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Government purchase cards were hailed in the 1990s as an effective way of saving money and cutting staff, but illicit and careless use of the charge cards repeatedly has drawn congressional ire.

On Friday, Sen. Susan Collins, R-Maine, introduced the 2005 Purchase Card Waste Elimination Act, which would increase oversight of the program originally designed to simplify the process that agencies use to purchase items worth less than $2,500.

Since their inception in the late '90s, purchase cards have been a source of fraud and misuse. The Government Accountability Office has reported instances where workers used the charge cards to pay for non-work related items such as designer briefcases, leather jackets, compact discs, prostitutes, golf games, clothes, mortgage payments, personal trips, and even photos of Elvis Presley bought at Graceland.

Collins' bill does not address intentional fraud as much as it encourages agencies to increase efforts to educate workers on the proper use of purchase cards and generate discounts for government shoppers.

Under the bill, the Office of Management and Budget would issue guidelines for agencies on analyzing charge card purchases and negotiating discounts with companies that accept the cards. OMB would also create communication programs to make sure card holders know about store discounts and issue guidelines for assessing card holders' purchasing practices.

The General Services Administration would be required under the legislation to pursue discounts with large suppliers such as Wal-Mart and The Home Depot, and to continue improving the reports from banks issuing the purchase cards.

Lawmakers were told during a hearing last year that $300 million could be saved through better management of the card program, but a bill identical to the one Collins introduced last week failed to make it out of the Homeland Security and Governmental Affairs Committee and only picked up one co-sponsor.

COMMENTS

• It is very disturbing, to say the least, that some federal employees are abusing the system and violating the authority entrusted to them. However, it is no less disturbing the behavior by some government managers and members of U.S. Congress who, for whatever reason, fail to take the right course of actions, in order to put a stop to those abuses. Let's face it, it is not due to a lack of clarity or training on the rights and wrongs that those abuses exist, but due to lack of intestinal fortitude and inaction, on the part of some government managers and members of U.S. Congress. Correction of the problem should not require new legislation, all that is needed is to start enforcing existing laws, regulations and standards of behavior, which would be more than sufficient to deter the would-be offenders. Introduction of additional smoke and mirrors, with the pretense that it will lead to an expected solution, is counterproductive and fundamentally dishonest. Most likely, this approach will only waste government revenues, which are in short supply, and exacerbate the problem. In short and without reservation, one can safely say that those in government who commit acts of fraud, waste and abuse or misuse, don't belong in government. Setting the right precedent is long overdue. Get rid of the scum, starting with the biggest offenders, suspend without pay the lesser ones and the training and learning will take care of itself. Neither the taxpayers nor the honest government employees should have to suffer the adverse consequences. Cleaning the government of the scum is a must but, in doing so, can't overlook the top! George Paliulionis Posted March 1, 2005 6:56 PM
• The solution is so simple that Congress will never find it! Get rid of the cards - both travel and procurement! Let government employees charge on their own cards and then get reimbursed. That way there is a chance that the government will examine the spending before payment is made! If the government takes too long and there are interest charges on the card, the government should pay the interest charges for their portion of the bill and assume that any payment was first applied to the government purchase! If the poor employee cannot get a card - they are either so low income or such poor managers of money that the government should not issue them a card to begin with! Let the wealthy managers charge items on their cards and not rely on the poor staff that is being outsourced anyway! taxpayer Posted February 28, 2005 6:52 AM
• First, the drafters of this and similar legislation need to understand the differences between the travel card and the purchase card programs. They are managed differently with different oversight programs. Secondly, any legislation that drives increased program oversight should also provide funding for the additional manning required to conduct the oversight. Otherwise the resulting law will clearly articulate the desire/wish but will not result in improved/increased oversight. Derwin Laster Posted February 24, 2005 7:31 AM