Billions of dollars of reconstruction contracts awarded in the aftermath of Hurricane Katrina are being investigated amid concerns of cronyism and abuse.
More than 80% of the $1,5 -billion in contracts signed by the Federal Emergency Management Agency (Fema) were awarded without bidding or with only limited competition, including enormous deals with Kellogg Brown and Root, a subsidiary of Halliburton — the former employer of Vice President Dick Cheney — and the Shaw Group. The lobbyist Joe Allbaugh, George W Bush’s former campaign manager and a former head of Fema, has represented both companies.
Richard Skinner, the inspector general for the Department of Homeland Security, told The New York Times that 60 members of his staff were examining Hurricane Katrina contracts. ”We are very apprehensive about what we are seeing,” he said.
Contracts signed so far include more than 15 that exceed $100 -million, including five of $500 -million or more, mostly for debris removal along the Gulf coast. Congressional investigators are looking into a $568-million contract awarded to AshBritt, a Florida company which was a client of the former lobbying firm of Haley Barbour, the governor of Mississippi. — Â