A bill to establish an independent Office of Inspector General to lead the charge against fraud in state government programs passed the Minnesota Senate 66-0 and now heads to Governor Tim Walz for signature into law. The Minnesota House passed the bill on Thursday, 127-5.
“The inspector general answers to no commissioner, no agency head, no single executive,” said Senator Heather Gustafson, DFL-Vadnais Heights, the chief author of the bill. She says the bill will create a bipartisan commission to keep the office from becoming politicized.
“We are passing a bipartisan, well-vetted, thoroughly worked through anti-fraud bill that every Minnesotan should celebrate,” Sen. Nick Frentz, DFL-North Mankato, said during the debate.
The bill includes millions to fund the office, including $3 to $6 million in start-up costs.
Eventually, it will cost $11 to $12 million in annual operating costs for…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.