Government contracts and welfare programs will always be rife with massive amounts of fraud. So much stolen money is coming in via taxation and money printing that the Government as a whole could care less if a % of the money they have stolen from us is then stolen from them.

On a more granular level, government employees don't have the same incentive to care about catching fraud that a private organization's employees have. It's not like the Government will go out of business if they aren't vigilant about catching fraud.

It's not their money, and they will get a paycheck regardless. Also, a lot of the time the employees are in on some fraud themselves.

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