A Report by KMOV.com (St. Louis) claims that the UK-based firm Serco, which was awarded a $1.2 billion contract by the federal government last year to process Obamacare applications, is paying its employees to do absolutely nothing.
The federal government gave the company the $1.2 billion contract last summer even though the company was in the middle of being investigated for overbilling the British government millions of pounds.
Serco employees told KMOV that they have been told by management to sit in front of computer screens and hit refresh every 10 minutes.
"There are some weeks that a data entry person would not process an application," an employee told KMOV.
KMOV’s report claims that Serco is employing unneeded employees because their contract with the federal government pays them per work instead of by the number of Obamacare applications processed. The company—still being investigating by the British government—is even continuing to hire despite the lack of work.
Despite Serco’s questionable practices, Fiscal Times reports the Obama administration is still defending. Meanwhile, Serco continues its massive lobbying efforts:
Still, the administration has defended the company. Last year, amid the fraud investigation, Brian Cook, a spokesman for the Centers for Medicare and Medicaid Services told Reuters, "Serco is a highly skilled company that has a proven track record in providing cost-effective services to numerous other [U.S.] federal agencies.”
Serco has spent millions lobbying in D.C. and contributing to campaigns, including upwards of $6,000 to the president’s reelection campaign, according to the Sunlight Foundation.