Trump SBA initiates audit of all government contracts awarded in last 10 years

Following the recent uncovering of a massive bribery scandal at USAID, the Small Business Administration (SBA) has taken swift action to address the issue. SBA Administrator Kelly Loeffler has ordered a full audit of all government contracting officers who have exercised grant-awarding authority under the agency’s business development program over the last 15 years.

In a letter obtained by Fox News Digital, Loeffler expressed deep concern over the scale of the USAID fraud, calling it a “damning reflection of systemic failures in oversight and accountability.” She emphasized that the fraud was not an isolated incident and instructed Associate Administrator Tre Pennie, who oversees government contracts awarded by SBA, to crack down on any potential similar abuses within the agency.

Loeffler stressed the importance of transparency and merit-based decision-making in the contracting process, stating that federal government contracting officers hold positions of immense authority and fiduciary responsibility. She highlighted the need for accountability and integrity in awarding contracts to ensure that taxpayer dollars are used responsibly.

The scandal at USAID came to light after it was discovered that a contracting officer named Roderick Watson had been involved in a long-term bribery scheme dating back to 2013. Watson pleaded guilty to bribery of a public official, with contractors Walter Barnes and Darryl Britt funneling payoffs through subcontractor Paul Young to conceal their actions.

According to the Department of Justice, Watson received bribes valued at over $1 million, including cash, electronic devices, tickets to sporting events, and even downpayments on residential mortgages. The bribery scheme involved false invoices and shell companies to hide the illicit transactions.

The SBA’s audit will focus on awarding officers back to 2010, with a particular emphasis on high-dollar and limited competition contracts within the agency’s 8(a) business development program. Any findings of misconduct will be referred to the U.S. Office of Inspector General and the DOJ for further action.

Loeffler made it clear that SBA will not tolerate abuses of public trust and will work to ensure that small businesses have fair access to government contracts. She emphasized the agency’s commitment to upholding ethical standards and holding accountable those who engage in criminal misconduct.

The SBA’s actions reflect a commitment to transparency and accountability in government contracting, and a determination to protect taxpayer dollars from fraud and abuse. By conducting a thorough audit and taking decisive action against any wrongdoing, the agency aims to restore public trust and support the integrity of the contracting process.