Related Newswires Articles on Fiscal Discipline from the Washington Post


Related Newswires Articles on Fiscal Discipline from the Washington Post:

KBR Connected to Alleged Fraud, Pentagon Auditor Says
from Wash Post – World News by Ellen Nakashima

KBR, the Army’s largest contractor in Iraq and Afghanistan, is linked to “the vast majority” of suspected combat-zone fraud cases that have been referred to investigators, as well as a majority of the $13 billion in “questioned” or “unsupported” costs, the Pentagon’s top auditor said yesterday.

In testimony before the bipartisan Commission on Wartime Contracting in Iraq and Afghanistan, April G. Stephenson, director of the Defense Contract Audit Agency, said investigators have sent to the inspector general a total of 32 cases of suspected overbilling, bribery and other violations since 2004.

“I don’t think we’re aware of a program, contract or contractor that has had this number of suspensions or referrals,” Stephenson said. KBR’s work accounts for 43 percent of the Pentagon’s audited Iraq contracting dollars, according to the agency’s data.

Stephenson’s disclosures come as the Pentagon prepares to draw down forces in Iraq, requiring major support from contractors, while ramping up reconstruction efforts in Afghanistan. Lawmakers are pushing the government to introduce more competition in its procurement programs.

Accompanying Related Video:

Hearing on US Embassy in Iraq: Waxman Questions KBR

The Oversight Committee holds a hearing, “Allegations of Waste, Fraud, and Abuse at the New U.S. Embassy in Iraq.” The hearing examines the performance of the State Department and its contractors in the construction of the new $600 million U.S. embassy in Baghdad. The Committee reviews questions regarding the embassy compound construction as well as allegations of labor abuse through improper contracting practices. Chairman Henry Waxman questions Karl Demming of KBR about what they found at the embassy.


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