- The Washington Times - Tuesday, May 19, 2015

Military officials and civilian workers used government credit cards at casinos and strip clubs, said a new audit report released Tuesday by the Defense Department.

The audit of “Government Travel Charge Transactions” conducted by the department’s Office of Inspector General found that employees used the credit cards at casinos and for escort services and other “adult entertainment” in Las Vegas and Atlantic City.

From July 1, 2013, through June 30, 2014, cardholders had nearly 4,500 transactions totaling over $950,000 at casinos. Investigators found that cardholders had made an additional 900 transactions totaling over $96,000 at adult entertainment establishments during the same time frame, according to the report.

However, the federal government is not on the hook for the expenses. Cardholders must submit expense reports for reimbursement, and personal expenses will not result in a loss of taxpayer dollars, the report said.

A Pentagon official briefed on the report said that the employees may have used the government cards for gambling and escort services in order to hide the charges from spouses, Politico reported earlier this month.

Because the report was an audit of the credit card system and not an investigation of particular individuals and charges, officials say the likely result will be a series of new stern warnings, Politico reported.

Officials stated in the report that they would work with the General Services Administration to determine whether the Pentagon’s contract with Citibank should be modified to require Citibank to block card usage at specific casino and adult entertainment locations.



Click to Read More

Click to Hide