some 1,200 auditors charged into the jungle of military finance, but returned in defeat. They were unable to pass the Pentagon or flunk it. They could only offer no opinion, explaining the militarys empire of hundreds of acronymic accounting silos was too illogical to penetrate. Twenty-nine years ago, in 1990, Congress ordered all government agencies to begin producing audited financial statements. In 2011, [the Pentagon] finally agreed to be ready by 2017, which turned into 2018. If and when the defense review is ever completed, were likely to find ... the militarys losses and liabilities hidden in Enron-like special-purpose vehicles, assets systematically overvalued, monies Congress approved for X feloniously diverted to Program Y, contractors paid twice, parts bought twice, repairs done unnecessarily and at great expense, and so on.

Note: Read more about the Pentagon's massive accounting fraud in this article. Read a 2017 article documenting an investigation which found $21 Trillion unaccounted for in government coffers. Then read summaries of several major media articles showing the Pentagon's blatant lies and disregard for accounting. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


Has the Government Legalized Secret Defense Spending?
2019-01-16, Rolling Stone
https://www.rollingstone.com/politics/politics-features/secret-government-spe...

October 4th, 2018, was a busy news day. The only thing that did not make the news was an announcement by a little-known government body called the Federal Accounting Standards Advisory Board — FASAB — that essentially legalized secret national security spending. The new guidance, “SFFAS 56 – CLASSIFIED ACTIVITIES” permits government agencies to “modify” public financial statements and move expenditures from one line item to another. It also expressly allows federal agencies to refrain from telling taxpayers if and when public financial statements have been altered. To Michigan State professor Mark Skidmore, who’s been studying discrepancies in defense expenditures for years, the new ruling ... was a shock. “From this point forward,” he says, “the federal government will keep two sets of books, one modified book for the public and one true book that is hidden.” I spent weeks trying to find a more harmless explanation for SFFAS 56, or at least one that did not amount to a rule that allows federal officials to fake public financial reports. I couldn’t find one. This new accounting guideline really does mean what it appears to mean. Late last year ... we saw an incident in which two employees of the National Reconnaissance Office and the NSA were arrested for procurement fraud in Colorado in a case involving a classified signals intelligence program. In that instance, the site turned out to be owned by the Department of Health and Human Services.

Note: Learn more about unaccountable military spending in our comprehensive Military-Intelligence Corruption Information Center. For more, read our concise summaries of news articles on intelligence agency corruption.


Pentagon Fails Its First-Ever Audit
2018-11-15, Reuters
https://www.reuters.com/article/us-usa-pentagon-audit/pentagon-fails-its-firs...

The Pentagon has failed what is being called its first-ever comprehensive audit, a senior official said on Thursday, finding U.S. Defense Department accounting discrepancies that could take years to resolve. Results of the inspection - conducted by some 1,200 auditors and examining financial accounting on a wide range of spending including on weapons systems, military personnel and property - were expected to be completed later in the day. We failed the audit, but we never expected to pass it, Deputy Secretary of Defense Patrick Shanahan told reporters, adding that the findings showed the need for greater discipline in financial matters within the Pentagon. It was an audit on a $2.7 trillion dollar organization, so the fact that we did the audit is substantial, Shanahan added. The U.S. defense budget for the 2018 fiscal year that ended on Sept. 30 was about $700 billion. He did not provide a figure detailing how much money was unaccounted for in the audit. Some of the compliance issues are irritating to me, Shanahan added. A 1990 federal law mandated that U.S. government agencies be audited, but the Pentagon had not faced a comprehensive audit until this one was launched in December. Defense officials and outside experts have said it may be years before the Pentagon is able to fix its accounting gaps and errors and pass an audit.

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