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FEMA Wants Over $300M in Katrina Aid Back
Key Excerpts from Article on Website of ABC News/Associated Press
Posted: February 7th, 2007
http://abcnews.go.com/US/wireStory?id=2852688
In the neighborhood President Bush visited right after Hurricane Katrina, the U.S. government gave $84.5 million to more than 10,000 households. But Census figures show fewer than 8,000 homes existed there at the time. Now the government wants back a lot of the money it disbursed. The Federal Emergency Management Administration has determined nearly 70,000 Louisiana households improperly received $309.1 million in grants, and officials acknowledge those numbers are likely to grow. An Associated Press analysis of government data obtained under the federal Freedom of Information Act suggests the government might not have been careful enough with its checkbook as it gave out nearly $5.3 billion in aid to storm victims. The analysis found the government regularly gave money to more homes in some neighborhoods than the number of homes that actually existed. The pattern was repeated in nearly 100 neighborhoods. At least 162,750 homes that didn't exist before the storms may have received a total of more than $1 billion in improper or illegal payments. In one neighborhood GAO scrutinized, at least one person gave an address as a cemetery. Records show FEMA gave 27,924 assistance grants worth $293 million in that neighborhood. Only 18,590 homes existed, meaning up to $98 million in aid could have been disbursed improperly or illegally. The AP's findings are similar to those of a February report by the Government Accountability Office, which found hurricane aid was used for to pay for guns, strippers and tattoos. The GAO concluded that between $600 million and $1.4 billion was improperly spent on Katrina relief alone.
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