Saul Landau and Nelson P. Valdés
History quiz: Name the greatest robbery committed in the last 100 years.
A: Bernard Madoff's Ponzi scheme
B: Nazi theft of art treasures from conquered nations
C. Diamonds stolen from Africa by Belgians
D. The Pentagon budget.
This is not a tricky multiple choice question where all the answers could be correct. Only one stands out as the criminal conspiracy of the century, an ongoing fraud perpetrated by tens of thousands of beneficiaries.
Did you get it? Yes, the most fraudulent corrupt scheme ever foisted on humankind is the Pentagon budget. Since 2001, under the guise of defending the country – which the Defense Department has never done – the DOD has scammed from US taxpayers $5.1 trillion. Since its inception, it has never passed an audit and thus not accounted for the money that pours into its coffers.
Assume an auditor confronts the following entry item under "CONTRACTS DEFENSE LOGISTICS AGENCY":
"Rolls-Royce Engine Services, Oakland, Calif. (N00019-09-D-0013); StandardAero (San Antonio), Inc., San Antonio, Texas (N00019-09-D-0014); and Wood Group Turbopower, LLC, Miami Lakes, Fla. (N00019-09-D-0012) are each being awarded modifications to previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contracts to exercise options for depot-level repair for the T56 Series III engine. The award for Rolls-Royce Engine Services is $34,465,472; for StandardAero, Inc., $41,193,248; and for Wood Group Turbopower, LLC, $44,600,663. Depot-level repair of the T56 Series III engine modules is required to support fielded P-3 and derivative aircraft, as well as T56 powered C-130 and C-2 aircraft. The three major modules of the engine to be maintained and repaired under these options will be a maximum annual quantity of 160 power sections, 180 reduction gear assemblies, and 140 torquemeters. Depot-level repair of T56 Series III engine modules is required to support fielded P-3 and derivative aircraft, as well as T56-powered C-130 and C-2 aircraft…Efforts under these options are expected to be completed in February 2011. Contract funds will not expire at the end of the current fiscal year."
You still awake? Shocked at $120 million for engine repair, maintenance and modification?
The February 11 New York Times said former Blackwater employees were suing the company for routinely billing for non-existent expenses, using bogus receipts. Halliburton over-billed by billions!
Now you can imagine why it costs $1 million a year to keep one soldier in Iraq or Afghanistan? (Estimate from Center for Strategic and Budgetary Assessments).
