VA Not Doing Enough To Verify Disabled Veteran Businesses

The Government Accountability Office continues to find vulnerabilities that could lead to fraud and abuse in the Department of Veteran Affairs’ service-disabled veteran-owned small business (SDVOSB) program.

GAO issued nine reports since 2009 focusing on the SDVOSB program’s vulnerability, and the agency’s actions.

“VA has taken some positive action to enhance its fraud prevention efforts by establishing processes in response to 6 of 13 recommendations GAO stated in its report released August 1.

One of those recommendations includes VA making unannounced visits to high-risk firms.

The 59-page report found VA made inconsistent statements regarding its progress in verifying firms listed on the Vetbiz website.

“In one communication, VA stated that as of February 2011, all new verifications would use the 2010 act process going forward. However, as of April 1, 2012, 3,717 of the 6,178 SDVOSB firms (60 percent) listed as eligible in VetBiz had not been verified under the 2010 Act process,” auditors stated.


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