WASHINGTON — Record funding for large-scale infrastructure spending will make Amtrak more vulnerable to fraud, the passenger operator’s Office of Inspector General says in a report released this week, identifying four areas in which the company will be particularly at risk.
“Industry research estimates that 10% of infrastructure investments could be lost to fraud,” Inspector General Kevin H. Winters writes in the report, “and if history is any indicator, [the Infastructure Investment and Jobs Act] — like other large spending bills — will be targeted by criminals through a variety of unlawful fraudulent schemes.”
The high risk areas, the report says, are contracts and procurement, health care, employee wrongdoing, and cybercrime. It outlines examples of each. In the first area, for example, it notes various forms of bid fixing; billing schemes; use of substandard materials or work that does not meet specifications; or fraudulent use of disadvantaged/minored owned businesses, which are required on projects. It also describes ways that Amtrak can watch for such practices.
At the same time, the report credits the company for development of its Integrated Risk and Compliance Program, designed to monitor potential fraud and identify fraudulent activity. And the Office of Inspector General says it “remains committed to continuing our oversight mission, which includes actively investigating and prosecuting fraud cases.”
Amtrak does not have a good track record with fraud. A police chief gone over fraud, fraud in re-manufacturing of seats that even the owners of the company were unawares it was going on. Between one of their employees and an Amtrak employee. Fraud involved in 30th Street station work. A long list. I think the IG is be proactive in this one in saying they are watching.
Isn’t the bridge in the photo, Saugatuck River, a Metro-North bridge rather than Amtrak?
You are correct Mr. Mulligan that that bridge isn’t Amtrak’s. Belongs to ConnDOT along with the other structurally-deficient river bridges, the Norwalk (project for replacement underway), the Mianus, and the Housatonic.
Mr. Landey, I concur. We need to be real and get this right before we lose everything we have. Amtrak is America’s passenger carrier and should have responsible management from the top down. Stop the greed and build infrastructure to withstand today’s environment and many tomorrows. We need to utilize our intelligence along with Ai and do the correct job right the first time.
Not unlike the payroll protection plan during covid. The easier the USG makes it to get money, the more likely there will be fraud to acquire it.
Don’t get me started on COVID money. As for today’s article, for the first time ever (and maybe the last time ever) I’ll come to the defense of USG, which I otherwise despise. I think the inspector overstated this particular problem. I worked 21 years in federally-aided highway construction. I never saw any fraud by the contractors. The low bidders did their jobs, usually. If not, we called them back and made them do it over.
There’s plenty of fraud in government, way too much – padded payrolls, make-work, people paid to show up (or, with COVID, to not show up), incompetent managers getting inflated salaries with no accountability — all that’s true. Construction contractors are the least of our problems. For the most part they take pride in their work and do it well.
Mr Landey , as I often say this is our government. For what it’s worth, I still believe in democracy.
The best prevention for democracy is sunlight. Go look at where people are getting money and privileges from. Requiring disclosure is giving sunlight. One candidate for president is doing his best to hide who is giving him airplane rides.
Top mgmt at Amtrak are the biggest risk of fraud with their sleight of hand with accounting, ridership numbers & funding.
Gee, government spending could lead to fraud? Who would have thought?