Consolidated Security, Disaster Assistance, And Continuing
Mr. President, I would be pleased to enter into a colloquy with the Senator from South Dakota, Mr. Johnson. Mr. President, I thank the Senator from South Dakota for his continued interest in international development and in the Cooperative…
Mr. President, I would be pleased to enter into a colloquy with the Senator from South Dakota, Mr. Johnson.
Mr. President, I thank the Senator from South Dakota for his continued interest in international development and in the Cooperative Development Program. I assure him that the State and Foreign Operations Subcommittee intends to continue our strong support of the Cooperative Development Program in the fiscal year 2009 State and Foreign Operations appropriations bill.
Mr. President, we are about to vote on the continuing resolution to enable the Federal Government to continue functioning until March 6, 2009.
I had hoped, as I know Chairman Byrd and Senator Cochran had, that we would have been permitted to debate and vote on the individual appropriations bills that the Appropriations Committee has reported.
That was not to be, due to President Bush's insistence that he would veto bills that exceed his arbitrary spending cap and to certain Republican Senators who have made it virtually impossible to pass anything here without the necessary 60 votes to overcome a filibuster.
A continuing resolution will result in hardship for many Federal agencies, and those hardships will be felt by the American people. But as long as some here would prefer to be obstructionists rather than legislators, this is the only course available to us.
Having said that, I commend Chairman Byrd and Senator Cochran for what they have done because it is a bipartisan bill that reflects the constructive efforts of the leaders of both parties to do their best under difficult circumstances.
There are several items within the jurisdiction of the State and Foreign Operations Subcommittee in this bill. Senator Gregg and I, working with Congresswoman Lowey and Congressman Wolf, have ensured that vital programs continue and that necessary adjustments are made.
For example, we have lifted the cap on administrative expenses for the State Department's refugee and migration assistance programs. We have reauthorized the Overseas Private Investment Corporation, and we have provided authority to the Treasury Department to contribute up to $5 million to help Liberia extinguish its commercial debt.
The bill also includes supplemental aid for Georgia, and it specifically prohibits the administration from transferring funds from other vulnerable former Soviet and Eastern European countries. We also provide funds to ensure continued Voice of America and Radio Free Europe broadcasting to Georgia, Russia, and the region during this time of heightened tensions.
We provide additional funding to ensure the continued operations of the Special Inspector General for Afghanistan Reconstruction. And we provide emergency assistance for Haiti and other Caribbean countries that were severely damaged by the recent hurricanes.
We are all painfully aware that the 2008 hurricane season caused much loss of life and destruction of property in communities along the gulf coast of the United States. And while the Federal Government is trying to help the victims of those disasters, including with additional appropriations for disaster relief for victims of Hurricane Ike in this bill, we sometimes forget that Haiti, Cuba, Jamaica, the Dominican Republic, and other Caribbean
countries suffered catastrophic destruction from Hurricanes Fay, Gustav, Hanna, and Ike.
In Haiti, the U.N. has reported that over 400 people have died due to the storms or storm-related causes, over 800,000 were severely affected, and some 150,000 were left homeless. Cuba reportedly suffered damage estimated at $5 billion.
The U.S. Government has provided $30 million in emergency humanitarian aid to Haiti, but no additional assistance was requested by the administration. That was inexplicable, and I am pleased that the Congress did not likewise decide to ignore that impoverished nation in which we have already invested so much. This bill includes $100 million in emergency supplemental aid for hurricane relief and reconstruction for Haiti and other Caribbean countries.
This assistance was included to address both the short and longer term needs that Haiti and its neighbors face. We not only want to respond to immediate needs like potable water, food, shelter, and medical care, we also want to rebuild infrastructure and stabilize hillsides to avoid future washouts and mudslides that have caused so much loss of life. The U.S. Agency for International Development should use a portion of these funds to significantly enhance its efforts to address environmental vulnerabilities in key Haitian watersheds.
We know that next year there will be more hurricanes. For once, let us look beyond the immediate needs and help Haiti and its neighbors strengthen basic infrastructure bridges and roads and help with reforestation, so that damage from future storms is less severe.
We also know that Haiti was a destitute country before these latest hurricanes. Its Government is fragile; its economy is in shambles. These devastating storms are capable of reversing whatever economic and social progress has been made in recent years and could trigger chaos and panic and a repeat of the flotillas of fleeing desperate people that we saw a few years ago.
Cuba also suffered widespread damage from the hurricanes, and I am disappointed that the Cuban Government has not been willing to accept offers of humanitarian aid from the United States. I also regret that the administration's ill-conceived embargo against Cuba prevents the American people from helping the Cuban people in this time of need. This is an opportunity to cooperate with the Cuban Government for a purely humanitarian purpose. We are long overdue for a new policy toward Cuba, as this disaster so graphically illustrates.
I also want to mention the Reid-Byrd stimulus bill we voted on yesterday, which would have provided urgently needed funding for a wide range of domestic programs to help bolster this Nation's ailing economy. These programs address critical needs of urban and rural working class people across America.
Despite all the finger pointing and angry talk about how Washington is broken often by those who did their utmost to game the system or who have themselves been in Government for decades this is exactly what the Congress should be doing.
I commend Chairman Byrd and Senator Reid for this initiative. After inheriting the largest surplus in this Nation's history, President Bush will leave a legacy of fiscal mismanagement and mile high deficits that dwarf anything in my 34 years in the Senate. For an administration that came into office piously claiming to be the guardians of responsible fiscal conservatism, when it comes to the economic security of middle class Americans this White House has proven to be incompetent, unprincipled and unaccountable.
This administration's economic policies have been disastrous for the people of this country who are most dependent on Federal funding for schools, hospitals, police and fire departments, farms and businesses.
The stimulus items in S. 3604, none of which were requested by the White House and which most of our Republican friends voted to defeat, would have helped prevent an already precarious economic situation that threatens the livelihoods and retirements of millions of Americans, from becoming worse.
Mr. President, it is encouraging that Congress today passed the Wartime Enforcement of Fraud Act of 2008 as part of the Consolidated Security, Disaster Assistance and Continuing Appropriations Act. This is a modest but important commonsense measure that will help restore accountability and deter fraud in the many billions of dollars worth of contracts in connection with the two wars we continue to fight.
The failed legacy of the Bush administration is clearer today than ever before, as our Nation faces unprecedented crises at home and abroad. The financial markets are in turmoil as a result of mismanagement of the economy and neglect of the regulatory process that helps maintain confidence in the market. Americans are losing their homes to foreclosure at record rates. Our country remains mired in Iraq, fighting a war that President Bush should never has started, that continues to cost too many lives and billions of dollars each month, with no end in sight.
As part of this legacy, the Bush administration has further failed to meet one of its most important obligations during wartime--to protect American taxpayers from losses due to fraud and corruption in war contracting. Fraud and corruption in contracting are all too common in times of war, and these problems have been particularly pervasive in Iraq.
New reports just this week have confirmed that corruption and fraud have robbed billions from the American taxpayers during the Iraq war. The former chief investigator of the Iraqi Commission on Public Integrity, Salam Adhoob, testified before Congress this week that $9 billion in U.S. taxpayer funds have been lost to corruption and fraud in Iraq.
Mr. Adhoob described how senior Iraqi defense officials set up fraudulent front companies that were supposed to buy airplanes, armored vehicles, and guns with $1.7 billion in U.S. funds. But these companies failed to deliver most of the military equipment, and what they did provide was mostly junk, including defective ammunition and unsafe bulletproof vests. These companies also overcharged for military helicopters and aircraft, delivering useless decades-old equipment. Most of the money ended up in German bank accounts controlled by these Iraqi defense officials.
The Iraqi chief investigator prepared a full report based on this investigation, and thousands of others, and submitted the documentation to the Iraqi government, as well as to U.S. investigators. Yet so far, neither the Bush administration nor the Iraqi government has taken action in these cases. Instead, the Iraqi government has passed laws giving immunity to many of its corrupt officials, and the U.S. investigators have too often stalled trying to find witnesses and review documents in the midst of a war zone.
These examples of fraud and corruption are not isolated, or new. Over the past 2 years, I have chaired hearings in the Appropriations and Judiciary Committees focused on the billions of dollars that have been lost to contracting fraud, waste, and abuse during this war. The testimony at those hearings has also exposed the Bush administration's failure to take aggressive action to enforce and punish wartime fraud. These hearings have shown how difficult it can be for investigators to uncover and prosecute fraud amidst the chaotic environment of war.
These persistent problems have been made worse by the Bush administration's use of ``no-bid'' and ``cost-plus'' contracts that have been awarded with little, if any, oversight or accountability. Billions in cash--physical, paper money--have been flown to Iraq and handed out in paper bags, often without records of who received what, and when. Billion-dollar contracts for training services cannot be audited because the records are incomplete, lost, or in disarray. As a result, time and time again, the government has paid for services that were never needed or never provided and for equipment that was too often substandard or actually defective.
But as we found again this week, too often we do not learn about wartime fraud and corruption until years after the fact. What we do know is that billions of dollars are unaccounted for, and likely lost to war profiteers and corrupt officials. Fraud investigators from the offices of several inspectors general, as well as the Special Inspector General for Iraq Reconstruction and the Federal Bureau of Investigation, are working to figure out where the money has gone and who has taken it. But they have told us it will take a long time, in some cases years, to figure out exactly what has happened with the billions of dollars in fraud related to war contracts.
In the meantime, the statute of limitations that bars Federal fraud prosecutions after 5 years threatens to make this work meaningless and essentially immunize those who are responsible. The wars in Iraq and Afghanistan have gone on for far more than five years, and with each passing day, we are losing the authority to prosecute fraud committed early on in the wars. As time passes, we are effectively granting immunity to these criminals and letting them get away with taxpayers' money.
I introduced the Wartime Enforcement of Fraud Act of 2008 to correct this problem once and for all. Passage of this legislation today is an important step forward to make sure all those who have committed fraud will be held to account. Put simply, this bill will give the government more time to continue investigating these massive wartime frauds and, in time, this provision should save American taxpayers untold millions and help punish those responsible for the fraud.
Our country has faced this same problem in past wars and taken similar action. During World War II, President Franklin Delano Roosevelt spoke out against ``war millionaires'' who made excessive profits exploiting the calamity of war. President Harry Truman, when he served in the Senate, held historic public hearings to expose gross fraud and waste by military contractors during the war.
In 1942, President Roosevelt signed the Wartime Suspension of Limitations
Act, which made it possible for criminal fraud offenses against the United States to be prosecuted after the war was over. President Truman made that law permanent in 1948.
Everyone understood then that it was unrealistic to believe that all wartime fraud could be tracked down immediately in the midst of a war. The law provided an extension of the statute of limitations until the war was over. Congress supported this law overwhelmingly, as they had with a similar provision during World War I. President Roosevelt wrote:
The crisis of war should not be used as a means of avoiding
just penalties for wrongdoing.
Unfortunately, this Roosevelt-era law does not appear to apply to the ongoing conflicts in Iraq and Afghanistan. Current law only applies ``when the United States is at war,'' but the military operations in Iraq and Afghanistan were undertaken without formal declarations of war. As a result, this law technically does not apply to these ongoing conflicts.
This bill simply amends current law to make clear that extending the statute of limitations during wartime applies to the wars in Iraq and Afghanistan. In doing so, we will give investigators and auditors the time necessary to continue their efforts to uncover the wartime frauds and prosecute those who are responsible. Without this bill, fraudulent conduct by war contractors and corrupt officials will go unpunished, and the government will have no ability to recover taxpayer money lost to these criminals.
The statute of limitations is an important check on the proper use of government power, and we should suspend it only in extraordinary circumstances. Wars provide exactly such circumstances, as Congress and Presidents have recognized in the past. It would be wrong to exempt the wars in Iraq and Afghanistan from this common sense law, and passage of this bill will close that loophole for the Iraq and Afghanistan wars, as well as any future wars.
With passage of this bill today, Congress has taken action, as it has in the past, to protect the American taxpayer and make sure the money spent to support the troops is not wasted through fraud and corruption. The President should now sign this bill to show the American people that we will do all we can to investigate and prosecute those who would undermine our troops and steal from the taxpayer during times of war.