Government Corruption

1. Pentagon Lost $2.3 Trillion in One Year

The War On Waste: Defense Department Cannot Account For 25% Of Funds — $2.3 Trillion
CBS News, 1/29/02

(CBS) 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.




• Given that the Pentagon completely lost track of $2.3 Trillion in one year alone, consider how much taxpayer money they may have lost track of in the past 10, 20 or even 30 years.

• Consider the potential for risk-free embezzlement by Pentagon bureaucrats.

2. Congress "Loses" $12 Billion

How the US sent $12 Billion in Cash to Iraq. And Watched It Vanish.
The Guardian

The US flew nearly $12bn in shrink-wrapped $100 bills into Iraq, then distributed the cash with no proper control over who was receiving it and how it was being spent.

The staggering scale of the biggest transfer of cash in the history of the Federal Reserve has been graphically laid bare by a US congressional committee.

In the year after the invasion of Iraq in 2003 nearly 281 million notes, weighing 363 tonnes, were sent from New York to Baghdad for disbursement to Iraqi ministries and US contractors. Using C-130 planes, the deliveries took place once or twice a month with the biggest of $2,401,600,000 on June 22 2004, six days before the handover.


3. Capital Hill Parties

Capitol Hill: Parties All the Time
Huffington Post

Fundraising parties seem to be proliferating--possibly as an unintended consequence of the otherwise laudable post-Abramoff reforms of 2007, which banned gifts from lobbyists to members of Congress, restricted the use of corporate jets by members, and curbed junkets like Abramoff's notorious Scottish golfing trip. In his new book, So Damn Much Money, Robert Kaiser quotes the prominent lobbyist Lawrence O'Brien III, who says the latest reforms "have shifted the emphasis over to political fundraising. Now writing checks and raising money is the simplest pathway to completely legal personal face time with members and their senior staff."