Four-star Gen. William Ward may be demoted

WASHINGTON -- As Gen. William "Kip" Ward traveled around the world as the head of the military's U.S. Africa Command, he spent hundreds of thousands of dollars in excessive hotel costs and allowed unauthorized family members to travel on his government plane, according to a Pentagon investigation.

Ward, the first head of Africa Command, is facing possible demotion for the alleged lavish spending, and Defense Secretary Leon Panetta is expected to make a decision on his fate before the end of the month, according to several defense officials.

The defense officials said the investigation, which has been going on for 17 months, outlines numerous allegations of excessive spending on transportation and travel when Ward headed Africa Command. It was not immediately clear whether Ward also could face criminal charges.

Four-star general is the highest rank in the Army.

While the exact amount of alleged misspending was not disclosed, the estimated total raises comparisons with the $823,000 allegedly spent by dozens of employees of the General Services Administration, who were accused of lavish spending during an October 2010 conference at a Las Vegas resort.

Officials described the Ward investigation to The Associated Press on condition of anonymity because it is a personnel matter and the report on the investigation has not been released publicly. The Defense Department inspector general has completed its investigation into Ward's activities, and the issue is under legal review.

Panetta's options regarding Ward are limited by complex laws and military guidelines.

He can demote Ward and force him to retire at a lower rank. Because Ward's alleged offenses occurred while he was a four-star general, he could be forced to retire as a three-star, which officials said could cost him as much as $1 million in retirement pay over time.

In order for Ward to be demoted to two-star rank, investigators would have to conclude that he also had problems before moving to Africa Command, and officials said that does not appear to be the case.

In making his decision, Panetta has to certify to Congress that Ward served satisfactorily at the rank at which he is retired.