WASHINGTON, D.C. – This week, Congressman Pete Stauber (MN-08) introduced the Federal Responsibility and Accountability for Unchecked Dereliction (FRAUD) Act to strengthen accountability when state officials become aware of significant fraud involving federal funds. This legislation comes on the heels of the House Committee on Oversight and Government Reform’s bombshell report finding that high-level Minnesota state officials – including Governor Tim Walz and Attorney General Keith Ellison – knew of widespread fraud in Minnesota since 2019 and repeatedly failed to act.
“Billions of taxpayer dollars were stolen in Minnesota because state leaders like Tim Walz looked the other way and even threatened to retaliate against state whistleblowers who tried to sound the alarm,” said Congressman Pete Stauber. “To this day, none of these so-called leaders have been held accountable for this…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.