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Government Contracting Corruption Roundup

By Matthew Potter | November 28th, 2008 @ 4:01 pm

From three very different parts of the world come stories about corruption related to the award of contracts. In Jamaica a former Minister of Trade, his assistant and a company official are under investigation for fraud and money laundering over a contract for the government to provide light bulbs to the population. The case, Radiojamaica.com reports, got more confusing as the official’s other company qualified for construction contracts issued by the government.

Somehow his fraud accusation did not come out in the contract review process. In South Africa the ruling ANC part moved to disband the internal corruption unit, nicknamed “The Scorpions“, who were investigating a former minster for bribery involved in a large order of aircraft from BAE. The Times states that the reaction of law enforcement across the world is astonishment at this move blatantly done to protect those in power. In Finland the former head of the arms company, Patria, is under investigation for bribing Slovenian officials in order to get a contract for armored personnel carriers. NewsRoom Finland discusses the case against Mr. Wiitakorpi who is also accused of industrial espionage. He was fired by his employer; and the contract case may have caused the downfall of the Slovenian Prime Minister at the last election as the case was made public before the September elections.

Governments spend a lot of money through contracts and there is temptation on both sides - government and contractor - to use bribes and gifts to tilt awards to one company or another. In some parts of the world bribes are an accepted part of the deal; although there has been a great deal of reform in that area. There is also an expectation that this is how things should be done.

Tags: Contract, Bribe, NewsRoom Finland, Government, Vertical Industries, Enterprise Software, Software, Matthew Potter

Matthew Potter works supporting US Army aviation programs. He holds degrees in history as well as studying at the Defense Acquisition University. He has written for Seeking Alpha and at his own website, Defense Procurement News.

 
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    lmw1

    05/20/09 | Report as spam

    Halliburton Whistleblower Bunny Greenhouse Retaliated Against

    I thought you might be interested in this letter written by Halliburton whistleblower Bunny Greenhouse, who was retaliated against after she testified to Congress last week. Ms. Greenhouse is calling on all Americans to support whistleblower protection for federal employees. To read her letter go to http://capwiz.com/whistleblowers/issues/alert/?alertid=13371836

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    Dagpotter

    05/20/09 | Report as spam

    RE: Government Contracting Corruption Roundup

    Thanks for reading. Ms. Greenhouse is complaining because the Corps of Engineers is asking that all testimony presented to Congress by one of their employees be cleared through their legislative liason and lawyers. I do not know if Ms. Greenhouse is still a Federal employee, but I believe most agencies would want the same thing. Her letter does not say if she was fired, relieved of her duties, demoted or received any type of punishment. It also does not say if the Corps would censor what was in the prepared testimony. She certainly maintains First Amendment rights and I think Congress would want to move to have her unfettered views presented.

    Without further clarification of what happened to Ms. Greenhouse in the way of retaliation I cannot really make a judgment.

    Thanks again,

    MCP

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BNET Government provides daily industry news coverage and insights for managers and executives about the world wide business of government contracting. We analyze new and interesting contract awards, policy changes by governments, and the trends in procurements and spending. There will also be discussion of the industry with a focus on small and innovative companies and business lines. The world's governments spend billions each year on a variety of hardware and services and the site will discuss how the money is being allocated.