Pentagon Paid $998,798 to Ship Two 19-Cent Washers , page 1

Pentagon Paid $998,798 to Ship Two 19-Cent Washers

www.bloomberg.com

A small South Carolina parts supplier collected about $20.5 million over six years from the Pentagon for fraudulent shipping costs, including $998,798 for sending two 19-cent washers to an Army base in Texas, U.S. officials said.

The company also billed and was paid $455,009 to ship three machine screws costing $1.31 each to Marines in Habbaniyah, Iraq, and $293,451 to ship an 89-cent split washer to Patrick Air Force Base in Cape Canaveral, Florida, Pentagon records show.

Apparently, a company that two sisters owned were "exploiting a flaw in an automated Defense Department purchasing system where bills for shipping to combat areas or U.S. bases that were labeled ``priority'' were usually paid automatically".

Over a period of 6 years, the military bought a total of just over $68,000 worth of their product, washers,and also received shipping costs of $20.5 million. (I'm glad I never ordered any washers from them!)

One of the sisters has died and the other one is facing 20 years in prison on each count and a fine of $750,000. (Hmmm, steal $20.5 million and get fined $750,000)

It's hard to believe in this day and age that this kind of thing ($20.5 million in charges for shipping washers)can still go unnoticed in our government for over six years!

I think the Pentagon better look for a new type/kind of accounting system, the American people are sick and tired of hearing about these "mistakes" that are made when the Pentagon buys or purchases something!

The Pentagon is in charge of protecting the US, but they can't even protect their own money from two people and their little "shipping scam".

www.bloomberg.com
(visit the link for the full news article)

[edit on 16/8/07 by Keyhole]