P.M. BRIEFING : GAO Faults S&L; Sales Controls
Government regulators do not have an effective system to manage the consultants hired to sell real estate inherited from failed savings and loans, the head of the General Accounting Office said today.
“One of our key concerns is that the RTC (Resolution Trust Corp.) does not have an effective contractor oversight program,” Charles A. Bowsher, head of the congressional investigative agency, told the House Banking Committee.
“Because of the large dollar value of assets to be placed under contractor control, we believe it is essential that an effective system be put in place as quickly as possible to assure proper contract management and oversight, and minimize RTC’s vulnerability to fraud, waste and mismanagement.”
Bowsher’s testimony came a day after the Democratic staff of the committee issued a report charging that RTC red tape is tangling the sale of S&L; assets and costing taxpayers millions.
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