In a shocking revelation, an extensive investigation conducted by the Associated Press has uncovered a staggering truth about the COVID-19 relief funds: over $4 trillion, or at least one in every ten dollars, has been either stolen or wasted. As if this colossal figure wasn’t alarming enough, experts predict that this amount is likely to increase even further.
Thieves stole hundreds of billions of dollars in federal COVID-19 relief aid intended to combat the worst pandemic in a century and to stabilize an economy in free fall — leading to the greatest grift in U.S. history. https://t.co/EEooyZHBd1
— The Associated Press (@AP) June 13, 2023
The question that naturally arises is, how did such a massive misappropriation of funds occur? The answer, unfortunately, lies in a trifecta of incompetence, laziness, and sheer stupidity, prevailing at every level of government – be it federal, state, or local. The primary objective was to distribute the funds rapidly, which, in turn, led to a rampant wave of fraud that could have been easily averted with a modicum of oversight.
One example of this glaring oversight can be seen in the case of the Small Business Administration (SBA). Astonishingly, the SBA decided against cross-checking the loan applications for the Paycheck Protection Program (PPP) with the Treasury Department’s “Do Not Pay” list. This list is specifically designed to prevent federal funds from reaching the hands of known criminals and scam artists. Consequently, more than 2.3 million loan applications were flagged as potentially fraudulent, with the majority never being properly investigated.
Furthermore, during the transition from the Trump administration to the Biden administration, over 1.8 million of these flagged accounts were mysteriously deleted. The result? These ill-gotten funds found their way into the pockets of scam artists and criminal gangs, exploiting a system devoid of proper safeguards.
The gravity of this situation is not lost on officials. Michael Horowitz, the Justice Department’s inspector general, expressed his concerns to the AP, stating, “If you open up the bank window and say, give me your application and just promise me you really are who you say you are, you attract a lot of fraudsters and that’s what happened here.”
The consequences of this mismanagement are dire. Not only does it undermine the intended purpose of providing aid to those in need, but it also erodes public trust in the government’s ability to handle such crises effectively. Taxpayers and hardworking individuals deserve accountability and responsible stewardship of their tax dollars, especially during times of national emergency.
To prevent future instances of fraud and waste on such a grand scale, immediate action must be taken. The government must implement stringent oversight mechanisms, including robust cross-checking procedures and thorough investigations of flagged loan applications. Furthermore, maintaining continuity in data and preventing the deletion of flagged accounts during administration transitions is of paramount importance.
In conclusion, the findings of the Associated Press investigation into the misappropriation of over $4 trillion in COVID-19 relief funds are deeply troubling. The scale of incompetence, laziness, and stupidity exhibited across all levels of government is staggering. Swift and decisive measures must be taken to restore public confidence, hold accountable those responsible for the mismanagement, and ensure that relief funds reach those who truly need them.