10/6/15 Government Credit Cards

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The Defense Department Inspector General issued a report detailing misuse of government-issued credit cards.  A federal law enacted a few years ago requires I.G.s to periodically audit use. 

The 2012 law was in response to repeated misuse of government credit cards.  In addition to mandated I.G. audits, agencies were directed to establish protocols to prevent abuse or take action when it occurs.

Obviously, this didn’t happen.

During the one year period ending June 2014, the I.G. found there were nearly four and a half-thousand transactions, made by twenty-six hundred cardholders, totaling nearly one million dollars at casinos and strip clubs.

In their defense, agency credit card managers said they couldn’t possibly identify credit card abuse.

Maybe they have a point.  Let’s examine sample purchases to see if the vendors’ names are too vague to identify as casinos or strip clubs.

$300 was spent at “Dreams Cabaret”
$2,100 at “Vegas Showgirls”
$1,600 at “Larry Flynt’s Hustler Club”
$4,700 at “Sapphire Gentlemen’s Club”

Other establishments included Jaguar’s Gold Club, Tequila Sunrise and the Red Parrot Gentlemen’s Club.

This is my stunned face.

We’ve reported sloppy practices before. Such as agencies losing track of thousands of government cell phones, exorbitant job transfer expenses, and misusing credit cards.

This is what happens when government gets too big and unmanageable.

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