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

tjdavis posted a photo
22 hours ago
rlionhearted_3 posted photos
23 hours ago
tjdavis posted a video

Official Trailer NOVA '78 directed by Aaron Brookner and Rodrigo Areias

NOVA '78 is a documentary about New York City's 1978 Nova Convention, the legendary counterculture gathering featuring William S. Burroughs, Patti Smith, Fra...
yesterday
Doc Vega posted blog posts
Saturday
tjdavis favorited Burbia's video
Friday
tjdavis favorited cheeki kea's photo
Friday
tjdavis posted a video

Peter Sellers - The Party (opening scene)

HQ HD "Does that include television sir ?" ... is still the best trolling paradigm in a movie.Support this channel: https://www.patreon.com/MusicPoints#Pet...
Friday
Doc Vega posted blog posts
Thursday
Snakedaddy favorited Parrhesia's video
Thursday
Doc Vega commented on Doc Vega's blog post The Rabbit Hole
"Cheeki kea, I pray that the insanity doesn't deepen and there's been an attack by some 18…"
Wednesday
Burbia's blog post was featured

Disgraced Former CNN Anchor Don Lemon Arrested

No longer an employed journalist, Don Lemon had been seen with far left agitator, Nekima Levy…See More
Wednesday
Doc Vega's blog post was featured
Wednesday
Less Prone favorited Doc Vega's blog post The Rabbit Hole
Wednesday
cheeki kea commented on cheeki kea's photo
Feb 17
cheeki kea posted a photo
Feb 17
cheeki kea commented on Doc Vega's blog post The Rabbit Hole
"Good poem for these times. I think it's only going to get worse though as we enter into the…"
Feb 17
cheeki kea posted a blog post
Feb 16
Doc Vega posted a blog post

Our Crazy Modern World

I'll be your host tonight in our first episode of "Our Crazy Modern World". Join us now!Apparently…See More
Feb 15
Burbia commented on cheeki kea's blog post BREAKING: The Epstein Files Illuminate a 20-Year Architecture Behind Pandemics as a Business Model.
"What a bummer. Can't tell thie 'dead' guy to eat shit now."
Feb 14
Burbia commented on rlionhearted_3's photo
Thumbnail

2DF36465-A826-443C-A3A8-6638BC1D4FFA

"Venezuela under Chavez had cut ties with the IMF and World Bank. He had suggested that the US had…"
Feb 14

© 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