POGO report finds U.S. gov't has contracts with 43 corporate criminals

If you’ve ever applied for a job, you probably know that it’s standard practice to be asked whether or not you have a criminal record. And you probably can understand why most employers might be skittish to hire convicted felons.

But if you were a large corporation applying for a government contract, a criminal record would be no big deal.

According to a report by the Project on Government Oversight (POGO), since 1990, 43 of the U.S. government’s top contractors (companies all with more than $100 million in annual contracts) paid $3.4 billion in fines/penalties, restitution, and settlements for criminal activity. Of the top ten, four have at least two criminal convictions.

In 2001, the U.S. government spent approximately $235 billion of your tax dollars on goods and services, making it the largest consumer in the world. Almost half (45 %) of that money went into the coffers of convicted corporate criminals, the report notes.

Of the 43 contracts, only one was even suspended, and only for five days – General Electric. GE was also the worst offender, committing 63 violations and alleged violations. It has paid approximately $982.9 million in fines/penalties, restitution, and settlements.

POGO concludes that Congress needs to create a centralized database of criminal information on government contractors, improve contractor disclosure, and use suspension and debarment actions fairly and equally regardless of size.

For more information, visit www.pogo.org or call 202-347-1122.