Amidst the wailing and grieving by those many victims of Hurricanes
Katrina and Rita comes the growls of greed from those corporations
getting huge contracts from the US government to supply emergency
relief, reconstruction services and materials.
From everywhere - the press, citizen groups, lawmakers, federal
inspectors general - come the howls and charges of 'profiteering',
'gouging the taxpayers', 'political favoritism', 'Halliburton again' and
so forth. Clark Kent Ervin, formerly the inspector general at the
Department of Homeland Security, says "when they issue rapid-fire,
no-bid contracts, they're basically asking companies to gouge them."
Some of the early disclosures seem to confirm Mr. Ervin's experience.
According to Senators Tom Coburn (R-OK) and Barack Obama (D-IL), FEMA
has entered a no-bid contract with Carnival Cruise Lines for $192
million to house hurricane evacuees on three cruise ships. Senators
Coburn and Obama note the price the taxpayers are paying a company that
has polluted offshore waters for years: "$2,550 per guest, per week,
which is four times the cost of a $599 per tourist 7 Day Western
Caribbean Cruise from Galveston, Texas".
Halliburton - flush with so many Iraq war contracts that one cannot keep
up with all the Pentagon and Congressional charges of waste, fraud and
abuse - has got it hands on $60 million in Katrina contracts. This is
the company that charges the Pentagon $100 for each 15 pounds of
laundry, gouges the Army on fuel and has charged the Defense Department
for undelivered meals for soldiers. (The Army decided it cannot feed
itself anymore in the field.)
Hundreds of companies are rushing for the gold. During a Katrina
reconstruction summit at the Senate Office Building, US News and World
Report describes the scene: "Edward Badolato, a retired Marine colonel
who is now an executive with the Shaw Group, reportedly reassured
attendees. 'Trust me', he said, 'there's going to be enough for
everybody down there.'"
Indeed there will be plenty of money - taxpayer money heading toward
$100 billion, charitable money in the billions and uncountable donations
in kind. Will the million displaced Americans receive the bulk of the
benefits?
If you ask the Bush administration, the answer of assurance comes from
all the teams of inspectors and auditors it is sending to the Gulf
states. There will be an Office of Hurricane Katrina Oversight. Auditing
offices are operating in Baton Rouge, Montgomery, AL and Jackson, MS.
Pentagon auditors will help those from the Department of Homeland Security.
And of course the Government Accountability Office (GAO), the
investigative arm of Congress, will have its sleuths prowling around the
region and looking at the Bush regime's books.
What is an average taxpayer to think of the likelihood of success here?
Let's ask some questions. How many people have been fired or demoted
following the gross boondoggles revealed in the federal and state
governments after Hurricane Katrina passed through? Count your fingers
and you have more of them.
What has been the result of scores of Pentagon audits of private
contracting abuses in Iraq? Very few debarments, very few prosecutions
and the enormous fraud and abuse continue. The big companies over there
just ride out the bad publicity and rake in the money. Apparently they
are too big to fire.
Will the trustworthy, professional GAO reports produce any changes? Not
if the GAO's mountains of critical reports of Pentagon contracting are
any basis for prediction. Over ten years ago the GAO threw its hands in
the air and pronounced the Pentagon's $300 billion budget "unauditable".
This is, to say the least, a serious charge. Especially when subsequent
reports futilely repeat the same findings as the Pentagon budget nears
$500 billion a year.
In its latest report to Congressional committees last month, the GAO
wearily referred to its repeated findings about "the long-standing
weaknesses in the Department of Defense's (DOD) financial management and
related business processes and systems." These deficiencies, the GAO
concludes, have "(1) resulted in a lack of reliable information needed
to make sound decisions and report on the status of DOD activities,
including the accountability of assets,.(2) hindered its operational
efficiency; (3) adversely affected mission performance; and (4) left the
department vulnerable to fraud, waste and abuse."
The Bush administration could not account for the first $9 billion spent
in Iraq, according to these auditors.
Fundamentally, the federal budgets in the Department of Homeland
Security and the Department of Defense are out of control, by the Office
of Management and Budget (OMB), which is an arm of the White House. The
draconian imposition of cost-benefit rigor that John Graham, OMB's
regulatory czar, imposes on the little federal health and safety
agencies, dealing with auto safety and food and drug safety and
efficacy, does not extend to the gargantuan Departments of Defense or
Homeland Security.
Over two years ago, we thought that the OMB was going to require both
the cost-benefit yardstick for the Homeland Security Department and the
placement online of all major government contracts with corporations.
Then Mitch Daniels, head of OMB, left to run for governor of Indiana.
His successor, Josh Bolton, has displayed no interest thus far in the
reforms we had suggested to Mr. Daniels.
So taxpayers, ask yourself: how long you are going to remain inactive
while this no-fault government headed by a no-fault President who is
spreading fault in every direction but his own as he presides over the
accelerating deficit and debasement of the USA's budget?
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