The White House recently released a comprehensive list of "wins" from the Department of Government Efficiency. These achievements included the cancellation of media outlet subscriptions and contracts for Diversity, Equity, and Inclusion (DEI) initiatives. Meanwhile, inspectors general across various agencies have uncovered significant wrongdoing that has led to prosecutions. One notable instance involved a bid-rigging scheme related to non-governmental organization (NGO) contracts partially funded by the United States Agency for International Development (USAID).
The Government Accountability Office (GAO) defines waste as "using or expending resources carelessly, extravagantly or to no purpose." According to a GAO report, the federal government loses an estimated $233 billion to $521 billion annually due to fraud. Inspectors general have identified fraudulent activities within COVID-19 relief programs, including $5.4 billion in pandemic relief loans obtained using fabricated Social Security numbers. The U.S. Small Business Administration's inspector general estimated a staggering $64 billion in fraud.
In one investigation, a probe led to a $6.9 million settlement with an international NGO over inflated invoices. Additionally, the Council of the Inspectors General on Integrity and Efficiency released its 2023 annual report, highlighting federal efforts to combat fraud, waste, and abuse. The report detailed the accomplishments of inspectors general, including over 4,000 prosecutions and nearly $93.1 billion in potential savings identified. These findings resulted in approximately 3,000 suspensions, reprimands, and terminations for federal contractors and employees at federal, state, and local levels.
Inspectors general have also suspended or prevented some organizations from conducting business with USAID. However, former President Donald Trump fired 17 inspectors general on January 25, leading to a lawsuit by many seeking reinstatement. The lawsuit claims that Trump failed to follow legal requirements mandating notification to Congress 30 days before removing inspectors general.
In response to these developments, several experts have weighed in on the importance of accountability and transparency in government operations. Leavitt remarked:
"I would argue that all of these things are fraudulent."
He further emphasized:
"They are wasteful and they are an abuse of the American taxpayer’s dollar."
Robert Westbrooks, another expert in government accountability, provided insights on the complexities of identifying waste:
"Anytime someone looks at data (spending data, for example), you will see anomalies that catch your attention and warrant review."
He highlighted the subjective nature of waste assessment:
"Waste is in the eye of the beholder."
Westbrooks also clarified the distinction between waste and fraud:
"Fraud, on the other hand, is determined by a court."
Amidst these revelations, it is important to note that the Government Accountability Office is staffed with auditors, while federal inspectors general offices include both auditors and law enforcement personnel. These teams play crucial roles in uncovering fraudulent activities and ensuring that taxpayer dollars are used responsibly.
The Trump administration's decision to pause the Foreign Corrupt Practices Act, which prohibits businesses from taking bribes from foreign officials, raised further questions about government oversight. Critics argue that such actions undermine efforts to maintain ethical standards in federal operations.
