Proposed bill would rein in overpaying by FEMA during disasters
By Sally Kestin and Megan O'Matz
Staff Writers
Posted February 22 2005
The federal government would no longer be allowed to contract with private firms to handle disaster assistance payments under a bill a South Florida member of Congress intends to introduce next week.
Rep. Alcee Hastings, D-Miramar, said Monday the change would prevent fraud and overpayments in the program run by the Federal Emergency Management Agency.
FEMA is under fire for handing out more than $30.8 million to Miami-Dade residents who claimed damage from Hurricane Frances, the Labor Day storm that struck 100 miles north.FEMA "abdicated its responsibility" by hiring private contractors to approve damage inspections and determine amounts applicants receive, Hastings said in a phone interview. Under his bill, payments would have to be handled entirely by federal employees.
"They have contracted out expertise and allowed people to disburse funds without any real meaningful accountability," he said.
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http://www.sun-sentinel.com/news/local/southflorida/sfl-fema22feb22,0,7831324.story?coll=sfla-home-headlines