Tesla CEO highlights major inefficiencies, demands stricter auditing measures
Washington, DC [US], February 9:
Elon Musk, CEO of Tesla and SpaceX, has raised alarm over massive inefficiencies and fraud within the US government’s payment system, claiming that over $100 billion per year is potentially misallocated or lost to fraudulent activities.
In a post on X (formerly Twitter), Musk revealed that the Treasury Department and the Department of Government Efficiency have agreed to revise reporting requirements for all outgoing government payments to enhance transparency and accountability.
Key Reforms Proposed by Musk
Musk detailed a series of critical measures aimed at curbing financial mismanagement and fraud:
- Mandatory Payment Categorization Code
- Musk emphasized the need for all government payments to include a payment categorization code, which is necessary for financial audits.
- “This is frequently left blank, making audits almost impossible,” he stated.
- Requiring Payment Rationale
- Every government payment must now include a reason for disbursement in the comment field.
- “Importantly, we are not yet applying ANY judgment to this rationale, but simply requiring that SOME attempt be made to explain the payment more than NOTHING!” Musk added.
- Strengthening the “DO-NOT-PAY” List
- The DO-NOT-PAY list, which identifies fraudulent entities, deceased individuals, and potential terrorist fronts, must be regularly updated.
- Musk criticized the delays in updating the list, which can take up to a year, calling for a weekly or even daily review process.
- “This list should be updated at least weekly, if not daily,” he urged.
- Identifying Suspicious Entitlement Payments
- Musk highlighted that over $100 billion per year is being paid to individuals without a Social Security Number (SSN) or even a temporary ID number.
- “If accurate, this is extremely suspicious,” he said.
- He further added that Treasury officials estimated about half of this amount—$50 billion per year or $1 billion per week—could be outright fraud.
Musk Calls for Immediate Action
Describing the situation as “insane”, Musk stressed the need for immediate corrective action.
“This is utterly insane and must be addressed immediately,” he said.
He also shared a chart titled “Federal Government: Waste, Fraud, Abuse”, further illustrating the magnitude of financial mismanagement in government payments.
“The magnitude of the fraud in government payments (your tax dollars being spent) is MUCH higher than you think!” he wrote.
Growing Concerns Over Government Spending
Musk’s comments come amid increasing scrutiny of government expenditures, with lawmakers and business leaders demanding better financial oversight. His revelations have reignited debates on government transparency, financial accountability, and the urgent need for reform.
With billions of taxpayer dollars potentially lost every year, Musk’s intervention has sparked calls for greater oversight and immediate policy changes to safeguard public funds.