$1 million for two $0.19 washers

The US Defence Department said a flawed system designed to rush supplies to troops in Iraq and Afghanistan let a small-parts supplier improperly collect $998,798.38 to ship two $0.19 washers. Loopholes in the automated purchasing system have been fixed...

The US Defence Department said a flawed system designed to rush supplies to troops in Iraq and Afghanistan let a small-parts supplier improperly collect $998,798.38 to ship two $0.19 washers.

Loopholes in the automated purchasing system have been fixed and the ill-gotten gains were being returned to the US Treasury, said Army Lt Col. Brian Maka, a Pentagon spokesman.

The lock-washer incident was the last in a series of abuses by twin sisters running a South Carolina company that bilked the Pentagon out of about $20.5 million in fraudulent shipping costs, federal prosecutors said after obtaining guilty pleas earlier in the day.

The owners of C&D Distributors of Lexington, South Carolina, submitted online bids to the Defence Department to supply hardware components, plumbing fixtures, electronic equipment and other items, according to court papers.

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