Think Progress

Facing ‘Months Of Criticism,’ Bush Administration Strips Loophole Concealing Abuse Of Overseas Contracts

In May 2007, the Bush administration responded to intense public criticism and “introduced plans to force companies to notify the government about evidence of contract abuse worth $5 million or more.” Previously, such reports were voluntary and not surprisingly, the number of company-reported fraud cases had “declined steadily over the past 15 years.”

Yet someone at the Justice Department quietly slipped in a provision exempting U.S. contractors who do work overseas from the reporting requirements. Bipartisan groups of public officials criticized the loophole, including the Office of the Special Inspector General for Iraq Reconstruction and Sen. Charles Grassley (R-IA). Rep. Peter Welch (D-VT) has also led calls for a House inquiry into the matter.

The loophole has now been removed, after months of resistance by the White House. ThinkProgress has obtained an updated version of the Justice Department’s proposal, drafted April 4, that requires reporting on all contracts, including ones abroad. From the new proposal:

propdoc.gif

It is still unclear exactly which official was responsible for slipping in the loophole. Assistant Attorney General Alice S. Fisher originally requested the new reporting requirement last May to apply to all contracts, including ones overseas. But in November, the rule was published by the White House’s Office of Management and Budget with the loophole. Somewhere along the way, the provision was changed. A Bush administration official claimed the loophole was the result of a “drafting error” and faulty cutting and pasting.

“I hate to sound cynical, but what lobbyist working for a contractor in Iraq wanted this get-out-of-jail card?” wondered Patrick Burns of Taxpayers Against Fraud. Several contractors interviewed by the AP said they agreed with the rule, although they all claimed they did not request it.



Featured Comment: Lisa FTW Says: "Typical of this administration and just as sickening….any average citizen would be prosecuted for committing a $5 robbery, but it’s OK to rip off the taxpayers as long as the tab is less than 5 million? What about contract abuse of $4.9 million? In neo-bizarro world, that’s 'normal'."

25 Responses to “Facing ‘Months Of Criticism,’ Bush Administration Strips Loophole Concealing Abuse Of Overseas Contracts”

  1. RUCerious says:

    Ooops, got that hand out of the cookie jar, just in time! NOT.


  2. RantingTommy says:

    This might actually end the “war”.

    Since the only reason it was started was to give no-bid cost-plus contracts to Friends Of Bush companies, and now they can’t steal as much, they may not support being there as much.

    Who am I kidding? They’ll always find a way to steal. It’s what they do.


  3. alphainfinityomega says:

    Just more Busch corruption; what’s new?

    _AIO_


  4. Lisa FTW says:

    Typical of this administration and just as sickening….any average citizen would be prosecuted for committing a $5 robbery, but it’s OK to rip off the taxpayers as long as the tab is less than 5 million? What about contract abuse of $4.9 million? In neo-bizarro world, that’s “normal”.


  5. Max-1 says:

    .

    Does this mean Cheney needs to adjust his stock portfolio?

    .


  6. hussein toasterhead says:

    Wow. This “democracy” thing might actually work!


  7. MCMetal says:

    Facing ‘Months Of Criticism,’ Bush Administration Strips Loophole Concealing Abuse Of Overseas Contracts

    It was time for them to find a new source anyway……….


  8. Freedom Rebel says:

    The controversial loophole has irked Democrats and Republicans alike. But it has the support of a trade association that lobbies on behalf of giant global government contractors, including Blackwater USA, KBR Inc., Boeing Co., CACI International Inc. and Lockheed Martin.

    The United States has spent more than $102 billion over the last five years to help rebuild Iraq and Afghanistan. In that time, the Justice Department has uncovered at least $14 million in contract bribes in those two nations alone.

    I’m sure the trade associations have been jumping up and down for joy all the way to the bank for 5 years. $14 Million dollars in contract brides, I’m not surprised in the least.

    Maximum Sentence for bribery is 15 years in prison and a fine of $250,000. With there get out of jail free card none of them will probably be prosecuted.

    This truly is the administration that thinks they are above the law. All of us will be paying for this the rest of our lives. If there is a devine justice they will all be rotting in jail when we are old and grey.


  9. tombaker says:

    If they can just get the McMaverick elected, everything will be a-ok, and they can keep right on ripping us all off for another 4 years.


  10. The Republic of Stupidity says:

    I’d have to say this entire administration is the result of faulty cut-n-pasting.


  11. tombaker says:

    Jesus Hates Warmongers Daryll.


  12. The Republic of Stupidity says:

    Darryl’s also O/T.

    By a mile.


  13. Art says:

    They just have to notify the government of evidence of contract abuse. It doesn’t mean the government will do anything about it.


  14. barfly says:

    You can’t defeat the inevitable. We will destroy their nuclear capabilities.

    Wanna bet we’re here next year, and Daryll’s Iran wargasm is still unfulfilled?


  15. tombaker says:

    Daryll – Obey the Prince of Peace, and you will be blessed.


  16. Doc Rock says:

    The great conspiracy continues


  17. barfly says:

    You can’t defeat the inevitable. We will destroy their nuclear capabilities.

    Coming from the guy who said that the republicans would maintain their majorities in the House and Senate, back in ‘06, I think it can safely be ignored.


  18. barfly says:

    Keep believing that. They are in preparation to attack.

    I will wager you that they don’t attack before the next American presidential election. Loser never shows his face here again.

    Wanna Bet?


  19. IgnoranceIsNotBliss says:

    TP please bring back the Recommend and the Report abuse buttons

    ‘Cause Daryll needs a flaggin’.


  20. The Republic of Stupidity says:

    How strange. This is not the same Darryl as yesterday.

    The language is all different.

    Not a single, solitary, “Christian” idiocy…

    This is DEFINITELY not the same person posting as “Darryl” yesterday.


  21. RantingTommy says:

    Daryll Says:

    barfly Says:
    ——————————————————————————–

    You can’t defeat the inevitable. We will destroy their nuclear capabilities.

    Wanna bet we’re here next year, and Daryll’s Iran wargasm is still unfulfilled?

    April 15th, 2008 at 2:43 pm

    Keep believing that. They are in preparation to attack.
    April 15th, 2008 at 2:48 pm

    Man you right wingers are cowards! Is there ANYTHING you don’t fear? Is there ANY group that doesn’t make you shake and convulse in fright?

    What IS it with these frightened little right wing trolls? Id Dubya’s cheerleading skirt not providing enough cover for them these days?


  22. Zimzone says:

    Daryl also noted McCain’s reaction:

    ‘If Persia attacks the Syrians or Iranians, I believe the Baathists will try to reclaim their Kurdish territory’.


  23. specialist f says:

    Thank you TP for allowing Duhrul and reeses pieces to derail threads with OT CRAP from…NEWSMAX!


  24. MOONBAT says:

    There will be a false flag attack before the Nov. elections. The us warships off of Iran will send a few missiles with conventional warheads into Israel, probably striking areas that are not populated just to get Israel to retaliate against Iran. Israel will make Teheran a glass parking lot and any other targets like the nuclear manufacturing sites.

    It will not be pretty and the Bush admin. just sits back and smiles. This will also be to throw fear into the American population. Fear and war is the basis of the Repubs.


  25. ArtZ says:

    “Fear and war is the basis of the Repubs.”
    Exactly.
    Remember, “We have nothing to fear, but fear itself.” got this country through some tough times.
    Now its, “Be afraid, be very afraid.”



Jump to Top

About Think Progress | Contact Us | Terms of Use | Privacy Policy (off-site) | RSS | Donate
© 2005-2009 Center for American Progress Action Fund
View Most Popular

Advertisement

What We're About

Featured

image
Subscribe to the Progress Report



imageTopic Cloud


Visit Our Affiliated Sites

image image
Reports


Got a hot tip?
Have a hot news tip? We'd love to hear from you. Use the form below to send us the latest.

Name:
Email:
Tip:
(required)


imageArchives


imageBlog Roll