Statement of Senator Hillary Clinton on New Reports of Fraudulent and Wasteful Department of Defense Contracts

April 18, 2008 -- WASHINGTON, DC — Senator Hillary Clinton today issued the following statement on new reports of corruption in the award of a $50 million contract to provide entertainment services at Air Force functions.

“The Bush Administration has again demonstrated its total disregard for transparency and accountability and is once more turning a blind eye to fraud, corruption and abuse of the federal contracting process on the backs of taxpayers.

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This contract is just the most recent example of the corruption and cronyism we have come to expect from this administration. The Department of Defense is the largest purchaser of contracting services in the federal government, and it is critical to uncover the full extent of the waste and fraud surrounding its contracts. The era of waste, fraud, and abuse in our federal government when it comes to private contractors must come to an end. I call on Secretary Gates to investigate these reports and offer an explanation to the American people as to why their tax dollars continue to be squandered on the Bush Administration's out-of-control spending. Since President Bush is clearly unwilling to root out the fraud, waste and corruption that plague the federal contracting system, I will introduce legislation that will at last hold this administration accountable.”

According to new reports, senior Air Force personnel directed a $50 million contract to Strategic Message Solutions (SMS) to provide entertainment services at Air Force functions. One person involved in the procurement process described it as “the dirtiest thing” he had ever experienced, and the Inspector General of the Department of Defense (DOD) found that “the December 2005 award to SMS was tainted with improper influence, irregular procurement practices, and preferential treatment.” Earlier this year it was revealed that the DOD awarded a $300 million contract to a company run by a 22-year old that provided decomposed ammunitions to U.S. allies in Afghanistan in order to fulfill its contractual obligation.

Source: Senator Hillary Clinton