Pentagon Plugs: New Study Finds Pentagon Has Hidden Trillions In Missing Money And Equipment

Sierra-RCHDDefense_Finance_Accounting_Services_(DFAS)_Official_SealI previously wrote a column about how government officials waste billions or plow whole programs in the ground without nary a reprimand. If that column bothered you, you might want to sit down. A new report has detailed how the military has cooked the books to hide trillions, that’s right trillions, in missing money and equipment. The military calls them “plugs,” a curious term for fraud. These are knowingly fake figures used to hide the fact that there is no accurate record of the money. In one finding, a single office in Columbus, Ohio, made at least $1.59 trillion in errors with $538 billion in plugs. The study reveals that government accounting records are fraudulent but that congressional oversight has been equally illusory.

The plugs are generally the work of the office of the Defense Finance and Accounting Service, the Pentagon’s main accounting agency. Required to complete an audit, the staff simply faked the numbers. When taxpayers and citizens do that, they go to jail. Yet, government officials can knowingly falsify reports and figures for billions without fear of discipline or even reprimand. To the contrary, the plugs were approved by their supervisors.

The Army actually lost track of $5.8 billion of supplies between 2003 and 2011 — leaving some units without essential equipment.

Of course, we continue to spend massive amount of our budget on new equipment and military programs — backed up by a massive lobby and industry that thrives on the defense budget. Lost equipment will just have to be replaced and more contracts awarded.

Members are considering legislation to require the government to have audits that are truthful. It is not clear what the requirement was before.

Source: Reuters

89 thoughts on “Pentagon Plugs: New Study Finds Pentagon Has Hidden Trillions In Missing Money And Equipment”

  1. Also, the oversight is exactly the same as NSA oversight–meaningless. We do not have a functioning govt. in the US. This is so scary. Money is being stolen from the people and given to the wealthy few who run things in the world. It should be obvious by now that these are people who should not run a Dairy Queen, let alone whole nations.

    These are criminals and they are incompetent as well.

    To me, this is a point of convergence for populations around the world. It will take mass, peaceful protest to oppose these criminal imbeciles.

  2. Dan 1, November 19, 2013 at 11:04 am

    I want to make my usual complaint about this story.

    These things are not done by ‘government official’. That is to say, this is not the work of regular civil servants or regular military service members.

    All these scandalous activities are actually carried out (or mandated) by politicians, political appointees, contractors, or so-called special government employees.

    DanZ
    ============================
    It is ok to keep the hope alive –unless it is BS posing as fact.

    You could supply something besides your wishes to make it so … like references.

    That is the proper way to oppose what JT wrote and posted, and to oppose what is contained in comments in the thread.

    At least if you want to express more than wishful, hopeful opinion.

    We all hope and wish your hope and wish, but that does not make it so.

  3. Cardozorolled (@Cardozorolled) 1, November 19, 2013 at 10:47 am

    … Of course combatant commanders have access to such a plane for official travel …
    ===========================
    Neither my comment nor the Washington Post article quoted from refer to “combatant commanders”, a fuzzy word.

    The reference was to: “The elite regional commanders who preside over large swaths of the planet don’t have to settle for Gulfstream V jets. They each have a C-40, the military equivalent of a Boeing 737 …”

    The “large swaths of the planet” is is anything but a secret:

    The graphic to the left shows the world wide command structure of MOMCOM.

    That is: USNORTHCOM, USSOUTHCOM, USCENTCOM, USEUCOM, USAFRICOM see also this, and USPACOM (which are all part of the size of government) [NOTE: Since this page was posted by Dredd Blog on 8/4/2011, the military has changed or removed these web pages, the Wayback Machine versions of that time have been inserted (if available) to replace these current pages: USNORTHCOM, USSOUTHCOM, USCENTCOM, USEUCOM, USAFRICOM, and USPACOM].

    By 1990, the value of the weapons, equipment, and factories devoted to the military was 83% of the value of all plants and equipment in American Manufacturing. From 1947-1990 the combined US military budget amounted to $8.7 trillion … Military industries crowd out the civilian economy … and lead to severe economic weakness.” Consider that the US military is now spending over $1 trillion per year including all black and related expenses, which is more than the entire rest of the world combined. The next biggest spender is China at $91.5 billion according to Chinese figures. Johnson summarizes, “Devotion to military Keynesianism is, in fact, a form of slow economic suicide …”

    (American Feudalism – 6). Little wonder that they have to “misplace” trillions of dollars of taxpayer money as half the nation struggles from paycheck to paycheck — for those who have jobs — that is.

  4. I want to make my usual complaint about this story.

    These things are not done by ‘government official’. That is to say, this is not the work of regular civil servants or regular military service members.

    All these scandalous activities are actually carried out (or mandated) by politicians, political appointees, contractors, or so-called special government employees.

    DanZ

  5. “I suspect the Military/Intelligence/Industrial Complex has been in charge since November 22, 1963.” (Mike S)

    And solidified their hold after 9/11/01.

    BTW Mike, I saw a credible (developed from new testing techniques) theory for the “magic bullet” and Kennedy’s backwards head movement on PBS last week. I was channel surfing when I stumbled on the show. It was far more convincing than any other theory I’ve seen or read that Oswald was the lone shooter. I want to say it was “Secrets of the Dead” but I can’t be sure about that.

  6. There are certainly complaints to be made about military excess, especially in the benefits that four-star general and flag officers enjoy, but I don’t think it is an indictment of those individuals. What we need is a nuanced discussion about what the benefits actually are and whether they are still needed. Many are hold-overs from an older time when they were in fact needed.

    But for example, criticizing the C-40 is simply silly. Of course combatant commanders have access to such a plane for official travel. They travel with a large staff and require extensive communications capability.

  7. “Members are considering legislation to require the government to have audits that are truthful. It is not clear what the requirement was before.” (JT)

    lol … sadly

    Simply cut their budget for the next year by the amount of plugs from this year. Keep on doing that year after year till they get the message. Do it on a percentage basis and take it right off the top.

  8. Cardozorolled (@Cardozorolled) 1, November 19, 2013 at 10:30 am

    What Dredd leaves out, to no surprise, because it doesn’t fit his narrative, is not only any context to what those extra people really do on a daily basis, or the fact that they are all authorized on headquarters MTOEs by Congress.
    =======================
    Register your complaint with the Washington Post, it is a quote from that newspaper:

    Other veteran commanders concurred with Gates. David Barno, a retired three-star general who commanded U.S. troops in Afghanistan, warned in an interview that the environment in which the top brass lives has the potential “to become corrosive over time upon how they live their life.”

    “You can become completely disconnected from the way people live in the regular world — and even from the modest lifestyle of others in the military,” Barno said. “When that happens, it’s not necessarily healthy either for the military or the country.”

    Although American generals have long enjoyed many perks — in World War II and in Vietnam, some dined on china set atop linen tablecloths — the amenities afforded to today’s military leaders are more lavish than anyone else in government enjoys, save for the president.

    (Washington Post). Mike S, who is Jewish but not a “Jewish Veteran” as you are, put it this way up-thread: “I suspect the Military/Intelligence/Industrial Complex has been in charge since November 22, 1963.”

    It is clear that what offends you is reality that is not an American reality, but you like it anyway.

    1. “BTW Mike, I saw a credible (developed from new testing techniques) theory for the “magic bullet” and Kennedy’s backwards head movement on PBS last week.”

      Blouise,

      For the first twenty-five years after the murder I read and watched everything available on it. Having been convinced that it was a set up job, I haven’t watched/read anything uch since. Nobody has yet come up with a viable explanation of how that magic bullet was fortuitously found on an empty gurney.

      Dredd,

      Did I miss something? What does my being Jewish have to do with this thread? I’m not offended, just perplexed, what have I missed?

  9. What has been evident for a long time is that “ethical” decisions have been made with govt. spending. As Obama calls for austerity and cuts to SS and Medicare, he ignores this fraud as the willing minion of the few.

    When the govt. “shutdown”, it was not a shutdown at all. It was a reflection of our overlords and their minions value system. Acts of war and massive illegal spying were deemed essential while school lunches were deemed dispensable.

    We also have a population in ideological disarray. Conservatives often refuse to see this massive fraud, preferring to focus on fraud committed by the poor. The people who are poor have a total yearly fraud equal to about 2 hours of this amount. Why then the near exclusive outrage against theft by the poor?

    On the other hand, for Democrats and liberals, the problem is nearly always only seen when it takes place under those whom they believe are conservatives. When a “liberal” president does it, it is legal! No big deal!

    I would say conservatives and liberals need to take a radical honesty to the big picture. This is a systematic stealing of public funds. This will take down our society. It needs to be opposed–full stop. Just because it is white color crime done by a “cool” president does not mean it isn’t wrong. It will damage our society in a way that poor people and uncool presidential minions never could.

  10. What Dredd leaves out, to no surprise, because it doesn’t fit his narrative, is not only any context to what those extra people really do on a daily basis, or the fact that they are all authorized on headquarters MTOEs by Congress.

  11. The Roman Empire was in the end taken over by its Legions and its Generals became Emperors. It seems we are replicating the model. I suspect the Military/Intelligence/Industrial Complex has been in charge since November 22, 1963.

  12. It is to be expected:

    Then-defense secretary Robert M. Gates stopped bagging his leaves when he moved into a small Washington military enclave in 2007. His next-door neighbor was Mike Mullen, the chairman of the Joint Chiefs of Staff at the time, who had a chef, a personal valet and — not lost on Gates — troops to tend his property.

    Gates may have been the civilian leader of the world’s largest military, but his position did not come with household staff. So, he often joked, he disposed of his leaves by blowing them onto the chairman’s lawn.

    “I was often jealous because he had four enlisted people helping him all the time,” Gates said in response to a question after a speech Thursday. He wryly complained to his wife that “Mullen’s got guys over there who are fixing meals for him, and I’m shoving something into the microwave. And I’m his boss.”

    Of the many facts that have come to light in the scandal involving former CIA director David H. Petraeus, among the most curious was that during his days as a four-star general, he was once escorted by 28 police motorcycles as he traveled from his Central Command headquarters in Tampa to socialite Jill Kelley’s mansion

    The commanders who lead the nation’s military services and those who oversee troops around the world enjoy an array of perquisites befitting a billionaire, including executive jets, palatial homes, drivers, security guards and aides to carry their bags, press their uniforms and track their schedules in 10-minute increments. Their food is prepared by gourmet chefs. If they want music with their dinner parties, their staff can summon a string quartet or a choir.

    The elite regional commanders who preside over large swaths of the planet don’t have to settle for Gulfstream V jets. They each have a C-40, the military equivalent of a Boeing 737

    (American Feudalism – 3, quoting Washington Post). A coup and a coup d’ etat are two different things – usually.

  13. Yes, people scream holy hell complaining about the fraud in the folks who are receive food stamps and seek to do things like drug test, etc. that will only end up hurting the kids that are on the real ends of these programs in an effort to save a couple million dollars here and there – maybe. Yet this is the real fraud and abuse that could actually balance the budget and we will hear nary a whisper about it. Not from the media, not from the public – I wonder why?

  14. Congressional oversight. Good way to describe it. If they said Congressional overlook then one would think that something was amiss.

  15. Ross 1, November 19, 2013 at 8:48 am

    Think this is the “whimper” ending to our republic. Where are the watchdog agencies? Where are the judges? Where is the voter outrage?
    ========================
    Perhaps out spending the missing “plugs?”

  16. Think this is the “whimper” ending to our republic. Where are the watchdog agencies? Where are the judges? Where is the voter outrage?

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