The actual Pentagon audit [.pdf] reveals a lot more waste of taxpayer money than the news outlets bothered to report. (Where is that "liberal media" again? Under aWol's desk? Behind the curtains? Or maybe it was smuggled into Syria?)
On May 13, 2005 PL 109-13 "Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005," became law, and set aside $5.7 Billion for the Iraq Security Forces Fund. The Commander, Multi-National Security Transition Command-Iraq received $5.2 billion to provide equipment, services, training, supplies, and construction of and repairs to facilities and infrastructure.
On June 15, 2006 PL 109-234, "Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006" became law. That piece of legislation mandated a series of three audits of the Iraq Security Forces Fund.
The third audit is now complete, and the Multi-National Security Transition Command - Iraq (MNSTC-I) has been unable to account for over a billion dollars in materiel, services, weapons and cash. As a result, the MNSTC-I was not able to provide reasonable assurances that the Iraqi Security Forces Fund had achieved or was achieving the results the money was supposed to buy, or even that the funds were used in the manner intended when the American taxpayers were handed the tab. The MNSTC-I was not able to offer assurances that there were even safeguards in place to prevent waste, fraud and mismanagement. Because of these shortcomings, several of the auditable transactions revealed that $1.8 million of funds could have been "put to better use."
The internal Pentagon auditors recommend that the MNSTC-I develop and implement internal controls and protocols for forward-deployed personnel to observe and follow to maintain records to facilitate oversight of the funds and establish "accountable property records for expenditure of wartime funding." In addition, the audit recommended that the MNSTC-I develop procedures for the processing, management and oversight of Military Interdepartmental Purchase Requests (MIPRs) and identify personnel requirements for proper sourcing in the Joint Manning Document that is submitted through CENTCOM and the Multi National Forces - Iraq, the Joint Chiefs and the Department of Defense. The goal of the recommendations is to ensure compliance with DoD financial regulations.
Now, before we dig in to the findings, it would be appropriate to remind ourselves that the Pentagon uses accounting methods that would make your average Hollywood studio accountant turn beet-red with shame. When they admit that a billion went missing, apply exponents as multipliers until your mind is boggled and you pass out - then double it, and you might be half way there. Maybe. If they've been generous in your assessments of the waste, fraud and abuse.
Let's look at the areas the audit examined, shall we?
The actual Pentagon audit [.pdf] reveals a lot more waste of taxpayer money than the news outlets bothered to report. (Where is that "liberal media" again? Under aWol's desk? Behind the curtains? Or maybe it was smuggled into Syria?)
On May 13, 2005 PL 109-13 "Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005," became law, and set aside $5.7 Billion for the Iraq Security Forces Fund. The Commander, Multi-National
Security Transition Command-Iraq received $5.2 billion to provide equipment, services, training, supplies, and construction of and repairs to facilities and infrastructure.
On June 15, 2006 PL 109-234, "Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006" became law. That piece of legislation mandated a series of three audits of the Iraq Security Forces Fund.
The third audit is now complete, and the Multi-National Security Transition Command (MNSTC-I) Iraq has been unable to account for over a billion dollars in materiel, services, weapons and cash. As a result, the MNSTC-I was not able to provide reasonable assurances that the Iraqi Security Forces Fund had achieved or was achieving the results the money was supposed to buy, or even that the funds were used in the manner intended when the American taxpayers were handed the tab. The MNSTC-I was not able to offer assurances that there were even safeguards in place to prevent waste, fraud and mismanagement. Because of these shortcomings, several of the auditable transactions revealed that $1.8 million of funds could have been "put to better use."
The internal Pentagon auditors recommend that the MNSTC-I develop and implement internal controls and protocols for forward-deployed personnel to observe and follow to maintain records to facilitate oversight of the funds and establish "accountable property records for expenditure of wartime funding." In addition, the audit recommended that the MNSTC-I develop procedures for the processing, management and oversight of Military Interdepartmental Purchase Requests (MIPRs) and identify personnel requirements for proper sourcing in the Joint Manning Document that is submitted through CENTCOM and the Multi National Forces - Iraq, the Joint Chiefs and the Department of Defense. The goal of the recommendations is to ensure compliance with DoD financial regulations.
Now, before we dig in to the findings, it would be appropriate to remind ourselves that the Pentagon uses accounting methods that would make your average Hollywood studio accountant turn beet-red with shame. When they admit that a billion went missing, apply exponents as multipliers until your mind is boggled and you pass oput - then double it, and you might be half way there. Maybe. If they've been frugal with the waste, fraud and abuse.
Let's look at the areas the audit examined, shall we?
A 105mm M1 Abrams tank, outside the Tank-Army Automotive and Armaments Command (TACOM) Detroit Arsenal, Warren, MI
On Monday, ten specially trained auditors, criminal investigators and acquisitions experts will descend on the Tank-Army Automotive and Armaments Command (TACOM) north of Detroit to begin an audit of a sampling of approximately 6000 contracts worth $2.8 billion issued by an Army office in Kuwait that has been identified as a hotbed of corruption.
The office in question, located at Camp Arifjan, buys supplies and gear to support American G.I.'s as they rotate in and out of Iraq. Nearly two dozen Army, military and civilian employees have been charged with accepting bribes and kickbacks, and $15 million has changed hands. Depending on what the investigators discover, the number of individuals charged will likely grow. Currently the Army Criminal Investigations Command has 83 ongoing corruption investigations relating to contract fraud.
The highest profile corruption case to be charged so far involves Army Maj. John Cockerham, who stands accused of bribery, conspiracy, money laundering and obstruction. Prosecutors charge that Cockerham, in concert with his wife and sister, took at least $9.6 million in bribes in 2004 and 2005 during the time he was a contract officer in Kuwait.
Some of the red flags that have been raised include contracts awarded to vendors outside the usual competitive bidding process and contracts that went through the motions of the bidding process, then were awarded to the highest rather than the lowest bids. In other instances, what was purchased was not what was delivered.
It's all over every newspaper in the state that Susan Montee's audit of MOHELA exposes flagrant waste. At least eleven different papers have a headline something like this one from the Post-Dispatch: MOHELA audit uncovers excesses.
But you have to go to Fired Up! to get the only accurate take on the importance of the story--an aspect that all those newspapers ignored:
...[I]t became clear that an audit of MOHELA was needed because Governor Matt Blunt forced out several MOHELA officials for their opposition to his proposed sale of the agency's assets. After firing one official, Blunt subsequently paid him an exorbitant amount in hush money in an attempt to buy his silence. Such acts are the things for which audits were made.
You'd think reporters might focus on the most salient facets of the audit, in particular the way the state's chief executive used millions in MOHELA funds to cover up the politically motivated firings at the agency.
snip
The audit of MOHELA, with all the excesses it identified, is undoubtedly a good thing. But its tales of profligate spending on things like retreats and vacations should not be allowed to cover up the most malicious misuses of the agency's assets. The fact is that our state's highest ranking elected official --a man in whom, unlike MOHELA's execs, the people have placed their explicit trust-- fired MOHELA officials for their political opposition and then raided MOHELA's treasury to pay them off and quiet them down. That this is not the overarching focus of every story written about the audit is a grave disservice to the taxpayers of Missouri.
