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S tricter Loan Rules Would Help

Click to see original imageRep. James R, Jones’ call for elimination of “waste. fraud and abuse” to save the government “billions of dollars” is praiseworthy W but the effort should complement and not delay Reagan Administration initiative to cut federal spending. Jones, an Oklahoma Democrat. was quoted in Washington as insisting that President Reagan has overlooked this source of revenue. Also that the House Budget Committee. which he heads. intends to find solutions to the waste fraud – abuse problem before Congress “rushes to destroy valuable programs.” In testimony before Jones’ committee, a General Accounting Office official said that in 1980 federal agencies reported receivables due of $126 billion. Of that amount. he estimated, about $5.3 billion will be uncollected. while delinquent debts will total about $24 billion. The GAO official and representatives of the Veterans Administration. Health and Human Services. and Housing and Urban Development testified that billions of dollars can be saved by improved debt collection and management of federal programs. Presumably the shortcomings cited have been around for considerable time and shouldn’t be blamed to the new administration. Indeed. Reagan’s demand for fiscal responsibility apparently has provided extra motivation for the avowed drive on waste and fraud, In a separate action. Sen. Charles H. Percy. R-lll. has introduced legislation to help collect $25 billion in debts owed the government. Percy and Sen. James Sasser, D-Tenn.. offered a similar bill last year. The Illinois senator’s Debt Collection Act of 1981 would allow the government to report delinquent debtors to commercial credit bureaus, a grocedure now prohibited y law. It also would permit the government to set aside part of a federal employees salary for payment of debts. Percy said the total debt to the govemment is $175 billion. consisting of $126 billion owed by individuals. businesses and organizations in the U.S, and $49 billion from foreign governments. Of the $126 billion owed from domestic sources. $102 billion is government loans and $24 billion is unpaid taxes. interest and over-payments to beneficiaries. The government operates 358 loan programs in 24 agencies, Federal loan agencies should be operated strictly on a businesslike basis. The same applies to administration of all government programs. A crackdown on delinquent debts and on all “waste, fraud and abuse” is overdue. ,