Washington, D.C. – Congressman James R. Walkinshaw (VA-11) advanced an amendment in the House Committee on Oversight and Government Reform to ensure federal agencies are held accountable for the effectiveness of their efforts to prevent fraud tied to funds released in the wake of national emergencies.
The amendment requires any agency that obligates emergency supplemental funds to submit a formal after-action review within 180 days, in consultation with their Inspector General. Agencies must document whether their fraud controls worked, identify every gap and failure, account for taxpayer money lost to improper payments, and lay out a plan to get it back. OMB must incorporate findings into government-wide oversight reporting to Congress, building a record of what works and what doesn’t before the next emergency hits.
“When emergencies hit and billions of federal funds go out the…
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.