GAO Hands FEMA Another Katrina Blow

FEMA officials must be wondering if Hurricane Katrina will ever blow over. Now, the Government Accountability Office (GAO) reports that FEMA lost another $30 million taxpayer dollars through "ineffective oversight" of contracts to maintain and deactivate those mobile homes and travel trailers use for emergency housing.

The loss, reports the GAO, resulted from "improper or potentially fraudulent" payments made to contractors from June 2006 through January 2007. A few low-lights from the GAO report (.pdf) include:

• $15 million paid for maintenance inspections, despite having no record that the inspections actually took place.

• $600,000 paid for emergency repairs to housing units that don't even exist in FEMA's inventory.

• Evidence of multiple cases of bidding irregularities and improperly awarded bids.

• The payment of $4 million on a contract for work later estimated to be worth about $800,000.

All potential criminal matters identified by the GAO in their investigation have been reported to the Department of Justice for further investigation.

Also See:
FEMA Bristles at CBS Formaldehyde Story
HUD Relieves FEMA of Hurricane Housing Relief Efforts
FEMA Lost Tens of Millions in Katrina Fraud, GAO Finds
Katrina Incompetence Redux: FEMA Trailers (US Politics)