I think this in an excellent question. For years I have tried to expose the rampant fraud and abuse in federal small business contracting programs. Dozens of federal investigations have uncovered billions of dollars in federal small business contracts that have been diverted to some of the largest corporations in the world.

Terry Sutherland

Every year for the last nine years the Small Business Administration (SBA) Office of Inspector General has named the diversion of federal small business contracts to corporate giants as the number one problem at the SBA.

Numerous investigative reports in the media have found that dozens, if not hundreds, of Fortune 500 firms have received federal small business contracts.

The SBA and federal officials have responded to the well-documented fraud in several ways. First, they admitted it. In 2003 the Associated Press ran a story on the first federal investigation and congressional hearing regarding the diversion of federal small business contracts to Fortune 500 firms.  In that story David Drabkin, senior procurement officer for the General Services Administration, stated, “The numbers are inflated, we just don’t know the extent.”

In that same article Sue Hensley, a spokeswoman for the SBA, stated, “This transition has led to the apparent diversion of federal small business contract dollars intended for small businesses.”

In 2006 the SBA Press Office claimed it was a myth that large businesses were receiving federal small businesses contracts. They released the now infamous Myth vs. Fact press release.

What was so astonishing about the Myth vs. Fact press release was the fact that back in 2005 the SBA Office of Inspector General released Report 5-15 that described the diversion of federal small business contracts to Fortune 500 firms as, “One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today…”

Think of the gall of the SBA Press Office. First, a Government Accounting Office investigation finds over 5300 large businesses receiving federal small business contracts. Then the Associated Press writes a story about it and runs it in newspapers all across the country, with the SBA’s own Inspector General referring to it as, “One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today…” Then the very next year, the SBA Press Office issues a press release that claims it’s all just a myth. Astounding! A myth, like dragons and unicorns!

In 2009 the Government Accountability Office released Report 10-108 that essentially accused the SBA and other federal agencies of encouraging fraud and stated, “By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”

Investigative reports by CBSABCNBCCNN and RTTV have all uncovered rampant fraud and abuse in SBA managed programs.

The SBA Press Office’s standard response is that Fortune 500 firms have landed billions of dollars in federal contracts year after year, for over 11 years now as a result of miscoding, computer glitches, simple human error and anomalies.

So back to my original question. Why does the SBA need Terry Sutherland, or Commander Cover-Up as he is known around Washington, if there is no fraud? Look at Terry Sutherland’s background and see if he looks like a guy that shows up to deal with myths, miscoding and anomalies.

He was the guy the Defense Intelligence Agency counted on to smear the Able Danger 9/11 whistleblowers when it came out that they had uncovered three of the 9/11 hijackers a YEAR BEFORE 9/11.

Terry Sutherland’s sudden appearance at the SBA Press Office last April is proof we’re not talking about myths, miscoding and anomalies.

Terry Sutherland/Commander Cover-Up is there to cover up hundreds of billions of dollars in felony federal contracting fraud. Most of it at the Pentagon.

I’m flattered they had to call Commander Cover-Up to deal with me and try to shut down the media coverage on the rampant fraud at the Pentagon and the SBA. It’s the strongest indication I have ever seen from the federal government that I’m doing my job very, very well and they are scared. They should be.

They are so desperate they are trying to make it difficult for people to comment on all of my blogs. If you ever have any problems commenting on my blogs, please let me know (Lchapman@ASBL.com).

Lloyd Chapman

Lloyd Chapman

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