Posted on 03/30/2009 7:23:48 AM PDT by ProtectOurFreedom
A new report found widespread fraud in a government program designed to help small businesses secure federal contracts, a sign of the obstacles the government faces as it launches programs designed to help small businesses dig out of the recession.
In an investigation of 36 companies in four metropolitan areas, GAO investigators found that 19 didn't meet program requirements; they were using fake addresses, subcontracting to larger firms, or the majority of their employees were located in a non-HUBZone location. The investigation followed a GAO report issued last summer, which found fraudulent program participants in the Washington, D.C., area and warned the SBA that lax oversight left the program vulnerable to more fraud and misappropriation.
When the GAO recently checked back into 10 fraudulent companies it found last July, two had been removed from the program. Seven were still HUBZone certified.
The problems raise questions about the SBA's ability to manage programs when more money is being funneled into the agency as part of the government's stimulus plan. Under a new program announced earlier this month, the Treasury department will push $15 billion into small-business lending, by raising government guarantees of SBA loans and buying loan-backed securities.
Small Business Administration Acting Administrator Darryl Hairston says the agency is working to fix problems of fraud or waste in SBA programs. "We appreciate the reviews and feedback that we get," Mr. Hairston said in an interview. "We are moving ahead aggressively to build proper controls."
(Excerpt) Read more at online.wsj.com ...
It’s only going to get worse. Much worse.
About a year from now you won’t see a single white person ‘qualifying’ for any SBA financing. And similar to the Fannie Mae/Freddie Mac scandal, there won’t be much expectation or requirement that the minorities who get this money will ever pay it back. Thus, another giveaway program to the non-productive in our country.
A Government Program with fraud in it? NO!
/pure sarcasm
As a woman-owned small business owner... color me surprised. Not. Fortunately the public sector has proven more lucrative.
And how many people are going to jail over this?!
A year from now? How about 1975? That was the year my hubby went to the SBA for a loan to give our small business a much needed boost due to Jimmah Cartah. He was told to his face that he was the "wrong color".
I spent 20 years in aerospace contracting. The purchasing departments of many government agencies as well as the SBA are controlled by minorities and assorted democrats. If you are not a democrat, you will find securing government contracts very difficult. I know a number of minorities and women who have become wealthy as government contractors and every one of them contributes tens of thousands of dollars each year to democrat candidates and causes. The purchasing personnel give contracts to their friends. This is the kind of corruption that we must stop if we are to have a chance at winning elections.
Well damn who would have thought that. ?????
I don’t doubt that for a minute.
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