Stimulus Money: An Offer the Mob Can't Refuse

08-31-2009 • The New American

Because of the nature of federalism (government divided among local, state, and national entities) and the instructions Congress has given to the states and municipalities for the disbursement of funds, criminal elements are finding a cornucopia of opportunities to siphon money into their coffers. Many of these criminal organizations are old hands at manipulating loopholes and giving overseers the slip when it comes to winning contracts with government agencies. For its part, the FBI has begun instructing some of the 28 inspectors general who oversee the local agencies handing out the stimulus money to remind applicants that lying to a federal officer is a crime. Finally, In typical government fashion, Congress has decided to address the issue by spending $220 million to make sure no more contracts are awarded to companies or individuals with ties to organized crime. Instead of slowing the pace of the procedures already in place, the government has decided to try and cut back o