FEMA Lost Tens of Millions in Katrina Fraud, GAO Finds
Thursday December 7, 2006
The Federal Emergency Management Agency (FEMA), has potentially lost tens of millions of dollars through improper and fraudulent payments issued during its Hurricanes Katrina and Rita relief efforts, according to a new Government Accountability Office (GAO) report.
The report titled, "Hurricanes Katrina and Rita Disaster Relief: Continued Findings of Fraud, Waste, and Abuse (.pdf)," indicates that of the $1.4 billion in estimated potentially fraudulent and improper payments made by FEMA, only pennies on the dollar --$7 million thus far-- have been recovered.
The GAO investigation found:
- Nearly $17 million in potentially improper and/or fraudulent rental assistance payments to individuals while they were living in trailers were also paid for by FEMA.
- FEMA provided potentially improper and/or fraudulent rental assistance payments to individuals living in FEMA-funded apartments.
- Nearly $20 million in potentially improper and/or fraudulent payments went to individuals who registered for both hurricanes Katrina and Rita assistance using the same damaged address.
- Millions of dollars of improper and potentially fraudulent payments were paid to nonqualified aliens, including foreign students and temporary workers.
- FEMA cannot locate numerous items it bought for hurricanes Katrina and Rita relief efforts using government purchase cards.
Also See:
GAO: FEMA Paid Up to $1.4 Billion in Bogus Katrina Claims (June 15, 2006)
FEMA Announces Two New Disaster Recovery Strategies
Comments
What makes me mad is the media that slams the Federal Goverment for it’s lack of action. Well the FED is not your brothers keeper. Then when fraud is uncovered, where is the media decrying the fraud and talking about the folks that made the false claims for aid. I feel the FED should not do a thing for anyone until a full back ground investigation of the person requesting aid is made. Some what harsh but to prevent fraud what else can you do.