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THE WAR ON WASTE - Rumsfeld Says 2.3 Trillion Dollars Missing
CBS News ^ | January 29, 2002 | By Vince Gonzales

Posted on 02/01/2002 2:41:48 PM PST by Uncle Bill

THE WAR ON WASTE

Defense Department Cannot Account For 25% Of Funds — $2.3 Trillion

On Sept. 10, Secretary of Defense Donald Rumsfeld declared war. Not on foreign terrorists, "the adversary's closer to home. It's the Pentagon bureaucracy," he said.

He said money wasted by the military poses a serious threat.

"In fact, it could be said it's a matter of life and death," he said.

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, CBS News Correspondent Vince Gonzales reports, 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. To understand how the Pentagon can lose track of trillions, consider the case of one military accountant who tried to find out what happened to a mere $300 million.

"We know it's gone. But we don't know what they spent it on," said Jim Minnery, Defense Finance and Accounting Service.

Minnery, a former Marine turned whistle-blower, is risking his job by speaking out for the first time about the millions he noticed were missing from one defense agency's balance sheets. Minnery 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, you know? 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 by just writing it off.

"They have to cover it up," he said. "That's where the corruption comes in. They have to cover up the fact that they can't do the job."

The Pentagon's Inspector General "partially substantiated" several of Minnery's allegations but could not prove officials tried "to manipulate the financial statements."

Twenty years ago, Department of Defense Analyst Franklin C. Spinney made headlines exposing what he calls the "accounting games." He's still there, and although he does not speak for the Pentagon, he believes the problem has gotten worse.

"Those numbers are pie in the sky. The books are cooked routinely year after year," he said.

Another critic of Pentagon waste, Retired Vice Admiral Jack Shanahan, commanded the Navy's 2nd Fleet the first time Donald Rumsfeld served as Defense Secretary, in 1976.

In his opinion, "With good financial oversight we could find $48 billion in loose change in that building, without having to hit the taxpayers."

©MMII, CBS Worldwide Inc. All Rights Reserved.

1.1 Trillion Dollars Missing At Defense Department

3,400,000,000,000(Trillion) of Taxpayers' Money Is Missing

Federal Government and Congress To Lower Boom On Enron - Criminal, Fraud, Waste, Accounting Methods

BUSH SPENDING BILL LARGEST EVER

Enron has 42 contracts with the federal Government, including the supply of chemicals to the Pentagon. "Arthur Andersen" has 64 contracts covering a range of consulting services.

"How do we know we need $48 billion since we don't know what we're spending and what we're buying?"
Retired Vice Admiral Jack Shanahan


TOPICS: Breaking News; Crime/Corruption; News/Current Events
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1 posted on 02/01/2002 2:41:48 PM PST by Uncle Bill
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To: Uncle Bill
That's more money GONE than Bush's TAX CUT!
2 posted on 02/01/2002 2:45:09 PM PST by princess leah
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To: Uncle Bill
Where has Vince Gonzales, CBS News, been for the last eight years?
3 posted on 02/01/2002 2:51:17 PM PST by kcvl
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To: OKCSubmariner; Askel5; Donald Stone
Government credit cards: 3.1 million and growing along with abuses
"AP reported last month that 1.8 million credit cards used by Pentagon employees wracked up nearly $9 billion in debt in 2000. One bank alone was forced to write off $58 million in fraudulent or abusive purchases by military personnel."

Courting the Presidential Con
"Felonies? Yes, felonies. Trillions are missing from federal agencies. That's right, gone. Poof! As in, "Nowhere to be found." People familiar with government accounts have charged off the record that in 1996 a concerted and intentional effort began with the support of the Office of Management and Budget and Treasury to strip agencies of honest officials and internal financial controls."

GAO Reports Allege Pentagon Fraud - Conservartive News Service
"The Pentagon's bookkeeping "is the taxpayers' worst nightmare, but it's an embezzler's dream come true,"

Pentagon Defied Laws and Misused Funds, Panel Reports
"Representative Jerry Lewis, Republican of California and chairman of the committee's defense spending panel, said the Pentagon's actions showed its belief "that it can even move money to a program Congress has closed down, maybe presuming, 'Oh, well, nobody will know.' "

4 posted on 02/01/2002 2:53:24 PM PST by Uncle Bill
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To: Uncle Bill
Waste? Yeah, how P.C. I think a merchant term is more appropriate - "shrinkage"
5 posted on 02/01/2002 2:59:41 PM PST by Shermy
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To: Uncle Bill
I always knew that we pay way too much in taxes even with what the Government says and that some people were stealing it.
6 posted on 02/01/2002 3:01:06 PM PST by weikel
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To: Uncle Bill
not says I meant spends.
7 posted on 02/01/2002 3:01:28 PM PST by weikel
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To: Uncle Bill
I wonder how much the civilian parts steal given that the military is more honest in most respects.
8 posted on 02/01/2002 3:02:44 PM PST by weikel
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To: Uncle Bill,seattlesue,Benighted
You know.....rather than trying to find the wasteful, corrupted, utterly useless department of our government, it would be a hell of a lot easier to try to produce 1!!!

Everytime you turn around, there's another GAO report showing just how egregious these bureaucrats are at not meeting their own goals!

9 posted on 02/01/2002 3:04:20 PM PST by Rowdee
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To: Uncle Bill
STEALING is not "waste" --- check Cohen's accounts first.
10 posted on 02/01/2002 3:06:52 PM PST by ValerieUSA
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To: Uncle Bill
Well, why wouldn't they move money....sheesh, if the Department of Interior can move money around for the biological surveys Babbling Babbitt wanted, why can't DOD do the same thing!!
11 posted on 02/01/2002 3:06:54 PM PST by Rowdee
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To: Shermy
What is your thought that possibly some of this money has been siphoned off to go to other "fundings" that the American people are not aware of? I am thinking of secret companies/groups that may be "underground". These groups may or may not be legitimate. I am recalling the book: Bush, Clinton and the CIA.
12 posted on 02/01/2002 3:08:09 PM PST by jcmfreedom
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To: Uncle Bill
The WAR ON WASTE.....the one war no politician or bureaucrat will ever WAGE!
13 posted on 02/01/2002 3:09:23 PM PST by Rowdee
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To: Uncle Bill
Does anybody seriously think that the Clinton's only took furniture and art work on their way out?

What about all those underlings with average paying jobs having to hire high priced Attorneys to help them escape Clinton culpability?

Sure do hope we don't turn to the General Accounting Office with David (Arthur Anderson) Walker tasked to try and find the money.

Can everybody spell Offshore Accounts?

14 posted on 02/01/2002 3:14:56 PM PST by BOBTHENAILER
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To: jcmfreedom
Yeah that too, but mostly to corrupt contractors.
15 posted on 02/01/2002 3:15:14 PM PST by Shermy
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To: Shermy
Surely you're not suggesting that ALGore's efforts the past 8 years were less than perfect?
16 posted on 02/01/2002 3:16:03 PM PST by Young Werther
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To: Uncle Bill
bumping for later reading
17 posted on 02/01/2002 3:16:22 PM PST by Teacher317
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To: Uncle Bill
Wonder when Enron got those contracts. Wonder why whistle blowers who are supervising the payout of MY money, of YOUR money and eveyone else's are PUNISHED???? This makes me so damn mad. I want a full out investigation, I want all WHISTLEBLOWERS PROMOTED and I want heads to roll. Even if those heads are retired now. 2.3 TRILLION DOLLARS? Infuriating.
18 posted on 02/01/2002 3:22:08 PM PST by Republic
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To: Rowdee
The WAR ON WASTE.....the one war no politician or bureaucrat will ever WAGE!.....Here we go again. More $600 toilet seats and screw drivers. Regardless of what administration is in power, this kind of stuff is talked about but never addressed. Bush wants more money for the military? Let em' find in in the WASTE basket.
19 posted on 02/01/2002 3:28:00 PM PST by orfisher
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To: Uncle Bill
That 2.3 trillion dollars is NOT missing. It's in Hillary Clinton's campaign account in the Bahamas.
20 posted on 02/01/2002 3:28:05 PM PST by Magician
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