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Elon Musk’s Department Shuts Down Fraudulent Payments, Sparks Controversy

Elon Musk's Department of Government Efficiency gained access to the US Treasury's payment system, sparking controversy, resignations, and political backlash.

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Elon Musk’s Department Shuts Down Fraudulent Payments, Sparks Controversy

Elon Musk, the world’s richest man, recently announced plans to cancel millions of dollars worth of government grants. His Department of Government Efficiency (DOGE) team gained access to the US Treasury’s payment system, sparking significant controversy. As a result, a senior official resigned, and other staff members were placed on leave after objecting to DOGE’s access to sensitive information.

Elon Musk, who supported Donald Trump in the 2024 presidential elections, was appointed to lead the cost-cutting department. On Sunday, he took to social media (X, formerly known as Twitter) to boast about “rapidly shutting down illegal payments.” This followed the release of a list showing grants to Lutheran organizations.

Access to Treasury’s Payment System

Musk confirmed that DOGE had obtained access to the Treasury’s payment system, which handles trillions of dollars each year, including Social Security funds. He justified this action by claiming that Treasury officials had been instructed to approve payments, even to fraudulent or terrorist groups, which DOGE uncovered.

Concerns and Political Backlash

However, it is important to note that the Treasury already has a team in place dedicated to identifying fraudulent payments. According to sources, DOGE’s team can only read data but does not have the authority to cut payments.

The move quickly drew criticism, particularly from Senator Ron Wyden, the top-ranking Democrat on the Senate Finance Committee. Wyden revealed that Treasury Secretary Scott Bessent had granted DOGE “full” access to the payment system, which includes Social Security, Medicare, and payments to government contractors. In response, Wyden demanded clarification on why Musk’s team was given such access, given their potential conflicts of interest.

Resignation in Protest

Amid the growing controversy, David Lebryk, a long-serving government official, resigned in protest. Lebryk, who had spent over 36 years in government service, had overseen the Treasury’s financial infrastructure and briefly led the department while Bessent was awaiting confirmation. His resignation marked a significant response to the developments surrounding DOGE’s access.