TOPICS
TOPICS
Lawmaker assails Pentagon for inaction on contractors
Senate Democratic Policy Committee Chairman Byron Dorgan of North Dakota Wednesday castigated the Defense Department for not addressing contractor malfeasance in Iraq.
"I've seen precious little activity out of the Pentagon," Dorgan said at a meeting of his panel, which focused on Kellogg, Brown and Root.
Charles Smith, the former chief of the Field Support Contracting Division for the Army Field Support Command, said he personally saw KBR submit $1 billion in overcharges to the Army, including excessive meal counts for more soldiers than were stationed at a camp and more trucks than the Army needed, and was fired for protesting.
Smith, who was in charge of the LOGCAP III contract in Iraq overseeing the KBR contract, said the Defense Department documented $1.8 billion in unsupported charges from KBR.
"In 31 years of doing this work, I have never seen anything like the way KBR's unsupported charges were handled by the Department of Defense," Smith said.
Smith also criticized the Army's decision to waive the standard 15 percent withholding of payments until KBR reconciled its charges to the government, even though the Defense Contract Audit Agency endorsed withholding payment in May 2004.
Smith said he was verbally "attacked" by then-Brig. Gen. Jerome Johnson, the head of the Army Sustainment Command who later relieved Smith of his duties, at KBR's offices in June 2004 and was instructed to draft a letter to KBR that would not implement the 15 percent withholding.
Smith recommended the Defense Department examine whether providing certain types of support to soldiers in the field could be done through contractors and controls on requirements, because "contractors are happy to provide as much as the Army orders and should not be expected to encourage restraint," he said.
Dorgan said he was afraid the treatment of Smith and other whistleblowers by the Pentagon would send the message that people "can't afford to rock the boat."
COMMENTS
- Hows about the lesson we have been learning for over 20 years now. The contracting of Governement functions looks good on paper but in reality it cost the taxpayers big. We need to roll everything back under the Government. As a profit company you will do no more then what is expected as the minimum but when its our military or Government employee profits are not part of the equation therefore they will build in lasting quality in everything they do. Yes we need more folks in our military and this wont be an issue soon because those kids that didnt go to college or did but cant find work will be flocking to get any job that pays even with the military. After all maybe thats part of the master plan shipping every industry they possibly can to 3rd world countries for pure greed. The way things are going today I dont see where all these kids are going to find work. If you cant work and make a decent wage and care for your family and possibly one day retire like your Grandpa and your dad then you are giving no hope to the youth. And a group without hope can be a dangerous group to deal with because if DC wont make the change those with no hope will come visit and I promise you change will take place one way or the other. Hope to work,care for family and retire this is the dream that our forefathers had for us and most have or had lived but seems to be a nightmare to achieve for our youth. Maybe those that have secured thier future are driving the transfer of jobs to increase their portfolios. (That would be a greedy one-way) Just some food for thought. Have had enough Posted July 23, 2009 10:58 AM
- Don't you love it, the powerful crooks usualy, public officials, have their own word for fraud, "malfeasance" Theft by fraud is still a crime no matter what you call it. There should be prison terms for all involved and they should be made to pay back the money Mary Fisher Posted July 17, 2008 7:37 AM
- You would be surprised at what contractors are getting away with - with support from the very top. These generals, once they retire, often go to work for these firms and reap the benefits. Suzanne Posted July 15, 2008 8:33 AM
