Scrutiny of the use of government purchase cards, which in
2002 accounted for $15.2 billion in expenditures, will
continue in the wake of revelations of waste and fraudulent
use of the cards. A recent policy statement from the
Governmental Affairs Committee, which has primary
jurisdiction in the Senate over federal employment
policies says the panel “plans to exercise vigorous
oversight in this area, and identify ways to better
manage these programs to achieve savings.”
The purchase card program has been the subject of numerous
reports from agency inspectors general and the General
Accounting Office, which documented fraud and abuse
including use of purchase cards to make mortgage payments
and pay closing costs, to place bets at a racetrack, and
to buy cars, an engagement ring, Elvis photos from
Graceland, and a trip to the Rose Bowl game.
“Even more striking is the waste that may exist in these
programs. Using a conservative approach, GAO estimates that
the federal government may be able to save hundreds of
millions of dollars through better management of these
programs,” the committee said.
Many of the past examinations of the program blamed managers
for authorizing cards for their subordinates too freely and
then failing to keep tabs on what was being bought. The
oversight also has led to legislative language to require
credit checks to identify those who should not eligible
for the cards.
