There have been published reports of agencies performing all sorts of sleight-of-hand with this gear. Local law enforcement officials have been accused of hoarding the military surplus for a variety of purposes never intended by the DLA. These include: personal use of the vehicles and firearms, currying favor with local businesses by bestowing them with gifts, supplying firefighting equipment to volunteer fire departments, and selling the gear at auction to augment agency budgets. In just one state, the DLA has revoked the 1033 privileges of more than 30 law enforcement agencies.
The agreement that local police and sheriff's agencies sign with Uncle Sam is basically a loan application. Gear procured through the 1033 program still technically belongs to the Department of Defense. However, after one year of use, it can be disposed of or sold. Some agencies have reportedly disposed of the equipment and vehicles in ways that violate that agreement.
Maybe some of these violations are caused by all the confusion that surrounds this program. Few federal government operations are as little understood as 1033.
The first widely believed misconception is that the free "toys" are in perfect condition and ready to use. That's usually not true. The "toys" are often broken, and the agencies receiving the gear have to spend hard currency to repair or overhaul them. The Zodiac boats that Nashville PD received from the DLA are an excellent example of how this works. Nashville PD acquired 12 of the boats, but only nine could be made operational. The remaining three were cannibalized for spare parts.
Another widely believed misconception is that this stuff is useless to the agencies receiving it. Wired.com recently ran an
article in its "Danger Room" channel
saying that many of the police agencies that procure this military hardware don't have the personnel qualified to use it. Considering how many law enforcement officers have served in the military that's kind of a bizarre assumption. It’s also an assumption that the Nashville example—and the experiences of hundreds of other agencies—renders false.