Federal Employees Waste Millions by Abusing Government Credit Cards
Like a bunch of irresponsible teenagers running through a mall with a shiny new credit card, Federal employees are using government-issued cards to ring up millions of dollars in abusive spending, according to a new GAO report.
The GAO conducted an investigation of credit card abuse at such institutions as the Department of Defense, Homeland Security and Veterans Affairs, discovering mammoth fraud.
The review of card spending at more than a dozen departments from 2005 to 2006 found that nearly 41 percent of roughly $14 billion in credit-card purchases, whether legitimate or questionable, did not follow procedure — either because they were not properly authorized or they had not been signed for by an independent third party as called for in federal rules to deter fraud. For purchases over $2,500, nearly half — or 48 percent — were unauthorized or improperly received.
I can't sigh heavily enough. Keep in mind, this is your money that's being spent. Surely all these purchases are going to worthwhile items, right? Well, if you consider Internet dating, tailor-made suits, lingerie and expensive dinners worthwhile, then I guess you tax dollars are working for you.
Out of a sample of purchases totaling $2.7 million, the government could not account for hundreds of laptop computers, iPods and digital cameras worth more than $1.8 million. In one case, the U.S. Army could not say what happened to computer items making up 16 server configurations, each of which cost nearly $100,000.
Agencies often could not provide the required paperwork to justify questionable purchases. Investigators also found that federal employees sometimes double-billed or improperly expensed lavish meals and Internet dating for many months without question from supervisors; the charges were often noticed only after auditors or whistle-blowers raised questions.
More gory details on page 2, where you'll find a breakdown by government agency.
Read More (Source: AP)
