In an unfolding controversy, Marko Elez, a young individual with limited government experience, has gained access to two critical U.S. government payment systems. These systems, the Payment Automation Manager and Secure Payment System, play pivotal roles at the Bureau of the Fiscal Service (BFS), which disbursed $5.45 trillion in fiscal year 2024. Concerns have mounted over Elez's read and write privileges within these systems, as outlined in an affidavit filed in the lawsuit Alliance for Retired Americans v. Department of the Treasury. The Office of the Inspector General at the Treasury is currently auditing these systems due to apprehensions raised by Democratic senators about the access granted to DOGE staffers.
Tom Krause, a notable software executive and ally of Elon Musk, serves as a special government employee at the Treasury Department while maintaining his role as CEO of Cloud Software Group, a privately held enterprise. This dual employment has sparked debates regarding potential conflicts of interest. Critics argue Krause's concurrent roles could pose significant ethical challenges, although the Treasury Department's ethics office has given its approval for Krause's arrangement.
A federal judge recently issued an order temporarily restricting DOGE staffers from accessing and modifying Treasury payment system information. However, this order specifically carved out exceptions for Krause and Elez, limiting their access to "read only." Despite these restrictions, an internal email from the BFS IT division labeled DOGE staff's access as "the single greatest insider threat risk the Bureau of the Fiscal Service has ever faced."
Krause addressed his dual roles in an email to employees, stating:
“While in this Treasury role, I have also maintained my employment as Chief Executive Officer (CEO) of Cloud Software Group, Inc., which [is] a privately held company comprised of several enterprise software businesses.” – Krause
He further clarified his position at the Treasury:
“I have not yet assumed those duties" as Fiscal Assistant Secretary. – Krause
The order from the federal judge emphasized that:
“the Secretary of the Treasury and other Senate-confirmed senior Treasury Officers are not prohibited from accessing Treasury's payment systems.” – (order)
However, concerns about conflicts of interest persist. Moynihan, a critic of the current situation, remarked:
“We are running out of ways to say ‘unprecedented,’” – Moynihan
Moynihan continued:
“I cannot think of another example where this has occurred, but I do think it's part of a broader pattern of the erasure of conflicts of interests within the federal government,” – Moynihan
Adding further context to this issue, Moynihan noted:
“Federal employees can't take more than a $25 gift from someone who might be trying to influence their actions. On the other hand, their bosses are simultaneously running private companies while also running parts of the government that affect their businesses.” – Moynihan
A representative for Cloud Software Group confirmed Krause's position:
“Tom is the CEO of Cloud Software Group” – (representative for the company)
Krause himself expressed pride in his dual roles:
“in addition to my duties as CEO of Cloud Software Group, I am advising the US Department of Treasury as a ‘special government employee.’ I am honored to serve our country.” – Krause
The Treasury Department has not yet responded to requests for comment on this matter. Meanwhile, stakeholders remain vigilant as the Inspector General's audit progresses.
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