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FILE - This Oct. 1, 2008 file photo shows Army Gen. William E. "Kip" Ward, Commander of U.S. Africa Command, speaking at the Pentagon. (AP)
FILE - This July 22, 2012, file photo shows U.S. Gen. John Allen, top commander of the NATO-led International Security Assistance Forces (ISAF) and U.S. forces in Afghanistan, during an interview with The Associated Press in Kabul, Afghanistan. (AP)
The official says Panetta stripped Gen. William "Kip" Ward of a star, which means that he will now retire as a three-star lieutenant general despite some arguments against the demotion. Ward will also repay the government $82,000.
The official spoke on condition of anonymity because the official wasn't authorized to discuss a personnel matter.
The demotion comes as retired Army Gen. David Petraeus resigned as CIA director because of an extramarital affair and Marine Gen. John Allen is being investigated for improper communications with a woman.