"Alaska Native Corporations' Contracting Privileges Targeted"

"Alaska native corporations would lose their special contracting privileges under legislation that Sen. Claire McCaskill (D-Mo.) intends to introduce next month, a move that will stir debate about the billions of dollars' worth of federal set-aside contracts that the companies receive.

But relatively little of the money from the contracting boom has gone into shareholder pockets, as shown by audits, annual reports and congressional documents.

McCaskill said in an interview that she thinks ANCs have been 'masquerading as a solution to the problems in Alaska' without providing sufficient benefits to taxpayers or native shareholders.

When told about McCaskill's proposed legislation, Sen. Mark Begich (D-Alaska) said he would 'clearly oppose' it as 'misguided' and 'shortsighted.' But he said he will review reform proposals that strengthen the ANC program."

Robert O'Harrow Jr. reports for the Washington Post October 7, 2010.