CNN/AP: Auditors pledge to investigate Katrina contracts
Gulf Coast governors to testify at hearings Wednesday
Wednesday, September 28, 2005
WASHINGTON (AP) -- A day after castigating the federal government's ousted disaster chief, a House panel is hearing pledges from government auditors that they will closely examine millions of dollars in contracts the Bush administration awarded to politically connected companies for Hurricane Katrina relief.
The inspectors general from half a dozen agencies, as well as officials from the Government Accountability Office, on Wednesday were addressing a House subcommittee on the Katrina cleanup and announcing several new audits to combat waste and fraud.
They are pledging strong oversight that includes a review of no-bid contracts and close scrutiny of federal employees who now enjoy a $250,000 -- rather than a $2,500 -- purchase limit for Katrina-related expenses on their government-issued credit cards....
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In the weeks after the August 29 storm, more than 80 percent of the $1.5 billion in contracts awarded by FEMA for Katrina work were handed out with little or no competition or had open-ended or vague terms that previous audits have cited as being highly prone to abuse.
They included contracts such as a $16 million deal involving Halliburton subsidiary Kellogg, Brown & Root Services Inc. of Arlington, Va., that has been cited for overcharging the government for work in Iraq; and San-Francisco-based Bechtel Corp. Both companies have strong ties to the Bush administration....
http://www.cnn.com/2005/POLITICS/09/28/congress.katrina.ap/index.html