Elon Musk reveals 'gigantic loophole' he says is the 'biggest' source of fraud in the world

Elon Musk has revealed a 'gigantic loophole' that he says has opened the door for major fraud in government.

Despite continued questions about how much power Elon Musk should be allowed to wield in the US government, the head of the Department of Government Efficiency doesn't look like he's going anywhere. With some joking he's the Vice President instead of JD Vance, others have gone one step further and branded him President Musk. The tech billionaire's involvement in US affairs is a major point of contention, with someone even hijacking screens at the United States Department of Housing and Urban Development with a NSFW AI video that depicted President Donald Trump sucking Musk's toes and referred to him as the 'real' king.

Musk is dealing with the political and commercial backlash of heading up the DOGE, and in the same interview where he spectacularly claimed half a trillion dollars of fraud is lying in the Social Security system, he's also gone on to call out the country's biggest 'loophole' when it comes to unnecessary spending.

Protests against Musk and the DOGE continue (Pacific Press / Contributor / Getty)

Explaining to Fox Business' Larry Kudlow how the DOGE team just 'follow the money' and the POTUS' executive orders, Musk maintains that this brought USAID onto his radar. He called out the amount of money being sent to non-governmental organizations, adding: "This, by the way, is I think one of the biggest sources of fraud in the world.

"Government-funded, non-governmental organizations. This is a gigantic fraud loophole where the government can give money to an NGO, and then there are no controls over that NGO."

Musk claims that NGOs are given 'tens of billions' of dollars, and, referring to them as 'essentially scams’, vowed to put a stop to them.

Kudlow said that Secretary of State Marco Rubio has accepted over 80% of Musk's recommendations when it comes to making cuts at USAID, praising the world's richest man as being 'spot on'.

Others remain unconvinced, with the DOGE awkwardly having to alter the numbers on its own 'wall of receipts' due to inaccuracies.

The site remains unchanged since its last update, claiming it's already saved $105 billion.

He went on to defend the DOGE, concluding: "When we receive criticism, we ask, 'About what? Which line do you disagree with?' Every action taken by the DOGE team is shared on the DOGE handle. It's fully transparent, line by line."

Musk's vendetta continues, and in the fiscal year 2023, USAID oversaw around $40 billion in appropriations. This is said to be less than 1% of the federal budget.

Now, Rubio has axed 83% of programs funded by USAID and put its 10,000 employees around the globe at risk. Similar to Musk, Rubio defended the move and said: "The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States."

The cuts continue, with the Inter-American Foundation reporting that its workforce has been slashed from around 48 employees to the 'statutory minimum' of just one because of the DOGE.

Whether it can be proven that NGOs are a loophole or not, Musk's chainsaw crusade against them shows no sign of letting up.