Latest Katrina Disaster: Waste Estimate Doubles to $2 Billion

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Turns out the Bush Administration’s handling of Katrina was even worse than we thought, which is saying something.
The feds had previously put the amount of money wasted at $1 billion, which included money or other help provided to people who didn’t qualify for help, such as tens of millions of dollars in fraudulently obtained housing assistance. But earlier this week the Government Accountability Office said its initial estimate of $1 billion was “likely understated,” citing continuing problems it has found with the ways the Federal Emergency Management Association has spent money on Katrina recovery.

Now the GAO is looking into a number of relief contracts that were hastily awarded to firms with strong political ties, including the big 4: Bechtel, Shaw Group, Flour Corp. and CH2M Hill, whose four no-bid contracts together worth $400 million are now being investigated by the Department of Homeland Security’s Inspector General.

Some $12 billion in relief contracts were awarded, and charges range from political favoritism to limited contract opportunities being afforded to small and minority-owned companies, which initially got only only 1.5% of the total work.

Says Clark Kent Ervin, former DHS inspector general, of the revelations: “Based on track record, it wouldn’t surprise me if we saw another billion more in waste. It’s a combination of laziness, ineptitude and it may well be nefarious.”

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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