Truthdig - Ear to the Ground - ‘Breathtaking’ Waste and Fraud in Hurricane Aid

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‘Breathtaking’ Waste and Fraud in Hurricane Aid

Posted on Jun 27, 2006

Scams, schemes and bureaucratic snafus related to federal aid for Hurricane Katrina cost taxpayers at least $2 billion.

N.Y. Times:

WASHINGTON, June 26 Among the many superlatives associated with Hurricane Katrina can now be added this one: it produced one of the most extraordinary displays of scams, schemes and stupefying bureaucratic bungles in modern history, costing taxpayers up to $2 billion.

A hotel owner in Sugar Land, Tex., has been charged with submitting $232,000 in bills for phantom victims. And roughly 1,100 prison inmates across the Gulf Coast apparently collected more than $10 million in rental and disaster-relief assistance.

There are the bureaucrats who ordered nearly half a billion dollars worth of mobile homes that are still empty, and renovations for a shelter at a former Alabama Army base that cost about $416,000 per evacuee.

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By felicity smith, June 27, 2006 at 3:40 pm #
(Unregistered commenter)

“The blatant fraud, the audacity of the schemes, the scale of the waste - it’s just breathtaking”, said Senator Susan Collins. No, she’s not talking about the behavior of Congress here but she just as well could have been. Moral indignation at the behavior of some Katrina victims rings a little hollow when coming from a member of a government body in which blatant fraud, audacity of schemes, and scale of waste is merely business as usual.

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