B-39995, JUN. 6, 1961
Highlights
WHITEHEAD: THIS IS IN REPLY TO YOUR LETTER OF APRIL 27. REQUESTING ADVICE AS TO WHETHER OR NOT THERE IS FOUNDATION TO A REPORT BY A WELL-KNOWN AND RELIABLE NEWS COLUMNIST THAT THE GENERAL ACCOUNTING OFFICE WAS TURNING OVER TO THE DEPARTMENT OF JUSTICE APPROXIMATELY 50 CASES IT HAD DEVELOPED WHICH APPEARED TO CONTAIN ELEMENTS OF FRAUD AND WASTE IN DEFENSE PROCUREMENT CONTRACTS. IT APPEARS THAT THE INFORMATION REFERRED TO IS BASED. A COPY OF THE STATEMENT IS ENCLOSED FOR YOUR INFORMATION. A FEW OF THESE CASES HAVE BEEN SENT TO THE DEPARTMENT OF JUSTICE FOR CONSIDERATION AND THAT DEPARTMENT AND THE RENEGOTIATION BOARD HAVE. YOU ARE ADVISED THAT WE HAVE MADE NO RECOMMENDATIONS TO THE CONGRESS FOR AMENDMENT OF THE EXISTING RENEGOTIATION ACT.
B-39995, JUN. 6, 1961
TO MR. W. S. WHITEHEAD:
THIS IS IN REPLY TO YOUR LETTER OF APRIL 27, 1961, REQUESTING ADVICE AS TO WHETHER OR NOT THERE IS FOUNDATION TO A REPORT BY A WELL-KNOWN AND RELIABLE NEWS COLUMNIST THAT THE GENERAL ACCOUNTING OFFICE WAS TURNING OVER TO THE DEPARTMENT OF JUSTICE APPROXIMATELY 50 CASES IT HAD DEVELOPED WHICH APPEARED TO CONTAIN ELEMENTS OF FRAUD AND WASTE IN DEFENSE PROCUREMENT CONTRACTS.
IT APPEARS THAT THE INFORMATION REFERRED TO IS BASED, TO A LIMITED EXTENT, ON A STATEMENT WE MADE IN HEARINGS BEFORE THE SUBCOMMITTEE FOR SPECIAL INVESTIGATIONS, COMMITTEE ON ARMED SERVICES, HOUSE OF REPRESENTATIVES, ON APRIL 27, 1961. AS REQUESTED BY THE SUBCOMMITTEE, WE REPORTED THE CURRENT STATUS OF RECOVERIES ON 53 GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO THE CONGRESS FROM FEBRUARY 1957 TO MARCH 1961 ON AIR FORCE AND NAVY NEGOTIATED CONTRACTS. A COPY OF THE STATEMENT IS ENCLOSED FOR YOUR INFORMATION.
AS INDICATED IN THE STATEMENT, A FEW OF THESE CASES HAVE BEEN SENT TO THE DEPARTMENT OF JUSTICE FOR CONSIDERATION AND THAT DEPARTMENT AND THE RENEGOTIATION BOARD HAVE, IN SOME INSTANCES, EFFECTED RECOVERIES. REGARD TO YOUR INTEREST IN WHETHER THE GENERAL ACCOUNTING OFFICE HAS MADE ANY RECOMMENDATIONS TO EXPAND THE RENEGOTIATION PROCESS, YOU ARE ADVISED THAT WE HAVE MADE NO RECOMMENDATIONS TO THE CONGRESS FOR AMENDMENT OF THE EXISTING RENEGOTIATION ACT.