A recent US Government Accountability Office (GAO) investigation has exposed fraud in the Service Disabled Veteran Owned Small Business (SDVOSB) programme.

The report stated: "By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud or abusing the intent of the veterans programme."

According to the American Small Business League (ASBL), the investigation is just the latest example of "ongoing abuses" in the US government's small business contracting programmes. The pressure group claims that at least $100m in federal contracts is being fraudulently awarded to ineligible firms.

"Since 2002, there have been more than 24 other federal investigations, which have found fraud, abuse, loopholes and a lack of oversight in small business contracting programs under various federal agencies," ASBL stated.

According to ASBL, every year more than $100bn in federal small business contracts are diverted away from legitimate small businesses and into the hands of Fortune 500 corporations and other clearly large firms around the world.

"It is ludicrous to think President Obama is trying to help small businesses when he has given them less than one per cent of the stimulus funds, and his administration has continued to give billions of dollars a month in federal small business contracts to some of the biggest companies in the world," ASBL president Lloyd Chapman said.

Source:  http://www.procurementleaders.com/news/latestnews/388-abuse-us-business-schemes/