FEMA Uncovers Katrina Relief Fraud
An Associated Press story reveals that the government may have given millions, if not billions, of dollars in relief funds related to Hurricanes Katrina and Rita to rebuild homes that never existed:
NEW ORLEANS (AP) — 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 across the region.
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.
In the chaotic period after two deadly hurricanes, Katrina and Rita, slammed the Gulf Coast in 2005 – Katrina making landfall in late August, followed by Rita in late September – federal officials scrambled to provide help in hard-hit areas such as submerged neighborhoods near the French Quarter.
But 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 damaged by the hurricanes. 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, the AP found.
The AP analysis discovered the government made more home grants than the number of homes in one of every five neighborhoods in the wake of Katrina. After Rita roared ashore, there were more home grants than homes in one of every 10 neighborhoods.
Given how most government programs work, this isn’t surprising, of course, but it is somewhat distressing to see government ineptitude on such a massive scale.
