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Fighting Fraud

Preventing Future Blackwaters
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CONTRACTORS FACE HEAT—Blackwater CEO Erik Prince was called to testify before Congress about his company’s work in Iraq.

It took the deaths of at least 17 Iraqi civilians to raise the public profile of the firm Blackwater.

The firm is the largest of three primary contractors working in Iraq. Ninety percent of its revenue comes from government contracts. Two-thirds of them are no-bid contracts.

John Krieger, a tax and budget policy expert with U.S. PIRG, has helped craft a bill that would help open the secretive contract process. Last fall, Congress passed the U.S. PIRG-backed Federal Funding Accountability and Transparency Act, which created a database to track approximately $1 trillion in federal grants, contracts, earmarks and loans.

The new bill would build upon last year’s law by making performance reports, lobbying activities and federal tax compliance records available to the public.

Closed-door practices have long been a hallmark of much government contracting, the fastest growing portion of federal discretionary spending, with over $422 billion of taxpayer funds spent last year.

U.S. PIRG’s Krieger will work to make sure that companies that have outstanding tax liability, shoddy performance or  records of misconduct are not awarded with more contracts.

U.S. PIRG
Citizen Agenda
Winter 2008
Vol. 23, No.4


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To Our Members

The most rewarding part of my job is winning changes that make a difference in people’s lives. But I have to admit that putting powerful adversaries on the spot is pretty satisfying in and of itself. ...




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