Pentagon finds accounting error worth 2$ billion under the cushions for Ukraine
Pentagon finds accounting error worth 2$ billion under the cushions for Ukraine
"The Pentagon announced on June 21, 2023 that it had overestimated the value of arms sent to Ukraine over the past two years by $6.2 billion. Now, the discovery of additional errors brings the total unspent sum to $8.2 billion."
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"U.S. Presidential Drawdown Authority (PDA) allows the president to allocate equipment from U.S. stocks, such as ammunition, vehicles, and medical supplies, to respond to crises abroad. PDA arises from the Foreign Assistance Act of 1961.
The Pentagon's "efforts to properly value defense articles for drawdown are hampered because the Foreign Assistance Act does not clearly define certain terms and DOD lacks PDA-specific valuation guidance," according to the GAO.
Due to the errors, the Defense Department can send a further $2 billion in weapons to Ukraine to cover the amount already approved by U.S. President Joe Biden."
2$ billion under the cushions
no way jd vance’s jism is worth that much
Creative accounting, the kind that will get you fired and disqualified from the practice anywhere else, gets you promotions at the Pentagon.
Hollywood too.
ENDLESS TRASH
I think the US is effectively spending far more on Ukrainian military aid than the official numbers say. Possibly like 2-3x.
Take this package for example. $225 million for a patriot battery and a bunch of other stuff? Not likely, since a patriot battery alone costs $1b.
Then there are other things like Stinger missiles which used to cost $100k each, but now cost $500k to make replacements.
I think the key point here is depreciation, the dollar amount of aid they’re sending is based on the current book value of equipment. I was able to find some documentation listing the depreciation method the DoD uses and the useful lives of various asset classes here: https://comptroller.defense.gov/Portals/45/documents/fmr/archive/04arch/04_06_Jun08.pdf
They use straight line depreciation or a special “activity based” method for some specific equipment so the useful life of say, a stinger missile, would be either 5 or 10 years based on the tables there. That $100k missile could be listed on the books as only $40k three years after purchase or even $0 if it’s older than five years. I can only assume the military uses such an aggressive depreciation method to justify constant funding to feed the MIC by replacing “outdated” tech and selling it off/giving it to allies. I don’t think anyone could reasonably argue that a rifle is suddenly obsolete and worth nothing after sitting in an armory for 5 years but that’s how they put it on the books 🤷♂️
And on top of that, they can always write down the value further due to “impairment” like obsolescence. For example, maybe a specific missile costs $1 million and it is straight-line depreciated for 5 years. After 3 years the book value is $400k. However, they can just say “we have a new missile that’s better so this old missile is obsolete, the value should only be $100k” then they can write down the book value even further.
Also, if they use FIFO inventory accounting, only the oldest stuff on record is used EVEN IF IT ISN’T physically the oldest stock. So if the costs of the equipment get more expensive every year then what’s counted as being given to Ukraine has the lowest value, even if in real terms they are giving them the newest stock.
This might be a dumb question, but what is the actual point of the government lying about something to claim reduced costs? I remember having this thought when the Biden admin held that press conference to announce that the Gaza aid pier had actually cost $200 million and not $300 million. Once numbers get unfathomly large my mind more or less equates them, and it's not like I have any intuition that makes it so that I can read that an aid pier costs $200 million and think "wow, what a steal". Who are the citizens that feel good when hearing this bullshit about we actually spent this inconcievably large number and not that slightly bigger inconceivably large number? Who is impressed by this press conference?
I need to remember that trick
"Boss, I overestimated the value of my last paycheck by 25%, now gimme"
I'm shocked that this happened in an institution that never passes audits
Bonus Reddit comment: "NOOO!! This isn't corruption or affecting your taxes!! We just overestimated by a couple billion/accidentally cooked the books and determined we can send more!"
8.9k upvotes. If there was ever a comment that convinced me Reddit is astroturfed / an op, this is it. Because they are objectively wrong. Or at least intentionally misleading.
They’re focusing on the fact that the valuation equipment changed and ignoring what that actually means. Sure, by itself it doesn’t affect US taxpayers. But the point is, the military says they overvalued it by $2, so that allows them to send $2 billion more worth of equipment. That’s additional stocks of weapons that ostensibly have to be replaced, which is paid for by tax dollars.
And while it’s not provably corrupt, it strains credulity to think this was not done in order to ship more weapons. Revaluations of this kind are much much more likely because someone wants it revalued, i.e. corruption.
How can someone say that the Pentagon is doing "back of the envelope math" for billions of dollars of military ordinance and not get called out for
COMPLETE GIBBERING INSANITYThese idiots don't remember Rumsfeld reiterating on Sept 10, 2001 (yes) that the military had approximately 2 TRILLION in 'accounting irregularities'
This isn't new, and covering for the MIC in such a manner is naive at best
libs will write this then turn around and write an even longer post about how the war "costs us nothing" because the US is sending old stock that was slated to be destroyed anyway, or because all the weapon manufacturing money stays in the US, or whatever the cope of the day is
I think all the people working at the weapons factories could be put into better use like building high speed rail.
The liberals argue the MIC is a good way to stimulate the economy when in reality American military spending mostly ends up in financial markets not being used for anything productive. A small bit of it maybe ends up in the hands of people working in the factories (who then spend it on goods and services etc) but that is nothing.
The user isn’t wrong, Ukraine is a money laundering front for the Democratic proxies and the military industrial complex.
If you really want to get technical about it, those laundered dollars never even left the Federal Reserve. And for the dollars that Ukraine managed to spend, they most went into the European hands who then used them to import American energy. Literally printing free money for the fossil fuel industry through Ukraine. The operation is entirely contained within the US banking system, and a perfectly legitimate channel to launder money through foreign aid.
This is also why the Republicans are so pissed at Ukraine and Hunter Biden and so keen to end the war, and kept stalling the foreign aid bill, because they aren’t in control of such channels.
yea and they froze Russian foreign reserves (which are in U.S. Treasuries or EU bonds), pretended that it was being used to 'fund' 'aid' to Ukraine by using it as collateral for a 'loan' from the IMF/World Bank. How did IMF/World Bank acquire the Dollars, I wonder who gave it to them.
"I'm not owned!!! I'm not owned!!!" 🌽
This doesn't affect your taxes (except for $2bn more being spent on fuelling pointless war instead of healthcare).
"we" this "we" that...
There is no "we" you stupid servile cuck, the american elite do whatever they want whether you like it or not. No room for your input.
US government makes a huge "mistake" costing literally $2 billion extra dollars of their funding, which comes from taxpayer money.
Reddit:
"NOOOOO THIS ISNT A MISTAKE, THIS DOESNT AFFECT YOUR TAX DOLLARS!"In order to correctly finish the analogy here, the place you donate to would have to call back and demand another $2,000 car from you to cover the discrepancy, and you'd have to comply.
Don't worry it will go "poof" once in Ukraine, both literally and figuratively
Bank error in your favor!
Didn't this already happen in May 2023 and Jun 2023?
Yes, 3 billion and 6 billion respectively lol
Jesus fucking Christ lmao
Shocking, US taxpayers' money and "accounting errors" when being sent.
Looking into it
