If this keeps up much longer, our friends at OMB Watch are going to have their hand full maintaining the grants side of FedSpending.org. Chris Edwards of the Cato Institute finds that the number subsidy programs listed in the Catalog of Federal Domestic Assistance has skyrocketed--from 1,013 programs in 1985 to 1,390 in 1995 to 1,696 in 2006.
The Washington Post writes a profile of anti-pork Sen. Tom Coburn's (R-OK) crusade to cut earmarks out of the emergency spending supplemental before the Senate. Only one of his amendments were ultimately successful and the lack of majority support from either party led him to withdraw many of his amendments challenging the earmarks. One of his challenges was to a $500 million earmark to aid rebuilding of a Northrop Grumman shipbuilding yard in Mississippi. The Wall Street Journal reports that the vote was 51-47 with both parties evenly dividing. One of the few successul amendments aimed at controlling spending was introduced by Sen. Barack Obama (D-IL) and co-sponsord by Coburn. The amendment restricts the number of no-bid contracts for rebuilding in the Gulf Coast and was agreed to with a 98-0 vote.
CongressDaily PM reports that the Senate Indian Affairs Committee will finally issue a report on Jack Abramoff and his bilking of Indian tribes in the next two months. However, the report will not touch on Abramoff's dealings with lawmakers or executive branch officials meaning that "two years after news of the activities of Abramoff and his allies first came to light, there is no known congressional inquiry into whether lawmakers or administration officials took improper or illegal actions on their behalf." Congress has essentially given up its authority to investigate the matter and left it up to career Justice Department investigators and prosecutors.
The former head USAID Andrew Natsios, interviewed in Newsweek, claims that the Coalition Provisional Authority, which ruled Iraq after Saddam’s fall, was not prepared for the rebuilding of Iraq and let “ill-qualified or corrupt contractors” dominate the rebuilding process. “They didn't have [monitoring] systems set up. They were very dismissive of these processes,” he stated. Others are speaking out on contractor fraud and corruption including the watchdog group Transparency International, which claimed that the contractor fraud could become “the biggest corruption scandal in history.” Rep. Chris Shays (R-CT), who has investigated fraud allegations states, “The administration seems to have a deaf ear to this issue … When you have men and women dying on the battlefield and you have corruption, then you've got a problem.” The Defense Department refused to send auditors to Iraq until numerous pleas and corrupt practices brought them to send a team to Qatar, a thousand miles away from Baghdad. The Inspector General at the Pentagon oversaw the auditing practice of rewarding and monitoring contracts – until he left his position to take a job with Blackwater USA, one of the top Pentagon contractors in Iraq.
A former lobbyist for the for-profit online University of Phoenix is moving from her post at the Education Department to work for the new House Education and Workforce Committee chairman Buck McKeon (R-CA), according to the New York Times. Buck McKeon has been an ally of for-profit universities like his predecessor John Boehner (R-OH). A few months ago, “the committee for the first time permitted institutions that teach more than half their courses online to receive federal student aid, a boon to for-profit institutions like the University of Phoenix.” Stroup was instrumental in pushing for these rule changes as she oversaw a program that judged whether the 50% rule should be waived. The Education Department Inspector General wrote that her 2003 report to Congress “contained unsupported, incomplete and inaccurate statements.” In 2004 the Chronicle of Higher Education documented the campaign contributions that for-profit universities had funneled into the pockets of McKeon and Boehner. McKeon received $126,000 from these universities from 2003-2004.
The federal government is owed $35 billion in fines from criminals and from civil cases, the majority of which comes from white collar criminals, who only pay 7 percent of restitution. According to the Associated Press, this amount is five times higher then it was a decade ago. Much of the uncollected money comes from violations of federal regulations, such as violations of mine safety laws. In most cases the federal government has waived the fines in favor of compliance, such as in the case of violations at nuclear facilities throughout the country. Anti-nuclear activist Greg Mello calls this, “kind of an exercise in absurdity.” The Government Accountability Office, an independent investigative office, has warned that the failure to enforce penalties and fines will undermine the effectiveness of enforcement agencies. Of course, this 2004 Denver Post story may shed some light on why the federal government is failing to take punitive action against violators.