Judicial Watch • $6 Bil Vanishes From State Dept. Under Hillary Clinton

$6 Bil Vanishes From State Dept. Under Hillary Clinton

$6 Bil Vanishes From State Dept. Under Hillary Clinton

APRIL 07, 2014

In a mind-boggling example of how the government blows—or perhaps steals—our tax dollars, billions vanished from the U.S. State Department mostly while Hillary Clinton ran it, according to a new alert issued by the agency’s inspector general.

Could the former Secretary of State be using the cash to fund an upcoming presidential campaign? In all, $6 billion are missing and it’s highly unlikely any of the money will ever be recovered. The cash was supposed to be used to pay contractors but it just disappeared and documents that could help track the dough cannot be located. How convenient! The paper trail, which federal law says must be maintained in the case of government contracts, has been destroyed or was never created to begin with.

How could this possibly happen? Like a lot of government agencies, outside contracts are a free-for-all at the State Department with virtually no oversight. Hundreds of millions of dollars are doled out annually for a variety of services and no one bothers to follow up on the deals. This “exposes the department to significant financial risk,” according to the State Department Inspector General, which issued a special management alert this month outlining the lost $6 billion. The watchdog further writes that “it creates conditions conducive to fraud, as corrupt individuals may attempt to conceal evidence of illicit behavior by omitting key documents from the contract file.”

Among the examples listed in the memo is a recent investigation of the closeout process for contracts involving the U.S. mission in Iraq. Investigators could not locate 33 of the 115 contract files totaling approximately $2.1 billion. Even of the files they found, more than half contained insufficient documents required by federal law. In one billion-dollar deal involving the State Department’s Bureau of International Narcotics and Law Enforcement in Afghanistan, the actual contract was determined to be “incomplete.”

In one alarming case a contract file conveniently omitted that a $52 million deal was awarded to a company owned by the spouse of another State Department contractor employee performing as a specialist. In other cited cases a contracting officer actually falsified government technical review information in a $100 million deal and a contracting officer’s representative allowed nearly $800,000 to be paid on a deal with no official documents to support the payment. It’s the free-flow of public funds under extremely suspicious circumstances.

At the very least the State Department is violating its own policy, according to the inspector general, which divulges that it’s found “repeated examples of poor contract file administration over the years.” The watchdog confirms that “it is the Department’s policy that all contracts, regardless of dollar value, be properly documented so as to provide complete record of: pre-solicitation activities; the solicitation, evaluation, and award process; and [sic] the administration of the contract through closeout.”

This unbelievable report documenting the mysterious disappearance of $6 billion from the coffers of a major government agency brings to mind a similar and equally enraging story reported by Judicial Watch a few years ago. The Pentagon somehow lost $6.6 billion sent to Iraq for post-invasion “reconstruction.”

The money was bundled in chunks of $100 bills and transported in turboprop military cargo planes known as C-130 Hercules. About $2.4 billion fit in each aircraft and 21 flights made trips, transporting a total of $12 billion in American currency to Iraq. More than half the money has never been recovered, according to the Special Inspector General for Iraq Reconstruction.

A year later nearly half a billion dollars in oil destined for the Afghan National Army vanished. We will never know what happened because the Pentagon improperly shredded records that could have solved the mystery, according to a federal audit that exposed the fraud. The oil was part of a $1 billion fuel program largely funded by the U.S. government, which of course, means it was mostly Americans who saw their tax dollars blown in yet another government corruption scheme.

Waste and fraud are par for the course in most bloated government agencies and JW has exposed a number of alarming examples over the years, both domestically and internationally. They involve practically all agencies, including the U.S. Department of Agriculture’s (USDA) scandal-plagued food-stamp program, Medicare and Medicaid, the famously corrupt U.S. Agency for International Development (USAID) and President Obama’s fraud-infested $787 billion stimulus boondoggle, to name a few.

Sign Up for Updates!

© 2010-2015 Judicial Watch, Inc. All Rights Reserved.

  • Nanouli Person

    Why can’t dem’s be outraged by their own cronies? Why be immature and find a republican to find similar fault?

  • Danielle Dee

    I don’t think that is a direct answer – nice dance around it though…

  • Hilary Clinton

    The money is not under me! It is in a safe place.

  • badon518

    “What does it matter now?”

  • Jing Yagunazie

    every dollar has a registration number on it. The Government knows who spent it. Where it went. And where it is right now.

  • FortWorthTex

    I remember a $6billion loss in Iraq under GHW Bush. Are we talking about the same money? This article has an obvious anti-Clinton message, but no author is cited. I hope HP isn’t going down that road!

  • Stephen Barlow

    The names were omitted to protect non existent entities.

    Funny how 3.2 TRILLION DOLLARS of fraud being investigated in the ONLY part of the Pentagon that was bombed on 9/11 vanished (TY GWB) without a mention, along with 100+ American service persons. Funny how NO engines or wing parts were found in the Pentagon wreckage. A FIRST in aviation crash history. No wing dents in the building either. Only blast debris EJECTED through the opening, OUT, onto the lawn.

    Lacking also are SPECIFICS. WHAT EXACTLY ‘infested’ the CONGRESSIONAL LAW the President signed to STOP THE IMPLOSION of the economy spearheaded by GWB?

    “Scandal plagued food stamps? Medicaid. The LARGEST Medicare fraud in history ws the work product of that Famous Republican Icon… FL Gov Rick Scott. Little known secret: It’s HOW he bought the Governor’s mansion from Jeb Bush.Check the financial Disclosures page. Every single donor is “Anonymously a Koch Brother employee”

  • deano

    At least it made it to its destination. Hilary’s never made it through security………….

  • deano

    Big difference between wasted and vanished. Wasted is accounted for………

  • Tomcat

    Deano the fraud or waste did occur under Rice’s watch, I heard of the c-130 100.00 bills caper. under Gwbush’s presidency. I believe you are mistaken. Waste is nothing new in all administration, our government could cover ACA. between the waste and the corporate welfare given by Congress each & every year. It is both parties Repb. & Democrats

  • Supercapital

    You babies make me laugh. You act like this hasn’t been happening since before Eisenhower was in office. WHOAH! Suddenly the government’s corrupt! Naive and petulant little children. Each and every past congress and administration has been rife with waste. MORE waste in many cases. But WHOAH suddenly now is the time to speak up! Meanwhile when I was yelling about this stuff 15 years ago you called me a hippie and laughed at me. Get bent.

    How about this: Start a viable third party or STFU and stop whining.

  • Supercapital

    Riiiggghhhht. Find us any past government that wasn’t corrupt since WW2. Go ahead, we’ll wait.

  • Supercapital

    As if this doesn’t happen under every single administration. Naive little children…

  • Supercapital

    Fags. Like this is anything new in the government. $187 hammers ring a bell?

  • Supercapital

    uhhhh…. Way more disappeared under C. Rice.
    How quickly we forget huge pallets of US dollars flying into Afghanistan and evaporating

  • prometheus2

    Check her purse . . .

  • deano

    Funny how double standards work. If this happened under Condoleezza Rice, the left would have banished her to the far ends of the earth, never to hold any job again. What will the left do in this case? Elect her…………….

  • tyron green

    Bill Bob Clinton will be the first lady. But he didn’t have sex with that woman. He also didn’t smoke the funny stuff or ran from the draft. It just a all around good family.

  • EddieInFL

    The obvious answer is THEFT!
    Who writes the checks? Hold them accountable and in prison starting at the top. That would be Hildabeast. I’m sure she would really LOVE being in jail anyway.

  • YourFoolingNoOne

    “Blood and Treasure Hillary”. We always knew she was a Pirate. But you know, “What difference does it make anyway?” The founders knew how to deal with Barbary Pirates as well as ones at home. I’m sure whatever flag Hillary flies in secret has a hammer and sickle on it, It’s certainly soaked in American blood. She has $6 Billion reasons to ignore all you people beneath her.

  • steve h.

    The Judicial Watch is a organization run for filing nothing but lawsuits against the Clinton’s when President Bill Clinton was in the White House. All Lawsuits were kick out of courts, but others were filed in there place. Same bull shit is being done during President Obama Administration. Carl Rowe is behind a lot of it today. Another Non-Profit gone wild??? Citizen United is one such Org. None of the facts mentioned can be proven, they all have been thrown out by the Justice Dept.

  • Ultracon

    Clinton corruption knows no bounds! When will people learn?

  • svenskasandy

    “The 7 trillion dollar mistake:” Senator Charles Grassley (R-Iowa) said in 1998 after embezzlements at U.S. military installations were allowed to occur; $7 Trillion dollars of accounting adjustments to make their books balance, each adjustment represents an accountant’s correction of a discrepancy; This was on President Clinton’s Watch. Get it = the Clintons.
    Newspaper articles re. this: Atlanta Constitution, March 31, 2000; Julia Malone wrote “Auditors cite failings in 11 of 24 agencies, and Los Angeles Times; March 5 2000; John M. Donnelly “Pentagon’s Finances do not add up, and Los Angeles Times Sept. 28, 1998, Thefts Reveal Flawed Contracts System.

    This original article was in my Accounting 101 class at College. The Seven Trillion dollar mistake.

  • ladywillo

    Yipes! Hillary looks so haggard. What is she waiting for with $6B she can set up face lifts for the rest of her and papa Clinton’s life!

  • jwangee

    Wow. Seems quite understandable now why she looked so haggard her last couple of years as S.O.S. under Barry. The alleged stealing of that kind of money should send anyone on a guilt trip. Couple and triple that with likely going through change of life, and having to “answer” to Obama every wrong step of the way, and initially having taken the job as S.O.S. as a compromise to her 2008 presidential bid so Obama could be shoved down our throats. Oh, what a tangled web we weave…

  • baylady

    Anyone who had anything to do with accounting in the State Department and the State Department Head should all be held accountable. There needs to be a thorough investigation into this! How can 6 Billion dollars go missing and no body knows where it went! And, the documents that can show the trail are mysteriously missing? Are you kidding me??
    If our government doesn’t do anything about finding out what happened here, then all we can do is assume that the money was pocketed by the criminals that run our country! This is absolutely disgusting and the worst part is that this is the tip of the iceberg! Corruption, lies, theft, coverups, etc., etc. This is what our government is all about now……

Sign Up for Updates!