Dear Attorney General Gonzales:
As a long-standing and outspoken critic of waste, fraud and abuse in the United States Government,
and as a committed supporter of the False Claims Act (“FCA"), I want to bring to your attention a matter involving fraud, waste and abuse that may have occurred during the reconstruction of Iraq.
Specifically, it has come to my attention that the United States Government has been invited to address an important issue regarding the FCA in the U.S. District Court for the Eastern District of Virginia.
In an order dated Dec. 21, 2004, United States District Court Judge T.S. Ellis, III invited the United States Government to brief the court by Jan. 21, 2005 (subsequently continued by additional orders, to Feb. 18, 2005), on its position regarding the application of the FCA to contracts administered under the purview of the Coalition Provisional Authority (“CPA") in the matter of United States ex rel. DRC, Inc. et al. v. Custer Battles, LLC, Case No.1:04cv199 (E.D.
Va.). This is the first case to be unsealed that relates to fraudulent contracting during the reconstruction of Iraq. Accordingly, I request that you keep me advised as to whether or not the Department of Justice (Department) intends to file a brief on behalf of the U.S. Government in this seminal matter.
As the American public continues to bankroll a vast majority of reconstruction and stabilization projects in Iraq, billions of taxpayer dollars are at stake. If the FCA is found not to apply to any contract entered into by the CPA, any recovery for fraud, waste and abuse of taxpayer dollars under the FCA would be prohibited. In addition, I would like to remind you of the potential danger that a negative precedent in this matter would create for the future claims filed under the FCA.
In closing, I thank you for the commitment you gave me at your confirmation hearing to ensure that the FCA is protected. In working to root out waste, fraud and abuse of taxpayer dollars I have found no tool more helpful than that of the FCA. As the Senate author of the 1986 amendments to the FCA,
I have fought long and hard to strengthen that law and I continue to believe that it is instrumental in preventing wasteful spending in all government programs.
As the deadline for filing a brief on this matter is Feb. 18, 2005, I would appreciate a status update on this matter before the filing deadline passes.
Sincerely,
Charles E. Grassley United States Senator
Source: Ranking Member’s News
