By Dave Lindorff
What if the inspector general of the Department of Health and Human Services were to report that $6.5 billion in spending by that federal agency was unaccounted for and untraceable? You can imagine the headlines, right? What if it was $65 billion? The headlines would be as big as for the first moon landing or for troops landing on Omaha Beach in World War II.
But how about a report by the Pentagon's Office of Inspector General saying that the US Army had $6.5 trillion in unaccountable expenditures for which there is simply no paper trail? That is 6,500 billion dollars! Have you heard about that? Probably not. That damning report was issued back on July 26 -- two whole weeks ago -- but as of today it has not even been reported anywhere in the corporate media.
It's not that it's secret information, or hard to come by. The report is available online at the Department of Defense's OIG website . And as it states:
The Office of the Assistant Secretary of the Army (Financial Management & Comptroller) (OASA[FM&C]) and the Defense Finance and Accounting Service Indianapolis (DFAS Indianapolis) did not adequately support $2.8 trillion in third quarter journal voucher (JV) adjustments and $6.5 trillion in yearend JV adjustments1 made to AGF data during FY 2015 financial statement compilation.2 The unsupported JV adjustments occurred because OASA(FM&C) and DFAS Indianapolis did not prioritize correcting the system deficiencies that caused errors resulting in JV adjustments, and did not provide sufficient guidance for supporting system"'generated adjustments.
In addition, DFAS Indianapolis did not document or support why the Defense Departmental Reporting System"'Budgetary (DDRS-B), a budgetary reporting system, removed at least 16,513 of 1.3 million records during third quarter FY 2015. This occurred because DFAS Indianapolis did not have detailed documentation describing the DDRS-B import process or have accurate or complete system reports.
As a result, the data used to prepare the FY 2015 AGF third quarter and yearend financial statements were unreliable and lacked an adequate audit trail. Furthermore, DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions.
This dense bureaucrateze doesn't mean that $6.5 trillion has been stolen, or that this is money in addition to the $600 billion that the Pentagon spent in fiscal 2015. It means that for years -- and $6.5 trillion represents at about 15 years' worth of US military spending -- the Department of Defense (sic) has not been tracking or recording or auditing all of the taxpayer money allocated by Congress -- what it was spent on, how well it was spent, or where the money actually ended up. There are enough opportunities here for corruption, bribery, secret funding of "black ops" and illegal activities, and or course for simple waste to march a very large army, navy and air force through. And by the way, things aren't any better at the Navy, Air Force and Marines.
Incredibly, no mainstream reporter or editor in the US has seen this as a story worth reporting to the American public.
Just to give a sense of the scale of this outrage, consider that total federal discretionary spending in FY 2015 was just over $1.1 trillion. That includes everything from education ($70 billion), housing and community development ($63 billion), Medicare and health ($66 billion), veterans' benefits ($65 billion), energy ($39 billion), transportation ($26 billion) and international affairs ($41 billion), and of course that $600 billion for the military.
All the other agencies that are responsible for those other outlays, like the Dept. of Education, the Dept. of Veterans Affairs, the Dept. of Housing and Urban Development, etc., have been required by Congress since 1996 to file reports on annual audits of their budgets. The Pentagon was subject to that same act of Congress too, but for 20 years and running it has failed to do so. It has simply stonewalled, and so far has gotten away with it.
Nobody in Congress seems to care about this contempt of Congress. Neither of the two mainstream political candidates for president, Republican Donald Trump nor Democrat Hillary Clinton, seems to care either. Neither one has mentioned this epic scandal.
According to the OIG's report, this problem actually goes back a generation, to 1991, five years before Congress even passed the law requiring all federal agencies to operate using federal accounting standards and to conduct annual audits, when the Government Accountability Office found "unsupported aadjustments" were being made to the military's financial statements during an audit of FY 1991 Army financial statements. Fully 17 years later, the Army, in its FY 2008 statement of Assurance on Internal Controls, said that the "weakness" found in 1991 "would be corrected by the end of FY 2011," an outrageous decade later. But the OIG report goes on to say: