Grassley Bill to Reign in Government Credit Card Abuse Clears Committee

Press Release

Date: April 10, 2008
Location: Washington, DC


GRASSLEY BILL TO REIGN IN GOVERNMENT CREDIT CARD ABUSE CLEARS COMMITTEE

Grassley Bill to Reign in Government Credit Card Abuse Clears Committee

After exposing millions of dollars in government credit card abuse, legislation led by Senator Chuck Grassley today cleared the Senate Homeland Security and Government Affairs Committee. The bill now must be considered by the full Senate.

Grassley's legislation would require all federal agencies to establish safeguards and internal controls for government charge card programs as well as establish penalties for violations. The legislation is based on his past oversight work with the Government Accountability Office (GAO) and was introduced with Senators Norm Coleman of Minn., Joe Lieberman of Conn., and Susan Collins of Maine. Congressman Joe Wilson filed companion legislation in the House of Representatives.

"In 2000, we leaped into the government credit card mess head first not knowing what we would find. We started with the Defense Department, and unfortunately that was just the beginning. As each new layer of abuse has been peeled back, we've made new discoveries. I said at the beginning of my investigation that I hope to soon see the bottom of the pit. Eight years later, I'm still not sure we've reached the bottom," Grassley said. "By moving this legislation forward, we've made a tremendous step in the right direction. We're going to take care of the rotten apples."

Grassley said the legislation would also stipulate that cases of fraud be referred to the U.S. Attorney for prosecution and employees that egregiously misuse or commit fraud with a government charge card be fired. The bill would also increase oversight by providing that each agency Inspector General periodically conduct risk assessments and audits to identify fraud and improper use of credit cards.

Grassley introduced similar legislation in the last two Congresses that was not acted upon. He has worked to expose government credit card abuse since 2001, starting with the Department of Defense. The Government Accountability Office has documented abuses in the Departments of Defense, Veterans Affairs and Housing and Urban Development, the U.S. Forest Service, the Federal Aviation Administration and others.

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