It's a mistake, it's a mistake

Official Says Fraud Loophole Was A ‘Mistake’

The Bush administration inadvertently exempted foreign contracts in Iraq from fraud oversight, a top administration official said Tuesday, resulting in a loophole that Rep. Peter Welch, D-Vt., said could have protected private firms that steal taxpayer money.
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The administration removed the single paragraph exemption on Monday, hours before a House panel convened a hearing to question officials about its origin and to debate legislation introduced by Welch to close the loophole and punish fraudulent contractors.
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The White House opposes the measure, saying proposed regulations would implement the same requirements as the legislation.

The Professional Services Council, a trade association that represents more than 300 contractors, like Blackwater Worldwide and KBR, for the former subsidiary of Halliburton, strongly opposes Welch’s legislation.

And in related news:

Fraud Loophole Documents Delayed

WASHINGTON (AP) — The Bush administration has delayed delivering documents to Congress explaining how a multibillion-dollar loophole exempting overseas work from scrutiny was slipped into a rule intended to crack down on fraud in government contracts.

Cross posted at VidiotSpeak