WHAT A HEEL: Chiseling Iraq Contractor
A report by the special inspector general for Iraq reconstruction finds that defense contractor Aecom Government Services, overcharged the Defense Department as much as $4.1 million for side mirrors, inner tubes and other vehicle parts from July 2005 to September 2009, according to The Washington Post:
Aecom officials disputed the allegations, telling auditors that the overcharging was the result of "billing errors" that "occurred early in the contract," according to the report, scheduled for release Friday. The company said that "cumulative adjustments were made." …
Preliminary audits of 22,000 Defense Department transactions involving about $10.7 billion have identified not just overpayments by the government, but also duplicate payments, as well as payments to fictitious vendors and addresses.
The preliminary findings have prompted a decision to examine all financial transactions related to the major U.S. programs in Iraq - spending that totaled $35.2 billion as of Sept. 30, 2008. The report said particular attention will be paid to programs "that afford easy access to cash," such as the military's $3.6 billion Commander's Emergency Response Program.
The auditors also found that the Army Contracting Command "did not have enough experienced personnel to review invoices thoroughly, leaving the U.S. government vulnerable to undetected overcharges."
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