Watchdog agency establishes stimulus fraud hot line

On Monday, the watchdog agency urged citizens, government employees and federal contractors to use its FraudNet system to report potential mismanagement of stimulus funds. FraudNet is an e-mail, phone and fax hot line that processes allegations of waste at federal agencies and in government-funded programs.

"The public can help to identify improper activities or weaknesses in programs that warrant scrutiny," said Gene Dodaro, acting comptroller general. "FraudNet can play an important role in alerting GAO, potentially early on, to questionable uses of Recovery Act funds."

Information can be reported anonymously, but GAO asks tipsters to provide as much detail as possible, including any evidence of misconduct. The agency could refer allegations for follow-up to its own investigative units, inspectors general or the Justice Department.

"The Recovery Act has set aside billions of dollars to create jobs, invest in infrastructure, and fund other measures to counter the current economic downturn," Dodaro said. "Experience tells us that the risk of fraud and abuse grows when large sums are spent quickly, eligibility requirements are being established or changed, and new programs created."

To reach FraudNet, call the automated answering system at 800-424-5454, e-mail fraudnet@gao.gov, send a fax to 202-512-3086, or write to:

GAO FraudNet
441 G St., N.W.
Mail Stop 4T21
Washington, D.C. 20548