Post by Admin on Dec 22, 2019 8:04:34 GMT -5
From Steve Hanges
Shell Companies are “Ripping off the Pentagon"
The U.S. Department of Defense “faces several types of financial and nonfinancial fraud and national security risks posed by contractors with opaque ownership,” the GAO explained.
“These risks, identified through GAO’s review of 32 adjudicated cases, include price inflation through multiple companies owned by the same entity to falsely create the appearance of competition, contractors receiving contracts they were not eligible to receive and a foreign manufacturer receiving sensitive information or producing faulty equipment through a U.S.-based company.”
The GAO cited one case involving “an ineligible foreign manufacturer that illegally exported sensitive military data and provided defective and nonconforming parts that led to the grounding of at least 47 fighter aircraft.”
Shell Companies are “Ripping off the Pentagon"
The U.S. Department of Defense “faces several types of financial and nonfinancial fraud and national security risks posed by contractors with opaque ownership,” the GAO explained.
“These risks, identified through GAO’s review of 32 adjudicated cases, include price inflation through multiple companies owned by the same entity to falsely create the appearance of competition, contractors receiving contracts they were not eligible to receive and a foreign manufacturer receiving sensitive information or producing faulty equipment through a U.S.-based company.”
The GAO cited one case involving “an ineligible foreign manufacturer that illegally exported sensitive military data and provided defective and nonconforming parts that led to the grounding of at least 47 fighter aircraft.”