Fraud crackdown comes with a loophole (overseas work exempt)

[Barrett808]

Source: Associated Press

Fraud crackdown comes with a loophole
By LARA JAKES JORDAN, Associated Press Writer

WASHINGTON - A Bush administration plan to crack down on contract fraud has a multibillion-dollar loophole: The proposal to force companies to report abuse of taxpayer money will not apply to work overseas, including projects to secure and rebuild Iraq and Afghanistan.

For decades, contractors have been asked to report internal fraud or overpayment on government-funded projects. Compliance has been voluntary, and over the past 15 years the number of company-reported fraud cases has declined steadily.

Now, the Justice Department wants to force companies to notify the government if they find evidence of contract abuse of more than $5 million. Failure to comply could make a company ineligible for future government work.

The proposed rules, which are in the final approval stages, specifically exempt "contracts to be performed outside the United States," according to a notice published last month in the Federal Register.

Critics including the watchdog group Taxpayers Against Fraud said the overseas exemption raises suspicions.

"I hate to sound cynical, but what lobbyist working for a contractor in Iraq wanted this get-out-of-jail card?" asked Patrick Burns, spokesman for the government watchdog group.

Read more: http://news.yahoo.com/s/ap/20080212/ap_on_go_ca_st_pe/contract_fraud

[Baby Snooks]

1. Which lobbyist?

Probably someone Mark Penn hired. The fix is in. If the Clintons are let back in.

[Hulk]

2. But the monkey will stomp his foot over "pork barrel spending" add-ons....

Such and idiot. Didn't bat and eye when the repugs were running away with it. Even did it himself. But now he's adding a new loop hole for the corporate heads to get away with more murder.

Do any of his sheep have reasoning skills at all??

[RamboLiberal]

3. K&R because I'm just so shocked by this!

:sarcasm:

[salin]

4. shall we call this the "let Cheney get richer, yet" loophole?

we know that the size of fraud already discovered and reported by Haliburton in Iraq far surpasses 5 million.

And how about reenstating the Clinton era exec order that contractors that commit fraud against the US govt taxpayers lose the ability to secure new contracts for 3 (or was it 5) years?

[flashl]

5. Why transfer this responsibility onto a worker who will certainly lose their job?

Restore the inspector generals staffs to their correct staffing levels and let them enforce current laws that protect the current whistleblowers who are hanging on the edge.

[underpants]

6. What's a control without a loophole?

I ask you.

[underpants]

7. We can intercept phone calls but we can't track the money?

Seriously?

[Elspeth]

10. There's the way to look at it.

:kick:

[classysassy]

8. America

wake up.

[AzDar]

9. K & R...

:kick: