Bush admin. reverses course, strips loophole from contract fraud crackdown

[sabra]

Source: AP

WASHINGTON (AP) - A multibillion-dollar loophole that would have helped conceal abuse of overseas contracts has been eliminated from a Bush administration proposal to protect taxpayer dollars, according to documents obtained Monday by The Associated Press.

Reversing itself after months of criticism, the administration closed the loophole that was quietly slipped last year into a proposed Justice Department crackdown on government contract fraud.

The loophole specifically exempted contractors from reporting evidence of fraud or abuse in overseas work that cost taxpayers at least $5 million. An updated version of the proposal, drafted April 4, requires reporting on all contracts - whether at home or abroad.

The government has spent more than $102 billion since 2003 on contracts in Iraq and Afghanistan alone.

"This change would result in making the clause requirements for a contractor code of business ethics and conduct, business ethics awareness and compliance program, and internal control system applicable to contracts performed outside the United States," the new draft rule states.


Read more: http://www.komotv.com/news/business/17740819.html

[Greyskye]

1. A lobbiest somewhere is PISSED

Good.

[shanti]

2. doesn't matter now

their money was made.

[annabanana]

3. Not that this Justice Department will do any prosecuting, you understand.

And like the poster above noted... the horses are gone, so closing the barn door isn't terribly significant.

[Robbien]

4. The first Congressional hearing into who included the loophole was set for today.

Waxman's committee is investigating how the loophole exempting overseas projects from oversight was slipped into plans to crack down on fraud by government contractors.

Bush is saying nevermind, it was all a big misunderstanding. No hearings necessary, loophole gone.

[sabra]

5. I am shocked!

:sarcasm:

[lovuian]

6. Ya give us a name who put that loophole in

lets come out from hiding

[Robbien]

7. Anyone know someone named Dick?

Who else had the mojo?