The SBA probe follows allegations of fraudulent subcontracting and misuse of the 8(a) program.
The Small Business Administration (SBA) opened an investigation last month into two companies following allegations that both firms misused the SBA’s 8(a) program, which is designed to help disadvantaged businesses obtain federal contracts. The inquiry stems from an undercover video suggesting that the companies diverted contract work to subcontractors, bypassing competitive requirements.
SBA Administrator Kelly Loeffler said the agency’s review had revealed “institutionalized abuse” through shell companies and fraudulent pass-throughs.
Earlier this year, the SBA launched a comprehensive audit of 15 years of 8(a) contracts, focusing on large, limited-competition awards and potential misconduct. The agency also revoked USAID’s 8(a) contracting authority after a Justice Department bribery case raised concerns about program integrity.
As the Lord Leads, Pray with Us…
- For Administrator Loeffler as she heads efforts to ensure the integrity of contractors who are awarded federal contracts.
- For SBA officials as they review the conduct of companies participating in government programs.
Sources: MSN, Daily Caller, Tribal Business News
