After paying largest criminal fine ever, BP will still receive federal contracts →
Despite paying $4.5 billion, including a record $1.26 billion criminal fine, BP will not be prohibited from receiving future government contracts because it is too big to debar. Federal contractors of a certain size get a pass on fraudulent or even criminal actions because the government relies so heavily on their services. Read more at Bloomberg Businessweek.
“There is a sense that large federal contractors, like BP, are too big to suspend or debar. The government’s over-reliance on such companies can make it nearly impossible to hold them accountable, absent a monetary penalty and promises to keep clean. Temporarily cutting off millions or billions in taxpayer funds seems like a better way to get a company’s attention and truly alter corporate culture.”
POGO General Counsel Scott Amey on the fact that after the Deepwater Horizon oil spill, the Pentagon gave BP a $300 million raise. Read more at Reuters.
