Grassley: Overseas Contractors Must Be Held Accountable

GRASSLEY: OVERSEAS CONTRACTORS MUST BE HELD ACCOUNTABLE

Charging that it would be a disservice to taxpayers to exempt overseas contracts when holding bad actors accountable, Senator Chuck Grassley introduced a Sense of the Senate resolution against a loophole that might let government contractors off the hook if their work is not on U.S. soil.

Grassley's resolution to the fiscal 2009 budget resolution responds to a proposed rule issued by the Federal Acquisition Regulatory Council that would otherwise tighten ethics and reporting requirements for federal contractors. The proposed rule contains a loophole that would exempt federal overseas contractors from reporting contract abuse. The Justice Department objected to the loophole for overseas contracts and the Office of Management and Budget is currently reviewing the proposed rule.

"There are government contracts around the world, so there's the potential for fraud against American taxpayers around the world. It would be a disservice to taxpayers to exempt overseas contracts when holding bad actors accountable, and it's a no brainer that this loophole should be rejected," Grassley said. "This resolution is an important message that we need to hold ALL government contractors accountable, regardless of where they perform their work."

Last month Grassley sent a letter to Office of Management and Budget Director Jim Nussle outlining his concerns and urging Nussle to ensure that the exemption is not included in the final rule.

BREAK IN TRANSCRIPT

Source