Pub. L. 90-554, pt. III, ch. 2, sec. 302

Sec. 302. Chapter 2 of part III of the Foreign Assistance Act of 1961, as amended, which relates to administrative provisions, is amended as follows: (a) Section 621, which relates to exercise of functions, is amended by inserting “(a)” immediately after “Sec. 621. Exercise of Functions.—” and by adding at the end thereof the following new subsection: “(b) The President shall issue and enforce regulations determining the eligibility of any person to receive funds made available under this Act. A person may be suspended under such regulations for a temporary period pending the completion of an investigation and any resulting judicial or debarment, proceedings, upon cause for belief that such person or an affiliate thereof probably has undertaken conduct which constitutes a cause for debarment; and, after an opportunity has been afforded to such person for a hearing, he may be. debarred for an additional period, not to exceed three years. Among the causes for debarment shall lie (1) offering or accepting a bribe or other illegal payment or credit in connection with any transaction financed with funds made available under this Act; or (2) committing a fraud in the procurement or performance of any contract financed with funds made available under this Act; or (3) acting in any other manner which shows a lack of integrity or honesty in connection with any transaction financed with funds made available tinder this Act. Reinstatement of eligibility in each particular ease shall be subject to such conditions as the President shall direct. Each person whose eligibility is denied or suspended under this subsection shall, upon request, be entitled to a review of his eligibility not less often than once every two years.” (b) Immediately after section 621 add the following new section: “Sec. 621A. Strengthened Management Practices.— (a) The Congress believes that United States foreign aid funds could be utilized more effectively by the application of advanced management decision making, information and analysis techniques such as systems analysis, automatic data processing, benefit-cost studies, and information retrieval, “(b) To meet this need, the President shall establish a management system that, includes: the definition of objectives and programs for “United States foreign assistance; the development of quantitative indicators of progress toward these objectives; the orderly consideration of alternative means for accomplishing such objectives; and the adoption of methods for comparing actual results of programs and projects with those anticipated when they were undertaken. The system should provide information to the agency and to Congress that relates agency resources, expenditures, and budget projections to such objectives and results in order to assist in the evaluation of program performance, the review of budgetary requests, and the setting of program priorities. “(c) The President shall report to the Congress annually on the specific steps that have been taken, including an evaluation of the progress that has been made toward the implementation of this section.” 82 Stat. 965 (c) Section 625(c), which relates to employment of personnel, is amended by inserting “or any Act superseding part II in whole or in part,” between “part 11,” and “not”. (d) Section 636(g) (1), which relates to provisions on uses of funds, is amended by inserting “incurred in furnishing defense articles and defense services on a grant or sales basis by the agency primarily responsible for administering part II” between “expenses’ and the semicolon. (e) Section 637(a), which authorizes appropriations for administrative expenses of the agency administering pert I, is amended (1) by striking out “1968, $55,814,000” and substituting “1969, $53,000,000”; and (2) by adding at the end thereof the following: “The agency administering part 1 shall reduce the number of personnel, particularly administrative personnel, employed by it in order to conduct operations with the reduced amount of funds authorized for fiscal year 1969, except that such agency shall not take any action to limit or reduce auditing or training activities of such agency.” (f) At the end of such chapter, add the following new section: “Sec. 640A. False Claims and Ineligible Commodities.— (a) Any person who makes or causes to lie made or presents or causes to be presented to any bank or other financial institution or to any officer, agent, or employee of any agency of the United States Government a claim for payment from funds made available under this Act for the purposes of furnishing assistance and who knows the claim to lie false, fraudulent, or fictitious or to cover a commodity or commodity-related service determined by the President, to be ineligible for payment from funds made available under this Act, or who uses to support his claim any certification, statement, or entry on any contract, abstract, bill of lading, Government or commercial invoice, or Government form, which he knows, or in the exercise of prudent business management should know, to contain false, fraudulent, or fictitious information, or who uses or engages in any other fraudulent trick, scheme, or device for the purpose of securing or obtaining, or aiding to secure or obtain, for any person any benefit or payment from funds so made available under this Act in connection with the negotiation, procurement, award, or performance of a contract financed with funds so made available under this Act, and any person who enters into an agreement, combination, or conspiracy so to do, (1) shall pay to the United States an amount equal to 25 per centum of any amount thereby sought to be wrongfully secured or obtained but not actually received, and (2) shall forfeit and refund any payment, compensation, loan, commission, or advance received as a result thereof, and (3) shall, in addition, pay to the United States for each such act (A) the sum of $2,000 and double the amount of any damage which the United States may have sustained by reason thereof, or (B) an amount equal to 50 per centum of any such payment, compensation, loan, commission, or advance so received, whichever is the greater, together with the costs of suit. “(b) In order to secure recovery under this section, the President may, as he deems appropriate, (1) institute suit in the United States district court for any judicial district in which the person alleged to have performed or participated in an act described by this section may reside or may be found, and (2) upon posting by registered mail to such person a notice of claim describing the basis therefor and identifying the funds to be withheld, withhold from funds owed by any agency of the United States Government to such person an amount equal to the refund, damages, liquidated damages, and exemplary damages claimed by the United States under this section. Any such withholding of funds from any person shall constitute a final determination of the lights and liabilities of such person under this section with respect to the amount so withheld, unless within one year of receiving the notice of claim such 82 Stat. 966person brings suit for recovery, which is hereby authorized, against the United States in any United States district court. “(c) For purposes of this section, the term ‘person’ includes any individual, corporation, partnership, association, or other legal entity.”