Overseas contractor fraud loophole formally closed after new regulations issued
Washington, DC - Rep. Peter Welch uncovered, investigated and has now officially closed a multi-billion dollar loophole proposed by the Bush administration that allowed overseas government contractors to avoid disclosing fraud.
In response to a law passed by Welch this summer, the Office of Management and Budget issued a rule late last week mandating that government contractors report any suspected instances of waste, fraud, abuse or overpayment to investigators general. The move caps a months-long effort led by Welch to restore accountability to government contracts and crack down on a misguided loophole crafted by the Bush administration.
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