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Posted by on Jul 22, 2010 in At TMV, Breaking News, Economy, Law | 0 comments

New Law: Feds Keep Fraud Savings To Spend On Themselves

The federal government, in its infinite wisdom, is spending money to save an estimated $110 billion in fraud and waste.

With little fanfare, President Obama signed into law Thursday the Improper Payments Elimination and Recovery Act sponsored by Democratic Sen. Thomas Carper of Delaware and Rep. Patrick Murphy of Pennsylvania.

It is designed to reduce the benefits sent to dead people, fraudulent Medicare and Medicaid payments and overpaying government contractors. That waste amounted to $110 billion in Fiscal 2009.

As I understand it, each agency is allowed to spend $1 million on audits and a database and keep the savings how they see fit.

According to one news report:

(It) gives agency heads authority to use any recovered money for purposes not currently allowed, including improving their financial management, supporting the agency’s inspector general or for the original intent of the funding.

The Carper-Murphy law is an Obama companion measure to executive orders and memos to agencies designed to rein in excessive spending with a “Do Not Pay” list for fraudulent contractors, reductions on government building costs and improvements to the federal hiring process.

Let’s see if I understand this correctly. The money government agencies save from fraud and waste they get to keep to expand their fiefdoms.

I guess it makes some sort of sense. It’s like taking savings from a grocery list and spending it buying a round at your neighborhood bar.

Cross posted on The Remmers Report

Comments are welcome. Link to my blogsite or go to my email address at [email protected] . Remmers’ varied career spans 26 years in the newspaper business. Read a more thorough resume on The Remmers Report.