Pelosi: 'The New Direction Congress is Bringing Much Needed Accountability to Iraq Contracting'

October 9, 2007

Washington, D.C. - Speaker Nancy Pelosi issued the following statement today after the House passed the War Profiteering Prevention Act by a vote of 375 to 3. The bipartisan legislation cracks down on U.S. contractors who have defrauded taxpayers of billions of dollars in Iraq and Afghanistan by making war profiteering a felony, subject to up to 20 years in prison:

'Today's passage of the War Profiteering Prevention Act makes clear that defrauding the federal government and robbing American taxpayers will not be tolerated and will be severely punished during a time of war.

'The Bush Administration's non-existent oversight of the more than $50 billion paid to contractors for relief and reconstruction projects in Iraq has led to cases of illegal kickbacks, bid-rigging, embezzlement and fraudulent billing. The Iraq Inspector General currently has more than 70 open and active investigations regarding contracting fraud. According to the Defense Contract Audit Agency, Halliburton alone has been identified with $2.7 billion in suspect billings.

'Illicit windfalls by politically-connected contractors must end. By making war profiteering a felony subject to 20 years in prison and closing loopholes in the law, the New Direction Congress is bringing much needed accountability to Iraq contracting.'