Centcom buys trouble with purchase cards

Tampa-based U.S. Central Command "wasted funds" by improperly using government purchasing cards to buy coins, cigar storage boxes, televisions and other items, according to a draft report released this week by the Department of Defense Office of Inspector General.

The report chides officials for lax oversight and failing to enforce or follow rules involving about $40,000 in purchases.

The cards serve as credit cards to allow military personnel to purchase goods and services from the private sector, according to the Pentagon. At MacDill Air Force Base, where Central Command is headquartered, the cards are issued and supported by the base host unit - the Air Force 6th Air Mobility Wing.

Inspectors reviewed a small sample of nearly 7,000 purchases - valued at nearly $8 million - Central Command made with the cards between July 1, 2008, and June 30, 2009, according to the report. Of 120 transactions examined, 10 were deemed inappropriate.

Base officials say any problems pointed out in the report have been corrected and there is no indication of widespread fraud or corruption.

One cardholder, who worked for Special Operations Command Central, improperly used the card to buy 900 "command coins." Not only are the government purchase cards not supposed to be used to buy commemorative coins - usually given out as rewards - but the report stated that the cardholder bought them in two lots in an effort to get around the $3,000 purchase limit. All told, the coins cost about $4,000, the report states.

"The approving official did not prevent or protest the transactions and, therefore, assumed responsibility for them," the report states. "These transactions were inappropriate and a misuse of the purchase card and government funds."

Another cardholder bought 25 clocks and 40 pen sets to be given as gifts by the Central Command director of intelligence. Though the cards can be used to buy such items, that cardholder also circumvented rules by buying the gifts in two lots to avoid the $3,000 limit, the report states.

Other purchases examined by the inspector general's office involved situations where items were not properly accounted for. They included two low-speed Kawasaki Mule vehicles valued at $19,800, global positioning system devices worth nearly $9,000, a multimedia projector and mount worth about $1,000, and cigar storage boxes worth nearly $700.

Officials at the 6th Air Mobility Wing say they took "corrective measures" as soon as they were informed of the situation, including instituting a new purchase card tracking system.

"Since that time, we have had 100 percent accountability of all training. In addition, new policy was established so that accounts will be suspended unless all training is accomplished," said Maj. Derek Blough, 6th Contracting Squadron commander.

The inspector general's report is part of ongoing efforts to ensure that taxpayer money is being spent properly, Central Command spokesman Lt. Col. Michael T. Lawhorn said.

There is no indication "that there is widespread or even small-scale intentional fraud going on," he said. With so much turnover in personnel, "the most common problem is a lack of understanding of what is involved with the purchase card program, which is why we continue to train and assess the program."

A final report is scheduled to be released this year.

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