Deputy defense secretary loses composure, uses patronizing tone when Jon Stewart presses about DOD's $850 billion mismanaged budget: 'That's f***ing corruption'

United States Deputy Secretary of Defense Kathleen Hicks lost her composure during a Thursday interview with Jon Stewart when he pressed her about the Pentagon's $850 billion mismanaged budget.

The Department of Defense has been federally mandated to perform audits since 1994. However, the agency ignored the mandate until 2017, when it ran its first audit. Since then, the DOD has performed five audits, each of which it has failed.

Earlier this year, a report by the Government Accountability Office estimated that the Pentagon has at least $220 billion in unaccounted-for government-furnished property. However, the GAO stated that the estimate is likely "significantly understated."

Thursday's interview quickly became contentious when Stewart questioned Hicks about potential waste, fraud, and abuse within the department.

"Do you feel like these are unfair questions of somebody within a department of that size and scope?" Stewart asked Hicks.

Hicks, who replied with a condescending tone for most of the exchange, stated, "I think you have a particular thing you really want to talk about, and you're asking me other questions, but I don't think that it's unfair to ask me about the audit."

"But don't you think that that does speak to the larger point that we're trying to get at, which is good journalism uncovers corruption?" Stewart inquired.

Hicks laughed and stated, "Good journalism does uncover corruption, but I'm not sure these two things are linked."

Stewart replied, "Oh, but they are."

Hicks appeared agitated by the comment and, with a seemingly patronizing tone, replied, "You need to explain to me: Do you understand what an audit does? And the degree to which it is linked to the question that you're asking?"

Stewart explained that he believes the military's audit does not analyze efficacy but, instead, whether ordered goods are being delivered.

Hicks agreed with Stewart and added, "That is any audit. That is true."

"But generally, those audits aren't $400 billion for Raytheon and $1.7 trillion for a plane that doesn't seem to be doing … there is a lot of waste, fraud, and abuse within a system," Stewart replied.

"That is completely false right there," Hicks stated.

She added that the failed audits indicate that "we don't have an accurate inventory that we can pull up of what we have where. That is not the same as saying, 'We can't do that because waste, fraud, and abuse has occurred.'"

Stewart argued that the department's failure to have an accurate inventory is considered waste.

"If I give you a billion dollars and you can't tell me what happened to it, that to me is wasteful," he said. "If you can't tell me where it went, then what am I supposed to think?"

"I'm not saying this is on you and that you caused this," Stewart added.

Hicks grinned and replied, "I'm pretty sure I didn't cause it."

"An $850 billion budget to an organization that can't pass an audit and tell you where that money went, I think most people would consider that somewhere in the realm of waste, fraud, or abuse," Stewart continued. "They would wonder why that money isn't well accounted for. And especially when they see food insecurity on military bases."

Hicks then attempted to seize the opportunity to change the subject to food insecurity issues.

"Do you want to talk about that?" Hicks asked. "I'm trying to understand where you're trying to go other than the dollars, which really bother you."

Stewart stated that he believes it is all connected.

"Okay, tell me that story," Hicks replied.

"I may not exactly understand the ins and outs and the incredible magic of an audit, but I'm a human being who lives on the Earth and can't figure out how $850 billion to a department means that the rank and file still have to be on food stamps. To me, that's f***ing corruption," Stewart told Hicks.

The crowd erupted into cheers and applause.

"I'm not looking to pick a fight with you, but I am surprised that the reaction to these questions are, 'You don't know what an audit is, bucko.' That's just weird to me," Stewart continued.

Once again, Hicks laughed off Stewart's comments. She then shifted the conversation to how the DOD has prioritized and redistributed funds to tackle food insecurity and provide child care.

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