Crooks!


B



http://www.thefiscaltimes.com/Articles/2014/04/04/6-Billion-Goes-Missing-State-Department





*$6 Billion Goes Missing at State Department*

 iStockphoto

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BRIANNA EHLEY <http://www.thefiscaltimes.com/Authors/E/BRIANNA%20EHLEY>

The Fiscal Times

April 4, 2014

The State Department has no idea what happened to $6 billion used to pay
its contractors.

In a special "management
alert<http://oig.state.gov/documents/organization/224580.pdf>"
made public Thursday, the State Department's Inspector General Steve Linick
warned "significant financial risk and a lack of internal control at the
department has led to billions of unaccounted dollars over the last six
years.

The alert was just the latest example of the federal government's continued
struggle with oversight over its outside
contractors.<http://www.thefiscaltimes.com/Articles/2013/05/21/Pentagons-Failure-to-Audit-Contracts-Wastes-Billions>

The lack of oversight "exposes the department to significant financial
risk," the auditor said. "It creates conditions conducive to fraud, as
corrupt individuals may attempt to conceal evidence of illicit behavior by
omitting key documents from the contract file. It impairs the ability of
the Department to take effective and timely action to protect its
interests, and, in tum, those of taxpayers."

In the memo, the IG detailed "repeated examples of poor contract file
administration." For instance, a recent investigation of the closeout
process for contracts supporting the mission in Iraq, showed that auditors
couldn't find 33 of the 115 contract files totaling about $2.1 billion. Of
the remaining 82 files, auditors said 48 contained insufficient documents
required by federal law.

In another instance, the Bureau of International Narcotics and Law
Enforcement issued a $1 billion contract in Afghanistan that was deemed
"incomplete."

The auditor recommended that the State Department establish a centralized
system to track, maintain and retain contract files.

The department responded and said it concurred with the recommendations to
address the "vulnerability" in its contracting process.

Before Linick took office last fall, the State Department had been without
an inspector general position for five years--the longest IG
vacancy<http://www.thefiscaltimes.com/Articles/2013/06/25/How-Obamas-Auditor-Vacancies-Waste-Billions>
in
the government's history, as noted in The Washington
Post.<http://www.washingtonpost.com/world/national-security/state-department-inspector-general-issues-alert-over-6-billion-in-contracting-money/2014/04/03/8ebf465c-bb73-11e3-9a05-c739f29ccb08_story.html>







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