Politics

Stimulus Projects Vulnerable To Fraud

By Alison St John / Reporter

Published September 14, 2009 at 2:16 PM PDT

This story was published more than 15 years ago.

Federal, state and local law enforcement agencies are teaming up to protect millions in federal stimulus dollars from fraud and abuse.

San Diego’s U.S. Attorney Karen Hewitt says the latest figures show there are 189 stimulus projects in San Diego County totaling just over $1 billion. In Imperial County there are 21 projects worth $44 million.

“What we know from past experience is that where there is money of that magnitude, fraud often follows," Hewitt said. "We need these dollars, what we don’t need is for them to be dissipated for fraud purposes.”

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Hewitt said more than 100 agencies that have been granted Recovery Act stimulus money are meeting with law enforcement officials in San Diego for a fraud prevention and awareness training.

They’re on the look-out for bid-rigging, price-fixing and fraudulent billing practices like double billing or charging for services not rendered.

The FBI estimates 7 to 10 percent of stimulus money could disappear to fraud.

Laura Chick, Inspector General for the State of California, said fraud in the aftermath of Hurricane Katrina was 17 percent. She said efforts to keep stimulus contracts transparent include requiring subcontractors to list the salaries of their top five executives. Chick said the public will have access to a great deal of information on the web about how the stimulus money is spent, and which companies will benefit.

The FBI has a TIP line for the public to call if fraud is suspected. It is 1-877-NO-BRIBE.

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Alison St John currently serves as a general assignment reporter and occasionally co-hosts KPBS Midday Edition. She fell in love with KPBS Radio when she arrived in San Diego in 1985 and first heard NPR. She has been a voice on KPBS Radio since 1989, and has served as a news reporter for radio, TV and the web, as well as anchoring, hosting, producing and editing. Alison has reported on stories about North County and was based in the KPBS' North County Bureau. Alison covered the metro beat during the critical period of the San Diego City pension crisis, and the education beat while Alan Bersin was the controversial Superintendent of San Diego City School District. She covered health when the industry was converting to managed care and told welfare reform stories in the late 1990s when Clinton was “ending welfare as we know it.” She has covered land use issues extensively, looking at the challenges of meeting a growing population while preserving community character, and developing a better transportation system to meet environmental concerns. She has done many stories on the military in San Diego, and the series she edited on the challenges veterans face returning from active duty to civilian life won “Best of Show” from the San Diego Society of Professional Journalists. She occasionally hosts the KPBS Roundtable and KPBS Midday Edition. Alison has won awards from the San Diego Press Club, the Society of Professional Journalists, the Associated Press TV and Radio Association, and the California Golden Mike Awards. Alison was born in Tanzania, brought up in Scotland, and earned her degree in psychology and sociology from Durham University in England. Her postgraduate diploma is in student counseling. She worked in England, Nigeria, Switzerland, Belgium, India, and Japan before moving to the United States in 1981. She now lives in Oceanside and enjoys how her community is growing and changing.