Defense official says Pentagon hid unspent funds in accounts

Posted 1/17/2007 9:54 PM ET

By Matt Kelley, USA TODAY

WASHINGTON — The Pentagon has hidden at least $1.4 billion in other agencies' accounts instead of returning unspent money to the U.S. Treasury, the Defense Department's internal watchdog told Congress Wednesday.

Thomas Gimble, the Pentagon's acting inspector general, said Pentagon offices between 2002 and 2005 used the General Services Administration (GSA) and the Interior Department "to 'park' or 'bank' funds that were expiring."

GSA and Interior then spent the money on Pentagon contracts, circumventing the law, Gimble said.