Committee examining $500 million in IRS contracts

Posted at 6:46 PM, Feb 20, 2013
and last updated 2013-02-20 18:46:00-05

WASHINGTON (AP) — A House committee is investigating whether a personal relationship between an Internal Revenue Service employee and the owner of a computer company resulted in a series of government contracts worth approximately $500 million being steered toward the firm.

In a letter obtained by The Associated Press, the chairman of the House Oversight Committee, California Republican Rep. Darrell Issa, writes to acting Treasury Secretary Neal S. Wolin that he has learned about a personal relationship between an IRS employee and Braulio Castillo, who owns Signet Computers.

The name of the IRS employee is blacked out in the letter.

Issa writes that before 2012, Signet Computers appears to have received no federal contracts, but has since received approximately $500 million in contracts, nearly all from the IRS.

An IRS spokeswoman declined comment. Phone and email messages to Signet Computers were not immediately returned Wednesday.