Same Old Same Old--Cease and Desist Instead of Jail

Firms Redirected Money Meant For Native Alaskans, Audit Finds

By Robert O'Harrow Jr. Washington Post Staff Writer Wednesday, August 13, 2008; D01

Two government contractors designated as small, Alaska-native-owned firms directed millions of dollars in fees to other companies owned by managers who were not Alaska natives and should not have received the payments, according to an audit report by the Office of Inspector General at the Small Business Administration.

The findings are part of an ongoing review by the inspector general's office of the status of Alaska native corporations, or ANCs, which are eligible to receive sole-source contracts of any size from federal agencies. Congress three decades ago permitted the creation of ANCs as a means to settle land claims and to spur economic development.

. . . From 2003 to 2006, the firms secured federal contracts worth up to $833 million.

. . . "We believe these concerns merit your immediate attention as APM and Goldbelt entered into unapp…