Investigators find abuse in small business program

[formercia]

http://finance.yahoo.com/news/Investigators-find-abuse-in-apf-14735795.html


GAO: Undeserving companies collected millions in federal contracts due to poor SBA oversight

* Hope Yen, Associated Press Writer
* Wednesday March 25, 2009, 12:03 am EDT


WASHINGTON (AP) -- Because of lax oversight, undeserving companies collected millions in federal contracts from an $8 billion government program designated for small businesses in poor neighborhoods, congressional investigators charge.

The Small Business Administration repeatedly failed to verify paperwork and conduct audits to weed out sham firms claiming to have main offices in economically distressed areas, the Government Accountability Office said in a report released Wednesday, raising questions about an agency seeking to take a greater role in helping business owners stave off job losses.

--snip--
In some cases, the business owners freely admitted diverting the lucrative work to large companies or ineligible businesses.
--snip--

[BlooInBloo]

1. "problems in the awarding of HUBZone contracts dating back to 2003"...

Just to be clear.

[formercia]

2. When the little fish see the big fish in a feeding frenzy

it's nature for them to join-in.

[sinkingfeeling]

3. Another gift from Bush/Cheney to Big Business... lax oversight of the SBA.