Defense Base Act Insurance Company CNA may owe US Government as much as $58.5 million
Posted by defensebaseactcomp on July 28, 2011
July 28, 2011
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.