US INSPECTOR GENERAL'S REPORT CRITICAL OF GUAM'S EXPENDITURES

admin's picture

WASHINGTON, D.C. (July 7, 1997 - PIDP/CPIS)---The US Micronesian territory of Guam comes in for some very strong criticism in US Inspector General Wilma Lewis' recently-released semi-annual report to the US Congress in Washington.

Lewis reports, among other violations, that the Guam Legislature has not been controlling expenditures adequately and the Guam Mass Transit Authority issued contracts to companies that employed immediate family members of Authority procurement officials.

The Legislature was found by the IG to have expended funds for non-governmental activities for three years running. At the same time, it did not prepare the annual financial statements required by Guamanian law.

Efforts to resolve the violations now are under way.

The Inspector General's Congressional report also notes that a Guam businessman has been convicted of bribing an undercover Federal Bureau of Investigation (FBI) agent posing as a US Department of Labor official. The businessman paid the agent a US$26,000 bribe to obtain a reduction in a $300,000 fine for employee pay rate violations.

In still another case reported by Lewis, a Government of Guam official was imprisoned after being found guilty of lowering the appraised value of public land, to benefit an individual involved in construction a golf course on the island.

The primary function of the US Office of the Inspector General is to conduct government funding audits, to detect and prevent fraud by government officials.

Rate this article: 
No votes yet

Add new comment