The Brenham Banner Press - Over $1.5 billion wasted by FEMA after storms crash Gulf coast last year

Over $1.5 billion wasted by FEMA after storms crash Gulf coast last year
As publishing in the Brenham Banner Press

WASHINGTON, D.C. — More than $1.5 billion in waste by the Federal Emergency Management Agency after two huge storms hit the Gulf coast last year has led to passage of legislation aimed at ending fraud and abuse.

The U.S. House of Representatives passed FEMA reform legislation, implementing laws mandating federal workers account for every cent of taxpayer money spent during and after a natural disaster.

Hearings held in the wake of Hurricanes Katrina and Rita uncovered widespread waste, said Congressman Michael McCaul, whose district includes Washington County.

"FEMA officials allowed more than $1.5 billion dollars of taxpayer money to go wasted in the wakes of Hurricanes Katrina and Rita" said McCaul. "It was the worst example of government waste of taxpayer funds I have ever seen.

"Hopefully, with these laws on the books, Americans will be protected from this kind of waste, fraud and abuse of their tax dollars."

Last June, McCaul, as chairman of the Homeland Security Subcommittee on Investigations, held a hearing investigating reports of significant waste, fraud and abuse of taxpayer dollars doled out by FEMA in the aftermath of the two hurricanes.

"We heard how FEMA sent taxpayer money to prisoners in jail because government officials did not verify who was receiving the money. We heard about people who should have used their FEMA checks for rent or to find a job, but instead used it to buy champagne at Hooters," he said.

"In the end it was overwhelmingly apparent that FEMA wasn't paying attention to who it was sending money to or how much was being spent."

The Homeland Appropriations bill passed by the U.S. House last Friday which, among other things, demands FEMA develop and maintain proper internal management controls to prevent and detect fraud, waste, and abuse.

The controls will work to collect information on eligible recipients; verify the identity and address of recipients of disaster assistance before sending any money to minimize the risk of making duplicative payments or payments for fraudulent claims; and provides instructions to recipients of disaster assistance regarding the proper use of any such funding, said McCaul.

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http://www.house.gov/list/press/tx10_mccaul/morenews/10_2_06_FEMA_BBP.html