Disaster Profiteering and Waste After Katrina

After Hurricane Katrina, a "bonanza for lobbyists and private companies" as unprecedented sums in government funds are awarded in no-bid contracts.

1 minute read

September 15, 2005, 2:00 PM PDT

By Abhijeet Chavan @http://twitter.com/legalaidtech


"Private contractors, guided by two former directors of the Federal Emergency Management Agency and other well-connected lobbyists and consultants, are rushing to cash in on the unprecedented sums to be spent on Hurricane Katrina relief and reconstruction...

Hundreds of millions of dollars in no-bid contracts have already been let and billions more are to flow to the private sector in the weeks and months to come...

Some experts warn that the crisis atmosphere and the open federal purse are a bonanza for lobbyists and private companies and are likely to lead to the contract abuses, cronyism and waste that numerous investigations have uncovered in post-war Iraq...

The sheer volume of the contracts and the speed in which they are being issued troubles some. The government is drawing down on Hurricane Katrina relief money at a rate of more than $500 million a day."

Thursday, September 15, 2005 in The New York Times

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