Part 3/10:
These findings underscore how basic management failures create enormous opportunities for savings. Musk states that most of this waste is glaringly obvious—yet unaddressed—because rectifying it would disrupt the entrenched bureaucratic interests benefiting from the status quo.
Waste and Fraud: The Thin Line and Scandalous Examples
Musk estimates that waste constitutes approximately 80%, with fraud making up the remaining 20%. He recounts specific incidents such as payments made to contracts that should have been terminated but weren't, resulting in governments sending money to companies that simply kept billing for services no longer rendered.