Thursday, March 13, 2008

White House won't remove loophole allowing foreign contractors to ignore fraud

White House won't remove loophole allowing foreign contractors to ignore fraud | John Byrne | Published: Thursday March 13, 2008

The White House has indicated it will not remove a loophole quietly inserted into a budget rule which allows contractors abroad to keep silent if they observe fraud or abuse on US government contracts.
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"This sends the message that if you're going to do waste, fraud and abuse, don't do it at home, do it abroad," Rep. Peter Welch (D-VT) told the Washington Post in Thursday's papers. "This was slipped in at the last minute. . . . It's obviously something you can't justify in any way, and there's no answer to why you'd allow this to occur abroad any more than you'd allow it to occur domestically. There is a question as to how and why the change was made, and we don't know the answer."

Even the Bush Justice Department opposes the exemption, which was slipped into the proposed rule last November. No one has come forward to admit the insertion. ...

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