February 2007

Abercrombie introduces bill to curb war profiteering

Dear friend:

Our troops in Iraq and Afghanistan have done everything that's been asked of them. They've performed their duties with courage and professionalism. We honor their sacrifices, patriotism and dedication.

Unfortunately, their sacrifice has not been matched by the actions of some large U.S. companies in Iraq and Afghanistan. They have declared an open season on American taxpayers. In the first war in our nation's history in which so much has been outsourced, hundreds of millions of tax dollars are unaccounted for; many services and products were paid for but never delivered; and there are all too many examples of gross overcharging for everything from food, gasoline and water to vehicles.

At least ten companies, with contracts worth billions of dollars to provide goods and services to our troops in Iraq, have already paid more than $300 million in penalties over allegations of bid rigging, gross overcharging, fraud and delivery of faulty military parts. For U.S. companies to engage in unscrupulous business practices when they're being paid to support American men and women in combat is war profiteering at its most grotesque.

That's why I introduced the War Profiteering Act of 2007 (H.R. 400) to crack down on contractors, particularly in Iraq, who have defrauded or attempted to defraud the U.S. government by overcharging for goods and services. My legislation would make profiteering - overcharging in order to defraud or profit excessively from war, military action or reconstruction efforts - a felony, subject to up to 20 years in prison and fines of up to $1 million or twice the illegal profits of the crime.

While there are anti-fraud laws to protect against the waste or theft of U.S. tax dollars in the United States, there have been no statutes prohibiting such actions overseas. Most of the contract fraud has been uncovered by the Special Inspector General for Iraq Reconstruction, with a staff of 55 auditors and investigators to oversee billions of dollars in contracts awarded to U.S. companies. I and other Members of Congress fought hard to create the office in 2004. When the then-majority attempted to terminate the Iraq Inspector General's Office late last year, I fought to expand its oversight and accounting authority instead.

For too long Congress has failed in its duty to provide congressional oversight on policies and spending in Iraq or Afghanistan. As Chairman of the House Armed Services Subcommittee on Air and Land Forces, I am determined to change that. The War Profiteering Act of 2007 is a big step in that direction.

 

Aloha,

Neil Abercrombie

Member of Congress