Army Emergency Relief Stockpiling Money Meant for GIs: Officers Involved in Coercive Tactics!

I'll give The Associated Press credit. The news service didn't use headlines like these:

American military ripping off soldiers!

Army secretly controls private non-profit, extorts millions from Americans!

Read All About It!!

SHOCKING FINDINGS!!!!!

But the "Army charity hoards millions" story's tone seems to go in that direction:

"FORT BLISS, Texas -- As soldiers stream home from Iraq and Afghanistan, the biggest charity inside the U.S. military has been stockpiling tens of millions of dollars meant to help put returning fighters back on their feet, an Associated Press investigation shows...." (AP, via FOXNews)

As anybody who's watched "All the President's Men" knows, handsome investigative reporters like Robert Redford are ever-vigilant heroes, ready at a moment's notice to uncover dastardly deeds done by dark-jowled miscreants in high places.

In the movies.

This is real life.

This hard-hitting "Army charity hoards millions" account by The Associated Press may be the harbinger of a Watergate-style scandal, but I've got my doubts.

"Stockpiling"?! Sit Down, Take a Deep Breath, and THINK

Better yet, read the entire article. Past the first couple of paragraphs.

I'm not one of those people who think that the American military, and anyone in uniform, can do no wrong. America's armed forces are staffed almost entirely by human beings. My own experience is that human beings are not perfect.

It's possible that there is a real scandal here, somewhere. The Associated Press claims that the Army Emergency Relief (AER) is holding a 12-year supply of money. Actually, the AP says that the American Institute of Philanthropy says there's a dozen year's supply of bucks: so the news service is covered, if this goes to court.

The AP also says, "Most charity watchdogs view 1-to-3 years of reserves as prudent, with more than that considered hoarding."

Sounds dreadful: until well into the article, where we find out that at least some of the money that the AER has been "stockpiling" is 'stockpiled' in loans to soldiers. Interest-free.

Loans to GIs? No Interest? What's Wrong With That?

Army Emergency Relief has the odd idea that money that's been loaned, should be paid back. If America's major financial institutions operated that way - - -. But that's another topic entirely.

The Associated Press seems rather shocked at what happens when soldiers don't fulfill their financial obligations:

"Superior officers come calling when AER loans aren't repaid on time. Soldiers can be fined or demoted for missing loan payments. They must clear their loans before transferring or leaving the service." (AP, via FOXNews)

The next thing you know, those superior officers will be expecting soldiers to follow legal orders!

The Associated Press Reveals Army Emergency Fund Practices

Apparently, The Associated Press believes that charities should give money away, not make loans. And that there's something suspicious about "AER projects a facade of independence but really operates under close Army control." I'll get back to that.

Here's part of the shocking truth, as related by The Associated Press:

"...Instead of giving money away, though, the Army charity lent out 91 percent of its emergency aid during the period 2003-2007. For accounting purposes, the loans, dispensed interest-free, are counted as expenses only when they are not paid back...."

"...AER executives defend their operation, insisting they need to keep sizable reserves to be ready for future catastrophes...."

AER's "Facade of Independence"?!

Maybe I'm naive, but when a charity is called "Army Emergency Relief," and a great deal of the documentation I find on it is on URLs with the .mil domain suffix, I think that it may have something to do with the Army - and may actually be linked to the American armed forces.

Maybe that's why I'm some guy in central Minnesota, and not an investigative reporter for The Associated Press.

I noticed that (subtle?) detail, while checking out what the AER claimed that it was doing.

One of the documents I found was "SUMMARY OF MAJOR CHANGES TO CHAPTER 19 DOD 7000.14-R, VOLUME 7B MILITARY PAY POLICY AND PROCEDURES FOR RETIRED PAY" (pdf). The document has the sort of drably descriptive title that characterizes a bureaucracy's literature. What's inside doesn't make very exciting reading, either.

But, it reveals just what Army Emergency Relief was up to, in June, 2001. Like:

• CHAPTER 19 GENERAL PROVISIONS GOVERNING ALLOTMENTS OF RETIRED PAY
  • Paragraph 1903 AUTHORIZED ALLOTMENTS....
    • 190302. Discretionary Allotments....
      • E. Repayment of loans to the Army Emergency Relief....

Again, the terrible truth: Army Emergency Relief loaned money, and expected it to be paid back.

Army Emergency Relief: You Know What Those People Are Like

The matter of Army Emergency Relief, loan repayment, and proper procedure, may be a real problem. Or, it could be what happens when reporters and editors who feel - deeply, sincerely, in their hearts - that the military is bad, find out that a charity with ties to the American military expects its loans to be repaid.

At this point, I don't know. My guess is that, if there is a real problem, we'll be hearing about it over and over for months. If today's report of hoarding and deception is based more on wishful thinking than fact, There won't be a whisper of the issue after the coming week, except in some rather specialized and ideologically committed publications, websites, and blogs.

I think it's likely that this "stockpiling" story is a non-starter, when it comes to winning the next-Watergate sweepstakes. Reactions I've found to this 'scandal' are not quite on the same page with The Associated Press:

• "US Army's Emergency Relief criticized for 'hoarding' and 'strong-arming.' I can think of other problems." Clueless Emma (February 22, 2009)
  • What can I say? The American armed forces aren't perfect.
• " 'Taking Care of Business' "
  SpouseBUZZ (February 22, 2009)
  • Apparently they don't know about the allegedly dastardly deeds or the AER
• "AP Slams Army Charity For Lending/ Spending Too Little"
  Associated Press Check (February 22, 2009)
  • This blog does not have a politically correct view of The Associated Press: You have been warned.

In the news:

• "AP INVESTIGATION: Army charity hoards millions"
  The Associated Press, via KDBC (February 22, 2009)
• "Army Charity Hoards Millions Meant to Help Veterans"
  The Associated Press, via FOXNews (February 22, 2009)
• "Servicemembers Employ Recession Buffers, Still Seek Help"
  American Forces Press Service (August 29, 2008)

---

Update (February 23, 2009)
The Associated Press is still at it:

• "Army Emergency Relief Stockpiling Money Meant for GIs: Officers Involved in Coercive Tactics!"
  (February 22, 2009)