Saturday, June 14, 2014

Senators urge Pentagon to end systematic faking of its accounts


(Reuters) Four senators have called on the Defense Department to end a practice that involves deliberately inserting false numbers into the Pentagon's accounting ledgers and financial reports.

The senators sent a letter to Defense Department Comptroller Robert Hale urging the Pentagon to stop an accounting practice widely known as "plugging." The letter, dated June 12, 2014, said that plugs are fictitious dollar amounts inserted into financial ledgers to make it appear that the Pentagon’s books balance.

The letter (1.usa.gov/1kwEY2X) was sent by Charles Grassley, Tom Coburn, Thomas Carper and Ron Johnson. The four senators have been pressing for a solution to severe accounting problems at the Pentagon, whose spending accounts for the largest chunk by far of the annual federal budget approved by Congress. Grassley is the senior Republican on the Senate Judiciary Committee; the others hold top positions on the Homeland Security and Governmental Affairs Committee.


Read full article here.

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