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House Holds Hearings on Fraud at HUD

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    Rep. Randy Neugebauer, (R-Texas), on investigation of fraud at the HUD.

  • Duration 4:39
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Department of Housing and Urban Development taken to task today for widespread fraud and waste of tax -- money.

House financial services subcommittee held a hearing to examine.

What's going on behind closed doors at the government agency specifically looking at a program designed to help low income people get housing.

Joining us now congressman reading -- about.

Chairman of the committee congressman welcome back to show.

What did you learn today in this hearing about the ability -- I had to manage taxpayer dollars.

When -- first -- thanks for having me on the program well we've learned is that they're not necessarily doing a very good job so one of the purposes of the hearing today.

This kind of sort out what's happening.

Try to put a stop to some of this fraud and abuse and certainly send a message to heard and read the written grist for the government agencies.

That they need to do a better job of accountability of the funds -- that they're spending on behalf of the taxpayers.

I wanna show folks exactly what this home program dead.

They gave a portable low income housing to people who -- -- direct to -- -- assistance.

And about two million a year to states and local governments now we're the bride -- -- how was the government and the taxpayer being ripped off.

Well a lot of different ways than one fruits nickel a project we saw that was supposed to have a 108 units built but only about sixty of the -- -- built.

We went looked another project where they was over million dollars for -- we went to that the address that was.

In the records and it it was a vacant lot so one -- things we're concerned about.

Is that a lot of this money is unaccounted for and that's unacceptable.

That is unacceptable so this money just disappears or it's frittered away and that's certainly what we thought we were getting for their -- that.

We're not write.

-- trying to.

And -- two people -- and that means of the intended recipients when that money is diverted or or taken -- and defrauded but also the American taxpayers and so it's it's a lose lose situation.

Well I -- -- here.

Here's somebody who was involved in the -- here's what he had to say -- -- testimony let's -- it.

I can say with a certain it is imputed to person such as myself was defrauded the home program that I'm going to bed.

That such fraud continues at the hands of others who held the position I -- -- Amazing so here's somebody.

Two.

You know says hey I was -- fronts here I ripped off the American people and you know what a lot of other people did to.

Where is the accountability and it's.

Well that's a question we ask and when we look at their computer system for example that they used to attract a lot of their projects.

The people that are actually supposed to be monitoring -- are actually are being monitored of the people that are making input into their computer system so that was one area.

Others no physical inspection what we found is that had really since the checks since the money.

But making very few side business you know in -- on the former homebuilders you know when I it was building houses and I asked the -- for draw.

You know they went out to inspect to make sure that -- actually completed the work that -- said that we were doing.

These are just common sense things that we think that that should be -- What's interesting about this a lot of people are gonna think these are the new programs -- to help people got her in the mortgage meltdown.

Not so this is a program that has been around for years and years and years and years this product has gone on for years and years and years.

What are you gonna do congressman to stop at.

Well you know one of the things -- gonna do -- -- encouraged administration you don't have better accountability bit better internal control better audit principal coming some of this just common sense is the example -- -- wanna go about making side index.

One of things we found out is that when it comes -- doesn't inspection.

The people get to pick which records that they they want to talk about.

You know you when you make a surprise visit you need to be able to randomly select those records.

Having -- computer system that tracks disbursement and the progress of these projects in other words if yours sending out money -- you don't know how many units are getting.

That you didn't in many cases you don't know that that the intended purpose of that program is actually being carried out.

-- again that robs -- recipients.

The congress really have the -- folks who last I heard action on Donovan and others were saying this is no story.

No story here move along we have no problems with this -- Hello I think anytime the American taxpayers -- money's not being spent wisely and it's not accountability.

Then I think it's a serious matter I mean like in real estate it's location location location.

I think when you go to -- the American taxpayers' money it's accountability accountability accountability.

-- -- With that well if you do expand this and you bring in -- -- -- we wanna watch.

-- Thank you.

Thanks congressman.

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