Anti-Corruption Ideas Could Raise $1M Annually

HARTFORD — Attorney General Richard Blumenthal submitted testimony at the General Assembly February 2, in support of two major reform proposals to deter and stop corruption in state contracting.

One is a proposal for a state false claims act, which would bring at least $1 million more a year into state coffers. The other is to increase from two to five years the maximum ban on state work for contractors who defraud taxpayers on transportation and public works projects.

Mr Blumenthal delivered testimony on both issues to the legislature’s Government Administration and Elections Committee.

A false claims act — already on the books at the federal level and in 12 states — clarifies and strengthens Mr Blumenthal’s authority to sue for monetary damages contractors who defraud the state. It also allows individuals to sue corrupt contractors and collect for themselves 15 to 20 percent of any proceeds.

“This measure is about money — $1 million more in state recovery every year — as well as deterring lawbreaking,” Mr Blumenthal said in a release following his statehouse appearance. “I have urged this measure year after year since 2004 to protect against fraud victimizing state taxpayers.”

The AG said his office has sought successfully to recover state losses in fraud cases, but current law fails to provide truly effective civil remedies to deter fraudulent activity.

“Under the whistleblower law, there is no provision for the recovery of damages or civil penalties,” he said. “We need to toughen our laws enabling recovery of money obtained illegally and other harm done by corrupt contractors.”