AP/ November 13, 2012, 1:51 PM

Panetta demotes general for lavish spending

Army Lt. Gen. William E. Kip Ward, center, is pinned with his fourth star, the Army's highest rank of general, by Army Chief of Staff, Gen. Peter J. Shoomaker, left, and his wife Joyce Ward, right, Friday, May 26, 2006 at Fort Myer, Va. Defense Secretary Lean Panetta announced November 13, 2012 Ward was demoted to three stars for lavish traveling and spending.

Army Lt. Gen. William E. Kip Ward, center, is pinned with his fourth star, the Army's highest rank of general, by Army Chief of Staff, Gen. Peter J. Shoomaker, left, and his wife Joyce Ward, right, Friday, May 26, 2006 at Fort Myer, Va. Defense Secretary Lean Panetta announced November 13, 2012 Ward was demoted to three stars for lavish traveling and spending. / AP Photo/Caleb Jones

WASHINGTON Defense Secretary Leon Panetta has demoted the former head of U.S. Africa Command who was accused of spending thousands of dollars on lavish travel and other unauthorized expenses, a senior U.S. official said Tuesday.

Panetta stripped Gen. William "Kip" Ward of a star, which means that he will now retire as a three-star lieutenant general despite arguments from the chairman of the Joint Chiefs of Staff against the demotion. Ward also has been ordered also repay the government $82,000.

The official spoke on condition of anonymity because the person wasn't authorized to discuss a personnel matter.

The demotion comes as retired Army Gen. David Petraeus resigned as CIA director because of an extramarital affair and Marine Gen. John Allen is being investigated for improper communications with a woman.

According to the official, Panetta reviewed the Ward matter and concluded that the wrongdoing found by the Defense Department Inspector General, in a report released earlier this year, demanded accountability.

Retiring as a three-star will cost Ward about $30,000 a year in retirement pay — giving him close to $208,802 a year rather than the $236,650 he would get as a four-star.

Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, urged Panetta to allow Ward, the former head of U.S. Africa Command, to retire at his full four-star general rank, according to defense officials. Other military leaders had noted that the demotion would cost Ward a lot of money.

The inspector general's report found that Ward used military vehicles to shuttle his wife on shopping trips and to a spa and billed the government for a refueling stop overnight in Bermuda, where the couple stayed in a $750 suite. The report detailed lengthy stays at lavish hotels for Ward, his wife and his staff members, and the use of five-vehicle motorcades when he traveled to Washington.

It also said Ward and his wife, Joyce, accepted dinner and Broadway show tickets from a government contractor during a trip during which he went backstage to meet actor Denzel Washington. The couple and several staff members also spent two nights at the Waldorf Astoria hotel.

Other charges were that Ward often extended his overseas trips — particularly those to the U.S. — for personal reasons, resulting in "exponential" increases in costs.

Although the report included responses from Ward to a number of the allegations, investigators often found records and statements that contradicted his explanations. At one point, Ward defended the Bermuda layover, saying that it came up on short notice, which is why his security team had to stay there longer. The report found records showing that the layover had been planned for at least four days in advance.

A common theme running through the report was Ward's insistence that his wife travel with him at government cost, even though it was often not authorized and she performed few official duties. It said he also routinely stayed in high-priced suites in luxury hotels rather than in standard rooms or less expensive locales.

The allegations, coming after a 17-month investigation, have delayed Ward's planned April 2011 retirement. And they were an embarrassing end note to his career, since he had claimed a place in history as the military's first commander of Africa Command.

Panetta's options regarding Ward were limited by complex laws and military guidelines. He had only one real choice: allow Ward to retire as a four-star or demote him and force him to retire as a three-star lieutenant general.

In order for Ward to be demoted to two-star rank, investigators would have to conclude that he also had problems before moving to Africa Command, and officials said that does not appear to be the case.

The investigation dragged on for so long that that Ward was temporarily dropped to two-star general status. Under military guidelines, if a full general is not serving in a four-star command or office for more than 60 days, he or she is automatically reduced to two-star rank. Ward would not be able to recoup any back pay for the time at the two-star rank, even though he is being retired at the three-star level.

Major general, or two-star, is the highest rank to which an officer can be promoted by regular military action. Becoming a three-star — lieutenant general — or a four-star general requires a presidential nomination and confirmation by Congress. It, therefore, is not considered permanent and lasts only as long as the person is serving in a job of that rank.

That technical demotion is not uncommon as generals move from job to job and unexpected delays occur. It would not have affected Ward's ability to retire as a four-star, if he had been cleared of the charges.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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audemus says:
It almost sounds like the general viewed himself as some sort of royal figurehead entitled to the lavish lifestyle usually accompanying one of such stature and rank. I wonder if he ever felt like his traveling entourage was his private little court as well.

The problem I believe, is one of character, or lack thereof, as witnessed by us all in the other two military scandals of late. When you come into the military you sign this piece of paper which effectively strips you of your civil rights as an American citizen...and now as a soldier, you become subject to the Uniform Code of Military Justice. One punishable offense in that code is adultery, as archaic as that may seem to some. Not only that, but Four Star Generals have to be approved by the congress, and since a full 2/3rds of congress have never served in any military capacity whatsoever, we're probably witnessing a lack of ability on the part of our elected officials to make wise and sound judgements about who is promoted to that rank. If any of these things had happened to someone in the business world, I doubt anyone would have noticed.
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margaretjohanna says:
My husband served his country with honor in the Navy for over 20 years and if he had so much as stolen a wrench while in the Navy there would have been no demotion and forced retirement he would have ended up in handcuffs. He sure as hell would not have gotten his retirement benefits. When he traveled if he wanted a nice hotel he had to pay the difference in room rates out of his own pocket. This makes me ill. I could care less about politics but this man was in charge of many others and was also a role model for those who served under him. Seems he is nothing more than a thief and as a country we should expect more of those we trust to keep our military men and women safe.
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lami987 says:
Good job Panetta.
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mjvwsr says:
Must be discredit a high ranking officer day. Seems like nobamas going to be putting all of his boys in.
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fullmetaljacketstyle replies:
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remember, he's an 'entitled' ***** that 'made it'. obama woulda kept him and so would have ol' leon...hey, kip was in charge of the 'africa command'; what's a ***** ta do but reprazent!!! well done koon boy...hope you choke on your 3 bastardized stars no-thank for you discusting 30 years of service.
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