Bingo. General X doesn't need to care (much) if the product works. He's not the one doing the bomb checking. Nor is it his own money he's spending. And if he gets a tidy 10% back, he can soon retire somewhere where there aren't bombs.

An aside: what is the psychology of someone who perpetrates something like this? Fraud is one thing, but fraud which can (and has) led to the deaths of hundreds of people? Does he actually believe his products work, or is he a psychopath?