Air Force Opposes Policies to Stop Fraud

Press Release

Air Force Opposes Policies to Stop Fraud

May 30, 2006

PETALUMA, CA, May 30, 2006 /PRNewswire/ -- It has come to the attention of the American Small Business League that the United States Air Force has opposed policies put forth by the Small Business Administration to stop fraud and abuse in small business contracting. The Government Accountability Office and the SBA Office of the Inspector General have recommended annual re-certification as a solution to stop the abuses that have allowed billions of dollars in small business contracts to go to Fortune 500 firms. Under the proposed SBA policies, contractors would be required to re-certify on an annual basis that they are still small businesses before seeking additional awards.

The Air Force objects to the SBA proposal and has recommended that firms be re-certified every five years. Under the Air Force plan, a company that is acquired by a large business or has outgrown its small business status would be allowed to keep that status for up to five more years. This alternative would continue to allow billions in contracts set-aside for America's small firms to be diverted to some of the largest companies in the world.

Lloyd Chapman, President of the American Small Business League made this comment, "It's no wonder the Air Force is proposing this because the Air Force is not interested in stopping contracting fraud, the Air Force wants to continue what they've always done, which is to falsify their small business numbers and allow their contractors to falsify their numbers by reporting awards to large companies as small business awards.

"It's time for this practice to stop-and the Air Force's excuse that annual re-certification is somehow going to compromise national security is a farce and an insult to Americans everywhere. The last government official that was opposed to policies to stop fraud was convicted of taking bribes and is currently doing 25 years in prison for bribery, extortion, and money laundering."

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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For information contact:
Lloyd Chapman
lchapman@asbl.com
(707) 789-9575
www.asbl.com



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