Warm Southern Breeze

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Posts Tagged ‘cost overruns’

Misplaced American National Priorities: Fraud in the Department of Defense

Posted by Warm Southern Breeze on Tuesday, July 29, 2014

The Department of Defense is a bloated organization, rife with fraud, waste and abuse.

Even then-Secretary of Defense (SECDEF) Donald Rumsfeld remarked on Monday, September 10, 2001, that, According to some estimates, we cannot track $2.3 trillion in transactions. … We maintain 20 to 25 percent more base infrastructure than we need to support our forces, at an annual waste to taxpayers of some $3 billion to $4 billion. Fully half of our resources go to infrastructure and overhead, and in addition to draining resources from warfighting, these costly and outdated systems, procedures and programs stifle innovation as well.”
ref: http://www.defense.gov/speeches/speech.aspx?speechid=430

More recently, on December 21, 2010, the Governmental Accountability Office wrote that they “cannot render an opinion on the 2010 consolidated financial statements of the federal government, because of widespread material internal control weaknesses, significant uncertainties, and other limitations.”
ref: http://www.gao.gov/press/financial_report_2010dec21.html

In his capacity as Acting Comptroller of the United States, Gene Dodaro wrote that, “(1) serious financial management problems at the Department of Defense (DOD) that have prevented DOD’s financial statements from being auditable, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal government’s ineffective process for preparing the consolidated financial statements.”
ref: http://www.gao.gov/financial/fy2010/10gao1.pdf

Included in that scathing report of fiscal recklessness and laziness were “material weaknesses involving an estimated $125.4 billion in improper payments, information security across government, and tax collection activities,” which were rife in “three major agencies— DOD, the Department of Homeland Security, and the Department of Labor— did not get clean opinions. Nineteen of 24 major agencies did get clean opinions on all their statements.”
ref: http://www.gao.gov/press/financial_report_2010dec21.html
ref: http://www.gao.gov/financial/fy2010/10gao1.pdf

No entrepreneur, accountant, fiscal analyst, businessman or Chief Financial Officer in their right mind would tolerate what has been allowed to happen with it. Consider the F-35 Lightning II aircraft as a case in point.

At a cost now exceeding $400,000,000,000 ($400 Billion – that’s very nearly 1/2 Trillion), it is by far, THE most costly program EVER to have emerged from the DoD. Among the numerous reasons why it is THE most expensive program ever, are Read the rest of this entry »

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