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Edited on Fri Sep-03-04 04:12 AM by Karenina
for insurance fraud and credit card scams.
Went digging in the garage and found this:
Ordered Into Debt Pentagon Brass Force Credit Debt On Soldiers and Sailors
Geoffrey Gray
The numbers were staggering: $3,400 for a sumo-wrestling outfit, $16,000 for a corporate golf membership, $38,000 in cash advances for lap dances. All were part of a $101 million shopping spree made with "government purchase cards," the U.S. military's version of corporate credit cards -- another made-for-media scandal of reckless Defense Department spending.
But throughout congressional hearings on the topic in July, the real scandal with the military's other piece of plastic, the Government Travel Card (GTC), went ignored by the mainstream press, despite the fact that the card has plunged thousands of ordinary servicemen and servicewomen into debt so deep that the Pentagon is busy garnishing the wages of its own soldiers. And the only military commander known to raise hell about the scheme -- a lone Air Force colonel based in the Midwest -- says that blowing the whistle on the GTC ruined her career. Lower in the ranks, the damage has been considerable. U.S. soldiers in Afghanistan have found themselves stranded in the desert without a dime because their credit was suddenly cut off, according to a May 29 report in the Military Times, leaving families behind in a nasty catch-22: Swallow the debt, or borrow more money to pay the bills so their credit wouldn't be ruined.
Concocted by Congress in 1998, the GTC was designed to privatize the accounting of federal travel expenses and touted to save taxpayer money. (It also reaps huge fees by the financial conglomerates that issue the cards.) It works like this: Servicepeople are ordered to apply for personal GTCs -- interest-free credit cards issued exclusively by the Bank of America. Instead of requesting vouchers or getting cash to pay for travel expenses, servicepeople pay up front with the their own GTC cards -- essentially floating interest-free loans to the government. As a result, they have to submit expense reports and wait for reimbursements.
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"It's a pathetic situation when soldiers are forced to buy into a system that's likely to screw them personally," says Danielle Brian, executive director of the Project On Government Oversight, a D.C. nonprofit watchdog group. "This is just another example where the Pentagon has conjured up a scam with a favorite contractor. The desperate rush to privatization has a million warts."
Published: Aug 21 2002 Geoffrey Gray is a writer based in New York City. His work has been published in The New York Times, New York Magazine, and The Village Voice.
This article originally appeared in The Village Voice. I found it on Tompaine.com but this was back before I'd figured out the deal with links. :freak:
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