SBA launches investigation into fraud in 8(a) business program

The Small Business Administration is launching an investigation into the 8(a) business development program seeking to root out possible fraud. SBA Administrator Kelly Loeffler ordered the full-scale audit after a Department of Justice (DOJ) investigation uncovered a years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors. SBA's Office of General Contracting and Business Development will lead the audit, starting with reviewing high-dollar ad limited competition contracts. The review will go back 15 years and work with other agencies, which awarded 8(a) contracts. The Justice Department found recently $550 million in contracts were fraudulently steered through bribery and abuse of a U.S. Agency for International Development (USAID) contracting officer, including to one 8(a) contractor who was officially flagged by USAID as lacking “honesty or integrity."See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.