By James Dao The New York Times
A program intended to help disabled veterans win government business awarded at least $100 million in contracts to firms that were either ineligible or committed fraud to obtain the work, a federal review has found.
In one case, a Nevada firm won a $7.5 million contract from the Federal Emergency Management Agency even though its majority owner was not a disabled veteran, the review by the Government Accountability Office said.
In two other cases, businesses that won contracts were owned by disabled veterans who were also full-time state government employees, making them ineligible. And in at least three other cases, companies owned by disabled veterans did little or none of the contracted work, simply passing it on to subcontractors not owned by disabled veterans.
The report concludes that the program lacks procedures to verify that applicant businesses are owned by disabled veterans. And even when fraud is uncovered, usually as a result of protests from competing companies, punishment is rarely meted out, allowing guilty firms to continue receiving federal contracts, the report says.
Read more at The New York Times
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