The US Securities and Exchange Commission (SEC) was placed in a "hot seat" for failing to do a proper background check on 40 to 70 contractors. The issue on contractor vetting was placed in the limelight recently after highly classified intelligence details were leaked by Edward Snowden, who served as a contractor at a facility of the National Security Agency.
"The SEC controls sensitive information that it has to secure from convicted criminals and non-employees walking in off the street," said Senator Charles Grassley. The SEC managed reams of proprietary information of financial firms and other publicly traded companies. Thus, contractor vetting was very critical for the agency.
In response to the issue, SEC gave a more vigorous review to contractors who had potential criminal pasts. In addition, additional security barriers were installed and criminal background checks were now handled by SEC's security staff instead of human resources. "The issues have been resolved to the (Office of the Inspector General's) satisfaction," SEC spokesman John Nester said.
Join the Conversation