A Program Note From John Stossel - Responses to DoD Credit Card Scam Report; 20/20 All-Fidel Tonight

ABCNEWS | October 11, 2002 | John Stossel

[Timesink]

No column again this week ...
Barbara went to Cuba to interview Fidel Castro. Cuba and Castro will be the focus of the entire hour.

Here are some comments about last Friday's story on Defense Department credit cards:

"I'm a government employee and one whom several years ago I was thrilled to get this gov. credit card since I couldn't get one of my own. They told you it was absolutely for gov. spending when traveling, and if you tried to use it for anything other than food & gas it wouldn't go through. Then they changed companies to the one you mention, I was surprised when one day I saw a dress I wanted and went to use it AND IT WORKED! I had always used the other for my gas and meals throughout the month AND ALWAYS PAID IT OFF IMMEDIATELY. Later with the new one that accepted more, I began charging EVERYTHING, even plane tickets. When the bosses found out I was in big trouble and had to sign a form that I would never do this again and the card was taken!" -- Linda A., Washington, D.C.

"I work for a travel agency that handles several federal government accounts, many based in Washington, D.C. I see the abuse all day long. They choose a luxury hotel priced over the per diem rate and don't think twice about it. We advise them their allowance and they reply "It's okay. The government's paying for it." -- jessicall2002

"John Stossel's commentary on federal employees ignores the fact that most federal employees are honest. His commentary is designed to reinforce the abusive idea in our news media that federal employees are not to be trusted. May I remind him that we are also citizens and taxpayers, that we don't like fraud or abuse anymore than anyone else. But we are also tired of the media's abuse of their pulpit to stereotype all federal employees because of the abuses of a few. You call this competent reporting? Give ME a break!" -- hawkijpierce

[Timesink]

My only question is, why doesn't Jessicall2002 either refuse to make such bookings, or else book them and then anonymously tip off the DoD a few months afterwards? Doesn't the Federal Government have some sort of whistleblower reward program for people that turn in scumbags like these uncivil servants?

[fellowpatriot]

Doesn't the Federal Government have some sort of whistleblower reward program for people that turn in scumbags like these uncivil servants?

Ask Linda Tripp.

[lanceboyle]

I'm not sure how the gummint Bank of America VISA works for GS workers, but as far as members of the Armed Forces are concerned, that account is in your name, and its your credit rating that will be wrecked (and worse can happen) if you don't pay it off in full upon reciept of the bill. After you get back from your TDY, you file a travel voucher and have the option of paying off the card through a split-disbursement. When traveling TDY, if there is no room on base, billeting can double you up with a rollaway bed with a person of the same rank and gender(shucks) or direct you to a hotel with a pre-arranged contract and you can stay at no other place. The potential for abuse is still there as any location which serves food can be authorized to take the card (including nudie-bars). Each unit has a monitor which can audit where you used the card, but some less than bright individuals still haven't realized that you can take a cash advance on-base, leave the card in your room, then go to the nudie-bar. The point is, a troop still has to pay the card off regardless of where he or she spent the money, otherwise you'll be standing before the man facing a possible Article-15 for financial irresponsibilty. GS workers are not subject to the UCMJ, and thus can get away with alot more.

[GreenHornet]

I am a Federal employee working for the Army (GS employee). We have had civilians at my installation who have abused the card. The management at my place, however, has stayed on top of things in this area. In some cases, the employee was fired (not an easy thing to do with Federal employees, but it can be done!). Also, our CG has been very involved in this effort (after all, he's looking for that next star, and he doesn't like it when the civilians who work for him make the command look bad!)

Let's face it - there are a lot of instances where rules can be broken, and if the person is confronted about it, they can say "it's your word against mine". This is not one of those situations. Itemized copies of the VISA bill are sent to the command each month, so they know who has been using their card, and what expenses have been charged by the person. Also, it's easy to check to see if the person was on TDY ("Temporary Duty" - official government travel) at the time the expenses were incurred.

It's always been a mystery to me why someone would risk their job in a situation where there is a 100% chance that they will be caught. Also, as you've pointed out, if you are deliquent with your payment (and payment in full is due at the time the bill arrives), your personal credit history takes the hit. As far as charging hotel rooms where the rate is above the per diem, I don't think this is as serious a matter, because the government will only reimburse you up to the per diem limit. Anything over that comes out of your pocket.

[Skooz]

They choose a luxury hotel priced over the per diem rate and don't think twice about it. We advise them their allowance and they reply "It's okay. The government's paying for it." --

BS

Anything over per diem comes out of the employee's pocket. You can only be reimbursed up to per diem--not one dime more. You are still responsible for paying the bill. If you go over per diem, you pay the difference.

[Nateman]

I started watching the Castro Interview but after a few minutes of watching Barbara suck up to that brutally evil dictator I could not stomach it anymore. I should have known better.

[willyone]

Where I work they keep a close eye on these charges. I always take cash advances on my own ATM card since the advance fee is either less or none if I use one of the Credit Union machines. I also can spend all I want with no one bothering me. I was told that I had to use the govt. card for cash and I refused. I don wan their steenkin card. The odd part about this is why is the gov't. involved in this at all? The card is in the individuals name and his credit rating is on the line. If not paid the gov't. should tell BofA that it is their problem. Once the govt. settles the travel claim it should be the cardholders obligation to pay the card. The deal is that whoever wrote this contract and is getting big kickbacks is getting heat from BofA.

[Gunrunner2]

This Jessicall2002 does not understand what is happening.

When booking a hotel, one should try and stay within the per diem rates to receive reimbursement. If you stay in a hotel above the per diem rate, you will not be paid, as the validation procedures (either manual or electronic) will catch this. However, if you are a diplomat, or an exchange officer (like I was) and you have to stay in a place for specific duty requirements, and that location exceeds the per diem rate, then a waiver is required. The waiver must list the reason for the excess and the waiver must accompany the voucher. Approval for the waiver is not assured. Jessicall2002 is obviously not aware of this process.

If, by chance you do stay in a higher price location and file a travel voucher and recieve full compensation for the excess rate, and you do not have a waiver, you will be committing a crime. It is the responsibility of the traveler to verify the per diem rate and obtain any waivers, and when you sign the voucher you are saying you have done everything in accordance with the law.

Therefore, it is likely Jessicall2002 is not aware of the exemptions and waiver procedures, and she is not aware of what happens when you file your TDY voucher.

[pamlet]

That may not be the case - it depends on the agency. Some agencies will reimburse whatever is turned in. Others are VERY strict. (I work with a travel agency that does business w/the government as well)

[Skooz]

I assumed all branches of the Federal Govt treated this the same way. I guess not. We have a strict and unalterable set of expenses for which we can be reimbersed at a strict and unalterable set of rates.

In my area, we can be reimbursed a maximum of $65.00 for a night in a hotel room. One time, the hotel I was used to staying in was out of non-smoking rooms, all they had was one smoking room and the "jacuzzi suite," which ran $95.00. If I had taken the jacuzzi suite, I would have paid $30.00 out of my pocket.

The per diem varies all over the country. I have stayed in hotels in Dallas many times in which I (or rather the taxpayer) paid $85.00 per night for a $500 room. Government rate is a wonderful thing.

[pamlet]

Well - at least the agency you work for is responsible. I know of one that automatically grants 25% over per diem.

YEP - those government rates are wonderful - aren't they? And it seems like more and more hotels and car agencies are working harder for the government business.

I will say it is rare when you hear the "I don't care - the government is paying for it" - more often than not folks are VERY careful.

[Tailback]

Just from what I'm reading and have read about this issue, some of the facts are a little mis-represented. I have a Govt credit card and have used it. Sure I could go stay at a deluxe penthouse and put it on the card, the only problem is that when I file my travel voucher I only get reimbursed for the Govt. per-diem rate in that zip code. If the rate is $55 a night, and I rent a $200 room I get stuck with paying the difference. Believe me, the punishment for defrauding the govt is harsh (for military members) because in most services you can get an article 15 and reduction in rank for merely bouncing a check at the PX. As far as civil service people with cards, that may be another story.

[marajade]

We have a state law that allows an employee to stay at a hotel at government expense which is over the state reimbursement rate as long as the hotel stay is the same as the conference hotel.

We follow federal guidelines... Plus, we have a state contracted travel agency that makes any and all arrangements for us...

We don't have enough information from Jessica to make a judgment as to abuse or not...

[KS Flyover]

Bump