Senate Committee Approves Leahy-Feinstein Amendment to Toughen LawsAgainst
War-Profiteering in Iraq
September 30, 2003

Washington DC - The Senate Appropriations Committee today approved an amendment introduced by Senators Patrick Leahy (D-VT) and Dianne Feinstein (D-Calif.) that would create tough criminal penalties for any company that commits fraud against the United States government while participating in the rebuilding effort.

With American businesses taking a central role in this reconstruction by building roads and schools and by rehabilitating Iraq's oil fields, the process by which companies get the contracts to work on these vital projects must be fair. Yet according to the Congressional Research Service, there are no specific laws regarding war profiteering.

"I believe sending a clear message to companies that war profiteering simply will not be tolerated is a key provision that must be added to this bill," Senator Feinstein said.

"After all, this supplemental is a big bill, providing billions of dollars for rebuilding post-war Iraq, and it is important that those dollars are spent wisely. We must lead by example, and the process by which the contracts are awarded must comply with reasonable, effective regulations. And failures to comply with these procedures must be met with penalties."

Specifically, the Leahy-Feinstein amendment would:

• Provide a maximum criminal penalty of 20 years in prison and fines of up to $1,000,000;



• Require any excess profits obtained by a company through fraud to be returned to the federal government; and
  

• Ensure that any company attempting to defraud the U.S. Government outside the United States can still be prosecuted, by specifically conferring extraterritorial jurisdiction for war profiteering crimes.

"We are about to spend a lot of money in Iraq, quickly and with few real controls on how it is spent," Senator Feinstein said. "The least we can do is prevent private companies from taking advantage of the American Government, its people, and the men and women who are risking their lives every day to make Iraq, and the world, a better, safer place to live."

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