Government Waste Media Articles
The US Air Force is facing more questions as to why it spent tens of thousands of dollars over the last three years on large cups that can reheat beverages, like coffee or tea, on refueling tankers and cargo aircraft during flight. Despite being assured by Air Force Secretary Dr. Heather Wilson earlier this month that the service has “suspended its purchasing of the exorbitantly priced cups,” Sen. Chuck Grassley sent a follow-up letter last week asking for further explanation as to why they were purchased in the first place. Grassley raised the issue of the cups in an October 2 letter to Wilson after reports surfaced this summer that the 60th Ariel Port Squadron at Travis Air Force Base had spent $1,280 on each cup in 2018 – a dramatic increase from the $693 per-cup price in 2016. In her response to that letter, Wilson said the Air Force has spent $326,785 on nearly 400 cups since 2016 – an average of $817. “You are right to be concerned about the high costs of spare parts, and I remain thankful to have your support in addressing this problem,” Wilson told the senator in a letter dated October 17. The increasing cost of the cups was first reported ... in July as part of a report on how airmen at Travis Air Force Base are attempting to use 3D printing to develop a cost-effective way to replace the cups’ plastic handles, which have a tendency to break. “Unfortunately, when dropped, the handle breaks easily leading to the expenditure of several thousand dollars to replace the cup as replacement parts are not available,” the Air Force said.
Note: Read this eye-opening article to learn the many ways the government wastes your tax dollars. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.
Tiny Jewel Box, which calls itself Washingtons premier destination for fine jewelry and watches, had promised to expedite the order of a dozen customized silver fountain pens each emblazoned with the seal of the Environmental Protection Agency and the signature of its leader, Scott Pruitt. Now all that the EPA staff member working with the store needed was for a top Pruitt aide to sign off on the $3,230 order. The cost of the Qty. 12 Fountain Pens will be around $1,560.00, the staffer emailed Aug. 14 to Millan Hupp, Pruitts head of scheduling. All the other items total cost is around $1,670.00 ... Please advise. Yes, please order, Hupp responded. The exchange, included among thousands of pages of emails released this week as part of a Freedom of Information Act lawsuit by the Sierra Club, offered another glimpse of the high-end tastes of the EPA chief, who has faced months of scrutiny over his expenditures of taxpayer money on first-class travel, an unprecedented security detail, a $43,000 phone booth, a top-of-the-line SUV and other office upgrades. In a Senate hearing last month, Pruitt came as close as he ever has to publicly acknowledging any personal fault in the ethical decisions that have triggered a dozen federal inquiries, including probes by the EPAs inspector general, the Government Accountability Office and the White House itself. There have been decisions over the past 16 months that, as I look back, I would not make the same decisions again, Pruitt told lawmakers.
Note: EPA scientists have been leaving the agency in droves. The EPA is one of three federal agencies reported to have been "gagged" by the Trump administration. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the scientific community.
Air Force One is primed to receive an upgrade that will include new refrigerators expected to cost American taxpayers nearly $24 million. The US Air Force awarded Boeing a $23.6 million contract in December to replace two of the five "cold chiller units" aboard the aircraft. The $24 million contract will cover the costs of engineering support services for the new chillers - including prototype design, manufacturing and installation, according to the DOD contract. Former senior adviser to President Barack Obama Eric Schultz mocked the high price tag in a tweet on Friday, saying, "we would have been impeached." The Boeing fridge contract isn't the first time an administration has come under fire for the high cost of military aircraft upgrades - the Obama administration was pressured to scuttle plans to build a new fleet of presidential helicopters in 2009 after reports emerged that they cost at least $11 billion. When he was running for president, Trump boasted he would swap out Air Force One with his private jet and has been fiercely critical of the cost of the new Air Force One program in the past. But since taking office, Trump - like his predecessors - has traveled aboard the Boeing-made VC-25 aircraft. The Air Force announced last year that it had finalized a deal to purchase two already-built aircraft from Boeing to serve as the next generation of Air Force One. That contract is separate from the arrangement ... for upkeep of the current Air Force One fleet.
Note: For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
A U.S. contractor bilked the American military out of $50 million spent on Bentleys, Aston Martins and big salaries for senior staffers significant others, according to a government audit. Senator Claire McCaskill demanded on Wednesday that the Pentagon explain why it was allowed to get away with it. The British company New Century Consulting (NCC) was deployed by the U.S. overseas to train Afghanistan forces. It was originally subcontracted by the now-defunct company Imperitas from 2008 to 2013 but has since taken over the contract completely. Under Imperitas, NCC ... paid the significant others of senior staff an average of $420,000 as executive assistants who worked from home, auditors found. Its not clear whether Imperitas or NCC actually completed their work in Afghanistan, as neither retained complete training records. In a letter to Secretary of Defense James Mattis Wednesday, McCaskill ... wrote that NCC was unable to provide evidence that these executive assistants actually performed any work. This is not the first time that NCC or Imperitas spending has been questioned or the companies investigated. In 2016, a federal lawsuit was brought in New York by investors against Imperitas. In 2015, the special inspector general for Afghanistan reconstruction had an ongoing criminal investigation open against both NCC and Imperitas. And in 2012, two former employees of Imperitas ... sued the company, alleging their co-workers abused alcohol and drugs and possessed illegal weaponsall violations of U.S. policy.
Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the corporate world.
The U.S. Army failed to properly monitor more than $1 billion worth of arms transfers in Iraq and Kuwait, according to a declassified government audit obtained by Amnesty International. Amnesty obtained the documents through Freedom of Information law requests. The groups research documents lax controls and record-keeping ... which has resulted in arms manufactured in the U.S. and other countries winding up in the hands of armed groups known to be committing war crimes and other atrocities, such as the Islamic State militant group (ISIS). The U.S. Department of Defense audit from September 2016 shows that the DoD did not have accurate, up-to-date records on the quantity and location of ... tens of thousands of assault rifles (worth $28 million), hundreds of mortar rounds and hundreds of Humvee armored vehicles destined for use by the central Iraqi Army. A previous DoD audit, in 2015, pointed to even less rigorous stockpile monitoring procedures being enforced by the Iraqi armed forces. Meanwhile, the Pentagon has overbilled the U.S. military for fuel by almost $6 billion over the past seven years, and then used the money to bolster underfunded or mismanaged defense programs, according to a report in The Washington Post on Saturday. Earlier, the federal Government Accountability Office criticized the U.S. for failing to account for thousands of rifles issued to Afghan security forces. The 2009 report said some weapons were documented to be in the hands of insurgents.
Note: Since 1996, approximately $10 trillion in taxpayer money has gone unaccounted for at the US Dept. of Defense. Read a verifiable and carefully researched report on the covert origins of ISIS. For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
On Thursday, Donald Trump released a preliminary budget proposal that calls for a $52bn increase in military spending. But just last December, a Washington Post investigation found that the Pentagon had buried a report that outlines $125bn in waste at the Department of Defense. Although its required to by law, the DoD has never had an audit, something every American person, every company and every other government agency is subject to. The result is an astounding $10tn [that $10 trillion!] in taxpayer money that has gone unaccounted for since 1996. Over the last 20 years, the Pentagon has broken every promise to Congress about when an audit would be completed, the director of the Audit the Pentagon coalition, Rafael DeGennaro, told the Guardian. Meanwhile, Congress has more than doubled the Pentagons budget. Legislation in the early 1990s demanded that all government agencies had annual audits, but the Pentagon has exempted itself without consequence for 20 years now. In the meantime, the GAO and Office of the Inspector General (IG) have published an endless stream of reports documenting financial mismanagement: $500m in aid to Yemen lost here, $5.8bn in supplies lost there, $8,000 spent on helicopter gears that really cost $500. During this past election cycle, both the Democratic and Republican platforms called for the Pentagons audit. But despite broad support, the issue has remained stagnant in Washington.
Note: When every business in the country and every other branch of government is required to account for every dollar, how can the Pentagon get away with failing to account for literally trillions of dollars year after year? For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
The Pentagon has buried an internal study that exposed $125 billion in administrative waste in its business operations. Pentagon leaders had requested the study to help make their enormous back-office bureaucracy more efficient. But after the project documented far more wasteful spending than expected, senior defense officials moved swiftly to kill it by discrediting and suppressing the results. The report, issued in January 2015, identified a clear path for the Defense Department to save $125 billion over five years. The plan would not have required layoffs of civil servants or reductions in military personnel. Instead, it would have streamlined the bureaucracy ... curtailed high-priced contractors and made better use of information technology. The study was produced last year by the Defense Business Board, a federal advisory panel. Their report revealed ... that the Pentagon was spending almost a quarter of its $580 billion budget on overhead and core business operations such as accounting, human resources, logistics and property management. The data showed that the Defense Department was paying a staggering number of people - 1,014,000 contractors, civilians and uniformed personnel - to fill back-office jobs far from the front lines. That workforce supports 1.3 million troops on active duty.
Note: Despite its outrageous administrative expenses, the Pentagon is literally unable to account for itself. Could it be that the real reason the Pentagon is the only branch of US government that doesn't balance its books is that they don't want us to know where the money is going? For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
The Special Inspector General for Afghanistan Reconstruction (SIGAR) is asking why a small Department of Defense task force charged with developing the Afghan economy spent nearly $150 million on private villas, security guards and luxury meals. In a letter to Secretary of Defense Ashton Carter ... SIGAR chief John Sopko wrote that members of the Defense Departments Task Force for Business and Stability Operations (TFBSO) could have used accommodations available on local military bases and other U.S. government facilities. Former TFBSO employees told SIGAR investigators that the $150 million ... supported no more than 5 to 10 employees. Triple Canopy is one of the firms that have financially benefited the most from post-9/11 wars in Iraq and Afghanistan, earning roughly $2.2 billion in government contracts since 2003. The company has continued to receive lucrative government contracts despite being at the center of several controversies related to the killing of civilians in Iraq by its employees and providing falsified documents for its private security guards. The decision to hire the contractors is believed to have originated with former deputy undersecretary of defense and TFSBO director Paul Brinkley. In 2007, he was investigated by the military on allegations of financial mismanagement and personal misconduct while based in Iraq, but continued serving in government until 2011.
Note: By mid-2014, the US had spent more money on Afghanistan's "reconstruction" than it spent on the entire Marshall Plan to rebuild Europe following WWII. For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
In a war full of failures, the US counternarcotics mission in Afghanistan stands out: opiate production has climbed steadily over recent years to reach record-high levels last year. One clear winner in the anti-drug effort is ... the infamous mercenary company formerly known as Blackwater. Statistics released on Tuesday reveal that the rebranded private security firm, known since 2011 as Academi, reaped over a quarter billion dollars from the futile Defense Department push to eradicate Afghan narcotics, some 21% of the $1.5 bn in contracting money the Pentagon has devoted to the job since 2002. The company is the second biggest beneficiary of counternarcotics largesse in Afghanistan. Only the defense giant Northrop Grumman edged it out, with $325m. According to the US inspector general for Afghanistan reconstruction, the $309m Academi got from US taxpayers paid for training, equipment, and logistical support to Afghan forces conducting counternarcotics. Far from eradicating the deep-rooted opiate trade, US counternarcotics efforts have ... contributed to the opium boom. In December, the United Nations reported a 60% growth in Afghan land used for opium poppy cultivation since 2011, up to 209,000 hectares. The estimated $3bn value of Afghan heroin and morphine represents some 15% of Afghan GDP. Academi and its former Blackwater incarnation have an infamous history in Afghanistan. It once set up shell companies to disguise its business practices, according to a Senate report, so that its contracts would be unimpeded by company employees killings of Iraqi and Afghan civilians.
Note: Blackwater, now called Academi, got caught systematically defrauding the US government, while serving as a "virtual extension of the CIA". The CIA has been linked to the Afghan heroin trade for decades. In 2000, the Taliban had all but eradicated Afghan opium production. Once Afghanistan was under US control, opium production surged to record levels.
In the largest opium harvest in Afghanistan's history; with a record 224,000 hectares under cultivation this year, the country produced an estimated 6,400 tons of opium, or around 90 percent of the world's supply. In Afghanistan today, according to U.N. estimates, the opium industry accounts for 15 percent of the economy. The Afghan narcotics trade has gotten undeniably worse since the U.S.-led invasion: The country produces twice as much opium as it did in 2000. In the provincial capital of Lashkar Gah, I arrange an interview with a drug smuggler. I'll call him Sami. He grew up in a camp near the border town of Chagai, in Pakistan. After finishing 11th grade, he got work as a driver and began ... smuggling opium through the desert. Baramcha, a smuggling hub on the Afghan side of the border ... functions as a kind of switching station for much of the opium trade. "The security situation is good ... the drug smugglers and the ISI are tight together," he says, referring to Pakistan's intelligence service. The United States' alliances with opium traffickers in Afghanistan go back to the 1980s, when the CIA waged a dirty war to undermine the Soviet occupation of the country. Large-scale cultivation was introduced [with] support from the ISI and the CIA. U.S. counternarcotics programs, which have cost nearly $8 billion to date, and the Afghan state-building project in general, are perversely part of ... the drug trade.
Note: Read the complete article above for an in depth look at the Afghan narcotics trade. For more, read this 2002 news article, which shows that the Taliban had nearly eliminated opium production in Afghanistan prior to the US led invasion. Yet once the allies defeated the Taliban, opium production hit new records. Today, Afghanistan produces 90% of the global opium supply. This huge source of income is used to fund all kinds of secret projects. Read powerful evidence that the CIA and US military are directly involved in the drug trade.
The U.S. Army has been slow to investigate hundreds of millions of dollars in missing weapons systems, vehicles, electronics and communications gear in Afghanistan, according to the Pentagons inspector general. The Army field support brigade in Afghanistan responsible for managing gear being shipped out of the country failed to report in a timely manner 15,600 pieces of unaccounted gear valued at as much as $419.5 million, according to a report labelled For Official Use Only that reviewed major lost-property reports from fiscal 2013. Some of the missing gear eventually may turn up as the U.S. completes the bulk of its withdrawal, Army officials said in a response to the inspector general. Yet with the closing of 309 bases since 2010, only a fraction of the items from previous reviews of unaccounted property has been recovered, according to the audit dated Oct. 30. Due to the significant delays in reporting inventory losses the Armys Rock Island, Illinois-based Sustainment Command, which oversees the effort, does not have accurate accountability and visibility of its property," said Michael Roark, assistant inspector general for contract management, who signed the report. There is a risk that missing property will not be recovered and no one was held financially responsible for the property losses or accountable for missing reporting deadlines, the report found. The audit disclosed ... 133,557 lost items valued at $238.4 million.
Note: Do you really think this equipment was just lost? Would the military just leave expensive and sensitive equipment carelessly? Could it be that it is meant to fall into enemy hands in order to keep the war machine pumping its huge profits into the pockets of certain elite groups? For more along these lines, see these concise summaries of deeply revealing war news articles from reliable sources.
The U.S. has now spent more on the reconstruction of Afghanistan than it spent on the Marshall Plan, which resuscitated Europe after World War II. The Marshall Plan delivered $103 billion in todays dollars to 16 European countries between 1948 and 1952. That has now been topped by congressional appropriations for reconstruction in Afghanistan, which so far have come to $109 billion in todays dollars. The difference: The Marshall Plan helped Europe get back on its feet, while Afghanistan is a chaotic mess. The Marshall Plan comparison is the most striking fact in a depressing, 259-page quarterly report to Congress issued July 30 by John Sopko, the congressionally appointed special inspector general for Afghanistan reconstruction. One recent audit ... raised concerns about the armys ability to account for some 465,000 U.S.-provided small arms. This quarter, Sopkos report says, a local police unit cut the power lines from Kabul ... in retaliation for not being paid for three months. To cut costs, NATO plans to shrink the Afghan National Security Forces to less than 230,000 by 2017. But an independent assessment ... concluded that the forces will require more than 370,000 people. That would cost three times as much as the Afghan governments entire domestic revenue. Afghanistans main exports are carpets and rugs, dried fruits, medicinal plants, opium, and gems. But Sopko observes, opiates are not part of the licit economy, and gems are easy to smuggle, so their contributions to government revenue are limited.
Note: By 2000, the Taliban had mostly stopped heroin production in Afghanistan. But once this country was under US control, illicit drug production surged to record levels and Afghanistan became a narco state. How much "reconstruction" money became the drug cartel money that kept big banks afloat in 2008?
Researchers who have fought for years to get full data on Roche's flu medicine Tamiflu said on Thursday that governments who stockpile it are wasting billions of dollars on a drug whose effectiveness is in doubt. In a review of trial data on Tamiflu, and on GlaxoSmithKline's flu drug Relenza, scientists from the respected research network the Cochrane Review said that the medicines had few if any beneficial effects, but did have adverse side effects. "Remember, the idea of a drug is that the benefits should exceed the harms," Heneghan said. "So if you can't find any benefits, that accentuates the harm." Tamiflu sales hit almost $3 billion in 2009 - mostly due to its use in the H1N1 flu pandemic. The drug, one of a class of medicines known as neuraminidase inhibitors, is approved by regulators worldwide and is stockpiled in preparation for a potential global flu outbreak. It is also on the World Health Organization's "essential medicines" list. The United States has spent more than $1.3 billion buying a strategic reserve of antivirals including Tamiflu, while the British government has spent almost 424 million pounds ($703 million) on a stockpile of some 40 million Tamiflu doses. There was no evidence of a reduction in hospitalizations or in flu complications ... and Tamiflu also increased the risk of nausea and vomiting in adults by around 4 percent and in children by 5 percent.
Note: For more along these lines, see concise summaries of deeply revealing health corruption news articles from reliable major media sources. For more along these lines, see the excellent, reliable resources provided in our Health Information Center.
The drug Tamiflu, given to tens of thousands of people during the swine flu pandemic, does nothing to halt the spread of influenza and the [UK] Government wasted nearly 500 million stockpiling it, a major study has found. The review, authored by Oxford University, claims that Roche, the drugs Swiss manufacturer, gave a false impression of its effectiveness and accuses the company of sloppy science. The study found that Tamiflu, which was given to 240,000 people in the UK at a rate of 1,000 a week, has been linked to suicides of children in Japan and suggested that, far from easing flu symptoms, it could actually worsen them. Roche claimed at the time of the 2009 swine flu outbreak that trials had shown that it would reduce hospital admissions and complications such as pneumonia, bronchitis or sinusitis. Based on [these claims], the Department of Health bought around 40 million doses of Tamiflu at a cost of 424 million and prescribed it to around 240,000 people. In 2009, 0.5 per cent of the entire NHS budget was spent on the drug. However, researchers from The Cochrane Collaboration, a not-for-profit organisation which carries out reviews of health data, found that Tamiflu only cut flu-like symptoms from seven days to 6.3 days and there was no evidence of a reduction in hospital admissions. Eight children who took the drug in Japan ended up committing suicide after suffering psychotic episodes. Other side effects included kidney problems, nausea, vomiting and headaches. Many people reported feeling anxious or depressed when taking the drug.
Note: We sent out numerous messages at the time of all the fear-mongering around the avian and swine flu scares that this was wasting huge amounts of money. Of course the money wasn't just wasted, much of it went into the pockets of Donald Rumsfeld and others, as reported in this newspaper article. For the revealing news articles we compiled showing the blatant greed and corruption involved, click here.
Linda Woodford spent the last 15 years of her career inserting phony numbers in the U.S. Department of Defenses accounts. Every month ... the Navy would [dump] numbers on the Cleveland, Ohio, office of the Defense Finance and Accounting Service, the Pentagons main accounting agency. Using the data they received, Woodford and her fellow DFAS accountants there set about preparing monthly reports to square the Navys books with the U.S. Treasurys. And every month, they encountered the same problem. Numbers were missing. Numbers were clearly wrong. Numbers came with no explanation of how the money had been spent or which congressional appropriation it came from. Woodford and her colleagues were told by superiors to take unsubstantiated change actions - in other words, enter false numbers, commonly called plugs, to make the Navys totals match the Treasurys. And plugging isnt confined to DFAS. Former military service officials say record-keeping at the operational level throughout the services is rife with made-up numbers to cover lost or missing information. The Defense Departments 2012 budget totaled $565.8 billion. How much of that money is spent as intended is impossible to determine. The Pentagon is largely incapable of keeping track of its vast stores of weapons, ammunition and other supplies. It has amassed a backlog of more than half a trillion dollars in unaudited contracts with outside vendors; how much of that money paid for actual goods and services delivered isnt known.
Note: Could it be that the real reason the Pentagon is the only branch of US government that doesn't balance its books is that they don't want us to know where the money is going? For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
A Pentagon audit has found that the federal government overpaid a billionaire oilman by as much as $200 million on several military contracts worth nearly $2.7 billion. The audit by the Defense Departments inspector general ... estimated that the department paid the oilman $160 [million] to $204 million more for fuel than could be supported by price or cost analysis. The study also reported that the three contracts were awarded under conditions that effectively eliminated the other bidders. Harry Sargeant III, a well-connected Florida businessman and once-prominent Republican donor, first faced scrutiny over his defense work in October 2008, when he was accused in a congressional probe of using his close relationship with Jordans royal family to secure exclusive rights over supply routes to U.S. bases in western Iraq. Rep. Henry A. Waxman (D-Calif.), who led the probe, ... said in a statement Thursday that the report confirmed what we found in 2008: the International Oil Trading Company overcharged by hundreds of millions of dollars while the Bush administration looked the other way. Waxman called on Sargeant to repay the Pentagon.
Note: For many reports from reliable sources on government corruption, click here.
The United States continues to spend hundreds of millions of dollars on "good governance" initiatives [in Afghanistan]. This $760 million program, to strengthen government agencies, was America's single largest nonmilitary expense in Afghanistan over the past year. All of it was money thrown away. Last year, the U.S. Agency for International Development began promoting what it calls "Afghanization of aid." Well, in Afghanistan, government leaders have only one use for foreign aid. They stuff the cash into suitcases and fly it to secret bank accounts in Dubai. Afghanistan remains the world's largest grower of opium poppies. It supplies 90 percent of the world's heroin. Many thousands of its citizens are addicts. Earlier this month, the United Nations put out its annual "Afghanistan Opium Survey" and found that, even after the United States has spent more than $2 billion on drug enforcement there, "the total area under cultivation" during 2010 "and the number of families growing opium poppy, remained the same as in 2009" - but for one thing. The U.N. found "an alarming increase of 97 percent" in opium-poppy cultivation among northeastern provinces that are not traditional poppy-growing areas.
Note: For shocking stories by two award-winning journalists suggesting direct involvement by government agencies in the drug trade, click here. And for key reports from reliable sources on government corruption, click here.
The three top auditors overseeing work in Iraq told a House committee their review of $57 billion in Iraq contracts found that ... about $10 billion has been squandered by the U.S. government on Iraq reconstruction aid because of contractor overcharges and unsupported expenses. Of the $10 billion in overpriced contracts or undocumented costs, more than $2.7 billion were charged by Halliburton Co., the oil-field services company once headed by Vice President Dick Cheney. Federal investigators warned Thursday that significantly more taxpayer money is at risk. More than one in six dollars charged by U.S. contractors were questionable or unsupported, nearly triple the amount of waste the Government Accountability Office estimated last fall. "There is no accountability," said David M. Walker, who heads the auditing arm of Congress. "Organizations charged with overseeing contracts are not held accountable. Contractors are not held accountable. The individuals responsible are not held accountable." The investigators urged the Pentagon to reconsider its growing reliance on outside contractors. Layers of subcontractors, poor documentation and lack of strong contract management are rampant. Walker complained that GAO investigators have difficulty getting basic detail about reconstruction contracts such as expenses and subcontractors involved because many Pentagon divisions fail to consistently track or fully report them. Noting that auditors still have $300 billion of Iraq spending to review, Waxman said the total amount of waste, fraud and abuse "could be astronomical."
Note: To understand how so much money can go missing, read what a top U.S. general has to say here. And for major media articles claiming hundreds of billions of dollars are missing, click here.
The Department of Defense, already infamous for spending $640 for a toilet seat...couldn't account for more than a trillion dollars in financial transactions, not to mention dozens of tanks, missiles and planes. The nonpartisan General Accounting Office has raised the volume of its perennial complaints about the financial woes at Defense, which recently failed its seventh audit in as many years. "Overhauling DOD's financial management operations represent a challenge that goes far beyond financial accounting," GAO chief David Walker told lawmakers. Recent government reports suggest the Pentagon's money management woes have reached astronomical proportions. A GAO report found Defense inventory systems so lax that the U.S. Army lost track of 56 airplanes, 32 tanks, and 36 Javelin missile command launch-units. When military leaders were scrambling to find enough chemical and biological warfare suits to protect U.S. troops, the department was caught selling these suits as surplus on the Internet "for pennies on the dollar," a GAO official said. "We are overhauling our financial management system," said Dov Zakheim, the Pentagon's chief financial officer. "The Pentagon has failed to address financial problems that dwarf those of Enron," said Rep. Henry Waxman, D-Los Angeles. Gregory Kutz, director of GAO's financial management division [said] "I've been to Wal-Mart. They were able to tell me how many tubes of toothpaste were in Fairfax, Va. And DOD can't find its chem-bio suits." Opposition to defense spending is portrayed as unpatriotic. Legislators are often more concerned about winning Pentagon pork than controlling defense waste.
Note: You can read the GAO Report (Page 17 on missing planes). Page two states, "To date, no major part of DOD has yet been able to pass the test of an independent audit." For an intriguing Online Journal article exposing the deep role of the Pentagon's former CFO (Chief Financial Officer) Zakheim in this corruption, click here. Why wasn't and isn't this front page headlines? Why are newspaper editors keeping this most vital information from the public?
On Sept. 10 [2001], Secretary of Defense Donald Rumsfeld declared war. Not on foreign terrorists, "the adversary's closer to home. It's the Pentagon bureaucracy." He said money wasted by the military poses a serious threat. Rumsfeld promised change but the next day Sept. 11 the world changed and in the rush to fund the war on terrorism, the war on waste seems to have been forgotten. Just last week President Bush announced, "my 2003 budget calls for more than $48 billion in new defense spending." More money for the Pentagon ... while its own auditors admit the military cannot account for 25 percent of what it spends. "According to some estimates we cannot track $2.3 trillion in transactions," Rumsfeld admitted. $2.3 trillion that's $8,000 for every man, woman and child in America. A former Marine turned whistle-blower is risking his job by speaking out ... about the millions he noticed were missing from one defense agency's balance sheets. Jim Minnery, Defense Finance and Accounting Service ... tried to follow the money trail, even crisscrossing the country looking for records. "The director looked at me and said 'Why do you care about this stuff?' It took me aback. My supervisor asking me why I care about doing a good job," said Minnery. He was reassigned and says officials then covered up the problem. The Pentagon's Inspector General "partially substantiated" several of Minnery's allegations.
Note: Watch the CBS video clip of this shocking admission. Another key clip is available here. Explore also other media articles revealing major government corruption. Even though originally not reported because of the trauma of 9/11, why wasn't this news broadcast far and wide later? Why isn't it making media headlines now? See also a revealing collection of news articles on military corruption.
Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.
