Pentagon Employees Used Company Cards at Strip Clubs, Casinos

According to a report by the Pentagon’s inspector general, officials allowed employees to use company cards for gambling and strip clubs without any disciplinary action.

Released Tuesday, the IG report came as a follow-up to May 2015 report in which the IG found more than 5,000 transactions at casinos and strip clubs from 2013 to 2014 totaling more than $1 million. The report found 4,437 transactions worth $952,258 at casinos and 900 transactions worth $96,576 at strip clubs made by cardholders.

For his follow-up audit, the IG chose a sample of 30 DOD employees who were among the worst offenders, thus concluding not enough action had been taken by supervisors to thwart the problem.

“DoD management did not take appropriate action when notified that cardholders potentially misused their travel card at casinos and adult entertainment establishments,” the report says. “Specifically, DoD management and travel card officials did not perform adequate reviews for the cardholders reviewed and did not take action to eliminate additional misuse.”

Beyond the expenses, Pentagon officials failed to consider the security risks of misusing cards, the report said. Travel card misuse and problem gambling are specific questions the government asks when deciding if employees should be allowed security clearances, but only two of the 30 employees who abused cards were reported. This comes despite DOD regulations requiring commanders to make such notifications “in a timely manner.”

After meeting with the auditors, another seven of the 30 cardholders were referred to have their security clearance reviewed.

Additionally, 22 of the cardholders received reimbursements for their adult entertainment expenditures to the tune of $8,544 in total.

According to the IG, these oversights occurred because officials did not educate their staff on proper us of travel cards and, furthermore, did not know what disciplinary action to take.  

Posted in General News

Tags: inspector general, Pentagon, DOD , strip clubs, gambling


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