GAO continues to believe that MSC does not have an adequate system of controls over its contractor-operated ships. Recent fraudulent practices of a former MSC contractor and the continuing investigation by federal law enforcement agencies into MSC operations support GAO's conclusion that MSC's internal controls are inadequate. While MSC uses a combination of government and privately owned ships to carry out this mission, all these ships have civilian crews who work either directly for MSC or for MSC's contract operators. This figure includes payments for leasing the 18 privately owned ships in the group. The remaining nine ships are operated by seven different contractors.
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