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| ‘’Widespread Misconduct’’: Trump Admin Orders All Beneficiaries Of Nation's Largest DEI Program To Surrender Financial Records | |
| 2025-12-07 | |
| [ZeroHedge] The Daily Wire has learned that the Small Business Administration has ordered all 4,300 firms in its 8(a) "socially disadvantaged" program, which receive no-bid federal contracts, to turn over their financial records, including general ledgers, bank statements, payroll files, subcontracting agreements, and other internal documents, by January 5 or face removal from the program. SBA's crackdown on one of Washington's oldest DEI initiatives follows mounting evidence that some 8(a) firms have become a major pipeline for fraud, pass-through schemes, and artificially inflated contract costs. Late last month, Peter Schweizer, president of the Government Accountability Institute and the investigative journalist who broke the Clinton Cash corruption story, published a report exposing the cronyism and corruption inside the 8(a) program, where pass-through firms handed bidless contracts on silver platters while quietly outsourcing the real work to major consulting companies. "For years, DC insiders have exploited a federal DEI contracting program that provides windfalls to Beltway elites. This open secret isn't about helping the downtrodden; it's about bagging no-bid paydays. The SBA's 8(a) program is long overdue for reform," Schweizer wrote on X.
Everyone in the DC consulting world understands how the game works: set up a compliant 8(a) "small business," win the no-bid award, and let the big consulting firms do all the work. 8(a) was DC's best-kept secret - until journalist James O'Keefe blew the lid off the DEI program. O'Keefe went undercover and captured video of an individual linked to ATI Government Solutions bragging about keeping $65 million of a $100 million contract while subcontracting out the work. Several firms, including ATI, have since been suspended. Native American tribes whose names were used in pass-through schemes are also under increasing scrutiny. SBA Administrator Kelly Loeffler said there is mounting evidence that minority contracts had become "a pass-through vehicle for rampant abuse and fraud," especially after the Biden administration raised the target for contracts "set aside" for minorities from 5% to 15% of all contracting dollars. "We're committed to thoroughly reviewing every federal contract, contracting officer, and contractor — while working alongside federal law enforcement," Loeffler said.
Related: Small Business Administration: 2025-12-05 Omar allies tied to massive Minnesota COVID meal fraud scheme involving Somali community Small Business Administration: 2025-11-27 Schweizer Exposes DEI Fraud Machine Inside Federal Contracting Complex Small Business Administration: 2025-10-24 Grift of the Day: Another Federal Contractor Admits to $100 Million Fraud: ATI Senior Director Details Federal Government Contracting Fraud (VIDEO) | |
| Posted by:Skidmark |
| #2 |
| Posted by: Skidmark 2025-12-07 09:22 |
| #1 |
| Posted by: Super Hose 2025-12-07 07:51 |