REPORT SAYS DEFENSE SPENDING OUT OF CONTROL & UNACCOUNTABLE by Mitch E. Perry05/11/06
A new report released today blasts the US Defense DepartmentÃ¢â‚¬â„¢s fiscal practices, saying the Department does not know what it owns, where its inventory is located, and how its annual budget is being spent.
The report, called Ã¢â‚¬Å“Financial Management in the Department of Defense: No One is AccountableÃ¢â‚¬?, was written by Kwai Chan with the group Business Leaders for Sensible Priorities. (roll tape# 1o.q.Ã¢â‚¬?management practicesÃ¢â‚¬?)
Chan said that as recently as last November, the Inspector General of the Defense Department said that DODÃ¢â‚¬â„¢s financial statements did not live up to general accounting principals (roll tape#2 o.q.Ã¢â‚¬?welll thatÃ¢â‚¬â„¢s not good enoughÃ¢â‚¬?)
Lawrence Korb was a former Assistant Secretary of Defense under Ronald Reagan. He quoted Donald Rumsfeld saying that he could save $20 billion dollars a year by improving procurement and business operationsÃ¢â‚¬Â¦Korb asked: Why doesnÃ¢â‚¬â„¢t he do it? Korb thinks itÃ¢â‚¬â„¢s about personnel (roll tape#3 o.q.Ã¢â‚¬?financial managementÃ¢â‚¬?)
Warren Langley is the former President and CEO of the Pacific Stock Exchange. He said he was overwhelmed after reading the report that somebody needs to take responsibility . (roll tape#4 o.q.Ã¢â‚¬?IÃ¢â‚¬â„¢d do that firstÃ¢â‚¬?)
And Langley mentioned the Oxley-Sarbanes Legislation of 2002, passed in the aftermath of the corporate scandals at Enron, World Com and other corporations. That law requires chief executives of publicly traded companies to personally validate the accuracy of financial statements, as well as the integrity of internal controls designed to protect financial data (roll tape#5 o.q.Ã¢â‚¬?Accountable to thisÃ¢â‚¬?)
To look up the report written by Business Leaders for Sensible Priorities, go to the web at Sensiblepriorities.org