Calling for Investigation of the Foreign Contract Loophole Regarding Fraud

CALLING FOR INVESTIGATION OF THE FOREIGN CONTRACT LOOPHOLE REGARDING FRAUD -- (House of Representatives - March 14, 2008)

(Mr. WELCH of Vermont asked and was given permission to address the House for 1 minute and to revise and extend his remarks.)

Mr. WELCH of Vermont. Mr. Speaker, there's a new regulation that was in the process of being promulgated that did a practical and sensible thing for taxpayers: it required contractors who receive over $5 million of taxpayer money to report fraud when they are aware it happened.

At the last minute, there was an exemption that was put in so that foreign contracts were not subject to taxpayer protection. That makes no sense and flies in the face of reason.

By exempting overseas contracts, and this is Iraq and Afghanistan particularly, the Bush administration is sending an unambiguous message: it's okay to rip off taxpayers when you spend money abroad; just don't do it at home.

Not only must we stop this reckless rule, but we must have answers: What was the rationale for the loophole? How did the loophole get slipped into the proposed rule? And who advocated for it?

Through a thorough investigation, we will stop this rule and get some answers.

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