Widespread business fraud alleged

Companies collected millions of dollars in government contracts by claiming to have main offices in poor neighborhoods that were actually empty duplexes, part-time offices and other ineligible locations, the Government Accountability Office reported.

Billions remain at risk because the Small Business Administration doesn't usually check paperwork, rarely conducts audits and is slow to eject firms that are no longer eligible for the $8 billion in special contract set-asides for small businesses, the GAO said.

The agency agreed with the findings and said it was reviewing its Historically Underutilized Business Zone program.

The House Committee on Small Business requested the reports and plans to hold hearings on the issue today.

WASHINGTON, D.C.

Bush keeps Plame papers concealed

President Bush invoked executive privilege to keep Congress from seeing the FBI report of an interview with Vice President Dick Cheney and other records related to the administration's leak of CIA operative Valerie Plame's identity in 2003.

At the time, the administration was trying to undercut former U.S. Ambassador Joseph C. Wilson IV's criticism of Bush's rationale for the Iraq war. Wilson and Plame are married.

The House Oversight Committee had subpoenaed Atty. Gen. Michael B. Mukasey to turn over the documents.

TEXAS

Former mayor's doggone shame

A former mayor accused of secretly keeping her neighbors' dog after telling them the pet had died reached a plea deal. Grace Saenz-Lopez pleaded no contest Tuesday to filing a false police report, a misdemeanor. She'll pay a $300 fine and serve 48 hours of community service and two years' probation.

The former mayor of Alice claimed the Shih Tzu named Puddles died last year while she was pet-sitting for neighbors Rudy Gutierrez and Shelly Cavazos. Three months later, a relative of the neighbors saw the dog.

Saenz-Lopez said the dog had been neglected, but a judge ordered her to return it. She had faced two felony counts.

From Times Wire Reports


 
 
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