The Late Inspector General - S1-E4
Plot hole: At the beginning, the Inspector General instantly pegs the incidents Hogan's men enact as staged to defame Klink, and takes it as proof Klink is the right man to be put in charge of all POW camps in the Reich. Later, as Klink and he do their "final inspection", much less severe - and frankly, much less believable - incidents cause him to completely revise his assessment of Klink. Him believing Klink would be a pickpocket and compulsive kleptomaniac simply doesn't make sense.
Answer: It's a comedy, not a documentary.
stiiggy
Perhaps it was counterfeit. There are numerous episodes where they deal in counterfeit monies.