The government's reluctance to join in any of the [whistleblower] civil suits has sparked allegations of political interference

Justice Dept. opts out of whistle-blower suits | Cases allege fraud in Iraq contracts | By Farah Stockman, Globe Staff | June 20, 2007

WASHINGTON -- The Justice Department has opted out of at least 10 whistle-blower lawsuits alleging fraud and corruption in government reconstruction and security contracts in Iraq, and has spent years investigating additional fraud cases but has yet to try to recover any money.

A congressional subcommittee heard testimony on the matter yesterday, as lawmakers sought to determine why the federal government has not done more to recover tens of millions of dollars that allegedly have been misused or misspent in Iraq.
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The government's reluctance to join in any of the civil suits has sparked allegations of political interference.

One witness, Alan Grayson , a lawyer who represents several whistle-blowers, told the House subcommittee on Crime, Terrorism, and Homeland Security that the Justice Department has been stonewalling and dragging its feet in investigating the whistle-blowers' claims of fraud.

"In our fifth year in the war in Iraq, the Bush administration has not litigated a single case against any war profiteer under the False Claims Act," Grayson said.

Tens of millions of dollars -- and perhaps far more -- allegedly have gone into the pockets of contractors who overbilled for services, paid bribes, and received kickbacks. Under the federal False Claims Act of 1863, employees who say they witnessed such corruption can sue their employers for defrauding the US government and reap a percentage of any money that's recovered. ...