Spy sat agency opens fraud reporting flood
WASHINGTON, Feb. 12 (UPI) -- The inspector general of the agency that operates U.S. spy satellites says "the floodgates of fraud reporting" by contractors have opened.
Eric Feldman, the inspector general of the National Reconnaissance Office, or NRO, and his chief counsel, Alan Larsen, penned a little-noticed piece in a recent edition of The Journal of Public Inquiry, a trade publication for inspectors general.
In it, they described how, after repeatedly getting the run-around from contractors from whom they were seeking information about potential fraud, they wrote a clause into the NRO's standard contract, spelling out the already-existing legal obligations of those doing business with the agency to cooperate with the inspector general.
The agency also held a conference for contractors, which was addressed by Deputy Attorney General Paul McNulty, who "emphasized the high priority the Justice Department is placing on procurement integrity at this critical juncture."
"Several weeks later," Feldman and Larsen write, "the floodgates of fraud reporting mysteriously opened from companies that had previously shown little interest in taking to us about potential vulnerabilities on their contracts."
Nonetheless, they add, "we believe that we have barely scratched the surface in identifying possible fraudulent activity on our contracts."
The NRO builds and runs the nation's spy satellites and is responsible for a huge classified budget.
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