GAO: Pentagon Pays Too Much for Almost Everything, Including Prescription Drugs
Patrizia Obias | | Jul 30, 2014 01:01 AM EDT |
(Photo : U.S. Department of Defense handout photo dated February 6,2002 shows an aerial view of the reconstruction at the Pentagon following the September 11, 2001 attack on the building in Arlington, Virginia. )
Pentagon reportedly made excess payments on almost everything, even on prescription drugs, according to a report filed by the Government Accountability Office.
The Department of Defense paid 60 percent more on average compared to Medicaid.
In an earlier report by the DOD inspector general, the Pentagon has made excess payments to Bell Helicopters for gears amounting to US$8,124 each as against to its expected cost of US$445.
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Bell Helicopters spokesman Robert Hastings said the prices are fair and reasonable. The Pentagon underpaid for two parts, a hydraulic module and a reservoir assembly saving roughly US$231,000.
The reported facts point toward Pentagons overbudgeting on almost anything, and more evidence corroborate. For example, GAO conducted a straightforward comparison of Pentagon's purchase of over-the-counter drugs. It found the net prices of 78 common and expensive, branded and generic drugs more expensive.
Despite the given facts, the Congress continued to expand Pentagon's portfolio. It has funded various medical researches. Aside from breast cancer research amounting to US$3.6 billion, alcohol and substance abuse, Alzheimer's disease, and cancer are also under the aid.
Outside the United States, Pentagon spent about US$500 million for the reconstruction of Haiti six months after the earthquake. It also played big roles on Malaria programs in Ethiopia, goat vaccines in Uganda, rehabilitation of dams in Afghanistan and building of mobile phone networks in Iraq.
The department's tolerance on generations after generations of fraud and waste in its weapons program made it a baseline for new weapons programs. It will make the over expenditure grow exponentially. To date, GAO reported that the program cost US$300 billion.
For over two decades, the department has not passed an independent audit.
The Special Investigator General for Iraq Reconstruction, before its closure in 2013, researched on corruption and fraud involving the U.S. military, civilians and contractors. About 90 convictions were made from the search, 75 involved U.S. military staff, DOD employees and contractors.
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