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DTRA

Maly's letters re: DTRA's DEF webpage

Misleading information on DTRA website
Letter 1

Matthew Maly (http://www.matthew-maly.ru/)
January 10, 2003

The Honorable Joseph E Schmitz
Inspector General
Department of Defense

Dear Mr. Schmitz:

In my August 28, 2002 letter to you (attached below), I informed you that the page on the Defense Threat Reduction Agency ("DTRA") website http://www.dtra.mil/ctr/project/projrus/ctr_enterprise.html contains information that was intentionally misleading. The page I referred to was last updated on May 17, 2002, and it contradicted the Department of Defense own Audit dated December 31, 2001, as well as other information known to DTRA.

The page now has been updated as of December 30, 2002 and it contains significant downward corrections.

The page used to state that the total former defense workers employed by DEF is 3,375. Now the figure is 1,250. As I stated in my previous letter to you, I know for a fact that DTRA would not be able to provide a checkable list of such workers with more than 200 names on it.

The military production space converted used to be 73,600 square meters. Now the figure has shrunk to 32,500 square meters.

First of all, this downward correction merits a press release and an investigation, as previous phony figures were widely quoted. But this is not all. The webpage updated as of December 30, 2002 represents a blatant, outrageous, and now clearly premeditated lie and an obvious attempt to mislead the American public as it, too, is patently false. The information that the page gives STILL contradicts the Department of Defense Audit of DEF dated December 31, 2001 in every respect. In particular, the Audit lists many of DEF's projects as "inactive". Furthermore:

DEF's telecommunication project the webpage has the audacity to specifically refer to was such a scandal that Secretary Albright had to personally get involved.

DEF's personal computer project the webpage refers to was done with a member of Russian mafia, and was a $6M loss.

DEF's precious metals project (never produced one molecule of any precious metal) and was a $7M loss and a law suit.

Mr. Schmitz, I appreciate that you apparently reacted to my first letter by causing DTRA to moderate its lies. The current webpage, however, cannot be seen as a simple mistake of a low-level webmaster. It is a an obvious attempt to mislead the American public about a failure of a crucially important grant, and to cover up for those who, just as I alleged in my letter of concern that I sent to the Department of State on July 15, 99, grossly mismanaged an/or outright stole $20M of US funds that were supposed to be used for conversion of the former Soviet producers of weapons of mass destruction.

I should also point out that I was blacklisted by the US Department of State in revenge for my July 15, 99 letter, and I have documentary evidence and witnesses to that. This action of the US Department of State knowingly caused me and my family lasting and catastrophic hardship. I would appreciate if you ask DTRA to change the DEF webpage yet again. I would also like to respectfully suggest that it is time for you to consult the Defense Criminal Investigative Service that has been investigating DEF far too long, and come up with some criminal indictments. Three and a half years is enough time to finally investigate my allegations. My website, dedicated to DEF investigation, is here. http://matthew-maly.ru/index-eng.html#DEF

Respectfully,
Matthew Maly (http://www.matthew-maly.ru/)

Misleading information on DTRA website
Letter 2

Matthew Maly (http://www.matthew-maly.ru/)
August 28, 2002

The Honorable Joseph E Schmitz
Inspector General
Department of Defense

Dear Mr. Schmitz:

A page on the Defense Threat Reduction Agency ("DTRA") website http://www.dtra.mil/ctr/project/projrus/ctr_enterprise.html contains information that is intentionally misleading. The page was last updated on May 17, 2002, and yet it contradicts a Department of Defense Audit dated December 31, 2001, as well as other information known to DTRA.

The page is dedicated to Defense Enterprise Fund ("DEF"). It states the total former defense workers employed by DEF is 3,375. I am a former employee of DEF, and I know for a fact DEF/DTRA would not be able to provide a checkable list of such workers with more than a 200 names of it.

The page, updated, I repeat, in May 2002, states that DEF makes "die-cast products". I was responsible for DEF's die-cast project, called LIFORM, and know that this project has been dead since May 1999. The site also states that DEF "funded 13 investments in Russia, Kazakhstan and Ukraine", without mentioning that the Department of Defense December 31, 2001 Audit of DEF listed most of this projects as closed, inactive and/or grossly mismanaged. Moreover, I understand that DEF is being recommended for liquidation.

Defense Enterprise Fund was subject of two Department of Defense Audits and an on-going Defense Criminal Investigative Service probe following my letter of concern dated July 15, 1999. In this letter, I alleged that up to $20M of DEF funds may have been grossly mismanaged. Department of Defense December 31, 2001 Audit of DEF largely confirmed my allegations.

I have recently written to DTRA webmaster to say that the information they post is intentionally and blatantly misleading. There has been no response.

I maintain a website dedicated to DEF investigation http://www.matthew-maly.ru/index-eng.html#DEF

Description of DEF investigation is here http://www.matthew-maly.ru/library/def-dscr.html

I believe that the cover-up of DEF fiasco is very damaging to the war on terrorism that is our nation's priority.

Respectfully,

Matthew Maly (http://www.matthew-maly.ru/)

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