The Treasury Department’s Office of Inspector General announced on Friday the initiation of an audit concerning the security measures surrounding the federal government’s payment system. This action follows concerns raised by Democratic legislators regarding the access that was granted to a team associated with Elon Musk and the Department of Government Efficiency.
The inspection will also review transaction records over the past two years in connection with claims made by Musk regarding “alleged fraudulent payments.” The letter from Loren J. Sciurba, the deputy inspector general for Treasury, outlined these intentions, which suggest a focused investigation into the system’s integrity.
This audit is part of a more extensive advocacy effort led by Democratic lawmakers and federal employee unions aimed at ensuring transparency and accountability concerning the activities of DOGE under former President Donald Trump’s administration. Musk’s team has sought significant access to various government computer systems and has proposed the reduction of numerous federal workforce positions.
Sciurba noted that the fieldwork for the audit is expected to commence immediately. Although completion might not be expected until August, he acknowledged the potential risks that improper access and weak controls pose to sensitive payment systems. If significant concerns arise during the process, interim reports will be provided prior to the audit’s conclusion.
Interestingly, the Treasury’s inspector general had commenced this audit independently of the recent requests from lawmakers. A. J. Altemus, acting counsel to the inspector general, emphasized that their work is designed to be objective and non-partisan, adhering to established standards of operation.
Musk, known for his leadership roles in companies like Tesla and SpaceX, claims to be identifying inefficiencies within government systems, attempting to expose waste, fraud, and other abuses while aiming to save taxpayer money. However, many of his claims remain unverified, leading to concerns that his aggressive initiatives could endanger government data systems and enable him to exploit confidential information.
The audit’s timing coincides with heightened scrutiny faced by inspectors general during the Trump administration, wherein several independent inspectors general were dismissed. This prompted accusations from congress members regarding potential violations of oversight laws, culminating in a lawsuit seeking reinstatement for the removed officials.
In a letter addressed to Treasury Secretary Scott Bessent, Senators Elizabeth Warren, Ron Wyden, and Jack Reed expressed their concerns regarding discrepancies in information provided by the Treasury concerning DOGE.
“The lack of honesty regarding these situations is alarming, especially when considering the economic threats posed by DOGE’s activities. A detailed and public briefing on who has accessed these systems, their actions, and the underlying reasons is required,” the senators emphasized in their correspondence.
Democratic members on the House Committee on Oversight and Government Reform have similarly urged inspectors general to probe into DOGE’s activities while supporting the Treasury’s audit.
“This is a vital move, as we cannot allow Elon Musk and DOGE to have unfettered access to sensitive American data,” stated Rep. Gerry Connolly, the committee’s ranking member. “Inspectors general must operate independently without outside pressure.”
Confusion has arisen regarding DOGE’s access to the payment system; the Treasury initially described it as read-only access but later acknowledged that a DOGE team member had temporarily been granted permission to modify code before finally stating it was an inadvertent error.
Marko Elez, the 25-year-old employee responsible for the controversial access, resigned following the unearthing of racist posts on his social media platforms. Despite this, Musk has publicly supported Elez’s reinstatement with backing from Trump and Vice President JD Vance.
Earlier in the week, the Treasury declined to provide updates to a pair of prominent lawmakers on the Senate Finance Committee, including Wyden, citing ongoing legal matters related to DOGE’s involvement with Treasury payment systems.
Numerous advocacy groups and labor unions have expressed their disquiet, filing lawsuits against DOGE concerning potentially unauthorized access to sensitive government systems. Alarm bells have been sounded by five former treasury secretaries regarding the risks posed by Musk’s engagement with DOGE.
In Manhattan, a federal judge recently heard arguments in a case filed by Democratic attorneys general aimed at blocking DOGE from accessing Treasury data. Judge Jeannette Vargas stated she would rule at a later date while maintaining a temporary restraining order previously enacted by another judge.
Federal government attorneys maintained that the actions of Treasury and DOGE personnel were lawful and appropriate under the current administration’s priorities. “Treasury employees performed their duties within the scope of the law,” asserted Jeffrey Oestericher from the U.S. Attorney’s Office for the Southern District of New York.
However, Vargas at times challenged these assertions about sufficient safeguards, raising questions about the expedited action and the lack of comprehensive measures in the implementation phase. “Why was there such a hurry?” she queried.
Legal representatives for the Democratic attorneys general pointed out that no efforts had been made to shield or redact sensitive personal information, nor was there any evidence of adequate training provided to DOGE staff concerning sensitive data protocols. “There are serious concerns regarding access to private banking information without a valid reason,” stated Andrew Amer from the New York attorney general’s office.
