Yes, it’s the fault of the companies for cheating the government and us, the taxpayers. But this is what happens a lot when you start throwing around millions and billions of dollars in government contracts. There will always be fraudsters that use the system of big, slow moving government – not to mention payoffs of public officials. Frankly I find it miraculous that the companies got caught. I guess they just didn’t pay off the right people.
from the Washington Examiner:
FBI: Company cheated taxpayers out of millions of dollars meant for Puerto Rico aid
Two sister companies contracted to do recovery work for Puerto Rico are accused of pocketing millions of dollars without fulfilling the terms of their government contracts.
The government hired Textile Corporation of America to manufacture tarps for Puerto Rico after the island was devastated by Hurricane Maria in 2017. TCA promised the Tennessee state government and the Tennessee Valley Authority, a federally-owned corporation, that it would create 1,000 new jobs at a textile mill in Pikeville, Tenn., and received the support of multiple state and federal officials.
The Federal Emergency Management Agency awarded TCA’s sister company Master Group USA a $30 million contract to produce 475,000 tarps for areas, mainly Puerto Rico, affected by hurricanes. FEMA awarded nearly $4 million before ending the contract.