Baucus Slams DOJ Failure To Provide Details On No-Bid Contracts

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Baucus Slams DOJ Failure To Provide Details On No-Bid Contracts

The following press release was published by the United States Committee on Finance Ranking Member’s News on Feb. 26, 2008. It is reproduced in full below.

Dear Attorney General Mukasey:

I wrote you on Jan. 22, 2008, regarding my concerns about the no-bid contract awarded by the United States Attorney for New Jersey, Christopher Christie, to his previous boss, former Attorney General John Ashcroft, to monitor a deferred-prosecution agreement with Zimmer Holdings. Unfortunately, you failed to provide a response. I am writing you again because I remain extremely concerned.

As Chairman of the Committee on Finance, I take very seriously my responsibility to the more than 80 million Americans who receive health care through Medicare, Medicaid and the State Children’s Health Insurance Program (SCHIP). I appreciate the role of the Department of Justice and its United States Attorneys in fighting fraud, waste and abuse in Federal health care programs. I also understand the value of deferred-prosecution agreements in attempting to efficiently resolve cases. I am, however, troubled by the secret nature of some of these agreements, including the monitoring contracts that are awarded as part of the agreements.

I am not alone in this regard. An editorial in today’s New York Times says, “Congress should conduct a broader inquiry into prosecutors’ selection of richly rewarded monitors and require that appointments are made based on merit."

My primary concern remains how the money spent paying monitors affects Medicare, Medicaid,

and SCHIP. I am, though, very concerned about the appearance of impropriety in the examples of Mr. Christie’s behavior contained in the Times editorial. Naturally, I am also left to wonder how widespread such behavior may be among United States Attorneys.

Therefore, I call on you to provide a briefing for my Finance Committee staff no later than Friday, March 7, 2008. I expect this briefing to cover not only the specifics of Mr. Ashcroft’s contract for the Zimmer Holdings matter, but also to address the larger issue of how such contracts are awarded and what your department is doing to ensure that United States Attorneys comply with the highest moral, ethical, and legal standards in disposing of cases and entering into out-of-court settlements. Please contact David Schwartz or Elise Stein at the Committee at (202) 224-4515 to schedule the briefing and to raise any questions.

Sincerely,

Max Baucus Chairman

Source: Ranking Member’s News

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