July 19th, 2002
By John Yang
co-host: BOB WOODRUFF
ABC News/Good Morning America
You may remember that $600 toilet seat that came to represent military
waste. If you thought the days of wild spending were under control, think
again. A congressional committee is putting the Army on notice for some
unexpected military spending. ABC's John yang joins us now from the Pentagon.
JOHN YANG reporting:
Bob, the issue here is use of Pentagon-issued credit cards. The idea
was to save money by eliminating costly paperwork on small purchases, but
investigators found that's not the way it's working out.
(VO) ...personnel rang up $38,000 in credit card charges at strip clubs,
$630 in escort services, and charged with Pentagon credit cards marked
for official government use only.
Representative JANICE SCHAKOWSKY (Democrat, Illinois): This is not just
a nickel and dime kind of operation, a couple of guys going to a--a strip
club. We are talking about a culture, a systematic problem within this
department.
YANG: (VO) That culture seems to have applied to official purchases,
too. A $30,000 credit card purchase of 80 Palm Pilots was explained in
an e-mail. A command decision was made to get enough goodies for everyone.
The Palm Pilots ended up in a storage cabinet.
Senator CHARLES GRASSLEY (Republican, Iowa): It's also like a cancer,
it catches on. And if a few officers can do it, why can't a few sergeants
do it?
YANG: (VO) Congressional investigators said more than 1200 Army employees
wrote bad checks to pay their government credit card bills. Last year alone,
that cost taxpayers $3.8 million in fees and lost rebates. At a House hearing,
Pentagon officials admitted lax oversight. Lawmakers said the mismanagement
rivals the accounting scandals in corporate America.
Rep. SCHAKOWSKY: We're talking about trillions, $1.2 trillion, that
we don't know where it is or how it's accounted for.
YANG: Lawmakers say that this could also be a national security problem.
Forty of the Army's worst cases of bad checks have security clearances
of top secret or higher. Bob:
WOODRUFF: All right, John, national security problem.
And when GOOD MORNING AMERICA continues, the surprise announcement,
Angelina Jolie files for divorce from her soul mate Billy Bob Thornton.
Stay with us.
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