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  • Wartime Fraud About Equal to National Average
    Posted by Jen DiMascio 9:14 PM on Aug 31, 2011

    “If he doesn't steal a little, he's stealing big.”—The Grifters

    The government may have wasted up to $60 billion in taxpayer dollars on service contracts in Iraq and Afghanistan, but in terms of money lost to fraud – the government apparently isn't doing worse than the rest of America.

    Byron Callon of Capital Alpha Partners spots an estimate by the Association of Certified Fraud Examiners in the Commission on Wartime Contracting's report that says a loss of 7% to fraud is typical. And that’s right about what the commission thinks the government lost.

    “The Commission’s estimate of a 5 percent to 9 percent fraud rate would indicate that between $10.3 billion and $18.5 billion of the $206 billion in funds spent for contingency contracts and grants has been lost to fraud,” the report says.

    So if the military needs an overhaul to prevent that much fraud, the rest of the nation might too. In their 2008 report, fraud examiners pegged the U.S. losses at a whopping $994 billion.

    Tags: ar99, contracting, iraq, afghanistan

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