“Single-biggest dollar add would go to shipbuilding”
20 years late, but a start. No doubt they could build twice as many ships if they use NON-UNION labor, but that’s a pipe dream.
Rolling Stone article by Matt Taibbi March 2019.
Might be pay-walled; so 2nd link is not pay-walled.
The Pentagon’s Bottomless Money Pit
When the Defense Department flunked its first-ever fiscal review, one of our government’s greatest mysteries was exposed: Where does the DoD’s $700 billion annual budget go?
https://www.rollingstone.com/politics/politics-features/pentagon-budget-mystery-807276/
https://militarytruth.org/the-pentagons-bottomless-money-pit-including-a-personal-experience/
excerpts:
Meanwhile, the Air Force, which has a $156 billion annual budget, still doesn’t always use serial numbers. It has no idea how much of almost anything it has at any given time. Nuclear weapons are the exception, and it started electronically tagging those only after two extraordinary mistakes, in 2006 and 2007. In the first, the Air Force accidentally loaded six nuclear weapons in a B-52 and flew them across the country, unbeknownst to the crew. In the other, the services sent nuclear nose cones by mistake to Taiwan, which had asked for helicopter batteries.
“What kind of an organization,” Andy asks, “doesn’t keep track of $20 billion in inventory?”
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. It’s 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 Pentagon’s first problem is its books. It’s the world’s largest producer of wrong numbers, an ingenious bureaucratic defense system that hides all the other rats’ nests underneath. Meet the Gordian knot of legend, brought to life in modern America.
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 military’s empire of hundreds of acronymic accounting silos was too illogical to penetrate.
The audit is the last piece in one of the great ass-covering projects ever undertaken, also known as the effort to give the United States government a clean bill of financial health. Twenty-nine years ago, in 1990, Congress ordered all government agencies to begin producing audited financial statements. Others complied. Defense refused from the jump.
It took a Herculean legislative effort lasting 20 years to move the Pentagon off its intransigent starting position. In 2011, it finally agreed to be ready by 2017, which turned into 2018, when the Department of Defense finally complied with part of the law ordering “timely performance reports.”
Last November 15th, when the whiffed audit was announced, Deputy Secretary of Defense Patrick Shanahan said it was nothing to worry about, because “we never expected to pass it.” Asked by a reporter why taxpayers should keep giving the Pentagon roughly $700 billion a year if it can’t even “get their house in order and count ships right or buildings right,” Shanahan quipped, “We count ships right.”
This was an inside joke. The joke was, the Pentagon isn’t so hot at counting buildings. Just a few years ago, in fact, it admitted to losing track of “478 structures,” in addition to 39 Black Hawk helicopters (whose fully loaded versions list for about $21 million a pop).
That didn’t mean 478 buildings disappeared. But they did vanish from the government’s ledgers at some point. The Pentagon bureaucracy is designed to spend money quickly and deploy troops and material to the field quickly, but it has no reliable method of recording transactions. It designs stealth drones and silent-running submarines, but still hasn’t progressed to bar codes when it comes to tracking inventory. Some of its accounting programs are using the ancient computing language COBOL, which was cutting-edge in 1959.
“These systems,” as one Senate staffer puts it, “were not designed to be audited.”
If and when the defense review is ever completed, we’re likely to find a pile of Enrons, with the military’s 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.
Enron at its core was an accounting maze that systematically hid losses and overstated gains in order to keep investor money flowing in. The Pentagon is an exponentially larger financial bureaucracy whose mark is the taxpayer. Of course, less overtly a criminal scheme, the military still churns out Enron-size losses regularly, and this is only possible because its accounting is a long-tolerated fraud.
We’ve seen glimpses already. The infamous F-35 Joint Strike fighter program is now projected to cost the taxpayers $1.5 trillion, roughly what we spent on the entire Iraq War. Overruns and fraud from that program alone are currently expected to cost taxpayers about 100 times what was spent on Obama’s much-ballyhooed Solyndra solar-energy deal.…..
Even the military’s top-line budget number is an Enron-esque accounting trick. Congress in 2011 passed the Budget Control Act, which caps the defense budget at roughly 54 percent of discretionary spending. Almost immediately, it began using so-called Overseas Contingency Operations (OCO), a giant second checking account that can be raised without limit.
Therefore, for this year, the Pentagon has secured $617 billion in “base” budget money, which puts it in technical compliance with the Budget Control law. But it also receives $69 billion in OCO money, sometimes described as “war funding,” a euphemistic term for an open slush fund. (Non-defense spending also exceeds caps, but typically for real emergencies like hurricane relief.) Add in the VA ($83 billion), Homeland Security ($46 billion), the National Nuclear Security Administration ($21.9 billion) and roughly $19 billion more in OCO funds for anti-ISIS operations that go to State and DHS, and the actual defense outlay is north of $855 billion, and that’s just what we know about (other programs, like the CIA’s drones, are part of the secret “black budget”).….
In a supreme irony, the auditors’ search for boondoggles has itself become a boondoggle. In the early Nineties and 2000s, the Defense Department spent billions hiring private firms in preparation for last year. In many cases, those new outside accountants simply repeated recommendations that had already been raised and ignored by past government auditors like the Defense inspector general.
After last year’s debacle, the services are now spending even more on outside advice to prepare for the next expected flop. The Air Force alone just awarded Deloitte up to $800 million to help the service with future “audit preparation.” The Navy countered with a $980 million audit-readiness contract spread across four companies (Deloitte, Booz Allen Hamilton, Accenture and KPMG).
Taxpayers, in other words, are paying gargantuan sums to private accounting firms to write reports about how previous recommendations were ignored.