Thursday, 02-Oct-2003 10:00AM PDT Story from United Press International
Copyright 2003 by United Press International (via ClariNet)
MIAMI, Oct. 2 (UPI) -- The Pentagon's inspector general is investigating allegations that the Special Operations Command at MacDill Air Force Base in Tampa, Fla., is squirreling away money in its budget for use on a rainy day. House Appropriations Chairman C.W. "Bill" Young, R-Fla., questioned Pentagon Comptroller Dov Zakheim at budget hearing Tuesday, and Zakheim denied any wrongdoing. Young was not satisfied, and is expected to pursue the issue.
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Zakheim said, however, he was limited in his response because of the ongoing audit of the issue, which originally was sparked by a telephone call to the Pentagon's Defense Hotline. Sen. Bill Nelson, D-Fla., said he has asked the Senate Armed Services Committee, of which he is a member, and the General Accounting Office to conduct their own investigation of the practice.
The St. Petersburg Times said in an exclusive report Sunday the Special Operations Command inflated its budget by $20 million in order to have that money for discretionary use later. On Thursday the paper reported the Justice Department was looking into an additional $25 million.
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"Our objective will be to review the allegations to the Defense Hotline concerning funds 'parked' at the U.S. Special Operations Command by the Office of the Under Secretary of Defense (Comptroller)," said a letter from the inspector general's office to Gen. Charles Holland, who has since retired as Special Operations commander.
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Among several documents The St. Petersburg Times obtained during its investigation was e-mail sent by Special Operations Command Comptroller Elaine Kingston to colleagues in February 2002.
She said an unidentified official in the Pentagon comptroller's office had asked her if the command could "park" $40 million of research-and-development money in its proposed budget for the 2003 fiscal year.
She said the Pentagon had it parked with another agency but that agency developed a problem with it. She said there was no way she could take the $40 million, but agreed to deal with $20 million.
The programs where the money was placed included missile warning systems on aircraft, infrared equipment on helicopters and radar system. The amounts ranged from $2 million to $5 million.
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Kingston said in the e-mail message she coached her colleagues on how to account for the money and avoid attracting congressional attention to it. "We are doing a favor for the OSD (Office of the Secretary of Defense) which we hope will benefit the command if we should need additional (research and development funds)," the message said.
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http://english.aljazeera.net/NR/exeres/635B6007-9DD0-436C-BFF6-E6521520B1C7.htmPentagon finance manager resigns
Thursday 11 March 2004, 7:39 Makka Time, 4:39 GMT
The Pentagon's chief financial officer has offered his resignation after overseeing a spiralling defence budget look set to hit $450 billion in 2005.
A former adjunct economics professor at New York's Yeshiva University, Rabbi Zakheim has spent more than 30 years working in various jobs at the Pentagon.
A conservative Republican who graduated from Jew's College in London in 1973, Zakheim first joined the Department of Defence in 1981 under former president Ronald Reagan.
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The rabbi was a senior foreign policy adviser to then - Governor George Bush during the 2000 presidential campaign.
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But that does not include additional spending needed to support US wars in Iraq and Afghanistan - a sum expected to range from $30 billion to $50 billion.
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A study by the Defense Department's inspector general found that the Pentagon couldn't properly account for more than a trillion dollars in monies spent.
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http://quickstart.clari.net/qs_se/webnews/wed/dp/Uus-defense-young-analysis.RUt1_DO2.htmlPentagon couldn't properly account for more than a trillion dollars in monies spent.