Wow! Profiteering by businesses, friends of government officials and individuals after a disaster. Who could have imagined that! At least all the victims were helped, right?

Katrina Fraud, Waste Likely to Balloon Past $2 Billion

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.”



  1. On HDNet, Dan Rather Reports episode 103 covered this. See http://www.hd.net/op_danrather_epguide.html.

  2. Dallas says:

    A natural disaster followed by a Bush disaster. What a surprise.

    When Bush and thugs saw Americans were shocked to their lack of preparation and response to Katrina they threw money at the problem with a months worth of photo ops.

    Result? Pretty much what you see. It’s rather numbing after 6 years of this. The question is, will America recover from the GOP mafia running this country.

  3. RTaylor says:

    What do you want to bet that most of that money is now off shore or out of reach of federal investigators. The only thing now to do is spend millions more on investigations.

  4. Roc Rizzo says:

    Why does this not suprise me?
    It seems that Bushco, Inc. is only concerned with padding the wallets of Halliburton, and its subsidiaries, as it has done, once again, here.

    Well in another month or so, the investigations will begin, and we shall see who was at fault here. I hope.

  5. Hance says:

    How many of you would have bitched in the opposite scenario and the govt awarded contracts on its normal timeframe and process. I can hear the wailing about all the people not getting aid. Can’t have it both ways.

  6. Lee says:

    Perhaps you are right, Hance, but this case was actually the worst of both worlds; bothched, hurried no-bid contracting followed by huge numbers of people not getting appropriate assistance. In fact, we did get screwed both ways, and I feel sore.

  7. Mucous says:

    Oh yeah, I’m sure this kind of thing never happened before Bush.

    Bigger disaster, bigger $. Percentage-wise I bet the same thing has been happening for the last 50 years under either party.

  8. Peter Rodwell says:

    Just about what one expects from these 3rd world countries.

  9. Dennis Duffner says:

    Another case of Bush telling America, “Bend over…you’ll LIKE it.”

  10. Jon says:

    This is not the only disaster where the money hasnt been spent. All the money from the Asian Tsunami is still sitting in bank accounts. This pisses me off no end. I donated money to that at a cost to myself and now I find out Government and fat cats are not helping the people it was intended for. Makes me sick!

  11. noname says:

    Yea I am not surprised. Americans have abdicated their government to BushCo, because Bush said in 2000 “I stick by my convictions and stick by my principles. And that’s the kind of president I’m going to be.”
    Larry King January 25, 2000 transcripts.

    Doesn’t matter how dishonest or bogus those convictions are, Americans like his belief and stick-to-it-ness. Unfortunately American tax payers are left holding the bag for his mess and stick-to-it-ness.

    All the signs for this kind of behaviour was evident in both elections, how he falsely discredited McCain in 2000 and swift boated Keery.

    But, you can’t blame Bush and Co., because American are too dumb or intellectually dishonest to see through the crap. I fault the idiots who voted him in.

    If any president deserved to be impeached, it this one.

  12. Dallas says:

    #8 .. Page 11 of the GOP manual.. ” Use these canned responses to combat the anti-Bush infidels”

    Issue: Billions wasted in fraud, corruption by Bush government
    Ans: “No bid deal, billions have always been wasted”

    Issue: More Americans sent to their death in Iraq by Bush than 9/11
    Ans: “They signed up for it and it’s someone else’s kid anyway”
    Bonus: ” Clinton had oral sex in the Oval office, yuk”

    Issue: Bush ignored our own Americans in Katrina disaster
    Ans: “That was so last year”
    Bonus: “Lots of jobs were created”

    Issue: Bush plunders treasury and bankrupts our kids future”
    Ans: “Clinton stained the oval office rug and all the W keys are missing”

    Issue: Under Bush, Americans are despised worldwide
    Ans: “The Catholic Church killed and tortured millions. Who’s bad now?”

  13. ECA says:

    I see a billion LOSt to the group that did the study..

  14. Uncle Dave says:

    #8: So, you feel it’s OK that billions were wasted by Bush & Co just because others before him did it?

  15. Mucous says:

    #15 – Of course not. But it’s sad to see the immediate posts blaming GW personally for every gov’t screwup as if he personally orchestrates everything. This type of thing is a general problem that has nothing special to do with the current administration.

    (As an aside, after re-reading, if Dan Rather reported it, I have to wonder if it really happened.)

  16. Mr. Fusion says:

    #16,
    Bush just happens to be the President. Whether or not he won the elections is another story, but because he was the one that took the oath of office,…YES BUSH SCREWED UP.

    He is the one responsible for implementing the laws passed by Congress. He hired flunkies who signed away the contracts to friends. When the complaints came in they were ignored. Contract extensions were signed. Bush was well aware of problems but didn’t do anything except have another photo-op.

    Bush has yet to take responsibility for anything his administration has failed. Most of all his failure to the American people.

  17. ECA says:

    UNTIL we hold others as responsible and Honest as ourselves…
    We WONT have a responsible honest governemtn

  18. tallwookie says:

    I’d be pissed if I still lived in New Orleans, but I dont (fortunately I moved out 1 yr before the shit hit the fan). Well – actually, I’d be pissed if I didnt get a check from the mis-managed fema agency.


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