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Corrupt Government
See other Corrupt Government Articles

Title: Government Waste Public employees second only to financial pros in fraud, study shows
Source: The Washington Free Beacon
URL Source: http://freebeacon.com/government-waste/
Published: May 15, 2012
Author: BY: Bill McMorris
Post Date: 2012-05-15 10:11:30 by SJN
Keywords: None
Views: 30931
Comments: 62

Government workers are among the employees most likely to cheat their employers, according to a new study.

The Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organization, found that public-sector administration employees are responsible for more than 10 percent of fraud cases, ranking behind only financial professionals. In 141 cases examined, the group found that a crooked employee costs taxpayers a median loss of $100,000.

ACFE analyzed nearly 1,400 cases of fraud and corruption worldwide and found that “banking and financial services, government and public administration, and manufacturing accounted for a combined 37 percent of the fraud cases reported.”

ACFE spokesman Scott Patterson said access to large amounts of money and an entitlement mentality could lead to fraud in any organization.

“Government is handling a lot of money, but there have still been cutbacks, so you can have an employee who says ‘I haven’t gotten a raise in two year, so I deserve this,’” he said.

The revelations came as no surprise to Tom Schatz, president of Citizens Against Government Waste.

“The staff at government agencies is honest and hard working, but everything is so large that it’s hard to guard against fraud,” he said. “The objective in Washington generally is to spend the money, not necessarily to examine results or worry about how effectively it’s being spent.”

A congressional staffer who has worked to combat fraud at the federal level agreed that the amount of money being spent has stretched the government thin and left limited accountability. A culture has developed that excuses lavish spending programs, he said, pointing to the GSA’s $800,000 Las Vegas retreat, which has resulted in several firings and resignations.

“The federal government is sending all of this money out and there’s no follow up, no accountability,” the staffer said. “It’s part of the culture.”

However, internal fraud is small potatoes compared with what are considered legitimate pursuits of taxpayer dollars, the source said.

Leaders in state governments have pounced upon a number of loopholes to take advantage of federal money for social programs. State employees will spend small amounts of money to grab federal millions rather than pay for social services out of their own budget.

The state of Washington issued 250,000 $1 checks in 2009 for an “energy assistance program” to food-stamp recipients. The one-time payment allowed the state to capitalize on $43 million from the federal government. A state official, Leo Ribas, said the brazen move was necessary to “leverage the federal money.” Despite the cunning move, the state received a $6 million bonus from the federal government for running an efficient program.

“These guys are gaming the system to get more money out of Washington, and their inefficiency and scamming is being rewarded with more money,” the insider said. “This type of behavior only leads to more dishonesty and it’s emblematic of the problem Washington has when spending this kind of money.”

The food-stamp program suffers many of the accountability shortfalls that can lead to a culture of lax accountability and fraud. In 2009, the program paid out approximately $50 billion in benefits; $2.2 billion of that total, however, was paid in error. More than 80 percent of the payment errors were overpayments, equivalent to $1.8 billion in program transactions, according to Kay E. Brown of the Government Accountability Office.

A case of fraud operates undetected for a median period of 18 months, according to ACFE. Operating in this type of environment allows fraud to perpetuate for lengthy periods of time, according to Patterson.

Lack of accountability creates an environment ripe for abuse, Patterson said.

“Most government organizations have audits, but … in certain bureaucracies where there aren’t the correct controls in place, that’s how the threat of fraud is more pronounced,” he said.

Schatz said the government needs to ramp up its ability to control for fraud and account for how federal funds are used.

“The GAO and various inspector generals at federal agencies continually cite the lack of internal controls at federal agencies,” he said. “That alone makes the expenditures difficult to account for and subject to fraud and abuse, both internally and externally.”

The GAO has had its budget slashed by $60 million over the past two years, a move that could cost taxpayers a lot more in the long run.

“Sixty years ago, the whole federal budget was $42.6 billion and employed 2.2 million people; today, the budget stands at an astonishing $3.7 trillion and the federal (non-military workforce) stands at 2.7 million with millions more in outside contractors,” CAGW’s Leslie Paige writes in a report. “Yet, GAO is less than half the size it was in 1950.”

A Republican congressional staffer said lawmakers must focus on stopping fraud before it starts. He said the answer lies in cutting spending, eliminating government slush funds, and increasing transparency and accountability.

“It is difficult to keep track of large sums of money when it’s going to 50 states with a bunch of different systems,” he said. “That’s why we need to reform how the federal government spends its money and how states can qualify for it; we can’t just write checks and not follow up on them.”

Calls to the GAO and labor groups representing government employees were not returned.

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Begin Trace Mode for Comment # 41.

#1. To: All (#0)

Color me shocked, just shocked I tell you! What we need more of!

/s

SJN  posted on  2012-05-15   10:12:27 ET  [Locked]   Untrace   Trace   Private Reply  


#2. To: SJN (#1)

Color me shocked, just shocked I tell you! What we need more of!

/s

And if a Republican wins the presidency you can bet we will. Public employees are only bad during Dem administrations.

mininggold  posted on  2012-05-15   12:21:33 ET  [Locked]   Untrace   Trace   Private Reply  


#4. To: mininggold (#2)

Public employees are only bad during Dem administrations.

Actually they suck no matter who is in charge, just go to any DMV in the US and see the semi-trained chimps at their best.

calcon  posted on  2012-05-15   12:33:53 ET  [Locked]   Untrace   Trace   Private Reply  


#7. To: calcon (#4)

Actually they suck no matter who is in charge, just go to any DMV in the US and see the semi-trained chimps at their best.

I went to the DMV recently and got much better service from them than Sears or Comcast. Apparently the State of California is training their chimps better than the private sector.

lucysmom  posted on  2012-05-15   12:54:35 ET  [Locked]   Untrace   Trace   Private Reply  


#12. To: lucysmom (#7)

I went to the DMV recently and got much better service from them than Sears or Comcast. Apparently the State of California is training their chimps better than the private sector.

I guess dead prople aren't allowed to drop ATT Uverse. I've given up trying to get them to stop the service of a dead relative. I've phoned and written many times and turned in all the equipment too but every month there's new charges to the bill.

mininggold  posted on  2012-05-15   16:30:51 ET  [Locked]   Untrace   Trace   Private Reply  


#15. To: mininggold, A K A Stone, Murron, Mad Dog, jwpegler, hondo68, sneakypete, Happy Quanzaa, Get Outta Dodge!, CZ82, jwpegler, Rudgear (#12)

I guess dead prople aren't allowed to drop ATT Uverse.

And why not? You're still using it.

I don't know if you're completely dead, yet... so far, necrosis appears to have manifested only above your neck.

I recommend amputation.

Capitalist Eric  posted on  2012-05-15   17:09:23 ET  [Locked]   Untrace   Trace   Private Reply  


#16. To: Capitalist Eric (#15)

And why not? You're still using it.

I don't know if you're completely dead, yet... so far, necrosis appears to have manifested only above your neck.

I recommend amputation.

Again Eric, you make yourself look stupid and mean spirited instead of the witty, genius you think you are.

lucysmom  posted on  2012-05-15   17:21:04 ET  [Locked]   Untrace   Trace   Private Reply  


#17. To: lucysmom (#16) (Edited)

Again Eric, you make yourself look stupid and mean spirited instead of the witty, genius you think you are.

I don't know what to say to such words, from someone such as... you.

How about "Thank you!"

Oh, BTW, I'm sorry you're still hurting over the fact that I possess a genius-level IQ, and you're... well, let's just say that you're somewhere between the areas they term as "dullness," and "feeble-minded."

I would imagine having an IQ somewhere around room-temperature is a bit of a drag for you, but with patience, self-education (instead of self- delusion), and turning off the boob-tube (which was designed for... well, boobs like YOU) will help dramatically.

If nothing else, I recommend you take a tranquilizer. Even better, take the entire bottle. I have no doubts you'll feel better, and so will we, as we'll know another parasite has "shuffled off this mortal coil." :)

Capitalist Eric  posted on  2012-05-15   17:40:40 ET  [Locked]   Untrace   Trace   Private Reply  


#20. To: Capitalist Eric (#17)

How about "Thank you!"

Thank you would be appropriate, but it will probably take you another 20 years to figure that out.

Oh, BTW, I'm sorry you're still hurting over the fact that I possess a genius-level IQ, and you're... well, let's just say that you're somewhere between the areas they term as "dullness," and "feeble-minded."

You're the guy who doesn't know the difference between a town and a mountain range.

If nothing else, I recommend you take a tranquilizer. Even better, take the entire bottle. I have no doubts you'll feel better, and so will we, as we'll know another parasite has "shuffled off this mortal coil." :)

I am sorry for what ever happened in your life that produced such twisted words.

lucysmom  posted on  2012-05-15   23:25:02 ET  [Locked]   Untrace   Trace   Private Reply  


#21. To: lucysmom (#20)

Capitalist Eric: How about "Thank you!"
Dumb cunt: Thank you would be appropriate, but it will probably take you another 20 years to figure that out.

I already figured it out, you stupid bitch. Your insults- words from a retard- are a joke. Your ideas have no value, and you would rather die than think.

Your empty, pathetic excuse for an existence is about to come to an end. You, and ALL of your parasite friends, are about to be cast off, to fend for yourself. You fucking LOSERS are about to get your just rewards, and nothing could make me happier.

You're the guy who doesn't know the difference between a town and a mountain range.

Please. You made an ass of yourself- again. Your typical black-is-white and white-is-black delusional world cuts no ice with the rest of the world, so again, your words mean nothing.

Me:If nothing else, I recommend you take a tranquilizer. Even better, take the entire bottle. I have no doubts you'll feel better, and so will we, as we'll know another parasite has "shuffled off this mortal coil." :)

Dumb cunt: I am sorry for what ever happened in your life that produced such twisted words.

Again, your words are as empty as your head. What HAPPENED is that I've decided that you're NOT going to live off my hard-earned money.

I cheer every day, when I hear how the economic nanny-state machine is collapsing... because each day is one day closer to the permanent divorce you parasites.

Let me be utterly clear, so there are no misunderstandings:

1. You need to learn to survive WITHOUT my money to subsidize your lazy lifestyle.

2. You don't DESERVE anything from me, my wife or my family. I'd rather see you DEAD than hobble the futures of my kids.

3. If push comes to shove, I'll use force of arms to punctuate point #2.

In summary, I'm fucking SICK of you losers. You make demands, you think you deserve respect, you think I have to bail your sorry ass out of the sling you've got yourself in...

FUCK YOU, and your demands.

Capitalist Eric  posted on  2012-05-16   1:05:05 ET  [Locked]   Untrace   Trace   Private Reply  


#36. To: Capitalist Eric (#21)

3. If push comes to shove, I'll use force of arms to punctuate point #2.

You're a fucking asshole, Junior. Don't you DARE threaten her. You want a piece of someone, I'll pay for your flight and you can go after a man instead of a very sweet Sr. Citizen.

But the fact is, we both know that you're a simpering Keyboard Kommado that IF push ever came to shove you'd piss your pants and scream for Mommy...

war  posted on  2012-07-02   19:07:30 ET  [Locked]   Untrace   Trace   Private Reply  


#37. To: war (#36)

You want a piece of someone, I'll pay for your flight and you can go after a man instead of a very sweet Sr. Citizen.

I'll take that offer.

I'll kick your fat ass from Staten Island to New Jersey.

Thunderbird  posted on  2012-07-02   20:03:02 ET  [Locked]   Untrace   Trace   Private Reply  


#40. To: Thunderbird (#37)

...your fat ass

You are one truly confused individual...

war  posted on  2012-07-02   20:50:34 ET  [Locked]   Untrace   Trace   Private Reply  


#41. To: Capitalist Eric, lucysmom, mininggold, war, thunderbird (#40)

No need for anyone to threaten violence. Like any of you are going to follow through anyway. I should have read the thread closer way back when.

A K A Stone  posted on  2012-07-02   21:14:41 ET  [Locked]   Untrace   Trace   Private Reply  


Replies to Comment # 41.

#42. To: A K A Stone (#41)

You threaten violence all the time and now you're trying the peacemaker act.

Give me a break.

Fred Mertz  posted on  2012-07-02 21:30:03 ET  [Locked]   Untrace   Trace   Private Reply  


#46. To: A K A Stone (#41)

Listen Stone..I'm getting tired of that FAT ASS Staten Island Fairy calling people out.

If he wants to pay my way to NYC to kick his ass..whats it to you?

Of course once he realizes I'm coming from California to deliver a personal George Zimmerman experience to his FAT ASS, maybe he'll reconsider his *theory* that I'm Badeye.

Thunderbird  posted on  2012-07-02 22:20:55 ET  [Locked]   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 41.

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