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Lloyd Chapman

Lloyd Chapman

Posted: April 6, 2010 09:08 PM

SBA Sued for Refusing to Release Information on Public Relations Contracts

What's Your Reaction:

On Tuesday, April 6, the American Small Business League (ASBL) filed suit against the Small Business Administration (SBA) under the Freedom of Information Act (FOIA). The SBA is refusing to release detailed information on four public relations contracts.
(http://www.asbl.com/documents/20100406_FOIA4_complaint.pdf)

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world.

In one case, the SBA paid $30,000 for a one-day meeting with APCO Worldwide Inc, a multinational communications firm specializing in crisis management. The SBA is refusing to release the complete details on that contract. In another example, the SBA paid $16,500 to the White House Writers Group. The SBA is refusing to release all of the details on that contract.

The SBA is also refusing to release any information whatsoever on two additional contracts for public relations consulting services.

The most recent information released by the Obama Administration found large recipients of federal small business contracts such as Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea and the Italian firm Finmeccanica SpA.

Since 2002, the SBA has claimed that the diversion of federal small business contracts to large corporations was the result of "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)

In SBA Report 5-15, the agency's Office of Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf) Another report, from the SBA's own Office of Inspector General found that the SBA itself had reported contracts to large businesses as small business awards, including Dutch conglomerate Buhrmann NV with more than 26,000 employees worldwide. (http://www.asbl.com/documents/05-14.pdf)

On March 12, 2010, the Obama Administration removed 10 years of historical data from the Federal Procurement Data System - Next Generation (FPDS-NG), which has been used by the GAO and inspector generals from a variety of federal agencies to uncover fraud and abuse in federal small business contracting programs. The ASBL has filed for an injunction to force the Obama Administration to restore the data.

 

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HUFFPOST SUPER USER
kimk3
01:43 PM on 04/09/2010
I have been following your posts for a while. I am really grateful for the work you're doing. It is a scandel and every time I hear Obama talking about "helping small businesses" I want to puke. Yes... rebellion! Have you looked into CoffeePartyUSA.com? I have gotten into it. Many disillusioned people joining, trying to figure out what to do. They've got the money and the power -- but we've got the numbers. I have sent your posts out to people I know who have various media platforms but can't seem to get much traction. And this story is really so much easier to understand than the whole banking thing.
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HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
04:22 PM on 04/09/2010
Thank you for your comment. I could not agree with you more. It is time for the American people to start stop listening to what our politicians say and start paying attention to what they do. To date, the Obama Administration has failed to follow-through on nearly every promise they have made to our nation's small business community. Thank you for the suggestion regarding the Coffee Party! Change is in the hands of people who are willing to tune in, get involved and get their hands dirty.
06:26 PM on 04/07/2010
C'mon SBA! If it's no big deal, why all the cover up and unwillingness to disclose the info (that WE paid for, by the way!)?

Sounds like they're covering up their cover up. Once again, the feds couldn't care less about middle class America or small business.
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HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
01:03 PM on 04/09/2010
They are covering up their cover up! Thank you for your comment.
12:42 PM on 04/07/2010
If we can get Tiger Woods to sleep with the head of the SBA, Karen Mills (The heiress to the Tootsie Roll fortune) And maybe Nydia Velazquez in a three some on a water bed with no sheets and a jar of mayonnaise, maybe we can finally get some proper press coverage of this.
Sorry Tiger, but I couldn't think of a way to get Megan Fox in this as well.
Fill in your own Tiger Woods Tootsie roll reference here.
12:04 PM on 04/07/2010
PR contracts... SBA... Billions of dollars in fraud... American tax dollars. Wow! You would think this alone would be enough for a major investigative body to rip open the SBA and take a look inside. Clearly something is going on...
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memememeeeee
I should runs for Congress... I are actually smart
12:32 PM on 04/07/2010
yup... someone is making lots of money to keep quiet, and/or destroy documentation of this. We need to find a whistleblower.
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01:13 PM on 04/07/2010
Sounds to me, from the article, that Obama should be the whistle blower since his admin knows where the documents are that would prove malfeasance.
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HUFFPOST SUPER USER
GrimJack
no matter where you go...there you are
11:23 AM on 04/07/2010
now this is transparency and open government that I can believe in...
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HUFFPOST SUPER USER
Clive Coogan
Lang may yer lum reek!
02:22 AM on 04/07/2010
This is truly amazing! But then again, nothing surprises me anymore about the level of corruption in our government. It's a Plutocracy that will take a major rebellion to dismantle. Our 2 party system is a complete joke and both are nothing more than corporate mafia whores. The SBA is the mirage.
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HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
01:13 PM on 04/09/2010
Your comment reflects my own feelings precisely. It is truer that you think it is. I think Washington is completely corrupt. The fact that the government allowed these mega corporations, and the financial industry to destroy our economy and then rewarded them for doing so is sickening. They are making record profits now, and the Wall St. executives that are directly responsible for destroying our economy received bonuses for their efforts. Bonuses, which were made possible by American tax dollars. Frankly, I'm surprised there hasn't been an all out rebellion. If more people understood exactly what has happened, what is happening now and what is going to happen now there would be a rebellion.

Washington is run on lobbying dollars. Members of Congress do not act in the best interests of their constituents or the American people. They act on behalf of the best financial interests of the lobby groups that they work for. My wife gave Barack Obama $50, that's a contribution. When a big bank donates a half of a million dollars to Obama's campaign and then starts making profits, that's a bribe.