Treasury Controversy: Musk Questions Federal Payment Oversight
Elon Musk, billionaire entrepreneur and former Trump adviser, reacted to the sudden resignation of David Lebryk, the Treasury’s highest-ranking career official. Reports suggest Lebryk clashed with Musk-linked individuals over access to the government’s sensitive payment infrastructure.
Musk cited an investigation by the Department of Government Efficiency (DOGE), claiming Treasury officers approved all transactions, even those linked to fraud or terrorism.
“According to @DOGE, officials were ordered to approve every payment request,” Musk stated. “They never rejected a single transaction—not once.”
However, Musk provided no concrete evidence to support claims that Treasury officials knowingly approved illicit payments.
Adding to the controversy, The New York Times reported that Treasury Secretary Scott Bessent authorized DOGE representatives to access the federal payment network. Despite repeated inquiries, the Treasury Department and White House officials refused to comment.
Treasury Defends Its Payment Security Measures
The Bureau of Fiscal Service, responsible for managing federal payments, maintains a specialized unit to prevent and recover fraudulent transactions. Treasury officials claim their safeguards blocked $155 million in unauthorized payments and recovered $350 million.
Lily Batchelder, a former Treasury official, criticized potential political interference. “The Bureau of Fiscal Service operates with neutrality,” she emphasized. “Political meddling threatens critical programs like Social Security and tax refunds.”
Democratic lawmakers strongly opposed Trump-era appointees and Musk’s DOGE group influencing the federal payment system. They argue that career professionals should manage these networks without political interference.
“These payment networks must not fail,” warned Sen. Ron Wyden, a top Democrat on the Senate Finance Committee. “Political interference threatens our economy and national stability.”
Federal Fraud Losses Reach Alarming Levels
Meanwhile, the Government Accountability Office revealed shocking numbers. The federal government loses between $233 billion and $521 billion annually due to fraud.
In the 2024 fiscal year, federal agencies reported $236 billion in improper payments. Major losses came from Medicare, Medicaid, unemployment benefits, pandemic relief loans, and Social Security disbursements.
This growing fraud raises serious concerns about government oversight. Lawmakers now face mounting pressure to tighten financial controls and restore trust in federal payment systems.
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