Katrina fraud likely to balloon past $1B

[ProSense]

Katrina fraud likely to balloon past $1B

By HOPE YEN, Associated Press Writer 1 hour, 28 minutes ago

WASHINGTON - The tally for Hurricane Katrina waste could top $2 billion next year because half of the lucrative government contracts valued at $500,000 or greater for cleanup work are being awarded without little competition.

Federal investigators have already determined the Bush administration squandered $1 billion on fraudulent disaster aid to individuals after the 2005 storm. Now they are shifting their attention to the multimillion dollar contracts to politically connected firms that critics have long said are a prime area for abuse.

In January, investigators will release the first of several audits examining more than $12 billion in Katrina contracts. The charges range from political favoritism to limited opportunities for small and minority-owned firms, which initially got only 1.5 percent of the total work.

"Based on their track record, it wouldn't surprise me if we saw another billion more in waste," said Clark Kent Ervin, the Homeland Security Department's inspector general from 2003-2004. "I don't think sufficient progress has been made."

Snip...

"It's a combination of laziness, ineptitude and it may well be nefarious," Ervin said.

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4 Katrina contracts under review

By The Associated Press Mon Dec 25, 11:09 AM ET

Four of the largest Katrina contracts currently under review by the
Homeland Security Department's inspector general. The companies have denied that political connections played a factor in their contract awards.

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BECHTEL GROUP INC.

Location: San Francisco

Value of contracts: $250 million, on top of previous no-bid work of up to $575 million

Contributions: More than $1.3 million since 2000, primarily to Republicans

Also: CEO Riley Bechtel served on Bush's Export Council from 2003-2004

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CH2M HILL COMPANIES LTD.

Location: Englewood, Colo.

Value of contracts: $250 million, on top of previous no-bid work of up to $500 million

Contributions: Nearly $1 million since 1999, primarily to
Republican National Committee and other Republicans

Also: Roughly $500 million in previous government contracts

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FLUOR CORP.

Location: Irving, Tex.

Value of contracts: $250 million, on top of previous no-bid work of up to $1.4 billion

Contributions: More than $930,000 since 2000, primarily to Republicans

Also: Contracts awarded to subsidiary Del-Jen Industries also under review

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THE SHAW GROUP INC.

Location: Baton Rouge, La.

Value of contracts: $250 million, on top of previous no-bid work of up to $950 million

Contributions: Roughly $290,000 since 2000, evenly divided between Democrats and Republicans

Also: Former FEMA director Joe Allbaugh, a longtime friend of
President Bush, is Shaw's registered lobbyist and business consultant

Panels planning Katrina oversight

By The Associated Press Mon Dec 25, 11:10 AM ET

Democrats in Congress next year are pledging closer oversight of how $88 billion in federal aid for Hurricane Katrina is being spent. Some of the committee reviews planned and the incoming chairpersons:

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SENATE

• Appropriations: Robert C. Byrd, D-W.Va., has sent a letter to
Homeland Security Secretary Michael Chertoff asking him to speed up recommendations to revamp the Federal Emergency Management Agency; Byrd also described as "shameful" the department's slow distribution of money to state and local emergency workers.

Snip...

• Small Business:
John Kerry, D-Mass., is calling for hearings on the Small Business Administration's disaster loan program, saying only about one-fifth of the $10 billion in loans had reached affected areas; wants "aggressive contracting oversight" of work slated for small firms.

Snip...

• Financial Services: Maxine Waters, D-Calif., who chairs a subcommittee, intends to call hearings on the housing aid backlog by FEMA and the
Department of Housing and Urban Development. Barney Frank, D-Mass., is the committee's chairman.

• Government Reform: Henry Waxman, D-Calif., plans to continue hearings on contracting abuses, including waste in no-bid contracts and multilevel subcontracting. Also will scrutinize use of government-issued credit cards and distribution of contracts to small and minority-owned businesses.

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[durtee librul]

1. I just posted this on

another blog....and I will repeat...can he REALLY be THAT stupid to NOT know what the hell his cronies are up to? Can he REALLY be that uncaring toward fellow 'amerikans?'

Nancy and the new congress MUST ask HIM personally and not any of 'his people.' HE is the president (oh how it pains me to write that) and is responsible for this fiasco and should be held accountable to ALL of us, not just the bay area folks.

Again, it just befuddles my 56 year old mind to think someone this stupid and uncaring is in the wh and who CLAIMS to be a born again KRISTYAN. (misspelled on purpose) He just sucks and is a very evil sick disgusting person....and these are my KIND thoughts only becuase it is Christmas.

[indepat]

2. Katrina: a godsend to and bonanza for the administration's crony contractors