Monday, October 26, 2009

Stimulus fraud

"The Department of Defense has awarded nearly $30 million in stimulus contracts to six companies while they were under federal criminal investigation on suspicion of fraud. The companies claimed to be small, minority-owned businesses, giving them preference in bidding for government contracts, Air Force documents allege. But government investigators found they were part of a larger minority-owned firm and not eligible for small-business contracts. The Air Force and Army awarded the companies 112 stimulus projects, federal contract records show. It wasn't until Sept. 23 — more than a year after the investigation started — that the Air Force suspended the firms from new federal contracts."

The federal government tried to spend three quarters of a trillion dollars in stimulus money within a few months, with few guidelines, and almost no oversight.

Over the next few years, cronyism, insider contracts, fraud, waste and abuse on an unimaginable scale will be revealed.

No comments: