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

Doc Vega commented on Doc Vega's blog post This is What Pisses Me Off-How About You?
"Burbia! Thank you for the video, yes Texas aint puttin up with this shit! "
16 hours ago
Burbia commented on Doc Vega's blog post This is What Pisses Me Off-How About You?
"This is encouraging."
yesterday
Burbia commented on Doc Vega's blog post How Many Clues Did You Need To Figure out the Covid scare was Bogus? Revisiting Stupidity
"There was no trail of death from the first case in the US landing in Seattle and brought north of…"
yesterday
Doc Vega posted blog posts
yesterday
Sandy posted photos
Saturday
Sandy posted videos
Friday
Sandy commented on Sandy's photo
Thumbnail

Screenshot_20260327-101250~2

"One data center uses 45 megawatts per day. How is this sustainable?"
Friday
tjdavis posted a video

[OFFICIAL TRAILER] The Grand Deception

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Friday
Doc Vega posted a blog post
Thursday
Роман posted a blog post

Архітектурне планування двоповерхового будинку: ключові рішення для комфортного простору

Проєктування двоповерхового будинку — це складний, але захоплюючий процес, що поєднує…See More
Thursday
Sandy posted videos
Wednesday
Doc Vega's 5 blog posts were featured
Wednesday
tjdavis's blog post was featured
Wednesday
cheeki kea's blog post was featured
Wednesday
Less Prone favorited Sandy's photo
Wednesday
Sandy posted photos
Wednesday
Doc Vega posted a blog post

After Querying GROK over the 1952 Washington National Sightings

The Washington National Sightings (also called the 1952 Washington, D.C. UFO incident, the…See More
Tuesday
Doc Vega posted blog posts
Mar 23
tjdavis posted a video

I Tried AI for Fun. Now I’ve Got Questions | Jeff Childers From #474 | The Way I Heard It

What does inevitability sound like?That’s not a thruway line—it’s the question I keep coming back to after this conversation with Jeff Childers. Because some...
Mar 22
Doc Vega commented on Doc Vega's blog post Regrets That Cling to Me
"Cheeki, Thanks so much for the encouragement! "
Mar 22

© 2026   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