Pentagon Can't Track $2.3 Trillion as White House Seeks $48 Billion

9/10/2001: Rumsfeld says $2.3 TRILLION Missing from Pentagon — BubbaLouis

BubbaLouis

Defense analysts and whistleblowers warn the Pentagon routinely cooks its books to obscure an inability to track 25% of all military spending.

AI-assisted summary of 9/10/2001: Rumsfeld says $2.3 TRILLION Missing from Pentagon — original source. Check the original for full context.

Source published:

Key ideas

  • On September 10, 2001, Defense Secretary Donald Rumsfeld declared war on internal Pentagon bureaucracy, warning that financial mismanagement and institutional waste were a matter of life and death. (0:13)
  • Pentagon auditors acknowledged that the military was unable to track roughly 25% of its spending, leaving an estimated $2.3 trillion in transactions unaccounted for—equivalent to approximately $8,000 per American citizen. (0:13)
  • Despite widespread accounting failures, the White House requested more than $48 billion in new defense funding in its fiscal year 2003 budget proposal. (0:13)
  • Defense accountant Jim Minnery faced immediate pushback and reassignment after attempting to audit $300 million in untracked balances, while analyst Franklin C. Spinney warned that Pentagon books are routinely cooked. (1:14)

Detailed notes

## Background Published on YouTube by BubbaLouis on October 26, 2006, this video documents Defense Secretary Donald Rumsfeld's public acknowledgement of massive unmonitored Pentagon spending. According to the description, the video highlights the Pentagon admitting that $2.3 trillion was missing, with Rumsfeld characterizing the internal accounting crisis as a matter of "life and death."

## TL;DR On September 10, 2001, Defense Secretary Donald Rumsfeld declared a campaign against internal Pentagon waste, highlighting that the agency could not track roughly 25% of its spending, representing an estimated $2.3 trillion in missing transactions. Following the 9/11 attacks, reform efforts were sidelined as the administration requested over $48 billion in new defense spending. The report features whistleblower Jim Minnery, who was reassigned after attempting to track $300 million in missing agency funds, as well as veteran analyst Franklin C. Spinney, who warns that military bookkeeping is routinely cooked. Observers like retired Vice Admiral Jack Shanahan conclude that proper internal financial discipline could fund defense expansion entirely without burdening taxpayers.

## Atmosphere & style The report carries the sharp, urgent weight of a classic prime-time investigative broadcast, made especially eerie by the historical framing of Rumsfeld's speech occurring on the immediate eve of September 11. The tone conveys both disbelief and indignation, juxtaposing staggering sums of missing public wealth with the personal disillusionment of accountants facing administrative stonewalling. Concluding with a sobering real-time calculation of how many hundreds of thousands of untracked dollars vanished during the broadcast itself, the segment leaves viewers with a lingering sense of institutional evasion and unresolved alarm.

## Bulletin - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) On September 10, 2001, Defense Secretary Donald Rumsfeld declared war on internal Pentagon bureaucracy, warning that financial mismanagement and institutional waste were a matter of life and death. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) Pentagon auditors acknowledged that the military was unable to track roughly 25% of its spending, leaving an estimated $2.3 trillion in transactions unaccounted for—equivalent to approximately $8,000 per American citizen. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) Despite widespread accounting failures, the White House requested more than $48 billion in new defense funding in its fiscal year 2003 budget proposal. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Defense accountant Jim Minnery faced immediate pushback and reassignment after attempting to audit $300 million in untracked balances, while analyst Franklin C. Spinney warned that Pentagon books are routinely cooked.

## Key takeaways - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) Secretary of Defense Donald Rumsfeld publicly labeled internal Pentagon waste a grave domestic threat just one day before the September 11 attacks. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) Efforts to reform internal Pentagon financial management were effectively sidelined by the immediate shift toward funding the global war on terrorism. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) Pentagon auditors admitted that the Department of Defense could not properly track approximately 25% of all funds it spent. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) An estimated $2.3 trillion in internal military transactions lacked adequate paper trails, representing around $8,000 for every individual in the United States. - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) The proposed fiscal year 2003 budget requested over $48 billion in fresh defense spending despite ongoing inability to account for existing funds. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Former Marine and defense accountant Jim Minnery uncovered hundreds of millions in missing funds but was questioned by leadership for attempting to track them. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Minnery was abruptly reassigned after auditing approximately $300 million in discrepancies, alleging officials simply wrote off the balances to conceal systemic failure. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) A Department of Defense Inspector General review verified parts of Minnery's account but found insufficient evidence of intentional record falsification. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Pentagon analyst Franklin C. Spinney asserted that defense accounting books are routinely and systematically cooked year after year. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Retired Vice Admiral Jack Shanahan noted that effective fiscal discipline alone could recover $48 billion internally without burdening taxpayers. - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) During the broadcast's two-and-a-half-minute runtime, the Pentagon spent an estimated $2 million, with a quarter of that sum likely untrackable.

## Detailed walkthrough ### [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) The War on Pentagon Waste and the Missing Trillions

On September 10, 2001, just one day before the 9/11 terrorist attacks, Secretary of Defense Donald Rumsfeld publicly declared war—not against a foreign enemy, but against the entrenched bureaucracy within the Pentagon itself. Describing the military’s internal financial dysfunction as an urgent domestic threat, Rumsfeld underscored the gravity of the institutional waste by asserting, “In fact, it could be said that it's a matter of life and death.” Although Rumsfeld promised sweeping reform and structural accountability, the events of the following morning shifted national priorities overnight. In the immediate scramble to fund the global war on terrorism, the administration's internal crusade against Pentagon waste was effectively sidelined.

Despite the shift in focus, the scale of internal accounting failures remained immense. The administration’s fiscal year 2003 budget requested more than $48 billion in new defense spending, funneling fresh capital into an agency whose own auditors acknowledged a staggering breakdown in oversight: the military could not account for 25% of the money it spent. Broad estimates indicated that the Pentagon was entirely unable to track $2.3 trillion in financial transactions. That figure translates to roughly $8,000 for every man, woman, and child in the United States, raising critical questions about how trillions of taxpayer dollars could simply vanish into bureaucratic black holes.

- **Unaccounted Spending Share:** Pentagon auditors conceded that the military cannot track approximately 25% of its total expenditures. - **Untracked Volume:** An estimated $2.3 trillion in internal transactions lacked basic accounting tracking. - **Cost per Citizen:** The missing $2.3 trillion represents roughly $8,000 for every individual in America. - **New Funding Request:** The proposed 2003 defense budget sought over $48 billion in brand-new defense spending on top of existing allocations.

```mermaid flowchart TD accTitle: Pentagon Financial Accountability Breakdown accDescr: Flowchart illustrating the disconnect between taxpayer defense allocations and untracked spending. subgraph BudgetInput["Funding Pipeline"] A["Taxpayer Capital & Proposed 2003 Budget<br/>(+$48B New Defense Spending)"] B["Pentagon Bureaucracy & Defense Agencies"] end subgraph AuditOutcome["Audit Reality"] C["75% Accounted Expenditures"] D["25% Untracked Expenditures<br/>($2.3 Trillion Missing Transactions)"] end A --> B B --> C B --> D ```

[01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) Whistleblowers and Systemic "Cooked" Books

The sheer magnitude of trillions of untracked dollars is reflected in localized, smaller-scale audits. Jim Minnery, a former Marine turned defense accountant, risked his livelihood to speak publicly for the first time after noticing hundreds of millions of dollars unaccounted for on a defense agency's balance sheet. Minnery traversed the country trying to follow a paper trail for roughly $300 million, only to meet resistance from his superiors. Describing the disbelief he felt when his superiors pushed back, Minnery recalled, “The director looked at me and he says, 'Why do you care about this stuff?'” After pushing the issue, Minnery was abruptly reassigned, and he alleged that leadership simply wrote off the missing funds to hide the failure: “They've got to cover up the fact that they can't do the job.” While a Department of Defense Inspector General review verified several of Minnery's individual claims, investigators concluded there was insufficient evidence to prove an intentional effort to falsify official records.

Internal critics maintain that Minnery’s experience is not an anomaly, but the standard operating procedure. Franklin C. Spinney, a longtime Pentagon analyst who gained national attention two decades earlier for exposing internal financial distortions, remained on staff and warned that the situation had only degraded over time. Describing the routine state of internal bookkeeping, Franklin C. Spinney stated, “The books are cooked routinely year after year after year.” Retired Vice Admiral Jack Shanahan, who led the U.S. Navy's Second Fleet during Donald Rumsfeld's first tenure as defense secretary in the 1970s, pointed out that proper fiscal discipline alone could easily fund military expansion: “With good financial oversight, we could find $48 billion in loose change in that building without having to hit the taxpayers.” Vince Gonzalez concluded the report by noting that within the two and a half minutes the broadcast aired, the Pentagon spent an estimated $2 million—a quarter of which may never be properly tracked.

- **Whistleblower Scrutiny:** Jim Minnery attempted to audit approximately $300 million in untracked funds before being reassigned and witnessing the balance written off. - **Inspector General Findings:** The Pentagon's IG substantiated parts of Minnery’s account, though it stopped short of proving deliberate balance-sheet manipulation. - **Pervasive Accounting Tactics:** Veteran analyst Franklin C. Spinney argued that official Pentagon financial numbers remain pure fiction and are systematically manipulated every year. - **Spending Velocity:** The Pentagon spent nearly $2 million during the 2.5-minute duration of the news broadcast.

## Mentioned Donald Rumsfeld, The Pentagon, Department of Defense, Department of Defense Inspector General, Jim Minnery, Franklin C. Spinney, Jack Shanahan, U.S. Navy Second Fleet, Vince Gonzalez

## Video description Pentagon admits $2.3 Trillion missing and Rumsfeld calls it a matter of "life and death."

[Source](https://www.youtube.com/watch?v=xU4GdHLUHwU)

中文简报

白宫申请480亿美元拨款之际，五角大楼2.3万亿美元去向不明 国防分析人士与举报人警告称，五角大楼经常做假账以掩盖其无法追踪25%军费开支的事实。 2001年9月10日，国防部长唐纳德·拉姆斯菲尔德宣布发起一场反对五角大楼内部浪费的行动，并强调该机构无法追踪大约25%的支出，下落不明的交易金额估计达2.3万亿美元。在“9·11”袭击发生后，随着政府申请超过480亿美元的新增国防开支，改革工作被搁置。报道提到了举报人吉姆·米内里，他在试图追踪该机构3亿美元失踪资金后被调职；资深分析师富兰克林·C·斯平尼则警告称，军方的账目经常被篡改。退役海军中将杰克·沙纳汉等观察人士得出结论，若能建立适当的内部财务纪律，完全可以在不给纳税人增加负担的情况下为国防扩张提供资金。 2001年9月10日，国防部长唐纳德·拉姆斯菲尔德向五角大楼内部官僚主义宣战，警告财务管理不善和体制性浪费关乎生死存亡。 (0:13) 五角大楼审计人员承认，军方无法追踪大约25%的支出，导致估计达2.3万亿美元的交易下落不明——相当于每位美国公民约8000美元。 (0:13) 尽管存在普遍的会计失误，白宫仍在其2003财年预算提案中申请了超过480亿美元的新增国防资金。 (0:13) 国防会计师吉姆·米内里在试图审计3亿美元未追踪资金时立即遭遇阻力并被调换职位，而分析师富兰克林·C·斯平尼则警告称五角大楼的账目经常做假。 (1:14)

Reading summary

On September 10, 2001, Secretary of Defense Donald Rumsfeld declared the Pentagon's internal financial dysfunction a critical domestic threat, as auditors acknowledged an inability to track roughly 25% of military spending—representing an estimated $2.3 trillion in transactions. Scale of Untracked Pentagon Spending (0:13) Auditors within the Department of Defense conceded that the military could not account for roughly 25% of the capital it spent, leaving an estimated $2.3 trillion in internal financial transactions untracked. This unmonitored sum equated to roughly $8,000 for every individual in the United States. Although Rumsfeld characterized this institutional waste as a matter of life and death demanding structural overhaul, the focus on internal accountability was rapidly sidelined following the September 11 terrorist attacks the next day. Growing Budgets Amid Oversight Deficits (0:13) Despite widespread tracking failures, the administration requested more than $48 billion in new defense spending for the fiscal year 2003 budget. Critics questioned the necessity of new taxpayer burdens amid such accounting voids. Retired Vice Admiral Jack Shanahan argued that rigorous fiscal discipline could locate that requested $48 billion within existing Pentagon spending alone. Highlighting the ongoing rate of expenditure, reporter Vince Gonzalez noted that during the report's two-and-a-half-minute broadcast, the military spent an estimated $2 million, approximately a quarter of which would likely never be tracked. Whistleblower Pushback and Systemic Bookkeeping Failures (1:14) Internal efforts to reconcile accounts met institutional resistance. Former Marine and defense accountant Jim Minnery attempted to follow a paper trail for roughly $300 million in unaccounted balances, but superiors questioned his scrutiny and reassigned him, subsequently writing off the missing funds. While an Inspector General review corroborated specific details of Minnery's account, it found insufficient proof to confirm deliberate falsification. Longtime Pentagon analyst Franklin C. Spinney claimed such bookkeeping issues were routine rather than exceptional, alleging that the military's official books are systematically cooked year after year. The Pentagon's accounting breakdowns illustrate a persistent inability to audit trillions in defense spending, leaving unresolved questions regarding financial accountability as budget requests continued to expand in the wake of national security shifts.

Detailed notes — zh

## Background 该视频由用户 BubbaLouis 于 2006 年 10 月 26 日发布在 YouTube 平台上。页面简介指出，五角大楼承认有 2.3 万亿美元资金下落不明，时任国防部长拉姆斯菲尔德将其定性为关乎“生死存亡”的重大事件。 ## TL;DR 在“9·11”事件发生前一天，美国国防部长拉姆斯菲尔德宣布向五角大楼内部的官僚浪费现象宣战，并揭露有高达 2.3 万亿美元的军费交易记录无法追踪。内部审计显示五角大楼多达 25% 的现有支出无法交代去向，但政府仍在随后计划追加超过 480 亿美元的国防预算。报道通过前审计员吉姆·明纳里追踪 3 亿美元凭据遭排挤调离的经历，以及资深分析师关于军方系统性常态化做假账的证言，揭示了五角大楼内部长期存在的财务黑洞与掩盖失职的体制腐败。 ## Atmosphere & style 整段调查报道呈现出一种极具戏剧性与历史讽刺意味的肃穆与警醒氛围。随着时钟被精准定格在“9·11”前夕，画面在军方高层的冷峻表态与吹哨人无可奈何的控诉之间来回切换，营造出体制黑洞深不可测的荒谬感与压迫感。结尾处记者以“报道播出的两分半钟内五角大楼又花掉近 200 万美元”作为收尾，给观众带来强烈的现实冲击与难以平复的无力感。 ## Bulletin - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 2001年9月10日，美国国防部长唐纳德·拉姆斯菲尔德将五角大楼自身的官僚体制与资金浪费定性为关乎国家生死存亡的严峻威胁。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 五角大楼内部审计证实，军方无法交代25%已有支出的去向，失踪或无法追踪的交易总额高达2.3万亿美元，相当于人均8,000美元。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 在巨额账目成谜的情况下，政府仍在2003财年预算案中申请为国防部追加逾480亿美元开支。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 吹哨人与资深分析师揭露五角大楼常态化虚构财务报表，审计员追查数亿美元缺口反遭调职，军方常以直接注销坏账来掩盖渎职。 ## Key takeaways - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 9·11恐袭前夕，防长拉姆斯菲尔德向国防部内部官僚主义宣战，警告财务失控构成了不亚于外部敌人的重大危机。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 随着9·11事件后反恐战争的全面打响，针对五角大楼内部巨额浪费的整肃与变革行动被迅速搁置。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 五角大楼自身审计人员承认，国防部现存支出中有四分之一根本无法追踪到合规账目与具体用途。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 无法追踪的财务记录累计高达2.3万亿美元，平摊至每个美国人相当于承担了8,000美元的不明账目。 - [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 军方在无法解释已有万亿资金去向的财务混乱状态下，仍要求在2003财年增加逾480亿美元预算。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 审计员吉姆·明纳里因追查3亿美元蒸发资金遭到排挤并被调离岗位，该笔账目随后被军方直接注销掩盖。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 五角大楼监察长调查虽部分证实了明纳里的指控，但以无法证明官员存在主观故意为由未追究法律责任。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 资深分析师富兰克林·C·斯皮尼指责五角大楼的账目纯属空中楼阁，做假账在国防部内部已演变成常态化操作。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 退役海军中将杰克·沙纳汉直言，只要建立合理的财务监督，五角大楼内部省出的资金就足以填补480亿美元的增额需求。 - [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 按照五角大楼极高的支出速率，在两分半钟内即可消耗约200万美元，其中约四分之一款项将永远无法查明去向。 ## Detailed walkthrough ### [00:13](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=13s) 9·11前夕的宣战：五角大楼官僚体制与失踪的2.3万亿美元 在“9·11”恐怖袭击发生的前一天，美国国防部长唐纳德·拉姆斯菲尔德（Donald Rumsfeld）公开宣布开战——但打击目标并非外国恐怖分子，而是潜藏在美国国防部内部的敌人，即五角大楼自身的官僚体制。拉姆斯菲尔德明确指出，美军内部被肆意浪费的资金已经构成了极其严重的威胁。唐纳德·拉姆斯菲尔德警告道：“事实上，甚至可以说这是一件关乎生死存亡的事情。”他誓言要推动五角大楼进行根本性变革，然而仅仅一天之后，世界格局因恐怖袭击彻底改变。在随后仓促打响并全力资助“反恐战争”的狂潮中，这场针对军方内部浪费现象的战争似乎瞬间被世人抛诸脑后。 随后公布的2003财年预算案甚至要求为国防部增加超过480亿美元的新增军费支出。然而，五角大楼自身的审计人员却早已承认，军方连目前已花费资金中的25%都根本无法交代去向。根据多项估算，五角大楼无法追踪的交易记录总额竟高达2.3万亿美元（2.3 Trillion）。这是一个令人瞠目的天文数字，平摊到每一个美国男人、女人和孩子头上，相当于人均承担了8,000美元的糊涂账。 - **官僚浪费威胁**：拉姆斯菲尔德在2001年9月10日将内部财务混乱和浪费定性为不亚于外部威胁的严峻危机。 - **审计失职比例**：五角大楼内部审计证实，军方无法交代25%已有支出的具体流向。 - **2.3万亿美元黑洞**：无法追踪的财务往来总额相当于每个美国公民负担8,000美元。 - **预算悖论**：在无法厘清账目的同时，2003财年政府仍提议追加逾480亿美元国防预算。 --- ### [01:14](https://www.youtube.com/watch?v=xU4GdHLUHwU&t=74s) 吹哨人的遭遇与常态化做假账：从3亿美元到系统性腐败 要理解五角大楼为何能弄丢数万亿美元的资金线索，前美国海军陆战队员兼五角大楼审计员吉姆·明纳里（Jim Minnery）的遭遇极具代表性。明纳里作为吹哨人，冒着丢掉饭碗的风险站出来揭露内幕，他曾试图追查一家国防机构资产负债表上凭空蒸发的3亿美元“小额”资金。明纳里为了寻找凭证甚至跑遍了全美各地，但当他向上级反映情况时，主管却冷冷地反问他究竟为什么要在乎做好工作。不久后，明纳里便被强行调离岗位，而有关官员选择直接将这笔账目注销掩盖过去。吉姆·明纳里揭露道：“他们必须掩盖这一切。这就是腐败的根源所在。他们不得不掩盖自己根本无法胜任工作的事实。”虽然五角大楼监察长后来部分证实了明纳里的指控，但坚称无法证明军方官员存在蓄意操纵财务报表的行为。 实际上，五角大楼的做假账传统由来已久。早在20年前就因揭露军方“会计游戏”而名噪一时的五角大楼分析师富兰克林·C·斯皮尼（Franklin C. Spinney）至今仍在岗，他认为账目混乱的问题不仅没有收敛，反而愈演愈烈。富兰克林·C·斯皮尼直言不讳地指出：“那些数字纯属空中楼阁。账目年复一年、年复一年地在被常规性做假。”曾在拉姆斯菲尔德首次担任防长期间指挥美国海军第二舰队的退役中将杰克·沙纳汉（Jack Shanahan）也表示：“只要具备良好的财务监督，我们就能在那栋大楼里找到480亿美元的零钱，根本不必再去压榨纳税人。”正如记者文斯·冈萨雷斯（Vince Gonzalez）在报道尾声所指出的，在播出这篇短短两分半钟报道的时间里，五角大楼就又花掉了近200万美元，而纳税人很可能永远也不会知道其中25%的钱究竟花在了哪里。 - **吹哨人遭报复**：吉姆·明纳里追踪3亿美元缺口无果并遭质问排挤，军方最终直接冲销坏账以掩盖管理失职。 - **监察调查结果**：五角大楼监察长虽然部分坐实了明纳里的陈述，但并未追究官员刻意篡改报表的法律责任。 - **做假账常态化**：分析师富兰克林·C·斯皮尼作证称五角大楼多年来一直在系统性虚构、粉饰财务数据。 - **资金消耗速率**：在两分半钟的新闻播报时间内，五角大楼已支出约200万美元，且其中的四分之一去向无法追查。 ## Mentioned 唐纳德·拉姆斯菲尔德, 吉姆·明纳里, 富兰克林·C·斯皮尼, 杰克·沙纳汉, 文斯·冈萨雷斯, 五角大楼, 美国国防部, 美国海军陆战队, 美国海军第二舰队 ## Video description Pentagon admits $2.3 Trillion missing and Rumsfeld calls it a matter of "life and death." [Source](https://www.youtube.com/watch?v=xU4GdHLUHwU)

Original transcript

[0:13] Pentagon. The day before 911, Secretary [0:16] of Defense Donald Rumsfeld declared war. [0:19] Not on foreign terrorists. [0:21] The adversary is closer to home. It's [0:24] the Pentagon bureaucracy. He said money [0:26] wasted by the military poses a serious [0:29] threat. [0:30] In fact, it could be said that it's a [0:31] matter of life and death. [0:33] Rumsfeld promised change, but the next [0:35] day the world changed. [0:39] And in the rush to fund the war on [0:41] terrorism, the war on waste seems to [0:43] have been forgotten. [0:44] My 03 budget [0:48] calls for more than 48 billion in new [0:51] defense spending. More money for the [0:53] Pentagon when its own auditors admit the [0:55] military cannot account for 25% of what [0:58] it already spends. [1:00] According to some estimates, we cannot [1:01] track $2.3 trillion in transactions. [1:05] $2.3 trillion with a T. That's $8,000 [1:09] for every man, woman, and child in [1:11] America. To understand how the Pentagon [1:14] can lose track of trillions, consider [1:16] the case of one military accountant who [1:18] tried to find out what happened to a [1:20] mere 300 million. We know it's gone, [1:23] but we don't know what they spend it on. [1:25] Jim Minry, a former Marine turned [1:27] whistleblower, is risking his job by [1:30] speaking out for the first time about [1:32] the millions he noticed were missing [1:33] from one defense agency's balance [1:35] sheets. Miny tried to follow the money [1:38] trail, even crisscrossing the country [1:40] looking for records. The director looked [1:42] at me and he says, "Why do you care [1:44] about this stuff?" [1:47] It took me back. You know, my supervisor [1:50] asked me why I care about doing a good [1:52] job. So, [1:53] he was reassigned and says officials [1:55] then covered up the problem by just [1:57] writing it off. [1:58] They got to cover it up. That's where [2:00] the corruption comes in. They've got to [2:02] cover up the fact that they can't do the [2:03] job. [2:04] The Pentagon's inspector general [2:06] partially substantiated several of Min's [2:08] allegations, but could not prove [2:10] officials tried to manipulate the [2:12] financial statements. 20 years ago, [2:14] Pentagon employee Franklin C. Spinny [2:17] made headlines exposing what he calls [2:19] the accounting games. He's still there. [2:21] And although he does not speak for the [2:23] Pentagon, he believes the problem has [2:25] gotten worse. Those numbers are pie in [2:27] the sky. The books are cooked routinely [2:29] year after year after year. [2:31] Retired Vice Admiral Jack Shanahan [2:33] commanded the Navy's second fleet the [2:35] first time Donald Rumsfeld served as [2:37] defense secretary. With good o financial [2:40] oversight, [2:42] we could find $ 48 billion in loose [2:46] change in that building without having [2:47] to hit the taxpayers. [2:49] In the 2 and 1/2 minutes since this [2:51] report began, the Pentagon has spent [2:53] nearly $2 million. And it may never know [2:56] where 25% of those tax dollars went. In [3:00] Los Angeles, I'm Vince Gonzalez for Eye [3:03] on America.