Tag Archives: Pandemic Response Accountability Committee (PRAC)

Where Your Taxpayer Money Has Gone

Posted on by

On Sunday, Just the News posted an article a federal task force tasked with tracking COVID-19 assistance fraud.

The article reports:

In a new investigation, a federal committee tasked with tracking COVID-19 assistance fraud found tens of thousands of dishonest or erroneous Paycheck Protection Program applications.

The Pandemic Response Accountability Committee (PRAC) report, released this month, revealed more than 40,000 instances when applicants for more than $860 million in taxpayer-funded PPP loans “significantly misrepresented their incomes.”

The Small Business Administration, which distributed the PPP loans, allocated more than $1 trillion in taxpayer-funded pandemic assistance to more than 10 million small businesses.

A recent report from the Government Accountability Office showed that nearly 2 million potentially fraudulent SBA applications – including the 40,000 PPP applications – still require investigation, as The Center Square reported.

PRAC said it achieved its findings by comparing the reported incomes of sole proprietor PPP applicants with the reported incomes of applicants for Department of Housing and Urban Development (HUD) assistance grants using the same personally identifiable information.

Data analysts found “significant [income] misrepresentations…where the derived income for PPP applicants was at least 10 times greater than the income reported to HUD by housing assistance recipients.”

The article concludes:

Since the pandemic, when the federal government cumulatively spent $5 trillion in COVID-19 related aid, lawmakers and organizations have held oversight hearings into at least $200 billion lost to fraud, only $5 billion of which has been recovered.

Most of that fraud was preventable, according to PRAC and other watchdog groups.

“We hope that by sharing this potential fraud scheme with the public and the oversight community we can alert (1) Offices of Inspectors General (OIGs) to be on the lookout for similar cross-program schemes, (2) program implementers to build better internal controls and checks upfront to mitigate this risk, and (3) policymakers to consider issues related to cross-agency risks including income verification,” PRAC concluded.

I realize that in terms of the overall budget, $5 billion is a drop in the bucket. However, there seem to have been a number of ‘drops in the bucket’ that were fraudulent. It is very obvious that the government needs much better oversight on how it spends its money.

To add to the story, The Daily Haymaker reported on Monday that the The Southern Coalition for Social Justice may have received funds from the Covid-19 assistance programs that they were not entitled to during the time that North Carolina Superior Court Judge Allison Riggs served as the organization’s “chief counsel for voting rights” and “co-executive director for programs.” The Daily Haymaker is looking for an explanation of why the funds were received when the math indicates the organization was not entitled to them.

Why I Don’t Want To Give The Government Any More Money

Posted on by

On Monday, The Federalist reported the following:

While millions of jobless Americans struggled to make ends meet during devastating government-mandated lockdowns, thousands of federal employees double-dipped from taxpayer-funded pandemic unemployment funds while mostly working from home.

Despite staying on taxpayers’ payroll during the height of the pandemic panic, greedy bureaucrats in the Internal Revenue Service, Transportation Security Administration, Federal Emergency Management Agency, United States Postal Service, Amtrak, and the Secret Service defrauded taxpayers out of millions more dollars under the guise of Covid unemployment fund and wage assistance programs.

…Thanks to rushed and lax standards, whereby “claimants only needed to self-certify they met eligibility requirements when they filed for [pandemic unemployment assistance] benefits,” more than $8.8 million in taxpayer funds were funneled to 638 DHS employees unlawfully. FEMA’s state workforce agencies also paid out $1.2 million in “lost wages assistance” to 935 DHS workers who were “fully employed.” At least 366 of those ineligible DHS officials were actually paid overtime during the period they were approved, receiving up to hundreds of dollars per week on top of normal unemployment benefits.

I have no way of knowing whether this was corruption or simply bad record keeping, but either way it is totally unacceptable. Unless the government can show us that it is capable of managing the money it collects in taxes, we should not increase the amount of money (or the debt ceiling) that we are giving it.

The article concludes:

Already, the Pandemic Response Accountability Committee (PRAC), an oversight committee within the Council of the Inspectors General on Integrity and Efficiency, determined that “tens of thousands” of federal employees applied for and received Small Business Administration loans even though their status as government-employed disqualified them from taking the handout.

Ernst (Republican Sen. Joni Ernst), the ranking member of the Senate Committee on Small Business and Entrepreneurship, noted in her letter that the PRAC’s investigation into loans is ongoing and could yield even more deception and taxpayer money wasted by government workers.

Federal employees weren’t the only ones who wrongfully raked in millions of pandemic dollars. Hundreds of state and local government staff in Georgia, Indiana, and Louisiana also defrauded taxpayers.

This is not acceptable.