FEMA Payback Issue

Four months before Katrina Governor Blanco from Louisiana had a reason to hate FEMA.

Governor Kathleen Blanco says if the state is forced to pay back the federal government more than 30 million dollars, the state's children and sick will suffer. This week, FEMA officials sent a letter demanding back 30.4 million dollars back misspent flood buyout money.

The money was intended to buy out homes that habitually flood under a program called Hazard Mitigation grants. The idea is to help reduce the potential of future damage to facilities. In this case flood-prone homes. Louisiana got many grants from 1997-2004. After an audit, FEMA found a number of expenses unwarranted including "a 2002 Ford Crown Victoria, audio and video equipment, office supplies, travel, professional dues, charitable donations, an L.L. Bean briefcase, a rain coat, and a trip to Germany by a Louisiana Homeland Security person." Also computer, audio and video equipment; microwave communications systems; a global disaster network; GSA automobile leases; etc etc
Full report from FEMA.

And then there were those administrative costs.
Page 8 "The administrative allowance was also used to cover budget shortfalls realized by the military sector of the LHLS/EP." [bolding mine]

Examples: Of the $186, 383 in administrative costs for Hazard Mitigation, FEMA disallowed $163,301. (p17) Of the $465,489 in administrative costs for the Unmet Needs program, FEMA disallowed $454,487.

Some of the ineligible administrative costs will show the Louisiana priorities.
They spent $1,017 for curtains;
$2,400 for sod (grass) for grounds improvement
They spent $407 to install an 800 MH radio.

Makes you wonder what other schemes they had. More Whatever they were, they involved the Louisiana Miltary Department -- "The military department -- which runs the Office of Homeland Security and Emergency Preparedness -- is part of the executive branch of state government."

Details of the scams are thin but you can find some indication. A private company contracted by many of the Louisiana Parishes was Aegis Innovative Solutions. "Aegis is owned by former Office of Emergency Preparedness employees. " Small world, huh?