Should Republicans go ahead and add Supreme Court Justices to head off Democrats

Louisiana officials in emergency planning agency awaiting trial when Katrina struck, $60 million unaccounted for

LA Times:

Senior officials in Louisiana's emergency planning agency already were awaiting trial over allegations stemming from a federal investigation into waste, mismanagement and missing funds when Hurricane Katrina struck.

And federal auditors are still trying to track as much as $60 million in unaccounted for funds that were funneled to the state from the Federal Emergency Management Agency dating back to 1998.

In March, FEMA demanded that Louisiana repay $30.4 million to the federal government.

The problems are particularly worrisome, federal officials said, because they involve the Louisiana Office of Homeland Security and Emergency Preparedness, the agency that will administer much of the billions in federal aid anticipated for victims of Katrina.

Earlier this week, federal Homeland Security officials announced they would send 30 investigators and auditors to the Gulf Coast to ensure relief funds were properly spent.

Details of the ongoing criminal investigations come from two reports by the inspector general's office in the U.S. Department of Homeland Security, which oversees FEMA, as well as in state audits, and interviews this week with federal and state officials.

The reports were prepared by the federal agency's field office in Denton, Texas, and cover 1998 to 2003. Improper expenditures previously identified by auditors include a parka, a briefcase and a trip to Germany.

Much of the FEMA money that was unaccounted for was sent to Louisiana under the Hazard Mitigation Grant program, intended to help states retrofit property and improve flood control facilities, for example.

The $30.4 million FEMA is demanding back was money paid into that program and others, including a program to buy out flood-prone homeowners. As much as $30 million in additional unaccounted for spending also is under review in audits that have not yet been released, according to a FEMA official.

...

For instance, a Nov. 30, 2004, report by Tonda L. Hadley, a director in the Denton field office, examined $40.5 million sent to the Louisiana agency, mostly for the Hazard Mitigation program. The report found that the state's emergency office did not have receipts to account for 97% of the $15.4 million it had awarded to subcontractors on 19 major projects.

There is much more. There may not be enough auditors in Washington to keep up with Louisiana corruption. While Louisiana officials want Louisiana contractors to get a preference in the reconstruction, that would be a huge mistake that would ultimately rob Louisiana residence of the benefit of the relief effort. The Louisiana contractors should have to compete with contractors from outside the state. The people will get a better deal and ultimately the Louisiana contractors will benefit from having to make themsleves more competitives in price as well as quality. All it takes is a trip across Louisiana on I-10 or I-20 to realize these guys need to improve their quality.