Fraud and cover-up allegations about a failed $300 million effort to develop a disability case management system for the Social Security Administration has put the nomination of Acting SSA Commissioner Carolyn Colvin to become its permanent chief in jeopardy.

Incoming Senate Finance Committee Chairman Orrin Hatch (R-Utah) said he has revoked his earlier support of Colvin unless charges of mismanagement and possible criminal conduct by high-level administrators at the agency are found baseless.

It is extremely unlikely the Senate would vote on her nomination with his opposition.

“This is about more than just mismanagement of funds or bureaucratic incompetence. This is about an ongoing investigation of people in Ms. Colvin’s direct office for contract issues and allegations that they purposefully misled Congress in order to move her nomination through. It may very well turn out that Ms. Colvin did nothing wrong -- but we need to know for sure,” the Utah Republican said on the Senate floor Thursday.

Colvin has said she is not personally responsible for mismanagement on the disability project and denied any criminal wrong doing.

Late last month, the House Ways and Means Committee said the results of a criminal investigation into contracts for the disability computer system are still pending.

Whistleblowers have told the soon-to-be Hatch-led Senate Finance Committee that SSA’s Inspector General probe into the $300 million project involves members of Colvin’s immediate office and other high-level Social Security officials.