Leahy Amendment To Address Wartime Fraud Adopted By Senate 

Fraud Enforcement Measure Added To Defense Authorization Bill

 

WASHINGTON (Wednesday, September 10, 2008) – The Senate today adopted an amendment introduced by Sen. Patrick Leahy (D-Vt.) to extend the amount of time for the federal government to prosecute wartime contracting fraud, including fraud in Iraq and Afghanistan.  The Senate adopted the Wartime Enforcement of Fraud Act (WEFA) as an amendment to the National Defense Authorization Act.

 

Leahy introduced the Wartime Enforcement of Fraud Act in April.  The bipartisan legislation was reported by the Senate Judiciary Committee, which Leahy chairs, in July, but the bill has not yet received a vote in the Senate.  If enacted in the defense authorization bill, the Leahy amendment would close a loophole in a World War II-era law that has allowed individuals and corporations to go unpunished for delivering defective products or overbilling for their services.

 

“For more than five years, America has been fighting wars in Iraq and Afghanistan, yet efforts to investigate contracting fraud during these wars continue to lag, in part because it is difficult to uncover fraud while these conflicts continue,” said Leahy.  “I am pleased the Senate has adopted this common-sense amendment.  We have an obligation to protect the public interest and taxpayer dollars during times of war.  Congress had done just that in past wars, and Iraq and Afghanistan should be no different.”

 

The Leahy amendment updates a 1942 law that suspended the statute of limitations on contracting fraud during times of war and allowed the government to prosecute such cases up to three years after the end of a declared war.  It modifies the law to allow the prosecution of wartime fraud in conflicts that have been authorized by Congress, even though they aren’t declared wars, such as in Iraq and Afghanistan.  In the last six years, billions of dollars have been awarded in contracts to companies that have delivered defective products, including unsafe bullet proof vests and faulty ammunition, to American troops in Afghanistan and Iraq. 

 

The Senate is expected to continue debate on the defense authorization bill this week.  The Leahy amendment, pending in the Senate as the Wartime Enforcement of Fraud Act, would:

 

• Suspend the statute of limitations for war contracting fraud when Congress has authorized the use of military force consistent with the War Powers Resolution, and apply current law suspending the statute of limitations to the wars in Iraq and Afghanistan
• Extend the statute of limitations from three to five years after the end of a war, consistent with the current statute of limitations for criminal offenses
• Mandate that the tolling of the statute of limitations period must be an official act of the president with notice to Congress, or a concurrent resolution of Congress
• Clarify that the term “war” includes Congressional authorizations for the use of military force consistent with the War Powers Resolution

Leahy’s statement on the Senate’s consideration of the Wartime Enforcement of Fraud Act as an amendment to the National Defense Authorization Act follows.  For audio and video of Leahy’s statement on the Senate floor, click here.

 

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Statement Of Senator Patrick Leahy (D-Vt.),
Chairman, Senate Judiciary Committee,

On The Introduction Of "The Wartime Enforcement Of Fraud Act Of 2008"

Amendment To Defense Authorization Bill
September 10, 2008

 

Mr. President, today I am offering the Wartime Enforcement of Fraud Act as an amendment to the National Defense Authorization Act for Fiscal Year 2009.  

 

For more than five years, America has been fighting wars in Iraq and Afghanistan, yet efforts to investigate contracting fraud during these wars continue to lag, in part because it is difficult to uncover fraud while these conflicts continue. 

 

This problem is not new, nor is the proposed solution.  The current law extends the statute of limitations for contracting fraud offenses during wartime to address this problem.  This common-sense law was passed by Congress during World War II with the support of President Roosevelt, and a similar provision was passed in World War I. 

 

Unfortunately, current law only applies to declared “wars” and not to circumstances where Congress only authorizes the use of military force, rather than officially declaring war.  As a result, the extension of the statute of limitations does not apply to the ongoing wars in Iraq and Afghanistan. 

 

The amendment I offer today – the bipartisan Wartime Enforcement of Fraud Act – will close that technical loophole and apply the law already on the books to the wars in Iraq and Afghanistan.  I was pleased to join with Senator Grassley earlier this year to introduce this legislative fix, and the Judiciary Committee reported this measure before the August recess.

 

With each passing day, we are now losing the legal authority to prosecute fraud in Iraq and Afghanistan because the existing law that extends the statute of limitations does not apply to these wars. 

           

We have an obligation to protect the public interest and taxpayer dollars during times of war, and this simple amendment will allow us to do so.  Congress had done just that in past wars, and Iraq and Afghanistan should be no different.  The bill being paid by American taxpayers for the wars in Iraq and Afghanistan is high enough; as in past wars, Congress should do all it can to ensure their money is not lost to waste and fraud. 

           

I hope all senators will join me in support of this common-sense amendment. 

 

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