Truck-Sized Loophole for Theft
Howie’s right. The media ought to be paying more attention to Congressman Peter Welch’s call for an investigation into how a giant loophole got stuck into rules aiming to force companies to report contracting fraud.
House Democrats targeted a multibillion-dollar overseas contracting loophole Friday by vowing to investigate why — and how — it was slipped into plans to crack down on fraud in taxpayer-funded projects.
The inquiry will look at whether the exemption was added at the request of private firms, or their lobbyists, to escape having to report abuse in U.S. contracts performed abroad.
"Granting this safe harbor for overseas contractors flies in the face of reason," Rep. Peter Welch, D-Vt., wrote Friday asking the House Oversight and Government Reform Committee to investigate. The panel monitors government procurement policy.
"By taking this action, the Bush administration is sending an unambiguous message: If you are a U.S. government contractor in Iraq, Afghanistan or elsewhere overseas, you have a green light to defraud our government and waste taxpayer dollars," Welch wrote to Democratic leaders of the committee.
Basically, under voluntary reporting requirements, government contractors have been reporting less and less of the fraud that they’re committing. Go figure. So DOJ decided to make reporting of fraud mandatory. But someone–it looks like someone in Bush’s Office of Management and Budget (and Fraud Support, apparently)–snuck in a waiver of mandatory requirements for contractors working outside of the United States.