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Defense Audits Kept Behind Closed Doors

Examinations of military purchases rarely face public scrutiny. Officials value confidentiality, but critics worry about waste and fraud.

The Nation

November 21, 2004|Paul Pringle, Times Staff Writer

Proponents of increased oversight say they take little comfort in those numbers because the auditors' hush-hush culture makes it impossible to determine whether many instances of reckless spending go undetected. They also say contractors can use the proprietary exemption as a smoke screen.

The Pentagon could publicize audit summaries without compromising the government or contractors, said Steven Aftergood, who monitors government secrecy for the nonprofit Federation of American Scientists. He faulted Congress for preserving the status quo by not requiring disclosure.


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"Whenever an agency operates behind closed doors, it fosters suspicion," he said.

Rasor, who has worked with whistle-blowers on the C-130J acquisition and the Pentagon's purchase of spare parts for Lockheed's C-5 cargo plane, said auditors "save taxpayers a lot of money, but they could save more."

In the early 1980s, Rasor counseled auditor George Spanton, who alleged that his superiors had punished him for challenging billings by Pratt & Whitney, a jet engine manufacturer. Spanton's audits were leaked to the media, and his whistle-blower case led to the firing of the audit agency's director, Charles O. Starrett. The dismissal was reversed on appeal, but Starrett chose not to return.

Rasor said hoped-for reforms did not occur after the Spanton episode, and that the ranks of whistle-blowers had steadily declined, especially since Sept. 11. "There is a level of fear I have never seen in the Pentagon bureaucracy before," she said.

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Audits generally don't become public unless they are sought under the Freedom of Information Act, formally requested by a congressional committee or subpoenaed in a lawsuit. The audits that do surface often contain substantial deletions. The Pentagon invites contractors to suggest deletions in audits released under the Freedom of the Information Act. Critics say the edited audits often are worthless for oversight purposes.

"They're worse than a piece of Swiss cheese," said a procurement official, who spoke on condition of anonymity because he worried about retaliation. "It's impossible for anyone to evaluate whether the auditors are doing a good job."

The audit agency, headquartered at Ft. Belvoir, Va., describes itself as independent from the Defense Department's acquisition branch. But the auditors answer to the Pentagon's comptroller, whose boss is Defense Secretary Donald H. Rumsfeld.

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