USA — Guard Bureau Officials Look Into Fraud Allegations

ARLINGTON, Va., Nov. 1, 2010 — Nation­al Guard Bureau offi­cials are look­ing into alle­ga­tions of fraud and abuse and, if nec­es­sary, revamp­ing pro­ce­dures for detect­ing fraud after it was dis­cov­ered that sev­er­al states may have dis­bursed funds as enlist­ment bonus­es to those who may not have qual­i­fied for them.

“I am con­cerned and deeply dis­ap­point­ed about recent alle­ga­tions involv­ing mis­man­age­ment of funds in sev­er­al state Nation­al Guards,” said Air Force Gen. Craig R. McKin­ley, chief of the Nation­al Guard Bureau. “These alle­ga­tions will be thor­ough­ly inves­ti­gat­ed by experts from across the NGB, [the Defense Depart­ment] and oth­er fed­er­al enti­ties. No stone will be left unturned.”

McKin­ley added that he has direct­ed a review of Nation­al Guard Bureau man­age­ment con­trols designed to pre­vent and detect poten­tial finan­cial mis­man­age­ment or abuse.

“I have direct­ed U.S. fis­cal and prop­er­ty offi­cers in select­ed states to review sim­i­lar con­trols at the state lev­el,” McKin­ley said. “The results of these reviews will be sub­mit­ted to me as soon as is prac­ti­ca­ble.”

The results of the review will be shared through­out the 54 states, ter­ri­to­ries and the Dis­trict of Colum­bia to ensure the Guard’s per­son­nel and process­es abide by estab­lished legal and eth­i­cal stan­dards, offi­cials said.

McKin­ley has direct­ed all fis­cal and prop­er­ty offi­cers to con­duct a quick-reac­tion audit and review of pay com­pen­sa­tion pro­grams.

“I expect these actions to be your Pri­or­i­ty One objec­tive between now and the end of the cal­en­dar year,” McKin­ley said in a mem­o­ran­dum to the states’ adju­tants gen­er­al dat­ed Oct. 29.

The alle­ga­tions of fraud first sur­faced in a news arti­cle in the Sacra­men­to Bee news­pa­per after fed­er­al audi­tors report­ed them to the FBI and the Inter­nal Rev­enue Ser­vice while look­ing into the dis­burse­ment of funds.

U.S. Depart­ment of Defense
Office of the Assis­tant Sec­re­tary of Defense (Pub­lic Affairs)

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