Wednesday, June 14, 2006

KATRINA FRAUD REPORT LEADS TO HEARINGS --
A U.S. House panel will hold a hearing on a report that the Federal Emergency Management Agency paid out as much as $1.4 billion in hurricane disaster assistance for expenditures such as massages and vacations.

The improper payments, which the Governmental Accountability Office report estimated ranged from $600 million to $1.4 billion, included funds sent to people who used United Parcel Service stores, post-office boxes and cemeteries as their addresses. FEMA also provided millions of dollars of housing aid to prison inmates, the GAO says in the report.
See also NYT (discussing the GAO report); WaPo.