Auditors to probe Katrina contracts (AP) Updated: 2005-09-28 21:50
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.
Insurance adjuster Greg Thomas documents
damage to a home in the lakeside area of New Orleans Tuesday, Sept. 27,
2005. Thomas is one of the thousands of adjusters working along the gulf
coast in the wakes of Hurricanes Katrina and Rita. [AP]
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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.
"When so much money is available, it draws people of less
than perfect character," H. Walker Feaster, inspector general of the Federal
Communications Commission, said. "It underscores the need for internal controls
of the money going out."
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