Pentagon use of retired generals as 'mentors' plummets

— -- The Pentagon's use of retired generals and admirals as paid advisers has virtually ceased, plummeting from 355 "senior mentors" in 2010 to four today, according a report released by Defense Department's inspector general.

Requirements to disclose their business ties, a cap on pay of $179,700 per year and limits on working for private firms were the reasons the generals and admirals gave for quitting the program, the report said.

Retired officers from several services told investigators that the quit because they did not want to disclose their finances publicly. Others pointed to the pay of $86.10 per hour, with a maximum of $179,900 as too low.

A USA TODAY investigation in 2009 found that retired generals and admirals were being paid as much as $330 an hour to advise military services. Most of the mentors were also working for defense firms seeking to sell products to those services.

Because the retired officers were hired as contractors, few ethics rules applied. In some cases, mentors were paid by the military to run war games involving weapons systems made by their consulting clients.

"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. "

In 2010, Defense Secretary Robert Gates responded to the reports by capping mentors' pay, requiring public financial disclosures and hiring them as government employees, which required them to abide by federal ethics laws. Congress put the rules into federal law and mandated 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.

The inspector general's review of two services — the Navy and Marines — and three combatant commands — Joint Forces, Special Operations and Strategic — found that 194 mentors were advising the military in 2010. By February 2011, out of 183 mentors, 11 had become government employees, and seven have since resigned, according to the report. The Navy, for example, had used 109 senior mentors in 2010; today it has none.