A new report released today blasts the US Defense Department’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 “Financial Management in the Department of Defense: No One is Accountable�, was written by Kwai Chan with the group Business Leaders for Sensible Priorities. (roll tape# 1o.q.�management practices�)

Chan said that as recently as last November, the Inspector General of the Defense Department said that DOD’s financial statements did not live up to general accounting principals (roll tape#2 o.q.�welll that’s not good enough�)

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 operations…Korb asked: Why doesn’t he do it? Korb thinks it’s about personnel (roll tape#3 o.q.�financial management�)

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.�I’d do that first�)

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.�Accountable to this�)

To look up the report written by Business Leaders for Sensible Priorities, go to the web at

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