Stimulus money is apparently going to suspected criminals.
Propublica: The Department of defence awarded nearly $30 million in stimulus contracts to six companies while they were under federal criminal investigation on suspicion of defrauding the government.
According to Air Force documents, the companies claimed to be small, minority-owned businesses, which allowed them to gain special preference in bidding for government contracts. But investigators found that they were all part of a larger minority-owned enterprise in Southern California, making them ineligible for the contracts.
Read ProPublica’s full report here.
That some stimulus money ends up in the hands of disreputable contrators isn’t surprising given the sheer size of it — $787 billion — and the speed with which the government has handed out funds to bolster the economy.
But what’s strange is that the official review board charged with stimulus oversight told ProPublica “We are aware of these issues and have taken the appropriate action…We have no further comment except to say that debarred or suspended companies are a primary focus of our efforts.”
So where’s the result? Here’s the catch: even if all the companies are proven to have lied to the government to get the contracts, cancelling such deals could end up costing taxpayers more than sticking with the alledged bad firms.
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