European Stars And Stripes (Newspaper) - May 12, 1988, Darmstadt, Hesse                                Thursday May 12, 1988 the stars and stripes $1 1.5 million in spy Money lost army blames care estness greed and Loose controls Washington up despite a four year search the army has been unable to lace $11.5 Mil lion improperly spent on spy operations throughout the world in the Early 1980s, according to army officials and internal reports. Anny officials have initiated Steps against seven individuals to recover si50,000 in lost or stolen Money and an eighth could face criminal prosecution Tor shredding key document during an internal investigation a Pentagon spokesman said. Military official said the army s routine destruction of accounting records on orders from lop com Manders has forced auditors to reconstruct expenditure from Bank documents informal receipt and contractor records. Investigators doubt they Ever will be Able to rack most of the mining Money. The is 1.5 million which officially has been Classi fied As lost was among si70 million that the spy units improperly lapped from outside accounts to pad their Budge is. The new developments Mark the latest army at tempts to unravel a sweeping special operations scan dal that already has led to sanctions against More than 500 people officials said. However Trie army has rejected possible Legal of disciplinary action against Gen. John pc secy who As the no. 2 army official was found 10 have approved the periodic shredding of the units financial Doc umcntsinl982. Cesscy who later became chairman of the joint chiefs of staff and now is retired said he did not know the shredding violated defense department and White House regulations. The army has asked the Justice department to con Sider criminal prosecution of maj. Richard Joubert since retired intelligence officer who destroyed records of $9 million in expenditures in 1985 after being advised that an internal investigation had begun a Pentagon spokesman said. In addition the army is seeking reimbursement for about si50,000 of the in traced funds from seven financial officers and operatives the spokes Man said. A Large portion of that Money disappeared after having been stored As Cash in Bursars safes for distribution As travel advances he said. Investigators reported one bursar lost a Cash filled briefcase after having drinks with a couple of female acquaintance. Since 1984, when internal inquiries into the operations began the army has court Martiale three spy chiefs found to have misused More thansi60,000 and sought to recover funds from More than Sod personnel who received $1 million in excess travel Money. United press International Learned of the army s financial abuses in a four month inquiry that included interviews with dozens of army and con Gressional officials and a review of thousands of pages of internal reports on the army s spy and counter terrorism units. The units were strengthened and centralized to improve . Intelligence gathering capability after the disastrous hostage Rescue Mission in Iran in april 1980. Later the units attempted numerous operation in Central America and the Middle East and some in the United states that were directed at the soviet Union. Up has reported that with the approval of the army s lop military officials the spy units dipped into off limits accounts to improperly obtain ipod million in additional Money nearly five times their original budget. The units were allotted about s36 million be tween 1981 and 1983, an army official Aid. The search for missing Money began in the Spring at 1984, an army spokesman said meat of the Untra cd is 1.5 million probably was used legitimately on three unidentified army intelligence projects in the United states but some Money May Well Nave been stolen Rosqui reeled away in secret overseas accounts by free Wheeling . Agents. The army Legal review last year reported nuts 1.75 million could still not be traced. In the last year army auditors poring through duplicate Bank and contractor records have been Able to Trace Only $230,000, an army spokesman said. The army does not expect its auditors Ever la be Able to discover the destination of More than an additional s3 million or 14 million a spokesman said. A detailed look at the spy units financial abuses according to army officials reflects an operation plagued by carelessness greed and Loose controls Joubert a custodian of intelligence command records shredded $9 million in accounting records for a .-based project in 1985, More than a year after allegations of impropriety were made and army investigations begun. Joubert acted after two army investigators specifically instructed him not to destroy any records then retired from the serv ice shortly afterwards. Army auditors have found duplicate records that have enabled them to Trace most of the Money but 1856,322 remains Unac counted for. The army asked the Justice depart ment six months ago to consider prosecuting Jou Bert. Why he destroyed the records remains baffling mystery an army spokesman said. Jou Bart could not be reached for comment. Chief warrant officer Tracy Perry a bursar populist Defeated Quito Ecuador up socialist Rodrigo Borja Cevallos a supporter of the sandinista regime in Nicaragua Defeated populist Abdala Bucaram in presiden tial elections radio and television stations reported monday. An estimated 4 million people went to the polls for sunday s election. Official results will not be announced for about a week. Lost 14,800 in Cash and a $40.000 receipt at a Georgia hotel on july 19, 1982, army documents. Show. Ferry who remains on Active duly after i years service told investigators that the briefcase Fie lost also contained All the Cash receipts for advances he provided to operatives Between feb. 24and july 19. 1982. He lost the briefcase after hav ing four drinks at the hotel lounge with two women he knew casually and several male colleagues. A witness said Perry was toting the briefcase Laie that night when he walked a nursing student to her Carin the parking lot. Ferry said he then returned to his hotel room and discovered the next morning that the briefcase was misting. The army reprimanded him and is. The bequest by Dorothy Walker is he biggest donation the Charity has received since it was founded in 1824, Diana Jones an Spca spokeswoman said tuesday. She said Walker bequeathed her in lire estate to the Spca in her will published monday. Jones said the Charity knows nothing about Walker other than thai she was widow who lived with her cat Pussy in the London suburb of Richmond and that she died last december. The London daily Telegraph  Walker s lawyer Mark pres a saying Walker was survived Only by a few Dis Tant relatives. " he said Walker left no special instructions concerning the cat s welfare and we will be trying Home for her Iota i Good Molj an Mono filth Bas come from t was quoted As saying.  her husband lived in  the War and bought mixed fat of Pussy a tomcat a owned by a widow who left Mart thin $5 million to the Spca. Residential and commercial property throughout the area. She had a lot of tenants and was very popular with them All. Think she was a. Very kind hearted  Walker former housekeeper Linda Kavelala 70, is looking after the cat until a permanent Home can be found for it. London s today newspaper quoted Havel Al As saying of Walker she often said she preferred animals to people,-1 she was determined to prove it to very last itt Spca said the previous biggest donation Tecc animal welfare Charity Tutein 19s5 when an English woman living in Switzerland Tell Ither estate Worth 1.75 million pounds then Worth j2.2 million