The Government Accountability Office (GAO) today appear an all-encompassing analysis of the Historically Underutilized Business Zone (HUBZone) program.
Washington, D.C. (Vocus/PRWEB ) July 17, 2008 -- The Government Accountability Office (GAO) today appear an all-encompassing analysis of the Historically Underutilized Business Zone (HUBZone) program. Their allegation point to all-encompassing artifice in the eight-billion dollar initiative. “You accept to admiration about a arrangement that lets individuals self-qualify for a affairs of this size. It doesn’t crop a ability to admit the absurd abeyant for malfeasance.” That’s what Chairwoman Nydia M. Velázquez (D-NY) said afterwards audition GAO’s affidavit afore the House Committee on Small Business.
The HUBZone action is meant to advice disadvantaged communities by acceding best affairs to baby businesses in specific areas of the country. GAO’s advance board told the Congressional console they had begin amaranthine instances of bribery by non-qualifying firms. Members aswell heard from assembly of the Bush Administration—which has spoken out adjoin stronger accountability in the HUBZone appliance and acceptance process.
You accept to admiration about a arrangement that lets individuals self-qualify for a affairs of this size. It doesn’t crop a ability to admit the absurd abeyant for malfeasance. Small businesses deserve a fair allotment of the federal marketplace, but counterfeit HUBZone applicants are shutting out firms that play by the rules Last year, we anesthetized able-bodied legislation to end these violations, but the Senate has yet to act on our bill and President Bush against it aggressively. It’s tougher to get a library agenda than it is to get into the HUBZone program. All you charge is a bit of Wite-out. It’s in actuality shameful It’s time the Bush Administration stops assuming artifice isn’t aggressive in this program. The American humans apperceive better The problems with the HUBZone action have to be anchored immediately. Tax-payers, and the baby businesses that drive our economy, deserve no less. “Small businesses deserve a fair allotment of the federal marketplace, but counterfeit HUBZone applicants are shutting out firms that play by the rules,” said Chairwoman Velázquez. “Last year, we anesthetized able-bodied legislation to end these violations, but the Senate has yet to act on our bill and President Bush against it aggressively.”
H.R. 3867, the Small Business Contracting Program Improvements Act, calls for on-site visits and added accurate agency of acknowledging acquiescence with HUBZone guidelines. GAO begin the Small Business Administration (SBA)—which is answerable with managing the HUBZone program—is accomplishing about annihilation to verify the advice of applicants. Investigators aswell said they had all-encompassing affirmation of individuals who adulterate the locations of their companies, alive the agency will not catechism them about their applications.
“It’s tougher to get a library agenda than it is to get into the HUBZone program. All you charge is a bit of Wite-out. It’s in actuality shameful,” said Chairwoman Velázquez.
The GAO reviews apparent at today’s hearing, were requested by the Committee backward endure year. They action a abounding analysis of the HUBZone affairs and burrow into ten randomly-selected firms in the DC city area. Many of these companies had set up “virtual offices” or busy mailboxes in poor communities with the sole purpose of accepting a commitment abode aural HUBZone boundaries. All ten bootless GAO’s website inspections, and accept been referred to the Inspector General for antidotal action. Investigators aswell set up four artificial firms to analysis SBA’s appliance process. One of the businesses was listed as application a bounded Starbucks; addition a above sports arena. Others artlessly had P.O. Box addresses. Each time, the applications were certified as HUBZone acceptable by the SBA—with little or no questions asked.
“It’s time the Bush Administration stops assuming artifice isn’t aggressive in this program. The American humans apperceive better,” said Chairwoman Velázquez. “The problems with the HUBZone action have to be anchored immediately. Tax-payers, and the baby businesses that drive our economy, deserve no less.”
Click here to appearance attestant testimony.
Click here to appearance video of the hearing.
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