The US armed forces spent over $900,000 at stripclubs and casinos in a year, according to a new report by the Inspector General.
In the space of just 12 months, Department of Defense government travel charge cards were used at casinos and adult entertainment establishments, in 4,437 transactions, totalling $952,258.
The Inspector General detailed the transactions as “improper use” of the cards, saying that the cardholders “likely used their travel cards for personal use at casinos and had 900 additional transactions for $96,576 at adult entertainment establishments.”
“Personal use is defined as use of the cards for expenses that do not relate to authorized expenses relating to official Government travel.
“This includes any use of Government charge cards at establishments or for purposes that are inconsistent with the official business of DoD or with applicable regulations. Personal use is misuse and may be considered abuse.”
The Department of Defense did not detect the transactions because “the Defense Travel Management Office compliance program did not help APCs identify personal use at casino and adult entertainment establishments.”
The Department of Defense also said their policy did not specifically identify high-risk merchants or categories for personal use such as casinos or adult entertainment establishments, leading to the transactions going undetected as misuse.
In addition, Citibank was not required to notify APCs or management officials of potential fraudulent activity or suspension of accounts, in relation to such transactions.
From July 1, 2013, through June 30, 2014, Department of Defense cardholders used their card to make over 20 million transactions totaling $3.4 billion.Reuse content