Poor Contracting Oversight Supports Human Trafficking; Erodes U.S. "Moral Standing"

By DANA LIEBELSON

U.S. taxpayers are inadvertently funding human trafficking and worker abuse because of the federal government’s poor oversight of contractors in war zones, POGO Director of Investigations Nick Schwellenbach told a Congressional panel today.

Schwellenbach wasn’t the only one providing evidence to a subcommittee of the Committee on Oversight and Government Reform that poor contractor oversight can finance horrific trafficking crimes—others asked to testify at the hearing had plenty to say on the subject. Here are five key quotes from the hearing:

Nick Schwellenbach, director of investigations at POGO: “Our tax dollars are inadvertently fueling this human rights tragedy through our labor supply chain in war zones and other contingency operations. Not only is trafficking and exploitation of laborers a moral wrong in and of itself, but it erodes our moral standing in the world, can spark backlash from the laborers and their home countries…and could undermine the U.S. mission.”

Liana Wyler, senior analyst, Congressional Research Service: “As many as 12.3 million adults and children are currently subjected to forced labor, bonded labor and forced prostitution around the world…Despite ongoing efforts to combat human trafficking associated with government contractors, recent annual reports on trafficking in persons by the U.S. Department of State acknowledge that government contractors and subcontractors continue to be implicated.”

Evelyn Klemstine, assistant inspector general for audits, U.S. Department of State: “We released an evaluation in January 2011 of six contracts in [the Arab States of the Gulf]…contract workers at all embassies and consulates generally expressed frustration with inconsistent payment, confusing pay stubs and withheld wages. Also, more than 70 percent of the workers interviewed reported that they lived in overcrowded, unsafe or unsanitary conditions.”

Sam McCahon, founder, McCahon Law: “The Trafficking Victims Protection Reauthorization Act has not had any deterrent effect on labor trafficking on government contracts. Subcontractors and labor brokers have been exploiting and engaging in modern day slavery in support of U.S. government contractors for nearly 10 years. The practice is unabated. Moreover, prime contractors have a history of turning a blind eye to the practice.”

David Isenberg, independent analyst and writer: “I am simply an interested observer and chronicler, who like the Mr. Spock character on the Star Trek television series, finds [private military contractors (PMC)] a fascinating phenomenon worthy of continued study…While the last seven plus years have seen increased attention paid to the oversight and accountability of PMC…only now is government beginning to turn to the issue of subcontractors. This attention is long overdue.”