Eric Zuesse<\/p>\n
Now, and for many decades past<\/a><\/span>, the American public has displayed far higher confidence and trust in \u201cThe Military\u201d than in any other \u201cInstitution\u201d (including than churches, schools, the Presidency, the police, courts \u2014 any). <\/span><\/p>\n And yet \u2014 according to the Inspector General of the U.S. Department of Defense \u2014 many billions, and sometimes even trillions, of dollars, in the Department\u2019s periodic financial reports, are not documented. What has happened to the taxpayers\u2019 money is unknown \u2014 it\u2019s missing (alleged to have been spent, but to payees unidentified). <\/span><\/p>\n According to the DOD\u2019s IG, this goes on year-after-year (yet without at all reducing Americans\u2019 trust in \u201cThe Military\u201d<\/span><\/a>). Apparently, Americans, as a lot, are gluttons for punishment \u2014 or else our \u2019news\u2019media haven\u2019t sufficiently reported the \u201cwaste, fraud, and abuse\u201d that \u201cThe Military\u201d are doing to the American public. Either way, there is this extraordinarily high public confidence in the military ongoing year-after-year though the U.S. DOD continues to be the only unauditable federal Department, and expenditures amounting (over the years) into trillions of dollars remain unaccounted-for. But here will now be the American \u2018news\u2019media\u2019s chance to call to the public\u2019s attention this discrepancy between the military\u2019s reality and the public\u2019s perceptions of that reality, by publishing this documentation:<\/span><\/p>\n On July 14th, Catherine Austin Fitts posted to her website links to some of the key relevant federal documents. Her site is linked-to below, and some of the documents that refer to trillions of dollars unaccounted-for are also linked-to below, and are then quoted from, so that a reader can obtain a sense both of the enormity of the corruption, and also of the authoritativeness of the official statements that are being made here, regarding that corruption. <\/span><\/p>\n I am using here the word \u201ccorruption\u201d because whenever an official finding by a U.S. government agency is reporting trillions of dollars of taxpayer money that have been spent for purposes and recipients that are unknown, I call it \u201ccorruption,\u201d on the basis that: regardless of whether or not the matter is intended or is instead sloppiness, even mere sloppiness is heinous if it ranges into trillions of dollars of taxpayer-money missing or wrongly spent. Even sloppiness of that magnitude, in the expenditure of taxpayer funds, reflects corruption, if it continues on for years, or especially (as it is shown to do here) for decades, and still has not been stopped.<\/span><\/p>\n In fact, the most recent such IG report<\/span><\/a> makes clear (on page \u201c7 of 74\u201d) that \u201cArmy and Defense Finance and Accounting Service Indianapolis personnel did not adequately support $2.8 trillion in third quarter adjustments and $6.5 trillion in yearend adjustments made to Army General Fund data during FY 2015 financial statement compilation.\u201d<\/b> These \u201cadjustments\u201d had been made to prior<\/i> unacceptable reports, but were still<\/i> failing to explain where the money had gone. Here is the main site (solari, of Catherine Austin Fitts), and excerpts from the main documents, which excerpts are posted immediately below it:<\/span><\/p>\n \u2014\u2014<\/span><\/p>\n https:\/\/solari.com\/blog\/dod-and-hud-missing-money-supporting-documentation\/<\/a><\/span><\/p>\n DOD and HUD Missing Money: Supporting Documentation<\/span><\/p>\n Catherine Austin Fitts, News & Commentary on July 14, 2017 at 11:07 pm <\/span><\/p>\n \u2014\u2014<\/span><\/p>\n 1. 2015 Semiannual Report to Congress<\/span><\/p>\n http:\/\/www.dodig.mil\/pubs\/documents\/DODIG-2016-113.pdf<\/a><\/span><\/p>\n “We determined that 236, totaling $2 trillion, of the 263 third quarter JV adjustments in our sample, and 170, totaling $2.1 trillion, of the 194 yearend JV adjustments in our sample, were in fact unsupported.\u201d<\/b><\/span><\/p>\n \u2014\u2014<\/span><\/p>\n 6. 2010 Testimony of the Deputy Inspector General, DOD<\/span><\/p>\n http:\/\/www.dodig.mil\/IGInformation\/IGInformationReleases\/DoDIG_Testimony_Final%20(HOGR-20110923).pdf<\/a><\/span><\/p>\n \u201cWe found the Department\u2019s review process included less than half of the fiscal year 2010 first quarter gross outlays.10 Comptroller officials stated that the $167.5 billion in outlays the Department did not examine for improper payments included internal and intragovernmental transfers. Those outlays were not subject to the OMB reporting requirements since the payments did not leave the Government. However, we later determined that Comptroller officials did not perform a reconciliation to determine whether these outlays were internal or intragovernmental transfers. A complete reconciliation is still needed to demonstrate that all outlays are being examined for overpayments and in order to accurately report the extent of the overpayments. Specifically, DoD did not review approximately $167.5 billion of the $303.7 billion in gross outlays for high dollar overpayments. Additionally, some overpayments that we or the Department identified were not reported, and the First Quarter FY 2010 High Dollar Overpayments Report did not include sufficient information about recoveries and corrective actions.\u201d<\/b><\/span><\/p>\n \u201cUnless DoD improves its methodology to review all its disbursements, it will continue to understate its estimate of overpayments and will likely miss opportunities to collect additional improper payments.\u201d<\/b><\/span><\/p>\n “We are concerned with the accuracy and reliability of the Department\u2019s estimation process. Without a reliable process to review all expenditures and identify the full extent of improper payments, the Department will not be able to improve internal controls aimed at reducing improper payments. 12 The Department\u2019s financial management processes are not always adequate to prevent or detect improper payments. For example, in our recent audit of a contract supporting Broad Area Maritime Surveillance, we found DoD personnel did not validate that the contractor was entitled to $329.3 million it received as of January 12, 2010. These are costs paid to contractors that Defense Contract Audit Agency questioned because they do not comply with rules, regulations, laws and\/or contract terms which meets the definition of an improper payment. These improper payments the audit agency identified are greater than the $1.3 billion of improper payments the Department identified during 2004 to 2010.\u201d<\/b><\/span><\/p>\n \u2014\u2014<\/span><\/p>\n https:\/\/solari.com\/00archive\/web\/solarireports\/2017\/unsupported_adjustments\/DOD\/DODIG-2016-113.pdf<\/a><\/span><\/p>\n Inspector General U.S. Department of Defense Report No. DODIG-2016-113 JULY 26, 2016 Army General Fund Adjustments Not Adequately Documented or Supported.<\/span><\/p>\n “OASA(FM&C) and DFAS Indianapolis personnel did not adequately document or support adjustments made to AGF data during FY 2015 financial statement compilation. Specifically, OASA(FM&C) and DFAS Indianapolis personnel did not adequately support $2.8 trillion in JV adjustments for third quarter and $6.5 trillion in JV adjustments for yearend.17\u201d<\/b><\/span><\/p>\n \u2014\u2014<\/span><\/p>\n https:\/\/solari.com\/00archive\/web\/solarireports\/2017\/unsupported_adjustments\/DOD\/00-167.pdf<\/a><\/span><\/p>\n STATEMENT OF ROBERT J. LIEBERMAN ASSISTANT INSPECTOR GENERAL DEPARTMENT OF DEFENSE BEFORE THE TASK FORCE ON DEFENSE AND INTERNATIONAL RELATIONS HOUSE BUDGET COMMITTEE ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT Report No. D-2000-167 DELIVERED: July 20, 2000<\/span><\/p>\n “The audits of the FY 1999 DoD financial statements indicated that $7.6 trillion of accounting entries were made to compile them. This startling number is perhaps the most graphic available indicator of just how poor the existing systems are. The magnitude of the problem is further demonstrated by the fact that, of $5.8 trillion of those adjustments that we audited this year, $2.3 trillion were unsupported by reliable explanatory information and audit trails or were made to invalid general ledger accounts. About $602.7 billion of accounting entries were made to correct errors in feeder reports.”<\/b><\/span><\/p>\n \u2014\u2014<\/span><\/p>\n IN CLOSING:<\/span><\/p>\n Here, from the list of the 100 largest, are the 20 largest recipients of U.S. federal government money:<\/span><\/p>\n http:\/\/www.bga-aeroweb.com\/Top-100-Defense-Contractors-2015.html<\/a><\/span><\/p>\n 1. Lockheed Martin Corp.<\/span><\/p>\n 2. The Boeing Company<\/span><\/p>\n 3. Raytheon Company<\/span><\/p>\n 4. General Dynamics Corp.<\/span><\/p>\n 5. Northrop Grumman Corp.<\/span><\/p>\n 6. United Technologies Corp.<\/span><\/p>\n 7. L-3 Communications Holdings Inc.<\/span><\/p>\n 8. BAE Systems plc<\/span><\/p>\n 9. Humana Inc.<\/span><\/p>\n 10. Huntington Ingalls Industries Inc.<\/span><\/p>\n 11. Bechtel Group Inc.<\/span><\/p>\n 12. Health Net Inc.<\/span><\/p>\n 13. Unitedhealth Group Inc.<\/span><\/p>\n 14. SAIC Inc.<\/span><\/p>\n 15. General Atomic Technologies Corp.<\/span><\/p>\n 16. McKesson Corp.<\/span><\/p>\n 17. Bell-Boeing Joint Project Office<\/span><\/p>\n 18. AmerisourceBergen Corp.<\/span><\/p>\n 19. Booz Allen Hamilton Holding Corp.<\/span><\/p>\n 20. United Launch Alliance L.L.C.<\/span><\/p>\n As is obvious, all or almost all of these firms are contractors to (recipients of money from) the U.S. Department of Defense; and they may reasonably be presumed to be benefiting significantly from some of the unaccounted-for payments from the U.S. DOD. However, if the money isn\u2019t going to them, then where is it going? And why? And for what? Why is there no congressional investigation to answer these questions? And why are U.S. \u2018news\u2019media not publicizing this matter so as to force such investigations? Are payoffs involved \u2014 payoffs for silence? Why are none of the \u2018news\u2019media that have the resources to explore these questions, publishing their own investigations into it, since Congress won\u2019t investigate? And, since the Inspector General\u2019s reports into these matters have had no impact, why isn\u2019t the focus finally shifting away from studying to find how much is missing, toward instead prosecuting the people who \u2014 at the very least \u2014 failed to do what they were being paid to do: keep track of every cent of taxpayers\u2019 money? If doing that job is too dangerous, then shouldn\u2019t the people who are tasked to do it be paid more, so as to cover their exceptionally high personal risk? Is all of this secrecy really necessary in order to keep \u201cThe Military\u201d way on top as the most respected of all institutions in the United States \u2014 even after all of the harms that the U.S. military has actually caused in Iraq, Libya, Syria, etc., destroying those countries and others? How much would the public\u2019s respect for the military \u2014 the mass-killing institution \u2014 be brought down, if the truth about it were known? Would the mass-killing institution deserve to be the most respected institution even if it weren\u2019t<\/i> so corrupt?<\/span><\/p>\n \u2014\u2014\u2014\u2014\u2014<\/span><\/p>\n Investigative historian Eric Zuesse is the author, most recently, of\u00a0 They\u2019re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010<\/i><\/span><\/a>,<\/i> and of<\/span> \u00a0<\/i>CHRIST\u2019S VENTRILOQUISTS: The Event that Created Christianity<\/i><\/span><\/a><\/span>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Eric Zuesse Now, and for many decades past, the American public has displayed far higher confidence and trust in \u201cThe Military\u201d than in any other \u201cInstitution\u201d (including than churches, schools, the Presidency, the police, courts \u2014 any). And yet \u2014 according to the Inspector General of the U.S. Department of Defense \u2014 many billions, and […]<\/p>\n","protected":false},"author":1254,"featured_media":317690,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[115,30,96,38,524,754,523,49],"class_list":{"0":"post-318342","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-newswire","8":"tag-barack-obama","9":"tag-big-brother","10":"tag-cover-up","11":"tag-iraq","12":"tag-russia","13":"tag-syria","14":"tag-ukraine","15":"tag-usa-news"},"_links":{"self":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/318342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1254"}],"replies":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=318342"}],"version-history":[{"count":0,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/318342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media\/317690"}],"wp:attachment":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=318342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=318342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=318342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}