US Federal Credit Cards Are Being Misused

The particular Government have come under fire recently for being too liberal when allocating expense credit cards to employees and has also been criticised for not clamping down sufficiently on their misuse. Allegedly people working for the Department of Veteran Affairs in particular already been using government credit cards to pay for luxury hotels, cinema trips, expensive meals in restaurants and casino bills. Reportedly have been 3.1 million purchases made last year which totalled $2.6 billion dollars, even though the majority of this was appropriate spending.
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This month the US Office of Management and Budget (OMB) said that they would accept the help which was offered within by congress in order to address the make a difference. They may choose to pass a new bill that allow them to fire employees for “egregious abuse of government credit cards”. Cases where employees are suspected of fraud might be passed on to federal prosecutors.

In a statement published on washingtonpost.com the deputy director of federal management issues at the OMB said: “The vast majority of civilian employees, government employees, use the cards sensibly. At the same time, I’d personally say there is abuse, and the goal is zero, and we will have to make it zero.”

An investigative report released this month revealed that some government employees had used their expense account credit cards to buy cameras, laptop computers, high-end suits, lingerie and mp3 players. Previous reports also list baseball tickets, jewellery, cell phones and unbelievably, even escort services. One case shockingly included breast enhancement surgery for the employee’s wife. These issues are from a current investigation but a non-profit group called Project on Government Oversight which investigates governmental corruption said they had flagged up the particular same problem as far back as 2002.

According to Stephen Barr the Federal Diarist: “In general, the “purchase card” programs were set the decision of permit employees to buy as much as $2,500 worth of goods and services that are necessary and reasonable for the process of their agencies. The government contracts with five banks for credit cards business logo for favorable interest rates and rebates. In fiscal 2007, the banks provided the government with additional than $170 million in incentives.”

The report also testified that there are many numerous kinds of government credit invites. The cards focussed on within the report were “purchase cards” which carry the employee’s names and the bills are sent to agencies for payment. Employees are anticipated to reimburse these agencies for any purchases usually are not considered acceptable government spending but rarely are employees questioned on suspicious items.

One example with the is a Navy employee who bought more than $900 dollars of office stationary supplies, such as a $400 dollar dslr and an iPod worth $200 dollars. Both the employee and also the official who sanctioned his request said they both had no recollection of purchasing or processing these tools. When the authorities asked whether these items had been converted to personal use or stolen, the Navy responded that the items had not been reported and could therefore not be located. The estimated amount of purchases which were improperly authorised is allegedly 41%.

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