Financial Markets and Institutions:
RTC Western Storm Follow-up
GGD-93-8R, Dec 4, 1992
Pursuant to a congressional request, GAO provided: (1) an assessment of the Resolution Trust Corporation's (RTC) efforts to correct contracting deficiencies in the Western Storm Project; and (2) the results of its inquiry into alleged criminal conduct relating to the award and performance of the Western Storm contract. GAO noted that: (1) poor planning, poor oversight, and the use of an improper contracting vehicle created an unmanageable project; (2) RTC has made some improvements in its contracting process, but these changes increased RTC vulnerability to fraud, waste, and abuse; (3) RTC clarified its delegations of authority to issue contracts and introduced a program to help promote fair and adequate competition; (4) RTC complied with procedures that related to fitness and integrity examinations of contractor personnel; and (5) there was no evidence of criminal conduct in the Western Storm contract award.