Pentagon pays $720M in late fees for storage containers
source: http://Globalsecurity.org
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- Vic_Romano
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By Tom Vanden Brook, USA TODAY
Since 2001, the Pentagon has spent more than $720 million in late fees for shipping containers. The containers — large metal boxes stowed on ships and moved from port on trucks — are familiar sights on bases in Iraq and Afghanistan where troops use them for storage, shelter and building material. Yet each 20-foot container returned late can rack up more than $2,200 in late fees. Shipping companies charge the government daily "container detention fees" after the grace period ends for the box to be returned.
The $720million represents a thin slice of the Pentagon's $553billion budget. Yet military spending is under intense scrutiny as the Defense Department has been ordered to trim $350billion in spending over the next 10 years and could face steeper reductions from budget cutters.
The cost stems from the mistaken belief that the wars in Afghanistan and Iraq would be brief and late fees would be minimal, said John Pike executive director of Globalsecurity.org, a defense policy group.
"This is real money," Pike said. "And we've spent a lot of it on what amounts to fines for overdue library books."
Late fees peaked in 2004 at $128million. That dropped to $17million in 2008 but has risen with a surge of troops and gear to Afghanistan. In 2010, the Pentagon paid shippers $30million for overdue containers.
Story continues....
http://www.usatoday.com/news/washington/story/2011-08-28/Pentagon-pays-720M-in-l...
Since 2001, the Pentagon has spent more than $720 million in late fees for shipping containers. The containers — large metal boxes stowed on ships and moved from port on trucks — are familiar sights on bases in Iraq and Afghanistan where troops use them for storage, shelter and building material. Yet each 20-foot container returned late can rack up more than $2,200 in late fees. Shipping companies charge the government daily "container detention fees" after the grace period ends for the box to be returned.
The $720million represents a thin slice of the Pentagon's $553billion budget. Yet military spending is under intense scrutiny as the Defense Department has been ordered to trim $350billion in spending over the next 10 years and could face steeper reductions from budget cutters.
The cost stems from the mistaken belief that the wars in Afghanistan and Iraq would be brief and late fees would be minimal, said John Pike executive director of Globalsecurity.org, a defense policy group.
"This is real money," Pike said. "And we've spent a lot of it on what amounts to fines for overdue library books."
Late fees peaked in 2004 at $128million. That dropped to $17million in 2008 but has risen with a surge of troops and gear to Afghanistan. In 2010, the Pentagon paid shippers $30million for overdue containers.
Story continues....
http://www.usatoday.com/news/washington/story/2011-08-28/Pentagon-pays-720M-in-l...
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Vic_Romano
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Just plain fucking crazy. How many schools could that have built? How many people could use money in the form of unemployment benefits?
- 9 months ago
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Vic_Romano
