Disappearing Funds

"According to a US Senate hearing, $13 billion the Pentagon handed out to weapons contractors between 1985 and 1995 was simply "lost." Another $15 billion remains unaccounted for because of "financial management troubles." That's $2B billion-right off the top-that has simply disappeared..." -- Mark Zepezauer and Arthur Naiman

Whose pockets do these funds disappear into? Is this part of the presidential retirement fund?