Extensive waste, abuse in Homeland Security contracts: report

[MORTARDUDE]

http://today.reuters.com/news/newsAr...-CONTRACTS.xml

Waste, abuse in Homeland Security contracts: report
Thu Jul 27, 2006 1:18am ET
WASHINGTON (Reuters) - A dependence on no-bid contracts and inadequate oversight have contributed to extensive waste and misspending at the Department of Homeland Security, The Washington Post reported on Thursday, citing a congressional investigation.

In the latest report on the agency's spending, U.S. government investigators found problems involving "significant overcharges" or "mismanagement" in 32 DHS contracts worth a total of $34 billion, the Post said.

The findings were to be released on Thursday. The Washington Post said it had obtained a copy of the report.

According to the newspaper, the bipartisan congressional report says an explosion of no-bid deals and a critical shortage of government contract managers created a system prone to abuse.



Among the contracts that raised questions were deals for hiring airport screeners, securing borders and housing Hurricane Katrina evacuees, the newspaper said.

Investigators also found a surveillance system for monitoring activity on the borders with Mexico and Canada does not work because the cameras malfunction when exposed to snow, ice or humidity, the report said.

The Washington Post said the congressional report warns that DHS is setting itself up to make more mistakes by giving contractors too much latitude.

A report released July 19 by the Government Accountability Office faulted poor oversight for allowing DHS employees to make a wide range of questionable purchases during the response to hurricanes Katrina and Rita.

A separate GAO review last month found that roughly 16 percent, or $1 billion, of aid payments to hurricane victims were based on bogus claims or spent on questionable items like diamond rings and sex videos.

David Norquist, DHS's new chief financial officer, said the agency has approved tighter spending guidelines and vowed that incidents of possible fraud and abuse cited by GAO would be investigated.



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