I can beat that easily.
I worked for the local county govt. once.
We had a guy whose job it was to:
1) print the monthly reports
2) stack them in boxes.
3) take last months monthly reports to the shredder.
4) take the shredded reports to the incinerator.
5) repeat at (1) next month.
No one ever looked at these reports.
No one knew what was in them because he was not allowed to let anyone see them citing confidentiality rules.
(he was later busted for a $60,000 a year crack habit- but he KEPT HIS JOB)
He had no idea how to develop software. He called a meeting once to have the entire team debug a problem he was having for 3 weeks that he could not fix.
It turned out he was writing 100 characters into a space allocated for 80 - it took me 30 seconds to spot.
I needed an interface module he was working on- he spent 6 months on it and it still was not working- I finally wrote it myself in 3 hours. The did not use mine- they let him continue to work on it for 3 more months- he eventually stole mine and presented it as his.
He spent $50,000 of the end of the year “use it or lose it” budget spending spree on a 50 Meg disk array storage drive. It sat there for 3 years because no one could figure out how to turn it on.
When they finally did, you could buy 200 meg hard drives for $120. It is probably still sitting there - it is the size of a large microwave oven.
They admitted we were basically funding their XML interface programming so they could market themselves as having one. THERE WAS NO WAY TO RETURN MONEY *EVER* so they gave us free hours of tech support instead. (to move the 5 minutes of data from one table to another)
He spent every day running his private accounting business behind closed doors in his office. He had customers meet him in there.
I have heard those same numbers used before, I can believe it. I read multiple times that of the welfare budget that's about how much goes to the end-user (can't call them "the poor" any more with all the fraud), the rest is eaten by bureaucracy.
I did some website consulting for an organization whose website designer had gone off to some foreign country to find himself. I won’t go into how poorly the website was designed, but the really hilarious thing was when they downloaded me a copy of all the website files off their server (they wouldn’t give me access to the server), I found two completely separate websites that had nothing to do with this organization that were hijacking space on their server. They were shocked that their former employee would do such a thing.