Readers Don't Buy Card Abuse

A just-released General Accounting Office study found significant abuses in the use and oversight of federal purchase cards, as Dan Eggen writes today. Funds were expended for such strategically important items as lingerie, iPods, Internet dating services and a $13,000 steak-and-liquor dinner.

Most of our Readers Who Comment, including many federal employees, are outraged by what they see as another example of government run amok and a federal thumb in the eye of taxpayers. The federal employees, though, point out that purchase cards are issued to a select few and are not to be confused with a government travel cards, which apparently many more have. They also suggest that supervisory approval is required for payments and suggest -- as does the GAO -- that better oversight is needed.

This is the kind of story that makes people angry about government. I covered federal agencies for many years and found most of the feds I encountered to be honest, effective and conscientious. I also found exceptions to that characterization. I can make the same statement about employees in private enterprises I covered. We're talking about the human condition here folks, but that doesn't make any of us happier.

We'll start with Christopherjhan, who was one of many exuding sarcasm when he wrote, "My tax dollars hard at work."

And roxanne1963 said, "We have nothing but thieving, lying thugs working for our government."

mw123 wrote, "As a federal employee, I am absolutely embarrassed."

bn1123 wrote, "...If people have legitimate expenses, they should either charge them to their own credit cards or pay cash, and then get reimbursed when they present proof of their expenses... But, then, perhaps all of this is chopped liver compared to the $billions we waste in Iraq."

dbeins pointed to the supervisory issue in writing that "...As long as no one oversees these people abuse is going to happen. It happen when Washington was president, I happened when Lincoln was president and it will happen in the future"

Tupac_Goldstein said, "...Having a government credit card entails a large degree of trust. In the few cases mentioned in this article, the trust has been violated... I am certain that the huge majority of government credit card holders observe the regulations and laws, but where oh where is the accountability?..."

mwegner wrote, "I am a Federal employee and I have one of those cards. Over the years, I have had several. I have never charged a cent to them. When I traveled, I used my own card and sorted it out when I reported the travel. MUCH SIMPLER! And I bet the abusers are a small minority of government employees, yet we are all painted with the same brush."

John991 suggests that "employees have the cards but the bills go straight to the government where they are authorized and paid. Any unauthorized use of the card will result in immediate dismissal of the employee involved. If that were the case you'd see a lot less abuse..."

kermit100 said that "...The article seriously misleads people by making it sound like the government got stuck paying the bill because someone charged something on a government credit card. The employee still has to file a reimbursement request, and it is up to the goverment agency for which they work to decide whether the expenses are reimbursable or not. The fact that these were credit card purchases is essentially irrelevant."

FairlingtonBlade wrote that, "Hey, I'd rather use my own credit card (points are useful) and file an expense report. But nooooooh (to paraphrase Steve Martin), we're required to use a govt card for travel... Some people abuse the system. They're a small fraction, but it happens. Then, rules are imposed that add hassles to everyone's work..."

cooper100 said, "...I am always cautious when stories say an auditor found violations of policy/procedure. That can mean that people signed their name on the wrong line, or didn't date their signature. Technically, a violation, but not a grievous error."

chanwoo said, "As a Federal employee, I'm outraged by this behavior - and I'm almost as angry at the light punishments doled out..."

imwizzie wrote, "...If abuse is as wide-spread as GAO finds, then it is high time someone took action not just against the cardholders but also against their billing officials who defrauded the Government by not exercising their fiduciary responsibilities."

We'll close with josiahSchmoe, who said, "...Most people pay their government credit card balances from their own pocket, and have to submit receipts for the reimbursable expenses. So you can buy an IPod with a government credit card, pay off the card, but obviously never be reimbursed. That is a major detail the article lacks... I'll get all up in arms about the cheaters here when the government starts treating its employees with a little dignity."

All comments on the credit card story are here.

By Doug Feaver | April 9, 2008; 9:40 AM ET GAO
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"How about a 35% across-the-board federal spending cut?"

Really. Just look at the FDA Medical library which was put under A76 control, then had its frozen budget cut twice in three years. You get the best protedction you pay for, but not much more.

Do not get me wrong - people were hard working and even tried to improve support roles. The most dedicated people I have seen work at FDA. But if you cut, it has to come frome something.

Posted by: Gary E. Masters | April 14, 2008 11:50 AM

It is a simple matter of connecting purchases to card holders and getting payment. Few, if any, ever "get away with it."

This is a problem to correct, not a catastrophe.

Posted by: Gary E. Masters | April 14, 2008 11:47 AM

In order to cause the federal budget to balance, spending has to be reduced. Abolish these spending cards post-haste and forevermore. If they can tell what the martian space flies had for dinner 6.5 billion years ago, then they can darn well start accounting for every copper penny of federal outlay of any kind. Abolish the cards, and publicly dismiss the more egregious offenders on-the-spot, with a lifetime bar to any type of federal or state employment. Nothing like cleaning out your desk to make you realize you did something bad, there. Get the federal budget balanced, find other ways to provide for the material needs of the employees besides giving them limitless plastic fantastic. Credit is a trap for normal people, it's a HUGE trap for the government, which also implies the need to sit down and have a frank heart-to-heart talk with the financial institutions involved in this. Reform doesn't have to hurt, but you DO have to start. How about a 35% across-the-board federal spending cut? Hold your breath for that...

Posted by: Bert | April 13, 2008 11:22 AM

Most card abuses from my experience comes about at the behest of high level managers who pressure subordinate to make questionable purchases. They will often say afterwards, they relied on the subordinate's technical expertise to cover their own hide.

Posted by: Rugs | April 12, 2008 9:54 PM

This is a problem of the same sort they had in Texas when a person (guy) ordered a pizza and then robbed the delivery person. The police knew where to go.

All of these transactions have names and addresses attached. it is just a matter of tracking down people and billing them with appropriate action taken.

This is just an indication that we should hire smarter people. They won't get caught.

Posted by: Gary E. Masters | April 12, 2008 8:59 AM

A great big sweep needs to be done to get rid of federal employees who have the inclination to commit fraudulent crimes that are punishable by federal, state, and local laws.

This story is just one of many that detail the gross miscarriage of governmental competency.

While our kids are using textbooks dating back to the 70s in run down schools, laid off workers are scrambling to find a job just to make ends meet, sick and disabled are lying destitute because of lack of insurance, you have pretentious federal employees who have the unmitigated gall to misuse/abuse taxpayer dollars.

Is the GAO really a "governmental accountability agency" or just another agency set up to waste tax dollars that could be put to better use?

Fire these "workers" who hide behind government protection and hire employees who will do their job and not commit crimes under the guise of "government purchases".

Posted by: TaxPayer101 | April 9, 2008 3:09 PM

Certainly, buying many of the mentioned items on a government card is unethical, but who paid the bill? If the government was not reimbursed by the person that used the card, then there is a real problem. If the person that used the card did infact pay the bill, then this story is a fraud in itself.

Posted by: X | April 9, 2008 12:14 PM

How much fraud was there, compared to how much legitimate expense? And how much did the GAO spend to figure this out? I have a hard time getting bent out of shape over $360 worth of lingerie, when on the same day there is a story about the Pentagon wasting many billions on useless weapon systems. It would be nice if the indignation were proportional to the amount of money wasted.

Posted by: Carla | April 9, 2008 11:50 AM

I have several problems with this. I'm not supporting misuse, but I don't support blowing this out of proportion. People are people, and I find it stunning that private sector people immediately point their fingers at "government employees" when these stories come out. It's not like the private sector is immune to this. Second, nowhere in the story do they indicate that the government actually PAID for these expenses, but rather they basically co-signed for the card. Lastly, this story seems like a perennial event. This has been going on in some form or another since the beginning of time. The irony is that the abuses at this level are small potatoes compared to the pork-barrel abuses by the Congress that will feign offense and then go back to business as usual.

Posted by: Todd Skiles | April 9, 2008 11:18 AM

I think your readers are confusing government credit cards with government purchase cards. A government credit card is something you pay out of your own pocket and get reimbursed for. A purchase card is billed right to the government. As a purchase card holder, I recognize there is a chance of abuse, but we are required to take multiple training classes and there is a fair amount of auditing being done.

Posted by: ChrisM | April 9, 2008 11:01 AM

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