Subcommittee on Government Operations Chairman Pete Sessions (R-Texas) has announced an upcoming hearing titled “Safeguarding Procurement: Examining Fraud Risk Management in the Department of Defense.” The session aims to scrutinize the Department of Defense's (DOD) discretionary spending and its ineffective fraud risk management practices, which have reportedly cost millions in taxpayer funds. The DOD's reliance on government contractors for work and asset management makes it more vulnerable to fraudulent activities. The panel will explore procurement fraud schemes and assess potential savings if such fraud is effectively prevented.
“Seventy-one percent of the DOD spending went to government contracts, and the Department accounts for nearly half of discretionary spending. For years, DOD has not been able to account for how much money has been spent or where its assets are held. The American people deserve to know how the DOD is spending their tax dollars and certainty that fraud in government agencies can be prevented. As Secretary Hegseth is taking action to address this problem, this hearing will identify gaps in how the DOD manages risk that may lead to fraud and examine ways to save millions by preventing fraud,” said Subcommittee Chairman Sessions.
The hearing is scheduled for Wednesday, June 4 at 10:00 a.m. ET at 2247 Rayburn House Office Building. Witnesses include Kelly P. Mayo, Deputy Inspector General for Investigations and Director of Defense Criminal Investigative Services at the DOD Office of Inspector General, and Seto Bagdoyen, Director of Forensic Audits and Investigative Services at the U.S. Government Accountability Office. Additional witnesses are yet to be determined.
The event will be available via livestream.
