California

Stimulus funds go to companies with spotty records

corpsgraphic.jpgCorporations with records of pollution violations, criminal probes and fraud allegations are sharing in the millions of dollars being doled out in federal stimulus funds, California Watch says in an investigation running in newspapers across the state today. The Daily News, La Opinion, Orange County Register and Ventura County Star are among the papers carrying the report.

To government watchdogs, these contracts and others raise concerns about the way the massive federal stimulus program is being administered. Although most major companies in America face lawsuits and regulatory action, these government reformers say a contractor’s entire history should be considered before doling out more money to the same firms.

“It is very upsetting that the government doesn't do more due diligence before it hands money out,” said Laura N. Chick, California's inspector general for stimulus funds.

California Watch is the nonprofit, nonpartisan investigative journalism outlet based at the Center for Investigative Reporting in Berkeley.

Add California Watch: Hopefully their math skills will improve. The group's blog bought into the Daily News' Latinos are a majority in the Valley error.

Graphic: California Watch


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