Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Defense Base Act Insurance Company CNA may owe US Gov $58.5 million

An alarming story of greed, negligence, and a lack of government oversight

Starring the DBA Insurance company that most ruthlessly denies the medical care and benefits to Injured Contractors and the Widows and families of those who are killed.

July 28, 2011

SIGAR Audit-11-15 Contract Performance and Oversight / Defense Base Act Insurance

SIGAR audited a pilot program in which CNA was contracted to provide DBA Insurance for US Army Corps of Engineers contracts.

So this $58.5 million was overcharged in a very small portion of the DBA business that CNA carries.

Basically CNA overcharged, didn’t reimburse USACE and contractors for labor charges that turned out not to be justified,  did not have proper paperwork in place and accounting procedures to allow DCAA to be able to look at their books and determine who was owed what.

CNA also commingled funds meant to be segregated for different contracts, lumping them all into one account.

The workers’ compensation program is so riddled with problems as a result of using a third-party insurer that the inspector general’s office suggests it may be worthwhile to dump the insurer altogether, the audit reads.

Audit finds numerous problems in workers’ comp program for US contractors in Afghanistan

Problems abound in US government insurance program

Army Corps Overpaid CNA $10 Million on War Insurance: Audit

More to come

July 28, 2011 Posted by | AIG and CNA, Civilian Contractors, Contractor Casualties, Contractor Oversight, Defense Base Act, Follow the Money, Government Contractor, SIGAR, USACE | , , , , , , | Leave a comment