No Govt Agency Exempt from Fleecing Taxpayer Dollars

Posted on November 7, 2015November 7, 2015 by Denise Simon

We don’t even know what we don’t know and further what we think we know, we don’t really know either.

There is not a government agency throughout the entire Federal system that is not teeming with waste, fraud or abuse of our taxpayer dollars. One would easily be in the constant state of shuttering when it comes to contemplating the billions that go unaccounted for.

The mission of the House Oversight and Government Reform Committee headed previously by Darryl Issa and presently with Jason Chaffetz attempts in earnest to uncover and investigate and perhaps refer for prosecution those in government guilty of malfeasance, yet the co-chair of the committee, Elijah Cummings leads his side to obstruct the duty of the committee at every turn. In fact Cummings and his crowd never find any dereliction of duty, corruption or fraud.

Just consider, Fast and Furious, Secret Service prostitution scandal, Benghazi, Planned Parenthood, EPA, IRS and Operation Choke Point for some examples.

The job of accountability goes to a particular division at the Department of Justice where all the Inspector Generals are deployed to investigate and determine money success of programs. Inspector Generals also work outside the scope of the DoJ, with not much more comprehensive success.

The IG’s are the watchdogs and while most do stellar work, others not so much and still others are completely stonewalled when it comes to gaining access to receipts, contracts, agreements and so on.

DailyCaller:Federal watchdogs are urging Congress to make sure all inspectors general, not just those at Department of Justice, have unfettered access to all official documents their respective agencies produce.

The Council of Inspectors General for Integrity and Efficiency fired off a letter to top members of Congress Thursday encouraging Congress to reiterate through new legislation that the 1978 Inspector General Act already entitles IGs to all agency records.

The letter comes two days after the Justice Department’s Office of Legislative Affairs asked Congress to pass legislation specifying that only the DOJ IG is entitled to all department records. Previously, the DOJ Office of Legal Counsel denied the department’s IG access to wiretapped communications or grand jury testimony.

But the proposed fix is too little, too late, for an IG community where other federal watchdogs are facing similar access problems.

As yet another example where dollars add up, most recently is a report on FEMA.

FEMA can’t account for up to $4.56M Sandy fuel funds

FNC: The Federal Emergency Management Agency can’t adequately account for more than 70 percent of the money spent on fuel for New York in the aftermath of superstorm Sandy, a federal audit released on Friday found.

FEMA spent $6.37 million for 1.7 million gallons of fuel as a gasoline shortage crippled the New York City area after the October 2012 storm, according to the audit from the Office of Inspector General at the Department of Homeland Security.

But the audit found “incomplete and questionable” documentation for $4.56 million of that spending. Additionally, $1.81 million worth of fuel went to recipients outside the scope of work that FEMA established for the crisis, the audit found. As a result, FEMA can’t be sure any of that fuel went to approved power restoration or emergency public transportation work in New York, the audit said.

Officials at FEMA agreed with all of the report’s recommendations, which include recovering lost funds and devising new procedures, according to the audit.

A spokeswoman for FEMA said: “FEMA concurred with all of the OIG recommendations for rectifying the issues identified in their recent report and improving mission assignment effectiveness going forward. FEMA takes seriously its duty to ensure fiscal responsibility during disaster relief operations, and has been reimbursed by New York for more than $2.1 million.”

New York state collected the $1.8 million, plus interest, from the retail gas stations that were the wrongful recipients of the fuel and reimbursed FEMA, the Dept. of Homeland Security said. Sandy, one of the most powerful Atlantic storms on record, knocked out power to gas stations, caused widespread flooding and cut gasoline-supply lines from ports.

Gasoline shortages emerged as one of the biggest problems for the region after the storm passed. At the time, the federal government estimated that only one-third of gas stations in the metropolitan area had fuel for sale, based on a survey that found more than half were shut down.

FEMA stepped up to provide fuel for urgent power restoration and transportation needs.

The unaccounted fuel deliveries occurred because FEMA didn’t comply with federal regulations requiring the agency provide proper documentation accounting for its work, the audit found.

Click for more from The Wall Street Journal

Germany Facing a Civil War Over Migrant Insurgency

Posted on November 3, 2015November 3, 2015 by Denise Simon

George Soros, the global spooky dude, is happy about the matter of Europe going borderless, which under the Schengen Agreement for the most part is, but the financial burden is growing to epic levels and Angela Merkel remains on the wrong side of history on this growing disaster. One needs to ask if Merkel is involved with Soros and at least Viktor Orban, the Hungarian Prime Minister knows the score well with Soros and the constant festering of Islamist activism.

At least SOME in Germany get it and are fighting back, we say stay the course to stop the invasion. Save your country while you can, we are slowly learning in America too.

German official says Merkel’s open door migrant policy will lead to ‘civil war’ after thousands march through one city holding crucifixes during anti-Islam protest

8,000 people joined the anti-Islam Pegida movement for protest in Dresden
Latest rally against Merkel’s decision to allow million refugees into country
Prosecutors open probe into group’s founder Lutz Bachmann for slander
He said justice minister was the ‘worst spiritual fire raiser’ since Goebbels

A German official has said that Angela Merkel’s open door migrant policy will lead to ‘civil war’ after thousands marched through one city’s streets holding crucifixes during an anti-Islam protest.

Hansjoerg Mueller, of the Alternative for Germany party, said the country was ‘sliding towards anarchy’ and risks becoming a ‘banana republic without any government’.

He made the claims after about 8,000 people joined the anti-Islam Pegida movement for a rally in Dresden over Angela Merkel’s decision to allow up to one million migrants into the country this year.

Some demonstrators held crucifixes and upside-down German flags while others shouted ‘Merkel out!’ alongside doctored images of the German Chancellor in a burqa and a Nazi outfit.

The group’s leaders, who have been described by German Interior Minister Thomas de Maiziere as ‘hard right-wing extremists’, are demanding an immediate end to the policy.

Mr Mueller was later asked for his views on remarks made by Bavarian official Peter Dreier. Mr Dreier had reportedly told Merkel that his town of Landshut would only take 1,800 refugees if a million were welcomed to the country – insisting that the rest would be put on buses to Berlin.

Mr Mueller told RT: ‘Usually he does not have the power, but we are not living in usual times.

He added: ‘Germany now is somewhere at the edge of anarchy and sliding towards civil war, or to become a banana republic without any government.’

Video of today’s protest emerged on YouTube as prosecutors have opened an investigation into the group’s founder for slander after he compared the justice minister to Hitler’s head of propaganda Joseph Goebbels.

Lutz Bachmann said Social Democrat (SPD) minister Heiko Maas was the ‘worst spiritual fire raiser’ since Goebbels and Karl-Eduard von Schnitzler.

Von Schnitzler was a television commentator in Communist East Germany who strongly criticised Western governments and media.

The comment is the latest in a series of provocative remarks made at the regular rallies of Patriotic Europeans Against the Islamisation of the West (PEGIDA).

Only two weeks ago, a speaker said that concentration camps were ‘unfortunately out of action’.

The refugee crisis in Europe has boosted the popularity of Pegida’s rallies in the eastern city of Dresden and raised fears about right-wing radicalism.

Many voters are worried about how Germany will cope with an influx of about one million migrants this year, many fleeing wars in the Middle East and Africa.

Social Democrats, who share power with Chancellor Angela Merkel’s conservatives, expressed outrage at Bachmann’s comment.

SPD General Secretary Yasmin Fahimi said it was deceitful and disgusting.

A spokeswoman for Dresden prosecutors said they had started an investigation into slander.

But Bachmann said on his Facebook page that he would not be silenced.

‘If the Sharia Party of Germany (SPD) and the whole press… demand hundreds of thousands of investigations, YOU WILL NOT GAG ME! I will still say openly say what I think.’

Bachmann has already been charged by Dresden prosecutors with incitement because of a post on social media last year in which he described refugees and asylum seekers as ‘animals’ and ‘scumbags’.

No trial date has yet been set.

He quit as leader of PEGIDA earlier this year after a photo was published of him posing as Hitler which led to internal squabbles and the grassroots movement all but fizzled out until the migrants crisis swept Europe.

Support for Merkel’s conservatives has dropped over her handling of the refugee crisis while the anti-immigrant Alternative for Germany (AfD) is up in opinion polls.

HUD, Housing Urban Development, Fleecing-Scandals

Posted on October 28, 2015October 28, 2015 by Denise Simon

The truth and facts are in the details but details never seem to matter or to be an agenda stopper.

Is there just one government agency that operates without a scandal or fleecing the taxpayers? Housing and Urban Development is headed by Secretary Julian Castro and former mayor of San Antonio. By the way, his name has been floated as a candidate for Hillary’s running mate to ensure to Latino vote.

Obama himself has kept a close eye on Castro and is helping him build his resume for bigger political ambitions in spite of a history of scandals based in San Antonio.

HUD backs $9.5 million loan on property valued at $3.8 million

COLORADO SPRINGS, Colo. —The Department of Housing and Urban Development provided a $9.4 million loan guarantee to renovate an apartment complex here eight months after the owner convinced the county to value the complex at just $3.8 million, a Watchdog.org investigation found.

The loan for Apollo Village Apartments defaulted and the property was foreclosed on in 2012 with HUD losing as much as $4.5 million on the deal, public trustee records show.

Pete Sepp, president of the National Union of Taxpayers, said these government programs put a substantial amount of taxpayer money at risk and should be eliminated.

“Unfortunately, many government loan programs to individual business people aren’t necessarily dictated by the best interests of taxpayers or the laws of the marketplace,” he said after reviewing information Watchdog.org provided him on the loan. “It’s a classic dilemma we see with the federal subsidies programs.”

Instead of foreclosing, HUD sold the note to a private company for $5 million and the company foreclosed on the property six months later, selling the Apollo complex for $6.2 million – netting a $1.2 million profit the government could have realized to offset part of the loss, foreclosure and HUD records show.

“Apollo Village #101-11128 was insured by HUD through a 223f loan in the amount of $9,401,500.00 on March 23, 2009,” according to an email from Baumann.

The owner, represented by a Denver appraisal firm, filed a property tax appeal on May 27, 2008, and the County Board of Equalization reduced the value of the property from $7.199 million to $3.810 million on July 24, 2008, according to county records and the assessor’s office.

County records showed 36 units were condemned in 2008, and building permits for siding, roof and structural repairs were issued between 2009 and 2014.

HUD rules for market-rate apartments only allow the agency to guarantee 83.3 percent of the project’s value after the repairs are completed, which means HUD estimated the value of the repaired project to be about $11.3 million. Federal HUD officials said they did not have any appraisal information for the project, and the local office was looking to see if any documents were available. Read the report in full here.

There is more of course:

Why Are Over-Income Tenants Living in Public Housing?

A recent report from the Department of Housing and Urban Development’s (HUD’s) Office of Inspector General (OIG) and subsequent news articles have raised questions about the treatment of so-called “over-income” families living in federally assisted public housing. “Over-income” families had, at the time of their initial move-in, income low enough to be eligible to live in public housing (income at or below 80% of local area median income), but their incomes later increased above the eligibility threshold. The Inspector General report found that as many as 25,226 over-income families resided in public housing in 2014 (2.6% of all public housing residents). While the majority of over-income families had incomes that exceeded the initial income eligibility limits by less than $10,000, a small subset of families had incomes that were significantly higher.

As HUD has pointed out in its response to the OIG report, allowing over-income families to remain in public housing is not inconsistent with federal law or regulations. Read the report in total here.

Hello FBI, What about this $125 Billion?

Posted on October 9, 2015October 9, 2015 by Denise Simon

Where is the U.S. Department of Treasury? Where is the White House? (rhetorical)

By the hour scandals come out of the Federal government where the reaction is: ‘it is under investigation’ or we have created a task force to advise on how to correct the issue or it was due to a computer glitch.

Never do we hear that someone is going to prison for malfeasance or theft or obstruction.

So how about putting pressure on the White House to call in the FBI, build the case and then move to a criminal case? Sounds great huh? Maybe even House of Cards will do a whole series on the waste, fraud and corruption, after all it is revenue generating right? Oh…one more thing, whistleblowers have a very short life and career span in Washington DC, but there are laws where Federal employees must comply and report waste, fraud and abuse….well so it goes.

Well back to the $125 billion, while that was only LAST year.

In part: What GAO Found

A number of strategies, including implementing preventive controls and addressing GAO’s prior recommendations, can help agencies reduce improper payments, which have been a persistent, government-wide issue. The improper payment estimate, attributable to 124 programs across 22 agencies in fiscal year 2014, was $124.7 billion, up from $105.8 billion in fiscal year 2013. The almost $19 billion increase was primarily due to the Medicare, Medicaid, and Earned Income Tax Credit programs, which account for over 75 percent of the government-wide improper payment estimate. Federal spending in Medicare and Medicaid is expected to significantly increase, so it is critical that actions are taken to reduce improper payments in these programs. Moreover, for fiscal year 2014, federal entities reported estimated error rates for 10 risk-susceptible programs that exceeded 10 percent. Recent laws and guidance have focused attention on improper payments, but incomplete or understated estimates and noncompliance with criteria listed in federal law hinder the government’s ability to assess the full extent of improper payments and implement strategies to reduce them. For example, for fiscal year 2014, 2 federal agencies did not report improper payment estimates for 4 risk-susceptible programs, and 5 programs with improper payment estimates greater than $1 billion were noncompliant with federal requirements for 3 consecutive years. Identifying root causes of improper payments can help agencies target corrective actions, and GAO has made numerous recommendations that could help reduce improper payments. For example, strengthening verification of Medicare providers and suppliers could help reduce improper payments. GAO has stated that continued agency attention is needed to (1) identify susceptible programs, (2) develop reliable estimation methodologies, (3) report as required, and (4) implement effective corrective actions based on root cause analysis. Absent such continued efforts, the federal government cannot be assured that taxpayer funds are adequately safeguarded. The full report is here.

Government burns $125B in improper payments, GAO says

FederalTimes:

A Government Accountability Office report found that the federal government racked up more than $124 billion in improper payments in 2014, $19 billion above the previous year.

The Oct. 1 report found that the surge in payments came almost exclusively from Medicare, Medicaid, and Earned Income Tax Credit programs, which account for 75 percent of improper payments across the federal government.

“Federal spending in Medicare and Medicaid is expected to significantly increase, so it is critical that actions are taken to reduce improper payments in these programs,” the report said.

Improper payments include things like overpayments, underpayments or payments made for goods and services not received.

GAO estimated that since agencies began reporting improper payments in 2003, $1 trillion in federal funding has been lost to the issue.

The report called for greater compliance from government agencies, citing findings that five federal programs with more than $1 billion in improper payments were noncompliant with federal law for three years.

U.S. Comptroller General Gene Dodaro testified before the Senate Committee on Finance on Oct. 1 to address the report’s findings as well as GAO’s recommendations.

“Reducing improper payments is critical to safeguarding federal funds and could help achieve cost savings and improve the government’s fiscal position,” Dodaro said in testimony.

The report noted that Medicaid and Medicare accounted for $77.4 billion in improper benefits in 2014. To fix the problem, GAO suggested the Centers for Medicare and Medicaid improve Medicare automated audits, track postpayment recovery audit activities, remove Social Security numbers from Medicare cards to help prevent fraud and other reforms.

GAO recommended improving efficiency and oversight for Medicaid, including tracking liability for third-party insurers. CMS concurred with the recommendations and, in some cases, was already working on implementation plans for them.

The other big source of improper payments identified in the report was from the Earned Income Tax Credit, a refundable tax credit for low- to moderate-income earners, particularly those with children.

The report identified $17.7 billion in improper payments related to EITC, largely to due to the credit being incorrectly claimed on tax returns.

“As we have reported, a root cause of EITC noncompliance is that eligibility is determined by taxpayers themselves or their tax return preparers and that IRS’s ability to verify eligibility before issuing refunds is limited,” the report said.

Dodaro said that while the some fraud could play a role in improper EITC payments, the complexity of tax law has led to mistaken applications, which perpetuate improper payments.

“Complexity is definitely the heart of the problem here with the error rates,” he said. “We’re not suggesting they be made more complex. What we are suggesting is that Congress regulate paid tax preparers.”

Dodaro cited Oregon’s practice of regulating paid tax preparers, which originated in the 1970s, and pointed to a 2008 study that found Oregon tax returns are 72 percent more likely to be accurate than a comparable return from paid preparers in other states.

Read the report here.

More TPP, Transpacific Partnership Pact Facts

Posted on October 9, 2015October 9, 2015 by Denise Simon

During Hillary Clinton’s time as Secretary of State, she was for the TPP and now, well she has flipped on that position.

This is yet another shot across the bow of the White House where she is separating herself from Barack Obama, but is she really?

Hillary Clinton announced Wednesday that she opposes the Trans-Pacific Partnership trade deal.

“I’m continuing to learn about the details of the new Trans-Pacific Partnership, including looking hard at what’s in there to crack down on currency manipulation, which kills American jobs, and to make sure we’re not putting the interests of drug companies ahead of patients and consumers,” she said in a statement. “But based on what I know so far, I can’t support this agreement.”

At the end of the segment of Senator Rand Paul this week with Bret Baier on Fox, Paul describes some of the classified maneuvers of the TPP.

One particular group, left leaning for sure is WikiLeaks, who has been an interesting champion of trying to get all the details on the Transpacific Partnership Part.

TPP leaked: Wikileaks releases intellectual property chapter of controversial internet and medicine-regulating trade agreement

Bolton of Independent:

Wikileaks has released the Intellectual Property Rights chapter of the controversial Trans-Pacific Partnership (TPP) agreement, which they claim contains rules and regulations that would have “wide-ranging effects on internet services, medicines, publishers, civil liberties and biological patents.”

The idea behind the TPP is free trade – amongst the member states, it aims to lower trade barriers, create a common standard for intellectual property, enforce labour and environmental law standards and promote economic growth.

The agreement has come under severe criticism and scrutiny, however, for the policy of total secrecy during the years-long negotiations.

Others have criticised the more stringent intellectual property laws it would introduce, which could extend copyright terms and mean harsher penalties for file-sharers.

A number of trade unions and economists, such as Joseph Stiglitz, have said the agreement “serves the interest of the wealthiest”, and caters to the needs of corporations rather than the citizens of member nations.

Concerns have also been raised over the effect it could have on the cost of medicines – by extending the intellectual property rights of certain branded drugs, delays in the development of cheaper, ‘generic’ versions of these drugs could ensue, potentially leading to poorer people having to wait much longer than the wealthy to get access to the newest medicines.

The chapter on these intellectual property issues is what has been leaked by Wikileaks, and is one of the more controversial chapters in the whole agreement.

Peter Maybarduk, the program director at Public Citizen’s Global Access to Medicines, said that if the TPP is ratified, “people in the Pacific-Rim countries would have to live by the rules of this leaked text.”

“The new monopoly rights for big pharmaceutical firms would compromise access to medicines in TPP countries. The TPP would cost lives.”

The document, dated 5 October, was apparently produced on the day it was announced that the 12 member states to the treaty had reached an agreement after five and a half years of negotiations.

The nations of Vietnam, Peru, Mexico, Malaysia, Japan, Canada, Australia, USA, Singapore, New Zealand, Chile and Brunei are all prospective member states to the free-trade agreement, between them representing over 40 per cent of the world economy.

Despite the leak, the final text of the TPP is reportedly being held until after the Canadian general election, on 19 October.

While, as Wikileaks says, there still needs to a be a final “legal scrub” of the document before it is finished, negotiations on the document between signatories have now ended.