(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today commended the Senate Governmental Affairs Committee for holding a hearing on efforts to eliminate waste, fraud, and abuse in the government purchase card program.  Led by Chairman Susan Collins (R-Maine) and Ranking Member Joe Lieberman (D-Conn.), today’s hearing, “Government Purchase Cards: Smarter Use Can Save Taxpayers Hundreds of Millions of Dollars,” examined current problems with the system, and ways of correcting them.

“Every year, due to a lack of oversight and mismanagement, taxpayers end up on the hook for millions of dollars charged to government credit cards,” CCAGW President Tom Schatz said.  “Cases consistently surface where government employees purchased new cars, breast implants, personal vacations, nights out at strip clubs, and other questionable items on their cards.  Other employees have continued to use their cards for personal use, and due to a lack of oversight, have racked of thousands of dollars individually.  When and if they are caught, it is very difficult for the government to recoup the money, and taxpayers have to pay the bill.”

The purchase card program was originally put in place to help cut through bureaucratic red tape.  Purchase cards give government employees the flexibility to buy necessary items immediately or if an emergency arises.  This is especially important to those on business travel.  Purchase cards also allowed employees to avoid time-consuming bidding requirements for many items.  Unfortunately, due to a lack of oversight, many government employees abused their privilege of being able to use purchase cards in which taxpayers held the credit.

“The government is well aware that millions of Americans are drowning in credit card debt,” Schatz continued.  “Agencies need to be more selective in who receives purchase cards and do a better job of how the cards are going to be used.  Those that carry cards need to receive instruction on what constitutes proper versus improper use.  Moreover, a system needs to be set up to ensure that when misuse occurs, the government has a mechanism to recoup the costs at no charge to the taxpayer.”

Today’s hearing also unveiled a new report from the General Accounting Office, “Purchase Cards: Increased Management Oversight and Control Could Save Hundreds of Millions of Dollars,” providing an overview of the program, problems of managerial oversight and the resulting government waste, and potential future solutions.  Sen. Collins also discussed legislation she plans to introduce to correct the problems.

“We commend Sen. Collins for bringing this issue to the forefront,” Schatz concluded.  “The purchase card program, while well-intended, has led to millions of wasted taxpayer dollars.  Greater oversight and management can help cut the losses now and in the future.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.