Report: Billions in defense spending unchecked

[May 28, 2008]  WASHINGTON (AP) -- Pentagon auditors say billions of dollars in military spending is going unchecked because they are having trouble keeping pace with the ever-expanding defense budget and combat operations in Iraq and Afghanistan.

In a recent report, the Defense Department inspector general estimates that nearly half of the military's $316 billion weapons budget went unchecked last year because the IG's office lacked the manpower. Whereas 10 years ago when a single auditor would have reviewed some $642 million in defense contracts, individual investigators are now charged with auditing more than $2 billion in spending.

The IG also has been stretching its staff to investigate corruption and fraud cases overseas, primarily in Iraq and Afghanistan where the military is hiring contractors to help run operations.

"The continual degradation of audit resources that is occurring at a time when the (Defense Department) budget is growing larger leaves the department more vulnerable to fraud, waste, and, abuse and undermines the department's mission," the report states.

"Our coverage of high-risk areas and defense priorities is weakened and will continue to be weakened by insufficient personnel to accomplish our statutory duties," it adds.

The March assessment was obtained by the Project on Government Oversight, a watchdog group based in Washington.

In this year's budget, Congress approved an additional $24 million for the IG office to improve contract oversight. According to the IG, it will need another major boost -- $25 million more than President Bush requested -- to meet its requirements in 2009.

The IG says it plans to hire some 481 new personnel in the next seven years, expanding to more than 1,900 full-time employees.

[Associated Press; By ANNE FLAHERTY]

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