Matthew Maly writes in with a remarkable tale of malfeasance and cover-up from stretching from the Ukraine & Russia to the corridors of power in the United States
Four years ago, I alerted the US Department of Defense about $20M grossly mismanaged and/or stolen from Defense Enterprise Fund (DEF), a US-financed program to convert the former Russian producers of weapons of mass destruction (anthrax, nuclear, etc). A Department of Defense Audit proved the theft, but the guilty American managers were not even reprimanded.
When Vector Plant of Novossibirsk, the Soviet Army’s prime facility for producing militarized anthrax and smallpox spores, asked for just $1M to convert itself – DEF did not have the money. When DEF COO was purchasing his private apartment in Moscow, DEF had a million dollars to finance it.
Just recently, I caused Defense Threat Reduction Agency to lower the number former Soviet WMD scientists said to be converted by DEF to peaceful pursuits from 3370 to 1250, a 66% reduction! But the real figure is no more than 200 scientists, not a good result for a $67M program.
A more complete description is here. For the full story, please go here and then click on “DEF”.
After my letter of concern, I was immediately blacklisted for US-financed assistance jobs in the NIS which was a professional and financial catastrophe for me. I am extremely frustrated that there has been four (!) intentionally inconclusive investigations of DEF, each refusing to look into my allegations. The Pentagon admits that the money is gone and that a $67M program is dead, victim of gross mismanagement, they do not disprove my letter, but they do not remove my name from the blacklist either.
Ukraine is a rather suspect place. Has it corrupted the Americans too?
One of the recurring probems with government employees/programs is the “loss” of funds, lap-top computers (with data-full hard drives), major equipment, etc.
Until accountability is an basic part of a job description, that will continue. The results of “losing” something important today often means ignoring it, hiding the fact, blaming someone else (or, “the system”), and generally, moving on.
The people (i.e., you and me) who eventually pay for the loss will have to demand better.
John, this has been said by annoyed taxpayers for, well, centuries. Read some of the things said in 1700 or 1800 or 1900 and you will see nothing has changed except the sheer scale. It is the very nature of states and bureaucarcies… everyone seems to think it is a management problem and “Until accountability is an basic part of a job description…”
Sorry, but can you point me at a state in which this sort of this is not endemic? Don’t limit yourself to states around now. It is not a management problem, it is the very nature of states and the things states try to do which is the cause of this sort of thing. There is only one way to make a state’s wastefullness smaller…
A smaller state.
Just one problem, Perry. The larger the state gets, the more resistant it becomes to the actions of responsible people to make it smaller.
The public has a harder and harder time keeping up with how the state is growing. The collective action problem associated with controlling the size of the governmnent gets worse as the government gets bigger. Selection pressure favors the growth of government agencies that are opaque and accountability-resistant.
Eventually it becomes impossible to stop the growth of the state. I suspect the point of no return, for the U.S. government in particular, was reached some years ago.
We should consider the possibility that we may have to wait for the state to “burn itself out” by annihilating the economy which it parasitically depends on for support.
You’re correct about the smaller state being the answer, Perry.
I’m encouraged by the privatization of many state functions occurring around the world. The http://www.techcentralstation.be website has a post on that phenomenon right now.
What’s especially good is the variety of states – India, Chile, Sweden(!), the UK – who are privatizing various state services. The privatized services differ from country to country, according to their local needs.
After a bumpy initial period for some conversions, it seems to be a go. There is little return to state control.
Funny this should come up. Last Friday, one of the news shows here focused on the danger of stockpiled Soviet chemical weapons housed in Siberia.
The Siberian compound had deteriorated to the point where it was not too hard for someone to walk in, take a weapon, place in suitcase and leave.
However, the most likely scenario would be for one of the guards, who haven’t been paid for a while, to sell on the black market.
Program talked about why the US had held up funding for a chemical disposal plant. Without the disposal plant, the weapons can’t safely be destroyed.
Show was advocating that funding be resumed right away in view of some of the threats we face.
There was no mention made of the information available via Maly’s site. I’m sure it would make a very good follow-up.
I can’t recall, off the top of my head, which news show it was. When I remember, I’ll write to the producers and supply the URL to Maly’s site.