Oversight Presses US Navy for Documents on Contracting Abuses

Published: Jan 30, 2014

WASHINGTON – House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) today released a letter sent to U.S. Secretary of the Navy Ray Mabus, demanding documents and a briefing on steps taken to address the “string of contracting scandals that have engulfed the U.S. Navy.”

In the letter to Navy Secretary Mabus, Chairman Issa said, “While I am pleased that you have recognized that the Navy’s contracting practices must change, I am concerned that these [internal] reviews will not go far enough.”

The letter requests that the Navy provide:

  • A detailed briefing to Committee staff to discuss the steps the Navy has taken since April 2011 to combat contracting fraud, including information on recommendations made by the special panel appointed in April 2011.
  • Copies of all contracts between the Navy and Glenn Defense Marine Asia Ltd. since January 1, 2009, and a list of the Navy’s total expenditures on ‘husbanding’ contracts, used to provide fresh food and fuel to Navy ships in port, for the last five fiscal years.

The letter cites successive Navy contracting scandals, the most recent of which involves Leonard Francis, known as “Fat Leonard,” President and CEO of Glenn-Defense Marine Asia Ltd.  Mr. Francis allegedly overbilled the Navy by at least $20 million for port and provision services.  He also received classified information from Navy officers and enlisted personnel to gain contract bidding advantages through cash bribes and favors including female escorts and paid travel.  Apparently to avoid detection, Mr. Francis bribed Naval Criminal Investigative Service supervisory special agent John Beliveau II, who has since pleaded guilty.

You can read the letter to the Secretary of the Navy here.