US Secretary of Defence Lloyd Austin. Reuters
US Secretary of Defence Lloyd Austin. Reuters
US Secretary of Defence Lloyd Austin. Reuters
US Secretary of Defence Lloyd Austin. Reuters

Lloyd Austin: Backlash grows after Pentagon kept US defence secretary's surgery a secret


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Questions mounted over the state of US Defence Secretary Lloyd Austin's health on Monday, after the Pentagon failed for days to inform the public about his admission to hospital last week.

Mr Austin, 70, was taken to hospital on January 1 after complications from a recent elective medical procedure.

The Pentagon only told the public on January 5, at the end of a week in which the US conducted a strike in Iraq and tension soared in the Middle East.

“I could have done a better job ensuring the public was appropriately informed. I commit to doing better,” Mr Austin said at the weekend.

National Security Council spokesman John Kirby told reporters on Monday that US President Joe Biden “respects the fact that Secretary Austin took ownership for the lack of transparency”.

“There's an expectation that when a cabinet official becomes hospitalised, that will be notified up the chain of command … Our main focus right now is on Secretary Austin's health and making sure that he gets all the care and support that he needs to to fully recover,” Mr Kirby said.

But the Pentagon on Monday declined to reveal what operation Mr Austin had, only detailing that he was no longer in the intensive care unit.

Pentagon Press Secretary Maj Gen Pat Ryder said Mr Austin was at Walter Reed National Military Medical Centre in good condition.

"He is recovering well and in good spirits," Maj Gen Ryder general said in a statement.

"He is no longer in the intensive care unit and is recovering in a more private area of the hospital. He continues to experience discomfort but his prognosis is good."

Mr Austin's Chief of Staff Kelly Magsamen on Monday directed a formal review of the matter to be completed within 30 days.

In a weekend statement, Roger Wicker, the top Republican on the Senate armed services committee, said the episode “further erodes trust in the Biden administration, which has repeatedly failed to inform the public in a timely fashion about critical events such as the Chinese spy balloon and the withdrawal from Afghanistan”.

The leaders of the House armed services committee, the Congressional group that oversees the Department of Defence, released a bipartisan statement.

“While we wish Secretary Austin a speedy recovery, we are concerned with how the disclosure of the Secretary’s condition was handled,” the statement from Republican Mike Rogers and Democrat Adam Smith read.

“Transparency is vitally important. Secretary Austin must provide these additional details on his health and the decision-making process that occurred in the past week as soon as possible.”

Mr Austin returned to his duties on Friday. He initially had a medical procedure on December 22 but went into intensive care on January 1 after experiencing severe pain.

The White House confirmed that Mr Biden had not been informed. That failure of transparency runs against standard practice with the president and his senior cabinet members.

On Sunday, the Pentagon said Mr Austin remained in hospital at Walter Reed National Military Medical Centre, where he “has full access to required secure communications capabilities and continues to monitor [the Pentagon's] day-to-day operations worldwide”.

The Pentagon Press Association, which represents defence journalists, expressed “outrage” at the Defence Department’s failure to notify the public and the media more quickly about Mr Austin's time in hospital.

And former president Donald Trump, who is likely to clinch the Republican nomination to challenge Mr Biden in the 2024 election, said on Sunday night that Mr Austin should be fired for a "dereliction of duty."

"He has been missing for one week, and nobody, including his boss, Crooked Joe Biden, had a clue as to where he was, or might be," Mr Trump wrote on Truth Social.

Maj Gen Ryder said the National Security Council and Deputy Secretary of Defence Kathleen Hicks were not notified until January 4 that Mr Austin had been in hospital since January 1, AP reported.

Mr Austin has no intention of resigning over the ordeal, Maj Gen Ryder told reporters on Monday, and the White House said there were "no plans for anything other than for Secretary Austin to stay in the job".

President Joe Biden, flanked by Secretary of State Antony Blinken and Secretary of Defence Lloyd Austin, in October 2023. Reuters
President Joe Biden, flanked by Secretary of State Antony Blinken and Secretary of Defence Lloyd Austin, in October 2023. Reuters
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When: April 25, 10.45pm kick-off (UAE)
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Engine: 2.0-litre four-cylinder turbo

Power: 178hp at 5,500rpm

Torque: 280Nm at 1,350-4,200rpm

Transmission: seven-speed dual-clutch auto

Price: from Dh209,000 

On sale: now

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Favourite sport: soccer

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Updated: January 09, 2024, 7:05 AM