Another $58,500,000 Down The Drain

The government requires its contractors to provide appropriate insurance for its workers overseas. The government reimburses the contractors for these costs. Since 2005, these workers have been covered by a policy issued by CNA. The Special Inspector General for Afghanistan Reconstruction (SIGAR) recently audited the government's handling of this insurance. The auditors were not pleased with the handling.

First, they found that the premiums CNA charged were not based on actual losses; they were higher than they should have been. The government had the right to audit the figures on which the premiums were based; it chose not to do so.

The policies are actually taken out by the contractors. However, the audit found that some contractors had not taken out a policy, some had specified the wrong valuations, some did not renew their policies.

The big money was in the reimbursements. The auditors estimated that the government reimbursed the contractors $58,500,000 more than they should have.

How many Social Security checks could be cut for the amount of money? Do our representatives ever look at the reports of the numerous Inspectors General we are paying for?