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Im just glad they did not use the govt card to order some Mosins man the press would have gone nuts :)


Prostitutes Paid With Pentagon Plastic

WASHINGTON, Oct. 8, 2002
(CBS/AP)

Last summer, the GAO found that some 200 Army personnel had used the cards to get $38,000 in cash that they spent on lap dances and other forms of entertainment at strip clubs near military bases.

(AP) Navy personnel bought jewelry, attended ball games and even hired prostitutes at Nevada brothels with government funds, congressional investigators have found in the latest examples of abuses in the Pentagon credit card program.

Despite increased Defense Department efforts to control misuse of the travel cards, a General Accounting Office report showed the abuses continued at least through last March — long after investigators first reported on the problem in the summer of 2001.

From October 2000 through March 2002, the new survey found 1,180 Navy transactions for personal items totaling $206,700. Lower-paid enlisted personnel earning between $12,000 and $27,000 were the biggest abusers but the Navy bears responsibility for failure to monitor the travel card program, the GAO said in the report obtained Monday.

The Pentagon has stepped up its efforts to control use of the cards. Some 400,000 inactive accounts unused during the previous year have been canceled. Those who abused the cards have had money involuntarily deducted from their paychecks.

Officials who grant security clearances now are notified when a card holder comes under investigation. And the military has promised to step up civil and criminal prosecutions.

Last summer, the GAO found that some 200 Army personnel had used the cards to get $38,000 in cash that they spent on lap dances and other forms of entertainment at strip clubs near military bases.

The new Navy study found additional use of the cards to obtain cash at adult clubs — money normally used to tip dancers, waitresses and bartenders.

"Once again the bottom line is the same: no controls, extensive abuse and no accountability," said Sen. Charles Grassley, R-Iowa.

Grassley, referring to the use of credit cards in two legal Nevada brothels, added, "This time around there was a new twist. The GAO found abuse taken to new depths."

The brothel payments were disguised as restaurant and dining bar charges.

In testimony prepared for a House Government Reform subcommittee chaired by Rep. Stephen Horn, R-Calif., GAO officials Gregory Kutz and John Ryan sharply criticized the Navy's lack of scrutiny.

"The Navy's practice of authorizing a travel card to be issued to virtually anyone who asked for it compounded an already existing problem by giving those with a history of bad financial management additional credit," the officials said.

During the fiscal year that began Oct. 1, 2000, the Navy had about $510 million in travel card charges and about 395,000 individually billed travel card accounts.

After the Pentagon began docking the pay of soldiers and defense workers with unpaid credit card debts last year, the average bad debt write-off dropped from $1.7 million a month to $300,000 a month.

The Navy report said there were 80 transactions totaling $13,250 at the two Nevada brothels; 199 purchases for $20,800 at two jewelry stores; 247 transactions totaling $28,700 at three adult clubs; 80 gambling transactions for $34,250; 72 cruises for $38,300; and 502 purchases of tickets, worth $71,400, to entertainment events, including "The Phantom of the Opera," New York Yankees and Atlanta Braves baseball games and Los Angeles Lakers basketball games.

The Navy's delinquency rate from the cards fluctuated from 10 percent to 18 percent, about 6 percent higher than for federal civilian agencies, the report said. As of March 31 this year, more than Navy 8,400 cardholders owed $6 million, the report said.

Employees with travel cards charge expenses for official trips, get reimbursed by their agencies and then must pay the bill. The government isn't liable for its employees' failure to pay.

The GAO said some personnel holding security clearances had difficulty paying their travel bills and could be security risks because of their financial situations. Despite this, Navy security officials were unaware of these financial problems and could not consider their potential effects in determining whether to grant a security clearance.


©MMII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
 

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Nice! Glad my tax money isn't being wasted or anything!:mad: :mad: :mad: :mad:
 

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Now i know why we're getting all those new breifings that the army is cracking down on the charge cards. we had a breifing last week where they can track everywhere that we spend money with the cards, and how much. the S4 officer sees it, and if it's not authorized they'll take us to see the colonel to explain, and probably some ucmj charges too.
 

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Oh, I been their done that back in '76-'79... Combat Engineers...waste, waste, waste!
 

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I got questioned on a recent TDY on a bill in England. We got in late and no place was open to eat. We ate at the resturant at the hotel. I ordered 2 pints for me and bought a round for 3 or so others. You'd think we were at a strip bar for cripes sake! I explained the bill WILL get paid at the end of the month and the charges for that day DID NOT exceed the daily perdium in the UK. Bottom line~ not appropriate use of the card. I could have found a teller and burned the whole $60 worth of perdium on comic books and no one would have cared.

They do have a neat option now. I don't know if you have it John O. It is called direct dispersmemt. Claim your cash withdrawls, hotel bills on the voucher and select direct disp. They will send the credit card Co. the payment from finance. Then, you get what's left of your perdium by check.
 

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I have heard something about that, so i think we have it. I've never had a government card, and can live without one.

that's what our commander told us to do too, just take the days per diem out at the atm and then do what you want with it.

another thing that happened in our battalion recetly is that somone called the section leader that issues that travel cards asking him to activate the card so that he could make a car payment.
 

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Back in the day, they used to give you a big wad of cash advancement before going TDY. I think it was 80%. Then you filed for the remainder when you got back. Oh, those were the party days!
 

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This is the exact reason that cash eventually will cease to exist. Plastic is easy to track cash is not.
 

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Thats why I hoard my cash!
 

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John O,
they shold have that guy stand up at commanders call & explain how much of a dum bass he is.
 

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Im pretty sure he's done that by now. I haven't seen the ucmj posted yet, but then he's not in my company. my company doesn't do dumb stuff like that.
 

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I could see a LOR for asking to activate the card (to make a car payment) but Iwouldn't think it would be a UCMJ offense unless the guy went ahead and fullfilled the request to activate then the troop used it.

I'm glad your company doesn't do that kind of dumb stuff. I'm sure that reflects the quality of a troop they have in Johno!
OOOrah!
 
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