Washington, D.C. -- "Congress is working with President Obama to establish real control over the government contracting process at home and overseas," said U.S. Representative Neil Abercrombie today as he introduced HR 1667, the War Profiteering Prevention Act of 2009. "We're going to require all those who receive public funds to be fully accountable to the people paying the bills: the American taxpayers."

The War Profiteering Prevention Act criminalizes bid rigging, fraud, gross overcharging, and delivery of faulty goods by companies operating under U.S. government contracts in other countries. Violations of the law would be felonies punishable by up to 20 years in prison and fines of up to $1 million or twice the illegal profits of the crime.  The Act also assigns jurisdiction for such cases to U.S. federal courts.

"One of the sad lessons we've learned over the last six years is that a few U.S. businesses view huge contracts for support services to our military forces overseas as open season on the American taxpayer," Abercrombie said. 

U.S. taxpayers spent almost $51 billion on post-war reconstruction in Iraq, but records show that an absence of contractor oversight allowed massive fraud and little progress in rebuilding Iraq.  In Afghanistan, the U.S. has already provided more than $32 billion in humanitarian and reconstruction assistance since 2001, and the international community has provided another $25.3 billion for the rebuilding.

"Unfortunately, spending large sums of money in a short period of time — even by the government — will quickly attract those willing to commit fraud," Abercrombie said.  "Deterring criminals and protecting taxpayers begins with clearly defining criminal acts so there is no doubt and no ambiguity.  Any company willing to rip off the American taxpayer will know that they will be caught and they will be prosecuted."

A similar Abercrombie bill was approved in the House of Representatives in October 2007 by a vote of 375-3, but was blocked from consideration in the Senate.

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