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 Race, Poverty, and the Neoliberal Agenda in the United States: Lessons from Katrina and Rita, MR Zine, by Kenneth E. Bauzon, February 13, 2008. Mainstream economic textbooks promote the idea that poor nations now at the bottom rung of the "development ladder" would eventually overcome their poverty if they embraced capitalist "free market principles." This means subscribing to the rules enforced by the World Trade Organization (WTO), including trade liberalization and privatization of both public assets and public services. Further, it also means acceptance of the conditionalities imposed by the World Bank (WB) and the International Monetary Fund (IMF), primary of which are structural reforms in conformity with the specifications demanded by the structural adjustment programs. … What the public did not know much about Allbaugh following his stint at FEMA was his founding of three consulting firms, namely Blackwell Fairbanks, LLC, the Albaugh Company, and the New Bridge Strategies, LLC, all of which have represented, and continue to represent, such high-paying clients as Halliburton's KBR and the Shaw Group, obviously capitalizing on his deep connections with the Bush Administration. Despite this, he responds to his critics by denying that he has ever used his White House connections to win contracts for his corporate clients. He said, at one point: "I don't buy the 'revolving door' argument. This is America. We all have to make a living" (Englehardt and Turse, "Corporations of the Whirlwind"). However, to many civil society watchdogs, Allbaugh's denial -- like those of his fellow lobbyists and their respective corporate clients -- falls flat. As Danielle Brian, Director of the Project on Government Oversight, notes, under current conditions, th e public is likely to see "the equivalent of war profiteering -- disaster profiteering" (Chatterjee, "Big, Easy Iraqi-Style" -- please see also Klein, The Shock Doctrine). … Katrina fraud swamps system, USA Today, by Brad Heath. July 6, 2007. Overcoming Katrina, Government Executive, May 15, 2007, By Robert Brodsky.The Federal Emergency Management Agency says its contracting problems are solved - the next huge disaster will be the true test. For nearly two years, the Federal Emergency Management Agency has resembled a punch-drunk prizefighter, withstanding a ferocious barrage of testy congressional hearings, negative auditors' reports and unflattering media investigations. ... FEMA bought more than 145,000 travel trailers and mobile homes for roughly $2.7 billion. That figure includes a $900 million purchase of 26,300 mobile and modular homes that FEMA later discovered could not be used in flood zones, where virtually all Katrina victims lived. It was a backbreaking error. "There's no rationale for that level of overage other than incompetence," says former DHS inspector general Clark Kent Ervin. Meanwhile, FEMA also awarded 36 contracts, worth $3.6 billion, for the maintenance and deactivation of the trailers. While the inspector general found that these negotiations were generally fair, investigators say three of the award winners had financial problems that should have raised red flags. FEMA would not provide figures for exactly how many trailers were used by Katrina victims, but Jadacki says more than 63,000 mobile homes and travel trailers now sit unused, stored at 13 staging sites across the country. And storage doesn't come cheap. The IG estimates that maintaining those staging sites costs $36 million per year, but that's low. For example, FEMA paid $272,000 to construct an access road to a storage depot in Hope, Ark., not to mention $58,000 every three months to maintain the road. "The government over-reacted and overbought," says Scott Amey, general counsel for the Project on Government Oversight, who has written extensively on the government's response to Katrina. "During the first stage of a disaster, you can almost be excused for overbuying or underbuying. But, the bigger question is, 'Are you still doing this, one or two years down the road?' " Bush’s best Democratic buddy: Joe Lieberman gives the President a pass on Katrina, Newsweek, January 11, 2007, by Michael Isikoff and Mark Hosenball.Sen. Joe Lieberman, the only Democrat to endorse President Bush's new plan for Iraq, has quietly backed away from his pre-election demands that the White House turn over potentially embarrassing documents relating to its handling of the Hurricane Katrina disaster in New Orleans. Lieberman's reversal underscores the new role that he is seeking to play in the Senate as the leading apostle of bipartisanship, especially on national-security issues. … But in the view of White House critics, the Katrina fallout is far from over. They view the missing White House material, along with contracting foul-ups and abuses, as an important part of the story of the disaster that befell a major American city. "Katrina was perhaps the government's biggest failure ever," said Danielle Brian, executive director of the Project on Government Oversight, a liberal watchdog group. "For the Congress not to be willing to stand up to the White House and demand to know who's accountable is a total abdication of their responsibility. How serious about oversight are they if they're not willing to flex their muscle over this one? Wasn't the election about holding the government accountable? Congress has the power for oversight, and the mandate. Does it have the will?" FEMA contract reveals hurricane costs, Alabama Press-Register, November 24, 2006, by Sean Reilly.In awarding a west Mobile company a $6.2 million hurricane-related contract for boxed lunches last year, the Federal Emergency Management Agency paid a stiff price and laid down almost no requirements, according to a copy of the agreement that the firm, Clearbrook L.L.C., fought to keep secret. … While the boxed lunch contract is a small part of the package, the agreement's wording appears to typify complaints from Congress that FEMA committed billions of taxpayer dollars on vaguely written, limited-competition contracts. Watchdog groups have been equally critical of what they see as the agency's refusal to open up about how it made some of those decisions. "There's no way to determine if the government is getting the best value for its money, which unfortunately tends to mean that the government isn't getting the best value for its money," said Jennifer Porter Gore, a spokeswoman for the Project on Government Oversight, based in Washington, D.C. Katrina disaster aid is the nation’s most expensive recovery program ever, Christian Science Monitor, August 30, 2006, by Ron Scherer.On a hot and humid July day, cranes lift gigantic concrete slabs out of the water - the remains of the Biloxi Bay bridge, which collapsed like a deck of cards after hurricane Katrina. … The new bridge is just part of the flood of federal money destined for the region - some $110 billion, equal to $73,333 for each person affected by Katrina's hurricane winds. It's easy to see some of that money at work. Besides large public works projects, individuals are getting checks to rebuild their homes. It's hard to find a parking spot at the local Lowe's or Home Depot as builders stock up on supplies. White House officials say the record aid will revive the region's economy. But local officials complain that the aid is not landing in the pockets of those who need it most. Less than half of the money - some $45 billion - has been spent, according to a recent White House analysis. Parts of Louisiana look as if Katrina roared through yesterday, not a year ago. … "If the government just turns over large chunks of money, whether it's grant money or contract money, we will end up with a huge windfall for contractors and a potential for abuse," says Scott Amey, a senior investigator at the Project on Government Oversight in Washington. As of Aug. 8, 369 individuals had been charged with some form of Katrina wrongdoing - from bribery to theft of government property, the Department of Justice reports. The public can expect many more cases. Katrina Begat Sorrows But Also Lots of Greedy Frauds, Scripps Howard News Service, August 28, 2006, By Lisa Hoffman.Tina Marie Gilmore said she lost her two young daughters in the floodwaters that besieged New Orleans, suffering the unimaginable horror of watching the girls float away but being helpless to save them before they disappeared. … "Are we holding the big fish accountable?" said Scott Amey, general counsel for the Project on Government Oversight, which has been critical of the government's performance. Firm’s Katrina contract audited, Denver Post, August 10, 2006, by Tom McGhee.Douglas County-based CH2M Hill could collect up to $530 million for Hurricane Katrina disaster work that was originally supposed to cost $100 million under a contract that has come under scrutiny by federal auditors. The contract is among four no-bid contracts granted by the Federal Emergency Management Agency to house Katrina evacuees last fall that have ballooned in value from $400 million to about $3.4 billion. … "Our question is, Why do they keep raising the ceiling on these contingency contracts rather than open up bidding to all government contractors in competition that will result in more value to the taxpayer?" said Scott Amey, general counsel for the Project on Government Oversight, a watchdog group. Homeland Security Spent Your Money On What? ABC NEWS, July 20, 2006, by John Cochran.A lot of people enjoy a beer at the end of a hard day, but that drink should not come at the taxpayer's expense, especially when the money was meant to help victims of Hurricane Katrina. Congressional investigators have uncovered many of what they called questionable purchases with government-issued credit cards. That includes a Coast Guard official who used a government purchase card to buy a beer brewing kit. … The purchase of the beer brewing kit was no surprise to Scott Amey, general counsel of the Project on Government Oversight, a citizen watchdog group. "You have all kinds of problems with waste, fraud and abuses when it comes to purchase cards," he said. He noted that for more than 60 percent of the purchases, there was no documentation that the goods or services were ever received. Government Workers Abused Smart Pay, Marketplace Public Radio, July 19, 2006, By Scott Tong.It wasn't just everyday citizens taking advantage of disaster relief chaos in the wake of Hurricane Katrina. Now auditors report tales of wasteful spending by Homeland Security workers. Scott Tong reports: ... “I'd love to say that I'm shocked”, Scott Amey is with the nonprofit Project on Government Oversight. He says the problem has cropped up throughout government. AMEY: Purchase card holders have bought Atlanta Braves tickets, Victoria's Secret merchandise, jewelry, cell phones, tires, escort services, and in one instance we've even seen someone purchase breast enhancement surgery. Report Shows More Hurricane Katrina Fraud and Waste, CNN: The Situation Room, June 27, 2006.Wolf Blitzer: No matter where you live, you may still be feeling the impact of Hurricane Katrina. That's because we're learning more and more about fraud stemming from the disaster and just how much it's costing every single American taxpayer. CNN's Tom Foreman is joining us with details -- Tom. Tom Foreman, CNN Correspondent: Wolf, Katrina is just the gift that keeps on giving for some people in this country who are intent on taking tax dollars. Another report out today outlining one more time how much is being lost to fraud and waste. FOREMAN: Ten months after Katrina, the biggest storm of modern times is still claiming victims. Among them, American taxpayers. The amount of fraud and waste taking tax dollars is estimated now at close to $1.5 billion. Despite numerous reports from various government agencies, watchdog groups say they're not yet convinced the situation is under control. Scott Amey, Project On Government Oversight: The real question is, are they doing a good job? And I think as we're seeing from these reports that there are a lot of things that need to be corrected. FOREMAN: "The New York Times" has rolled out the latest tally of abuses, and it is staggering. Among them, almost $8 million spent to renovate a military base in Alabama that ended up housing fewer than a dozen people. About $400 million worth of trailers that are still sitting empty. And literally thousands of cases of suspected fraud, people submitting bills for recovery work they did not do, for losses of homes, cars, businesses, even children that they apparently never had. Contractors Rake it in as They Clean it Up: Critics say FEMA overpays, fails to supervise disaster recovery firms, by Martin Wolk. MSNBC, May 31, 2006. For companies in the disaster business, 2005 was a very good year. And if preseason predictions are correct, it could be the first in a series of profitable years for a rapidly growing industry that encompasses engineering firms, debris haulers and logistical specialists who rush in whenever disaster strikes. … But as the 2006 hurricane season begins on Thursday, critics are skeptical. “All we have so far is just a bunch of promises from government agencies that they have learned their lesson from Hurricane Katrina and have improved their system for the next national emergency that comes our way,” said Scott Amey, general counsel for the Project on Government Oversight, a watchdog group. … "Based on timing it was easier for federal agencies to turn to the usual suspects rather than get out and have a competitive bidding process that may have been able to provide better value for services,” said Amey of the Project on Government Oversight. Katrina Waste and Fraud, CNN Anderson Cooper 360 Degrees, March 22, 2006. Transcript. Storm-Wracked Parish Considers Hired Guns: Contractors in Louisiana Would Make Arrests, Carry Weapons, Washington Post, March 14, 2006.Maj. Pete Tufaro scanned the fenced lot packed with hundreds of stark white trailers soon to be inhabited by Hurricane Katrina evacuees. FEMA Faulted for Big Hotel Bills, USA Today, March 8, 2006.The Federal Emergency Management Agency failed to set cost controls on hotel room rentals for Hurricane Katrina evacuees, an omission that led to "excessive" bills on some rooms, according to a new oversight report. Katrina Victims, Military Personnel Sell Rations Online, ABC News, February 14, 2006.Emergency rations paid for by taxpayers and distributed to Hurricane Katrina victims and military personnel to sustain them in their hour of need are being sold on eBay, according to a government report. FEMA spent $180,000 to rent 16 mid-sized vehicles for one year?, Editorial, Hattiesburg American, February 13, 2006.THUMBS DOWN: To the Federal Emergency Management Agency, which spent nearly $180,000 of taxpayers' money to rent 16 mid-sized vehicles for one year from a Jackson-area rental car company. Expensive FEMA car rentals in state draw criticism, Clarion Ledger, February 10, 2006.The Federal Emergency Management Agency paid nearly $180,000 for one year to a Jackson-area rental car company to rent 16 mid-sized vehicles, a cost to taxpayers of $11,232 per vehicle. Report sheds light on hurricane fraud investigations, GovExec.com, January 12, 2006.An unreleased report obtained by the Associated Press Wednesday fills in the details of efforts by agency inspectors general to regulate the $62.3 billion appropriated for hurricane relief on the Gulf Coast. GAO Probes Katrina Credit Card Bills, Washington Post & Associated Press, December 27, 2005.Federal employees helping victims of Hurricane Katrina charged more than $39 million on government credit cards for disaster relief items -- and that has at least one senator a bit worried. Looting Homeland Security, Rolling Stone Magazine, December 19, 2005.Katrina may have been a natural disaster -- but President Bush created the bungled response by gutting FEMA and turning the nation's security over to corporate cronies and for-profit contractors. Governor's Relative Is Big Contract Winner, New York Times, December 7, 2005.Rosemary Barbour happens to be married to a nephew of Mississippi's governor, Haley Barbour. Since the Reagan administration, when Mrs. Barbour worked as a White House volunteer as a college student, she has been active in the Republican Party. Parish Official Charged in Louisiana Storm Case, New York Times, November 18, 2005. Northrop Grumman Seeks $2 Billion to Repair Hurricane Damage, New York Times, November 17, 2005.The destruction is everywhere at the Northrop Grumman shipyards here. Price gougers spot prey in New Orleans, Washington Times, November 11, 2005.Thousands of signs offering everything from mildew cleaning to removal of destroyed homes litter post-Katrina New Orleans, and residents are learning to beware. Company Under Fire Won Katrina Contracts,
A defense contracting firm tangled in the Abu Ghraib prison controversy and an international bribery scheme has been awarded federal government contracts for Hurricane Katrina and other disasters. FEMA's money trail 'transparent as mud’: Process of awarding contracts is unclear, New Orleans Times-Picayune, October 31, 2005.Eric Tolbert spent almost three decades on emergency response teams, starting as a paramedic in his native North Carolina and rising to a top job at the Federal Emergency Management Agency. Gulf Coast businesses left out of Katrina-relief spending, Scripps Howard News Service, October 19, 2005.Only a fraction of the $2.5 billion in federal contracts signed so far to help rebuild Hurricane Katrina-ravaged communities is going to Gulf Coast businesses. Critics call bill to loosen contracting rules ‘scary’: Proposal applies to emergencies, Federal Times, October 19, 2005.A proposal before Congress to expedite procurements for disaster relief could also encourage spending abuses, critics fear. Stuck in a Storm of Controversy, Fortune Magazine, October 17, 2005.On paper, the cleanup of Hurricane Katrina should be a business bonanza and public relations coup all wrapped up in one tidy package for Louisiana’s Shaw Group. In Federal Buying Spree for Hurricane Relief, Agencies Often Paid Retail, New York Times, October 15, 2005.On the federal government's long shopping list for hurricane relief: $223,000 for flip-flops, $153,600 worth of underwear, three glf carts rented for $1,500 a month and flyswatters for $5.28. FEMA still spending on limited competition contracts, Associated Press, October 14, 2005.The government is spending $347 million on Hurricane Katrina-related contracts that were awarded with little or no competition, despite a public pledge by FEMA's chief to reopen no-bid agreements. Transcript: Cronyism in the Bush Administration, CNN Newsnight with Aaron Brown, October 13, 2005.Cooper: Coming up tonight, charges of cronyism in the White House. Tracking Katrina Money Proving Difficult: Trying to Track Billions of Dollars in Federal Hurricane Katrina Aid Is Difficult, Critics Say, Associated Press, October 11, 2005.Trying to track who's getting what portion of the billions of dollars in federal Hurricane Katrina aid is enough to give any auditor a headache and is a problem that critics say creates alarming gaps in public oversight. FEMA Leader Under Clinton Profits From Experience, New York Times, October 10, 2005.Not long before Hurricane Katrina made landfall, James Lee Witt, the former director of the Federal Emergency Management Agency, and his colleagues called officials on the Gulf Coast to offer their help. Careerists make best managers-- Study: They get better results than political appointees, Federal Times, October 10, 2005.Now there’s proof: Career managers deliver better program results than their politically appointed counterparts. A Flood of Money: In the Gulf, a gold rush for government funds, U.S. News and World Report, October 10, 2005.There's a price for luxury. Just ask the Federal Emergency Management Agency. On September 1, when FEMA officials thought they would have thousands of evacuees from Hurricane Katrina to house and feed, along with hundreds of emergency workers, the disaster management agency signed a no-bid contract with the Carnival Corp., owners of a fleet of luxery cruise ships. Congress Scrambles to Deal With Katrina 'Sticker Shock', Los Angeles Times, October 9, 2005.So much money is at stake in Hurricane Katrina rebuilding that even the watchdogs are at issue in the dogfight over how best to spend the federal largess. In Shift, FEMA Will Seek Bids for Gulf Work, New York Times, October 7, 2005.The head of the Federal Emergency Management Agency told a Senate panel on Thursday that the agency would seek new bids on $400 million worth of contracts that had originally been awarded with no competition in the Hurricane Katrina recovery effort. FEMA Re-bidding Contracts, Nightly Business Report, October 6, 2005. Katrina work goes to officials who led Iraq effort, Reuters, October 6, 2005.Top officials who managed U.S. reconstruction projects in Iraq have been hired by some of the same big companies that received those contracts and which are now involved in a rush of deals to rebuild after Hurricane Katrina. Indiana getting large chunk of hurricane relief money, WTHR Indianapolis, October 4, 2005.The floods of Katrina devastated Louisiana. But so far the flood of money to rebuild and recover is going elsewhere. Gulf Firms Losing Cleanup Contracts: Most Money Going Outside Storm's Path,
Companies outside the three states most affected by Hurricane Katrina have received more than 90 percent of the money from prime federal contracts for recovery and reconstruction of the Gulf Coast, according to an analysis of available government data. No Bid Contracts & Shaw Group: Stuck in a Storm of Controversy, Fortune, October 3, 2005.On paper, the cleanup of Hurricane Katrina should be a business bonanza and public relations coup all wrapped up in one tidy package for Louisiana’s Shaw Group. How Many More Mike Browns Are Out There?, Time Magazine, October 3, 2005.In presidential politics, the victor always gets the spoils, and chief among them is the vast warren of offices that make up the federal bureaucracy. Scandals, waste plague rebuilding; Scandals and uncoordinated oversight mean millions will be lost in rebuilding the Gulf Coast after Hurricanes Katrina and Rita, The Miami Herald, September 25, 2005.As the federal government throws tens of billions of dollars into hurricane relief and reconstruction, the system to make sure taxpayers' money is spent properly is a mess. Billions in storm relief at risk of waste, fraud, Knight Ridder & numerous outlets, September 24, 2005.As the federal government throws tens of billions of dollars into hurricane relief and reconstruction, the system to make sure taxpayers' money is spent properly is a mess. FEMA struggling as it hires contractors for Katrina work, Dallas Morning News & Billings Gazette, September 24, 2005.When Mike Hohnstein's employer got a Federal Emergency Management Agency contract to deliver a load of ice to Mississippi after Hurricane Katrina, he expected a fairly routine job. After the Storm, FEMA Accussed of Wastefulness, Dallas Morning News, September 23, 2005.When Mike Hohnstein's employer got a Federal Emergency Management Agency contract to deliver a load of ice to Mississippi after Hurricane Katrina, he expected a fairly routine job. Experts: Waste and fraud inevitable in rebuilding, Knight Ridder, September 23, 2005.As the federal government throws tens of billions of dollars into hurricane relief and reconstruction, the system to make sure taxpayers' money is spent properly is a mess. FEMA Contracts Raise Questions, The Kansas City Star, September 22, 2005.When Mike Hohnstein's employer got a Federal Emergency Management Agency contract to deliver a load of ice to Mississippi after Hurricane Katrina, he expected a fairly routine job. Hurry up and then wait: FEMA's bumpy bid solicitation for
On Sept. 8, the Federal Emergency Management Agency solicited bids for thousands of manufactured homes desperately needed to house the survivors of Hurricane Katrina. Keeping tabs on spending tall order, Scripps-Howard, September 22, 2005.As Hurricane Rita churns dangerously in the Gulf, another storm is brewing on Capitol Hill - how to keep spending in check to rebuild after Hurricane Katrina, with an eye on the fact that, if Rita hits hard, another expensive reconstruction effort may be required. Some Firms Hired in Katrina's Wake Have Checkered Pasts, Wall Street Journal, September 20, 2005.Goldstar EMS was on the ropes earlier this year, beset by legal problems. The Texas ambulance provider's offices had been raided by the Federal Bureau of Investigation as part of a widening investigation into alleged Medicaid fraud. It faced a $1.3 million tax lien from the Internal Revenue Service. Katrina: Crises & Recovery, Controlling Spending, CNBC, September 20, 2005. (You will need Windows Media Player to view this video) watch this video » Peninsula firm wins cleanup contract: Environmental Chemical of Burlingame could collect $1 billion during next 2 years, San Francisco Chronicle, September 20, 2005.Environmental Chemical Corp., a privately held Burlingame company, has won a contract for cleaning up the post-Hurricane Katrina mess in New Orleans that could be worth $1 billion to the firm over the next two years. Federal, local officials fight over who's boss of Katrina relief effort: Observers say lack of oversight will breed waste, Houston Chronicle, September 20, 2005.A clash of opinion between New Orleans Mayor C. Ray Nagin and President Bush on Monday was the latest sign of a conflict over authority in Katrina's aftermath. Here Is Your New Federal Credit Card. Here Is Your New Purchase Limit, New York Times, September 18, 2005.The government buys everything from warships to paper clips, the latter being an example of a "micropurchase." Short-Staffed FEMA Farms Out Procurement, Washington Post, September 17, 2005.The Federal Emergency Management Agency, responsible for distributing billions of dollars to contractors for Hurricane Katrina relief work, is using a private contractor to help with the task, company officials said. Bill Grants Broader Emergency Procurement Authorities, Govexec.com, September 17, 2005.Two House Republicans on Thursday offered legislation that would extend emergency procurement authorities to all large-scale national disasters. Contracts for recovery work raise controversy, USA Today, September 15, 2005.Two of the first companies that got emergency no-bid federal contracts for Hurricane Katrina recovery work have faced questions over past business practices, court and government records show. Govt. Credit Cards for Katrina Draw Fire, Associated Press, September 15, 2005.Lawmakers and watchdog groups worry that allowing federal employees to charge up to $250,000 on their government-issued credit cards for Hurricane Katrina-related expenses will lead to a repeat of past abuses. Contractors Win Relief Work, CNN Transcript, September 12, 2005.A subsidiary of Dick Cheney's former company, Halliburton, has been tapped to rebuild Navy bases in Mississippi. KBR received the work as part of a preexisting competitive contract. Four Years After 9/11, Higher Pressure, Rewards,
The litany of change that has rippled across government since the Sept. 11, 2001, terrorist attacks can be cited by almost any federal employee. Firms with White House ties get Katrina contracts, Reuters, September 10, 2005.Companies with ties to the Bush White House and the former head of FEMA are clinching some of the administration's first disaster relief and reconstruction contracts in the aftermath of Hurricane Katrina. In Storm's Ruins, a Rush to Rebuild and Reopen for Business,
Private contractors, guided by two former directors of the Federal Emergency Management Agency and other well-connected lobbyists and consultants, are rushing to cash in on the unprecedented sums to be spent on Hurricane Katrina relief and reconstruction. Ex-FEMA Director's Halliburton Work Protested, Dallas Morning News, September 8, 2005.With the Federal Emergency Management Agency under fire over its response to Hurricane Katrina, a watchdog group protested Wednesday that former FEMA Director Joe Allbaugh now does work for Halliburton on disaster issues. Home I Archives I Expose I Search I Donations I Investigations I About Us I Contact Us I Press Room
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