Center for Public Integrity Reveals Lack of Oversight in Defense Department

A new report released by the Center for Public Integrity (CPI) reveals that the number of DoD referrals to the Justice Department for contracting fraud and corruption cases have decreased drastically since 1993.  According to the report, the Justice Department has received 76% fewer cases in fiscal year 2008 compared to fiscal year 1993, despite the upsurge in defense contracting ($200 billion in 1993 compared to nearly $400 billion in 2008).  The CPI attributes the low number of referrals to a number of factors, including shifting priorities, workload increases, and the declining manpower and expertise in the DoD Office of Inspector General (OIG).  According to the report, these problems are not unique to the OIG.  The number of prosecutions of cases involving defense contracting fraud has also decreased since the Clinton administration due to the lack of “personnel to detect, investigate, prosecute and deter criminal activity impacting DoD.”  The good news is that the existing problems are being addressed.  Efforts to increase oversight and accountability in the DoD and Justice Department, include:

• Examining the government’s work in combating fraud and determining whether it is sufficient to catch and deter wrongdoing;
• Reviewing and improving government contracting rules;
• Improving coordination among government investigators; and
• Providing specialized training for agents and prosecutors on procurement fraud.

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Tagged: Contractor Fraud, Fraud Types