The Fraudsters Are Pentagon Contractors, Not Hungry Children

By @KYYellowDog

You don't even have to do your own research on public policy anymore. Whatever congressional repugs are condemning is brilliant policy and an effective program that should be expanded, and whatever they are protecting and defending is a fraudulent, super-wasteful boondoggle that should be eliminated.

From Think Progress:

It’s shockingly ignorant at best and dishonest at worst for Sessions — the ranking GOP member of the Senate Budget Committee — to completely ignore the role the economy has played on food stamp usage. The cost of the program has jumped because more Americans are out of work and wages are down, thus more people need assistance.

Food prices have also gone up, adding additional costs. But the cost of the program will come down on its own as the economy recovers and more people can afford to feed themselves.

In fact, the food stamp program has been critical for reducing poverty and pumping money into local economies during the down economy, so cutting it now would not only take food out of peoples’ mouths, but could slow down the recovery. No one is trying to “double the program every three years” as Sessions claims. (Currently, nearly one in five Alabamians is on Food Stamps.)

And while the senator suggests the program has grown due to fraud, in fact, errors in the food stamp program — the Supplemental Nutrition Assistance Program (SNAP) –are currently at an all-time low, accounting for less than three percent of the program’s cost. According to the Center for Budget and Policy Priorities:

To ensure that benefits are provided only to eligible households and in the proper amounts, SNAP has one of the most rigorous quality control systems of any public benefit program and, in recent years, has achieved its lowest error rates on record.

In fiscal year 2009, even as caseloads were rising, states set new record lows for error rates. The net loss due to errors equaled only 2.7 percent of program costs in 2009. There is no evidence that program errors are driving up SNAP spending.

It’s worth noting that while Sessions claims the country can’t afford to feed the hungry, he has fought to preserve the Bush tax cuts for wealthy, subsides for big oil companies, and demanded new tax cuts for corporations, all of which also contribute to the deficit.

Meanwhile Sessions and his fellow scorched-earthers are defending to the death the right of defense contractors to rob the taxpayers blind.

Susie Madrak at Crooks and Liars:

This report comes out while members of the congressional supercommittee are pissing and moaning about how we can't possibly cut any more money from the Defense department. These numbers seem to indicate otherwise:

How often does the Pentagon award contracts to defense companies that have already been proven to be defrauding taxpayers? A report the Department of Defense did at the request of Senator Bernie Sanders (I-VT) reveals an answer that should make Washington very uncomfortable.

The report, released today, showed that hundreds of defense contractors found guilty of civil fraud received more than $1.1 trillion in defense contracts since 2001. The study took into account only companies that were found to have defrauded taxpayers of more than $1 million dollars.

More than $573 billion went directly to companies that were guilty of defrauding taxpayers, and when you factor in the awards that went to the parent companies of those contractors, the total is $1.1 trillion. Of that $573 billion, more than two-thirds—$398 billion—went to companies after they had been found guilty of fraud.
Companies convicted of “hard-core criminal fraud” received $255 million in contracts, $33 million of it after conviction.

Some of the country’s biggest defense contractors were implicated. “The ugly truth is that virtually all of the major defense contractors in this country for years have been engaged in systemic fraudulent behavior, while receiving hundreds of billions of dollars of taxpayer money,” said Sanders. According to the report:

Lockheed Martin in 2008 paid $10.5 million to settle charges that it defrauded the government by submitting false invoices on a multi-billion dollar contract connected to the Titan IV space launch vehicle program. That didn’t seem to sour the relationship between Lockheed and the Defense Department, which gave Lockheed $30.2 billion in contracts in fiscal year 2009, more than ever before.

In another case, Northrop Grumman paid $62 million in 2005 to settle charges that it “engaged in a fraud scheme by routinely submitting false contract proposals,” and “concealed basic problems in its handling of inventory, scrap and attrition.”
Despite the serious charges of pervasive and repeated fraud, Northrop Grumman received $12.9 billion in contracts the next year, 16 percent more than the year before.