Food Contractors Use Rebates To Bilk US, Lawmakers Hear

Law360, New York (October 5, 2011, 6:41 PM EDT) -- From public school cafeterias to military bases in Afghanistan, the U.S. is overpaying on food contracts, according to witnesses who told a U.S. Senate committee Wednesday that middleman suppliers often use off-invoice rebates to obscure markups that are charged to the government.

The Senate Committee on Homeland Security and Governmental Affairs heard from a New York prosecutor, the U.S. Department of Agriculture and a former member of the Wartime Contracting Commission, which reported in September that the U.S. had wasted between $30 billion and $60 billion...
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