The Federal Emergency Management Agency will receive most of the $62 billion Congress has approved for Hurricane Katrina relief efforts, setting up a major test of the agency's ability to distribute the cash and monitor the private contractors who will do much of the work.
FEMA's track record in managing much smaller amounts of money has raised concerns. It made millions in questionable payments to South Florida residents after Hurricane Frances last year, investigators found, in part because the agency's contractors had hired inspectors who lacked training or oversight. A recent audit by the Homeland Security Department's inspector general questioned whether FEMA's acquisition workforce was qualified.
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Sen. Susan Collins (R-Maine), chair of the Senate's Homeland Security Committee, said through an aide yesterday that she is considering creating a special inspector general to oversee and audit Katrina-related spending.
The last time the government spent a massive amount of money under emergency conditions, for the war in Iraq, it set off a frenzy among contractors jockeying for work. Investigators with the special inspector general's office set up to oversee Iraq spending later found numerous cases of questionable costs.
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/12/AR2005091202039.html