For Immediate Release:
Contact:
Charlie Cray, director, Center for Corporate Policy
(202) 387-8030
ccray@corporatepolicy.org
The Center for Corporate Policy Applauds Senators Dorgan and Leahy for Cracking
Down on Corrupt Contractors and War Profiteers
(Washington, DC) -- The Center for Corporate Policy applauded Senators Byron
Dorgan (D-ND), Patrick Leahy (D-VT) and other Senate Democracts today for
introducing the "Honest Leadership and Accountability in Contracting Act of 2006",
which would crack down on cronyism, corruption and war
profiteering associated with federal contracting.
“Federal contracting is a key chapter in the ongoing saga of corruption that
starts on K Street and ends up undermining democracy at home and abroad,”
said Charlie Cray, director of the Center for Corporate Policy. “The abuse of U.S.
taxpayers’ and Iraqi oil revenues witnessed in recent years has undermined the Iraq
reconstruction project and put American troops at risk,” Cray said.
Recent reports of corruption among contractors like Custer Battles and
Halliburton, as well as at the CPA, reinforce the need for stronger oversight,
increased transparency and stiffer sanctions. The bill introduced by Dorgan and
Obama includes specific provisions that the Center for Corporate Policy has
strongly supported as essential to clean contracting:
• Strengthen suspension/debarment standards. Companies that repeatedly
break the law and abuse taxpayer money should not be eligible for further
contracts. Vague standards have allowed for weak enforcement of Federal
Acquisition Regulations regarding “responsible” contractors.
• Close the revolving door. The bill would address conflicts of
interest inherent to situations where individuals either leave government
for lucrative positions in the private sector or come to government from
contracting companies (reverse revolving door).(1)
• Establish a clear definition and stiff penalties for
“war profiteering.” The bill establishes a clear definition and strong
penalties (up to 20 years and $1 million fine).
• Force greater competition in contracting. The bill would break
up huge mega-contracts like the LOGCAP contract awarded to Halliburton,
so that large task orders can be competitively bid. Halliburton is
the largest contractor operating in Iraq. According to Defense Department
auditors, Halliburton “alone represents 52% of the total contract value” of
DoD contracts in Iraq.(2)
• Create a publicly-accessible record of contractors’ violations.
• Support whistleblowers who report waste, fraud, bribery and other abuses.
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1 See www.revolvingdoor.info for more information.
2 Source: Defense Contract Audit Agency,
Briefing Slides: DCAA Contract
Audit Support for Iraq Reconstruction (May 3, 2005).
For more information on Halliburton see www.HalliburtonWatch.org