In his latest interview, Musk exposes a massive government fraud loophole, calling it one of the biggest sources of fraud in the world.
Musk’s mission to cut government waste
Elon Musk has exposed what he calls “one of the biggest sources of fraud in the world.”
The tech billionaire claims a loophole in government spending has allowed billions of dollars to be funneled into wasteful programs.
As the head of the Department of Government Efficiency (DOGE), Musk is on a mission to cut fraud and slash bureaucracy.
DOGE has already taken drastic measures. It has threatened government employees with termination for failing to respond to emails. It has also fired and rehired over 100 staff members within two weeks.
While, the agency has even reduced the Inter-American Foundation to a single employee.
Musk criticizes foreign aid spending
In a recent interview with Fox Business, Musk explained how DOGE is targeting government waste. He highlighted foreign aid as a major source of corruption.
According to Musk, USAID (United States Agency for International Development) is a “criminal organization” that misuses taxpayer money.
Musk stated that USAID has ignored executive orders to suspend foreign aid.
Additionally, he also claimed that billions of dollars have been funneled into non-governmental organizations (NGOs) with no oversight.
“One of the biggest sources of fraud in the world is government-funded NGOs,” Musk said. “There are no controls over these organizations, and they are given billions of dollars.”
Musk insists that DOGE has uncovered a loophole allowing funds to be funneled to fraudulent NGOs.
He estimates that tens of billions of dollars have been lost this way. DOGE is now working to close this loophole and put an end to these scams.
The Inter-American Foundation, which once had 48 employees, has been reduced to the statutory minimum of one.
The agency was created in 1969 to fund development projects in Latin America and the Caribbean. Since 1972, it has invested around $950 million.
Meanwhile, USAID remains the world’s largest humanitarian operator. However, it accounts for less than 1% of the federal budget.
Despite this, Secretary of State Marco Rubio has announced that 83% of USAID programs will be cut. Over 5,200 contracts have already been canceled.
Government pushes back against DOGE reforms
On Monday, Rubio revealed that USAID programs had spent billions in ways that did not serve national interests.
“Some programs even harmed the core national interests of the United States,” he said. He thanked DOGE for working tirelessly to implement these reforms.
However, DOGE’s actions have faced legal pushback. A U.S. judge recently blocked 2,000 USAID employees from being placed on leave.
Additionally, the court also ordered the reinstatement of around 500 workers.
Despite these legal hurdles, Musk and former President Donald Trump remain committed to reducing the agency’s workforce from 10,000 to just 500 employees.
Musk calls for further Government audits
Musk believes even more taxpayer money can be saved.
While, he alsoclaims that improved auditing in the Treasury could save an additional $100 billion per year.
By identifying fraudulent Social Security claims, he estimates the government could recover up to half a trillion dollars.
“We post the receipts,” Musk said, emphasizing DOGE’s transparency.
In short, The agency continues to push for reforms to eliminate wasteful spending and root out corruption in government programs.