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A4 U.S. NEWS
Friday 2 december 2022
House panel says lax screening helped facilitate PPP fraud

By FATIMA HUSSEIN ment sent to the commit-
Associated Press tee in January that the
WASHINGTON (AP) — Fi- firm’s role in the screening
nancial technology firms process was limited. “Wom-
abdicated their responsi- ply did not approve PPP
bility to screen out fraud loan applications, issue PPP
in applications for a fed- loans, or otherwise serve as
eral program designed to a lender in the PPP. Wom-
help small businesses stay ply helped connect bor-
open and keep workers rowers with PPP lenders,
employed during the pan- which were responsible for
demic, a report by a House reviewing, approving, sub-
investigations panel said mitting, funding, and ser-
Thursday. vicing the PPP applications
The House Select Subcom- and loans,” the company’s
mittee on the Coronavirus lawyers wrote.
Crisis launched its investi- Womply referred 128,813
gation of the firms in May PPP applicants to lenders
2021 after public reports in 2020, and 2,584,420 ap-
that the firms were linked to plicants to lenders in 2021.
disproportionate numbers “We must learn from this
of fraudulent loans issued inexcusable misconduct
under the Paycheck Pro- to erect guardrails that will
tection Program. House Majority Whip James Clyburn, D-S.C., leaves the chamber at the Capitol in Washington, help ensure that federal
Former President Donald Nov. 17, 2022. Associated Press programs including emer-
Trump rolled out the Pay- gency assistance programs
check Protection Program PPP money to businesses. leading to “the needless together with duct tape in future crises are admin-
to help small businesses The report said two start- loss of taxpayer dollars,” and gum.” It said Womply’s istered more effectively,
stay open and keep their ups, Blueacorn PPP and the report said. The firms software became a pre- efficiently, and equitably
workers employed. Presi- Womply Inc. which re- “took billions in fees from ferred product for criminal while keeping waste, fraud,
dent Joe Biden maintained viewed one in every three taxpayers while becoming enterprises seeking to de- and abuse to an absolute
the program and directed funded PPP loans in 2021 easy targets for those who fraud the government of minimum,” said Rep. Jim
money to more low-income were connected to signifi- sought to defraud the PPP.” PPP loans. Clyburn, D-S.C., who chairs
and minority-owned com- cant percentages of PPP Neither firm responded im- The firm also received over the coronavirus crisis sub-
panies. All told, $800 billion loan applications with indi- mediately to a request for $5 million in PPP loans for committee.
was spent on the program. cators of fraud. comment. itself, which the Small Busi- Clyburn said the commit-
The financial technology It said the firms used ques- The report said Womply’s ness Administration later tee’s findings were sent to
firms reviewed PPP appli- tionable screening proce- fraud prevention practices determined it was ineligible the Justice Department
cations for lenders, which dures and business prac- were so lax that lenders to receive. and the Small Business Ad-
would ultimately distribute tices in reviewing the loans, describe its systems as “put Womply said in a state- ministration. q

Rat Attack: NYC seeks hands-on leader in anti-rodent fight

NEW YORK (AP) — Hate tional efficiency, data col- Adams, when he was bor-
rats? Are you a “somewhat lection, technology inno- ough president of Brooklyn,
bloodthirsty” New Yorker vation, trash management, once demonstrated a trap
with excellent communi- and wholesale slaughter,” that used a bucket filled
cation skills and “a general reads that ad. with a toxic soup to drown
aura of badassery”? Then The posting is whimsical, rats lured by the scent of
you might have what it but the job is daunting. food.
takes to be the city’s new New York City leaders have Now, the Adams’ adminis-
rat czar. been trying to control the tration is looking for a top
Mayor Eric Adams’ admin- rodent population for gen- rat bureaucrat to become
istration posted a job listing erations, with mixed results. the public face of the city’s
this week seeking someone Sightings of rats in parks, eradication and education
to lead the city’s long-run- sidewalks and other places efforts.
ning battle against rats. The in the city have recently in- “Cunning, voracious, and
official job title is “direc- creased. prolific, New York City’s
tor of rodent mitigation,” City rats have survived a rats are legendary for
although it was promptly multimillion-dollar effort their survival skills, but they
dubbed the rat czar. Sal- under former Mayor Bill don’t run this city – we do,”
ary range is $120,000 to de Blasio that focused on claimed the posting.
$170,000. more trash pickups and Applicants are expected
“The ideal candidate is better housing inspections to have a crafty sense of
highly motivated and in targeted neighborhoods. humor and “to lead from A rat crosses a Times Square subway platform in New York on
somewhat bloodthirsty, de- The city also launched a the front, using hands-on Jan. 27, 2015. New York City Mayor Eric Adams’ administration
termined to look at all solu- program to use dry ice to techniques to exterminate posted a job listing this week seeking someone to lead the city’s
tions from various angles, suffocate rats in their hiding rodents with authority and long-running battle against rats. Associated Press
including improving opera- spots. efficiency.”q