Pentagon Reports Billions of Dollars in Contractor Fraud (PART 2 )


The Pentagon paid hundreds of billions of dollars to defense contractors engaged in criminal or civil fraud -- in some cases paying the companies after they were convicted, according to a new Defense Department report.

At least 91 contractors holding contracts worth $270 billion were the subjects of civil fraud judgments -- and in some cases criminal fraud convictions as well, many of which resulted in fines, suspensions or debarments. Even so, Defense Department contracting officers still assigned $4.9 billion worth of work with these companies after the fraud was uncovered, the report said.

The contractors identified in the report include such blue-chip entities as Boeing, Lockheed Martin, General Dynamics, Pratt & Whitney, IBM and even the Yale medical school.

Under the pressure of two hot wars and a defense budget that has mushroomed to its current $700 billion size, the Pentagon has set up a Procurement Fraud Working Group. But in the six years the task force has been at work, fraud seems to have expanded even as the Pentagon's ability to detect it has increased.


The Pentagon said its own sloppy bookkeeping, missing records and inadequate training of acquisition officials were to blame for the mess. The Pentagon also acknowledged that the data in the report, which covers only 2007 through 2009, are probably incomplete because the Defense Department cannot accurately track individual contractors or how much is actually spent. And the report only tracks those fraud cases of over $1 million.

At least $682 million was paid in error to 30 companies that had been convicted of criminal fraud, according to the report, including $29.6 million to Herley Industries, an electronics manufacturer, and $66 million to AEY Inc., a military surplus and sporting goods firm.

The number of fraudulent contractors identified in the report is relatively small -- some 120 companies out of the 235,000 contractors that work for the Defense Department. But the dollar amounts are significant, a continuing drain on taxpayers and on the military's combat readiness.

Military contracting fraud, which first plagued Gen. George Washington during the Revolutionary War, has long bedeviled the American armed forces. Defense Secretary Robert Gates is only the latest of a long succession of defense chiefs to try to crack down on waste, fraud and abuse in the Pentagon's giant acquisition bureaucracy.

Under the pressure of two hot wars and a defense budget that has mushroomed to its current $700 billion size, the Pentagon has set up a Procurement Fraud Working Group. But in the six years the task force has been at work, fraud seems to have expanded even as the Pentagon's ability to detect it has increased.

With the data in the new report, the Pentagon acknowledged, came "recognition that additional guidance and training . . . is needed'' for its contracting officers.

The report was released by Sen. Bernie Sanders of Vermont, who had demanded a Pentagon accounting of fraud. "The sad truth is that virtually all of the major defense contractors in this country for years have been engaged in systemic fraudulent behavior, while receiving hundreds of billions of dollars of taxpayer money," he said in a statement.

"It is clear that DOD's current approach is not working and we need far more vigorous enforcement to protect taxpayers from massive fraud," Sanders said.

Views: 71

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

james will posted blog posts
1 hour ago
Less Prone favorited Sandy's video
3 hours ago
Doc Vega's 5 blog posts were featured
3 hours ago
tjdavis's 4 blog posts were featured
3 hours ago
Doc Vega posted a blog post

What was the Significance of the F-94 C and What role in History?

 It’s July 19, 1952 over White House forbidden airspace and Captain William Patterson observes…See More
yesterday
tjdavis posted a video

FLUORIDEGATE: An American Tragedy. a film by Dr. David Kennedy

FLUORIDEGATE: An American Tragedy, is a feature documentary that reveals the tragedy of how government, industry and trade associations protect and promote a...
Sunday
Doc Vega posted a blog post

Rendezvous With The Unknown

Rendezvous With the Unknown Chapter I It was about 9:00 am when I received a text on my phone from…See More
Saturday
cheeki kea replied to cheeki kea's discussion Tartaria
"ah ha - a Tartarian cuisine component lurks inside good old Tartar Sauce. Who would have thought.…"
Saturday
tjdavis posted a blog post
Saturday
Doc Vega posted a blog post

Shadows in the Wind

If you think that life is but a game you can winYou’re just a shadow in the windConveniently…See More
Friday
Doc Vega posted a blog post
Thursday
tjdavis posted a photo
Thursday
james will is now a member of 12160 Social Network
Thursday
Burbia replied to cheeki kea's discussion Tartaria
Thursday
Burbia posted a video

Mossad: we create a pretend world, we are a global production company... the world is our stage

60 Minutes interviews alleged Mossad agent"we create a pretend world, we are a global production company......the world is our stage."_______________________...
Thursday
Doc Vega posted a blog post

The Alvin II Encounter: Was There A Living Dinosaur Involved?

The year is 1965 in the Caribbean islands at a 5-thousand-foot depth in the dark Atlantic waters.…See More
Dec 16
Doc Vega posted blog posts
Dec 15
rlionhearted_3 posted photos
Dec 15
Burbia posted a video

All In The Family | Mike Meets Archie For The First Time | The Norman Lear Effect

Gloria (Sally Struthers) has a new boyfriend called Michael (Rob Reiner) and she is very excited to introduce him to her parents (Carroll O'Connor and Jean S...
Dec 15
Shawn H is now a member of 12160 Social Network
Dec 15

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted