GAO claims SBA obstructing oversight into COVID-19 relief loans as IG accelerates investigations

GAO claims SBA obstructing oversight into COVID-19 relief loans as IG accelerates investigations

Conflict involving the national government Accountability workplace together with Small Business Administration around oversight into COVID-19 relief loans including the Paycheck Protection Program plus the Economic Injury Disaster Loan has escalated to the level that Comptroller General Gene Dodaro has individually reached out to Congress searching for an answer.

“He personally called me, and I also genuinely believe that he even called the member that is ranking. Can you picture?”

Home small company Committee Chairwoman Nydia Velazquez (D-N.Y.) told William Shear, GAO’s director of Financial Markets and Community Investment, during an Oct. 1 hearing regarding the subcommittee on Investigations, Oversight, and laws. “It is our obligation to guard taxpayers cash, and also to ensure that this system is implemented. And that which we have experienced isn’t just a full situation of fraudulence and punishment committed when you look at the EIDL and also the PPP, but mismanagement. Possibly the obstruction taken from the SBA is that they didn’t take or implement the kind of controls to prevent fraud and abuse because they knew. What exactly can we do? So what can Congress can perform that will help you do your work moving forward? Do you consider that, as an example, withholding agency financing, that which is a choice?”

Shear stated he hoped it couldn’t arrive at the period, but noted that Dodaro, in addition to GAO’s basic counsel, may be getting included once more if SBA doesn’t commence to cooperate with efforts at oversight, noting that “it is an extreme situation.”

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