Subcommittee on Government Operations Chairman Pete Sessions has announced a hearing to address fraud risk management within the Department of Defense (DOD). The hearing, titled “Safeguarding Procurement: Examining Fraud Risk Management in the Department of Defense,” will focus on how ineffective fraud risk management and discretionary spending have cost the agency millions in taxpayer funds. The DOD’s reliance on government contractors for work and asset management increases its vulnerability to fraud.
“Seventy-one percent of the DOD spending went to government contracts, and the Department accounts for nearly half of discretionary spending. For years, DOD has not been able to account for how much money has been spent or where its assets are held. The American people deserve to know how the DOD is spending their tax dollars and certainty that fraud in government agencies can be prevented. As Secretary Hegseth is taking action to address this problem, this hearing will identify gaps in how the DOD manages risk that may lead to fraud and examine ways to save millions by preventing fraud,” stated Subcommittee Chairman Sessions.
The hearing is scheduled for Wednesday, June 4 at 10:00 a.m. ET in room 2247 Rayburn House Office Building. Key witnesses include Kelly P. Mayo, Deputy Inspector General for Investigations and Director of Defense Criminal Investigative Services at the DOD Office of Inspector General, and Seto Bagdoyen, Director of Forensic Audits and Investigative Services at the U.S. Government Accountability Office. Additional witnesses are yet to be determined.
The event will be available via livestream.
