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McCaul Seeks to Stop Taxpayer Waste in Assistance to Mexico

July 21, 2011

WASHINGTON, D.C. – Congressman Michael McCaul (R-TX) introduced legislation to stop waste and mismanagement found in U.S. efforts to assist Mexico in its war against the drug cartels. Rep. McCaul introduced an amendment addressing this issue during today’s markup of the Foreign Relations Authorization Act before the House Foreign Affairs Committee. It passed unanimously.

“One of the main reasons for which we provide Merida aid is to institutionalize the rule of law in Mexico by providing training programs for police, judges and prosecutors. USAID (United States Agency for International Development) was tasked to carry this out and gave about 90% of the contract to one company, which has a poor performance record,” said Rep. McCaul. “Competition will force USAID to do what they should have done in the first place: provide demonstrably effective training with real metrics and oversight.”

AMENDMENT

Prevents USAID from awarding more than 50% of the dollar amount of any contract to one company.

· An Inspector General audit found that Management Services International (MSI) did not effectively carry out its responsibilities related to a three year, $44.1 million cost-type contract awarded in 2009.

· The importance of contract performance and oversight is now greater as Merida moves toward work with Mexican justice institutions to improve transparency, oversight and accountability. Justice reforms, as called for in the Mexican constitution, are necessary in order to prosecute cartel members who are often untouchable and restore public confidence.