By DANA LIEBELSON
Here's a pop quiz: name one employer that gives you a company credit card, but doesn't keep track of your purchases and spending record. Did you guess the U.S. federal government? Congratulations--you win a free spending spree.
Government-issued credit cards intended to pay for travel costs and small purchases like office supplies have been abused for years because of a lack of oversight. But a new piece of legislation aims to stop this practice for good.
The Government Charge Card Abuse Prevention Act, introduced by Senators Charles Grassley (R-IA), Joseph Lieberman (I-CT), and Susan Collins (R-ME), requires federal agencies to put new safeguards and controls on government charge cards used by federal employees. The bill would also require penalties for violations.
As The Washington Post reported this week, in the past, federal employees have used government-issued credit cards on everything from gambling expenses and excessive airlines tickets to adult entertainment stores and brothels.
This bill aims to prevent this kind of misuse by aiming to ensure purchase and travel cards are used only for approved spending. It does this by establishing internal controls, such as requiring that agencies maintain a record of each card holder, establishing policies on the number of cards that can be issued, and invalidating employees’ cards when they leave an agency. The bill would also require agency Inspectors General to periodically conduct assessments of the credit card programs with the intention of identifying any fraud.
At present, agencies’ controls over the cards are lacking. Even the Department of Defense (DoD), which was subjected to purchase card provisions as part of the National Defense Authorization Act of FY 2000, still doesn’t regulate travel cards. This new bill would expand DoD’s existing requirements and bring them in line with the proposed regulations for all agencies.
The bill has already passed unanimously through the House Committee on Oversight and Government Reform and now stands to be cleared by the House Armed Services Committee.
According to Jill Kozeny, a spokeswoman for Sen. Grassley, getting the bill passed may be a lengthy process. She told POGO, “Senator Grassley has been involved in many legislation reform initiatives that have been successful, but sometimes these efforts take several congresses.”
The cosponsors of the bill are emphasizing that passing this legislation is “common sense.” In a press release, Sen. Collins said: “American taxpayers get the bill for these federal credit cards and they deserve complete assurance that their money is going to legitimate business purposes.”
Dana Liebelson is POGO's Beth Daley Impact Fellow.
Image via Flickr user JudeanPeoplesFront.
I'm confused...TWO republicans are sponsoring this?
Posted by: connie | Oct 20, 2011 at 04:25 PM