Most Pentagon advisers quit over new rules

WASHINGTON, Nov. 8 (UPI) -- A pay cap, limits on work for private firms and required disclosures of business ties have virtually ended the Pentagon's use of paid advisers, a report said.

The report by the Defense Department's inspector general said the number of advisers known as "senior mentors" has declined from 355 in 2010 to four today, USA Today reported Monday.

The advisers cited as reasons for leaving a pay cap of $179,000 a year, a requirement to disclose their business ties and the limits on working for private firms.

In 2009, USA Today found retired generals and admirals were being paid up to $330 an hour to advise the military services and most of them also were working for defense firms that sought to sell products to those services.

Few ethics rules applied, USA Today said, because the retired officers were hired as contractors.

"Clearly, the glare of public scrutiny had a massive impact," said Nick Schwellenbach, director of investigations for the Project on Government Oversight, a government watchdog organization. "The fact that most dropped out says a lot about their motivations."

Last year, Defense Secretary Robert Gates, who left the post this past July, put the cap on mentors' pay. He also required public financial disclosures and that the mentors be hired as government employees, forcing them to abide by federal ethics laws.

With congressional approval, the rules became law, and Congress required the inspector general's report.

"The department believes the policies and reporting requirements in place address both the appropriate compensation levels and necessary transparency for this program and is pleased that the inspector general review found all components to be in compliance," said Bryan Whitman, a Pentagon spokesman.