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An Army general was accused by Senator Byron Dorgan (D-ND) Wednesday of misleading Congress about problems with the defense contractor KBR. Sen. Dorgan claimed that General Jerome Johnson made false statements to the Senate Armed Services Committee about widespread problems with KBR supplied water. (New York Times)

Defense Secretary Gates announced Wednesday that the contract for a new fleet of aerial refueling tankers awarded to Northrop Grumman Corp. will be re-opened due to a flawed bidding process. This decision comes after last month’s ruling by the GAO that the Air Force mishandled the bid by giving Northrop more credit than it deserved. The Air Force no longer has the authority to choose the plane. (LA Times)

The Justice Department plans to revise guidelines for white-collar criminal cases in an attempt to delay department opposed legislation. The proposition would result in changes to the McNulty Memorandum of 2006 which helps prosecutors determine when companies are deemed cooperative with an investigation. (Wall Street Journal)

A District Court Judge granted Citizens for Responsibility and Ethics in Washington a stay in their lawsuit against the Office of Administration over documents regarding the Bush Administration’s loss of millions of government emails. The stay will ensure that the documents will be preserved until an appeal. (CREW)

A woman linked to Nevada Governor Jim Gibbons is under investigation in connection with a hit-and-run over the weekend. The woman, Leslie Durant, is a former Playboy model who was recently photographed embracing Gibbons in a parking lot. Gibbons is currently enduring a very public divorce. (Reno Gazette-Journal)

Two suspects at Guantanamo Bay accused of plotting the September 11th attacks told a U.S. military war crimes court they were not coerced by the infamous al Qaeda operative Khalid Sheikh Mohammed. Lawyers had previously complained that KSM bullied the two into refusing to accept military lawyers at an initial hearing. (Reuters)

Federal Prosecutors are investigating State Department employees over the passport breaches of prominent politicians, entertainers, and athletes. Attorney General Mukasey yesterday said that if a crime was committed, he will ensure that “somebody goes to jail.” (AP)

The chairman of the US trailer manufacturer that supplied trailers to Hurricane Katrina victims admitted Wednesday that his company failed to disclose internal findings about unsafe levels of formaldehyde. Jim Shea, the chairman, acknowledged to Congress that some trailers exceeded federal health standards over forty times. (Washington Post)

Federal and state officials are investigating claims of voter fraud in three Alabama counties. A citizens group from the three largely black counties filed affidavits in May detailing cases, including one in which a candidate paid for votes. (New York Times)

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