FEMA still squandering Katrina aid

WASHINGTON - One year after Katrina, the government is still squandering tens of millions of dollars in wasted disaster aid, including $17 million in bogus rental payments to people who had already received free trailers and apartments, federal investigators said Wednesday.

At the same time, the Federal Emergency Management Agency has recovered less than 1 percent of the $1 billion it wasted on fraudulent hurricane assistance after the August 2005 storm, highlighting a need for stronger controls the next time a major hurricane strikes.

The report by the Government Accountability Office, set to be released later Wednesday, paints a picture of an agency still struggling — at substantial taxpayer expense — to find the balance between distributing quick aid to those in need while guarding against substantial abuse.

Last week, a federal judge in Washington ordered the Bush administration to resume housing payments for thousands of people displaced by Katrina, criticizing FEMA for a convoluted application process. FEMA is appealing that ruling.

http://news.yahoo.com/s/ap/20061206/ap_on_go_ot/katrina_fraud