Wednesday, October 28, 2009
Accused of defrauding the government? No problem, here’s a stimulus contract. This very scenario happened when the Department of Defense awarded nearly $30 million in work to six companies that were under federal criminal investigation on suspicion of defrauding the government.
The companies claimed to be small, minority-owned businesses, making them eligible for special preference in bidding for government contracts. But in reality all six companies were part of a larger minority-owned enterprise in Southern California owned by Craig Jackson, an African-American businessman. This meant the businesses were ineligible for the government program. Officials with the U.S. Air Force and Army apparently didn’t bother to check to learn about the investigation before handing out 112 contracts to Jackson’s operation.
-Noel Brinkerhoff
Stimulus Contracts Go to Companies Under Criminal Investigation (by Michael Grabell, ProPublica)
Contractor Continues Working at Wright-Patt Amid Criminal Inquiry (by John Nolan, Dayton Daily News)
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