April 24, 2024

Paull Ank Ford

Business Think different

Lawmakers ask for investigation on alleged redirection of COVID-19 funds

Two Democratic members of the Senate and Household Armed Providers Committees are formally requesting that the Section of Protection Inspector Standard investigate stories that the Pentagon redirected hundreds of hundreds of thousands of bucks meant for COVID-19 response to defense contractors for “jet motor components, human body armor and dress uniforms,” in accordance to the letter. 

United States Senator Elizabeth Warren, (D-Mass.), a member of the Senate Armed Providers Committee and Rep. Ro Khanna (D-Calif.), a member of the Household Armed Providers and Oversight and Reform Committees, despatched the letter dated September twenty five to Sean O’Donnell, Acting Inspector Standard, Section of Protection.

They asked for O’Donnell to investigate stories that the Pentagon redirected money from the Protection Creation Act meant for COVID-19 response to defense contractors for unrelated components and products, a shift that could be unlawful, the lawmakers stated.

Congress allotted $1 billion in money beneath the Coronavirus, Help, Relief, and Economic Stability Act for DoD to manufacture personalized protective products and other provides. 

Not only did DoD reportedly redirect the large the greater part of these money to defense contractors for tasks unrelated to combating the pandemic, some defense corporations correctly received a double bailout simply because government details exhibits they also received financial loans through the Paycheck Safety Plan, a reduction plan meant for battling smaller corporations, in accordance to the letter.

WHY THIS MATTERS 

Through the pandemic, numerous vendors have dealt with shortages of personalized safety products and unfavorable margins. 

Vendors have received $fifty billion and more in specific reduction from the $100 billion appropriation in the CARES Act and $seventy five billion from the Paycheck Safety Plan. 
Hospitals also received accelerated and advance money, which are financial loans they are necessary to spend back. Many vendors go on to encounter massive earnings shortfalls owing to COVID-19.

States want $6 billion to distribute COVID-19 vaccines to Us residents and hospitals go on to endure a lack of N95 masks, the letter states, indicating the money that went to the DoD are required elsewhere. 

THE Larger sized Craze

The lawmakers foundation their request, at least in element, on newspaper stories exhibiting that an frustrating the greater part of money had nothing to do with production of medical products or addressing the nation’s provide shortages owing to the COVID-10 pandemic. 

Warren and colleagues beforehand questioned the DoD on what Warren stated was its sluggish and disjointed response to the coronavirus outbreak.

ON THE History

“As a substitute of addressing the urgent needs of a pandemic that has killed above two hundred,000 Us residents, it appears DoD employed taxpayer cash meant to safeguard life from COVID-19 to pad the pockets of defense contractors,” wrote the lawmakers. “The reported misuse by DoD of federal money … is inconsistent with the will of Congress and could be unlawful.”

Twitter: @SusanJMorse
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