Last fall, the Department of Justice put rules into place to crack down of fraud in government contract. Under the rules, independent contractor would be required to report fraud if the abuse exceeds $5 million.
At the last minute, a provision was added to exempt all overseas contracts from the new regulations.
That didn’t sit well with Congressman Peter Welch. He’s called for an investigation as a member of the House Oversight and Government reform committee.
He’s also introduced legislation to close the loophole and to require all contractors to report fraud, regardless of where the work is performed.
We asked Peter Welch if anyone knows how the loophole got into the Department of Justice rule:
Click "listen" to hear the entire interview.