A Senate bill that would give federal contract employees the same whistleblower protections as federal employees passed the Senate Homeland Security and Governmental Affairs Committee today. Senate bill 241, introduced by Sen. Claire McCaskill, D-Mo., would protect contractors who report improper spending or management on federal contracts from retaliation. Contract employees who witness contract fraud currently can bring a civil claim, in the name of the government, against contractors under the False Claims Act. If the claim is successful, the whistleblower could receive up to 30 percent of the recovered funds. However, the False Claims Act does not protect whistleblowers who witness waste,…
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A Kuwaiti company was indicted for overcharging the government on an $8.5 billion food service contract to feed troops in Iraq, Kuwait and Jordan, the Justice Department announced today. The company, Public Warehousing Company (PWC), faces criminal charges of conspiracy to defraud the government, committing major fraud against the government, making false statements to the government, submitting false claims to the government and wire fraud. The allegations stem from a series of false invoices the company submitted to the Defense Department between 2003 and 2005. According to Justice, the company conspired with unnamed suppliers to inflate prices by hiding overhead…