Print

Reps. Schrader and Bean Commend VP Biden on Fraud Prevention Success in Recovery Act

Congressman Kurt Schrader and Congresswoman Melissa Bean joined Vice President Joe Biden Friday as he announced the success of anti-fraud measures implemented in the American Recovery and Reinvestment Act, which reduced allegations of fraud to less than 0.2 percent of the 170,000 contracts awarded. Biden recognized the two representatives as leaders in Congressional anti-fraud efforts.

While the Recovery Act has been successful in creating the largest positive swing in the economy in three decades, moving GDP from a negative 6.4 percent rate to 3.2 percent positive growth last quarter, Biden’s oversight has also been successful at minimizing fraud and abuse.

Of the 170,000 contracts awarded under the Recovery Act, there are only 317 open investigations in allegations of fraud. Pending final review of the methods used to track Recovery Act funding, mechanisms used here could be adopted across other government programs. Biden announced Friday that the Administration will create a Do Not Pay List, establishing a single source through which all federal agencies can check if a potential contractor or individual has been barred from receiving payment by other agencies.

“Putting our fiscal house back in order is one of my top priorities,” said Schrader. “I applaud the work of my colleagues and the administration in helping me rein in government spending, especially in programs that are duplicative, inefficient, and wasteful.”

“Clearly Vice President Biden’s oversight and use of these fraud deterrent tools have set a new standard in terms of best practices for making effective use of tax dollars,” Bean said. “We need to consider rolling out these tools across the wider government contracting world. I’m proud to do my part by introducing complementary legislation initiatives such as the GAR act that seek greater accountability for taxpayers.” 

Bean and Schrader joined Biden for the announcement, where he recognized the two representatives for their efforts to rein in wasteful government spending.

On May 20, 2010 Congressman Schrader, a member of the fiscally conservative Blue Dog Coalition introduced HR 5363 the Preventing Waste, Fraud, and Abuse Act of 2010. HR 5363 encourages government to make strategic investments to prevent fraud and waste within federal government programs and if implemented would save more than $35 billion in the first five years and more than $132 billion over ten years.

Congresswoman Bean authored the Government Audit Reform (GAR) Act (H.R. 5018) to strengthen the ineffective government rules for audits of federal grant money. Official reviews of current audits show that more than half of them are conducted so inadequately that they are considered partially or completely unreliable. She also cosponsored H.Res.40, a provision that passed the House and strengthens audit requirements on every government agency, and requiring regular hearings on spending, waste and abuse in government.