Casinos, strips clubs received $3 million in Pentagon credit card spending

[Anomalism]

I wish I was surprised.

http://www.mcclatchydc.com/2015/05/19/267222/audit-pentagon-credit-card-holders.html

Service members and other Pentagon employees used Defense Department credit cards for thousands of unauthorized transactions at casinos and strip clubs across the country, according to an audit released Tuesday by the Pentagon’s internal watchdog. The report by the department’s Office of Inspector General found that misuse of the official credit cards was highest in the Air Force, followed by the Army, the Navy and the Marine Corps, for the one-year period investigated, July 1, 2013, through June 30, 2014. The locations where Defense Department credit cards were used for personal transactions included the VIP Room of the Sapphire Gentlemen’s Club and Vegas Showgirls in Las Vegas, Larry Flynt’s Hustler Club in Baltimore, and Dreams Cabaret in El Paso, Texas. “DOD cardholders improperly used their government travel charge card for personal use at casinos and adult entertainment establishments,” Michael J. Roark, assistant inspector general for contract management and payments, wrote in the report.

The head of the Defense Travel Management Office acknowledged the abuses, but protested that they represent a tiny fraction of overall use of the Pentagon’s travel credit cards. “The report language applies a very broad stroke against all cardholders when, in reality, personal use of the Government Travel Charge Card is negligible when compared to the size and scope of the program,” Harvey W. Johnson, the office director, responded in a letter provided along with the report. He noted that a total of $3.4 billion in legitimate expenses were charged to the cards in the same time period. Perhaps the most intriguing aspect of the report is its identification of over $2.2 million in charges for what it described as “official use” at casinos and adult establishments.

 

[Fishstyx]

You do realize that the individual members had to pay the credit card back, right? I'm not excusing the misuse, you get briefed on the do's and don'ts for government travel card use so they clearly violated policy but its not as if this is some DOD perk for its members.

 

[longview]

I wish I was surprised.

McClatchy DC News - National, World, & Political from Washington DC

Service members and other Pentagon employees used Defense Department credit cards for thousands of unauthorized transactions at casinos and strip clubs across the country, according to an audit released Tuesday by the Pentagon’s internal watchdog. The report by the department’s Office of Inspector General found that misuse of the official credit cards was highest in the Air Force, followed by the Army, the Navy and the Marine Corps, for the one-year period investigated, July 1, 2013, through June 30, 2014. The locations where Defense Department credit cards were used for personal transactions included the VIP Room of the Sapphire Gentlemen’s Club and Vegas Showgirls in Las Vegas, Larry Flynt’s Hustler Club in Baltimore, and Dreams Cabaret in El Paso, Texas. “DOD cardholders improperly used their government travel charge card for personal use at casinos and adult entertainment establishments,” Michael J. Roark, assistant inspector general for contract management and payments, wrote in the report.

The head of the Defense Travel Management Office acknowledged the abuses, but protested that they represent a tiny fraction of overall use of the Pentagon’s travel credit cards. “The report language applies a very broad stroke against all cardholders when, in reality, personal use of the Government Travel Charge Card is negligible when compared to the size and scope of the program,” Harvey W. Johnson, the office director, responded in a letter provided along with the report. He noted that a total of $3.4 billion in legitimate expenses were charged to the cards in the same time period. Perhaps the most intriguing aspect of the report is its identification of over $2.2 million in charges for what it described as “official use” at casinos and adult establishments.

I saw this story last week, and thought another example of Government waste.
Looking into it further, the individuals are responsible for all charges on the card, authorized expenses
are reimbursed, unauthorized expenses are still the responsibility of the card holder.
With many corporate cards it works the same way. (FYI it is still pretty stupid for them to use the card that way.)

 

[ludin]

I saw this story last week, and thought another example of Government waste.
Looking into it further, the individuals are responsible for all charges on the card, authorized expenses
are reimbursed, unauthorized expenses are still the responsibility of the card holder.
With many corporate cards it works the same way. (FYI it is still pretty stupid for them to use the card that way.)

yep that is how mine works.

I make charges that are authorized and I get reimbursed when I turn in the receipt. I can charge personal items but I am responsible.

they have made massive changes to reign in abuse of the cards. as always there are people that try and get away with it.

 

[DVSentinel]

You do realize that the individual members had to pay the credit card back, right? I'm not excusing the misuse, you get briefed on the do's and don'ts for government travel card use so they clearly violated policy but its not as if this is some DOD perk for its members.

Besides having to pay that back, there are regulations against such abuse and members can face disciplinary measures for the abuse. I saw some get an Article 15s and kicked out over it.

 

[DVSentinel]

I wish I was surprised.

WASHINGTON: Casinos, strips clubs received $3 million in Pentagon credit card spending, audit finds | National Security & Defense | McClatchy DC

Service members and other Pentagon employees used Defense Department credit cards for thousands of unauthorized transactions at casinos and strip clubs across the country, according to an audit released Tuesday by the Pentagon’s internal watchdog. The report by the department’s Office of Inspector General found that misuse of the official credit cards was highest in the Air Force, followed by the Army, the Navy and the Marine Corps, for the one-year period investigated, July 1, 2013, through June 30, 2014. The locations where Defense Department credit cards were used for personal transactions included the VIP Room of the Sapphire Gentlemen’s Club and Vegas Showgirls in Las Vegas, Larry Flynt’s Hustler Club in Baltimore, and Dreams Cabaret in El Paso, Texas. “DOD cardholders improperly used their government travel charge card for personal use at casinos and adult entertainment establishments,” Michael J. Roark, assistant inspector general for contract management and payments, wrote in the report.

The head of the Defense Travel Management Office acknowledged the abuses, but protested that they represent a tiny fraction of overall use of the Pentagon’s travel credit cards. “The report language applies a very broad stroke against all cardholders when, in reality, personal use of the Government Travel Charge Card is negligible when compared to the size and scope of the program,” Harvey W. Johnson, the office director, responded in a letter provided along with the report. He noted that a total of $3.4 billion in legitimate expenses were charged to the cards in the same time period. Perhaps the most intriguing aspect of the report is its identification of over $2.2 million in charges for what it described as “official use” at casinos and adult establishments.

Your last sentence is not intriguing at all. The Air Force holds many "Flag" exercises at Nellis AFB in Las Vegas. Many of the charges for hotels, some of the restaurants and money from ATMs read that they were made at a Casino. You really think there is enough none casino hotels in Vegas for them to stay at? Are there any non-casino hotels in Vegas? Even at an Adult Establishment, food can be a legitimate charge. I wouldn't recommend doing that, but it can happen and be legit. May also have been cash withdraws, presumably for taxi's.

 

[Skeptic Bob]

Using your GPC for personal reasons is against the rules and if you misuse it you can be punished or get your card restricted. But this isn't a huge controversy as no tax payer money was wasted. As others have said, not only does each individual have to pay their own bill, failure to pay it on time can affect their personal credit score. And if you don't pay it back a letter is sent to your chain of command and if you still don't pay it back they will just take it out of your pay check.

Nothing to see here.

 

[Fishstyx]

Besides having to pay that back, there are regulations against such abuse and members can face disciplinary measures for the abuse. I saw some get an Article 15s and kicked out over it.

Its actually one of the most common charges these days.

 

[VanceMack]

I dont know if y'all remember back in the days when they first went to the Government Credit Card...but they used the Diners Club as the first card issued. Horrible idea. One of our Guidance and Control troops bought a truck on TDY using his Diners Club. Figured he could pay it back over time. Nope.

 

[DVSentinel]

I dont know if y'all remember back in the days when they first went to the Government Credit Card...but they used the Diners Club as the first card issued. Horrible idea. One of our Guidance and Control troops bought a truck on TDY using his Diners Club. Figured he could pay it back over time. Nope.

We had a guy at that time period who used it at a Fredricks of Hollywood. The First Sergeant wanted to know why he did it and his wife, when she found out, wanted to know why she didn't receive any lingerie.