He gave another speech a few years later like that too. There's more to the story. Fraud, waste, and abuse occurs alot. But they didn't actually lose that amount. But there was definitely alot of money missing. Mostly from the 90's. Which is crazy considering we weren't buying alot of gear then.
This article shows Rumsfeld like him or not was actually pointing out a huge problem that everyone who has delt with the system knows exists.