U.S. contractor accused of fraud still winning big Afghan projects

[cal04]

Source: McClatchy

On July 31, 2006, an employee of the Louis Berger Group, a contractor handling some of the most important U.S. rebuilding projects in Afghanistan, handed federal investigators explosive evidence that the company was intentionally and systematically overbilling American taxpayers.

Neither the whistleblower's computer disk full of incriminating documents nor a trail of allegations of waste, fraud and shoddy construction, however, prevented Louis Berger from continuing to reap hundreds of millions of dollars in federal contracts.

In fact, two months after the government learned of the employee's allegations, the U.S. Agency for International Development tapped Louis Berger to oversee another $1.4 billion in reconstruction contracts in Afghanistan.

The decision to brush aside the allegations and the evidence and keep doing business with Louis Berger, underscores a persistent dilemma for the Obama administration in Afghanistan and elsewhere.




Read more: http://www.mcclatchydc.com/2010/09/19/100690/us-contractor-accused-of-fraud.html

[COLGATE4]

1. And this is a news flash how?

There seem to never be any consequences for the corrupt contractors who in previous times (FDR, Truman) would have been rightly called 'War Profiteers'. Instead today we have the giants like Halliburton feeding from the government trough and regardless of the result of countless audits where 'serious irregularities' are routinely encountered, none of them are ever barred from soliciting government business or any other punishment. Just 'business as usual'.

[blackspade]

2. This makes no sense:

"The decision to brush aside the allegations and the evidence and keep doing business with Louis Berger, underscores a persistent dilemma for the Obama administration in Afghanistan and elsewhere."

This is from 2006, FOUR years ago. Last time I checked the Bushistas were in the White House then.
Bush et al. did nothing to investigate fraud and waste in military contracts.
It was just another way of transfering taxpayers money to the repubs fat cat doners.
This is only Obama's 'dilemma' in that he needs to shut the door on this kind of fraud.

[Overseas]

3. Privatization of military services has been a dismal failure, full of corruption.

But far too many legislators want to keep pretending that "the private sector can do better" in spite of mountains of evidence to the contrary.

Privatization was introduced pretending that private competition would make things more efficient, even though that was proven wrong over and over again. Even after those private providers could not even furnish armor for our troops in the Bush Gang war of choice. Even after those providers served moldy food to the troops and electrocuted them in their showers. Even after the Geneva Conventions and Nuremberg principles were violated by a confusing infusion of private contractors into our most sensitive military operations and treatment of prisoners.

Privatization made profit more important than our national security. Modern privatization has gone further than many people anticipated-- making quarterly profits more important than fundamental values like health, solid infrastructure, reliable safety regulations and compassion for fellow citizens who are suffering.

The modern version of "the wisdom of the private sector" is very cruel. The profit pumpers claim they can't help it-- they can't put in extra safety measures because they owe it to their shareholders to maximize profits. Sorry folks, BP needs to save the $500K on an extra blowout preventer and pour millions of gallons of poisonous dispersant into the Gulf because profits come first.

I had hoped de-privatization would accompany our Democratic majorities in 2006 and 2008, but we have become so dependent upon the privatized system that it will be really tough to untangle. That's the presenting excuse. The part our legislators don't want to discuss is how important the private providers' "campaign support" has become.

[Vidar]

4. We like fraud. It provides the whole basis for our corrupt,

malevolent, merciless version of capitalism.

[skoalyman]

5. they can't fail now, they're in the fat cat club

:puke: