NYT
http://www.nytimes.com/2005/09/27/opinion/27tue1.html?th&emc=thCronies at the Till
Published: September 27, 2005
The first results are in on who is set to profit from the Katrina cleanup, and - surprise - many of the firms winning major contracts have big political connections. Congressional investigators are already looking into AshBritt, a Pompano Beach, Fla., company with ties to Mississippi's governor, Haley Barbour - the former chairman of the Republican National Committee. AshBritt has nabbed $568 million in contracts for trash removal. Questions have also been raised about the political connections of two other major contractors: the Shaw Group, and Kellogg, Brown & Root, a subsidiary of Halliburton. Both companies have been represented by Joe Allbaugh, President Bush's former campaign manager and the former head of the Federal Emergency Management Agency - although Mr. Allbaugh says he does not help any of his clients obtain federal contracts.
And there's more. An article in yesterday's Times by Eric Lipton and Ron Nixon reports that more than 80 percent of the $1.5 billion in contracts signed by FEMA for Katrina work were awarded without bidding or with limited competition. The Times article even finds a federal employee - Richard Skinner, the inspector general for the Homeland Security Department - willing to go on the record with his concern, saying, "We are very apprehensive about what we are seeing."
So are we. The government is spending more than a quarter of a billion dollars every day on rescue, relief and reconstruction along the Gulf Coast. Anyone who pays taxes in America should be concerned about how the money is being spent and who is profiting. We think that when Congress appropriates money for disaster relief, the advantage should be maximized for the victims, not for the same cast of characters that have been profiting from no-bid contracts in Iraq. Kellogg, Brown & Root, Americans may recall, is the company that came up with those $100-per-bag laundry bills for work in Iraq.
All of this comes back to cronyism. The resignation of the FEMA chief, Michael Brown, was only one of the recent departures. The head of federal procurement policy at the Office of Management and Budget resigned just before he was arrested on charges of lying to federal investigators, and the Pentagon's former inspector general has left for the private sector but remains the target of a Congressional inquiry.