US Military Paid $1.1 Trillion to Contractors That Defrauded the Government

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The Pentagon has paid $1.1 trillion to hundreds of defense contractors and their parent companies that have defrauded the government over the past ten years, according to a Department of Defense report.  More than 300 contractors involved in civil and criminal fraud cases that resulted in judgments of $1 million or more during the last decade were paid a total of $573.7 billion by the US military, including $398 billion that was paid to contractors after judgments for fraud.

When awards to parent companies are included, the Pentagon awarded $1.1 trillion to the top 37 companies that defrauded the US military since 2000. The Department of Defense reported that it has sanctions in place and several contractual and administrative “remedies” are available to deal with contract fraud, but the report admits that “it is unclear, however, that these remedies are sufficient.” The scope and size of contract oversight operations has increased during the past two years, according to the report, and the Pentagon plans to continue increasing its oversight workforce and capabilities.

 

Title: US Military Paid $1.1 Trillion to Contractors That Defrauded the Government

Publication: Truthout, 20, October, 2011
Author: MIKE LUDWIG
URL: http://www.truth-out.org/us-military-paid-11-trillion-contractors-defrauded-government/1319140017

Student Researcher: Gina Sevieri, Sonoma State University Student
Evaluator: Ashley Taylor, Teacher Assistant