http://www.corpwatch.org/article.php?id=14023Big, Easy Money
Disaster Profiteering on the American Gulf Coast
August 17th, 2006
Disaster profiteers make millions while local companies and laborers in New Orleans and the rest of the Katrina-devastated Gulf Coast region are systematically getting the short end of the stick, according to a major new report from the nonprofit CorpWatch.
A CorpWatch analysis of FEMA's records shows that "fully 90 percent of the first wave of (the post-Katrina reconstruction) contracts awarded - including some of the biggest no-bid contracts to date -- went to companies from outside the three worst-affected states. As of July 2006, after months of controversy and Congressional hearings, companies from Louisiana, Mississippi and Alabama had increased their share of the total contracts to a combined 16.6 percent." The CorpWatch analysis shows that more federal reconstruction contracts have gone to Virginia and Indiana - usually large, politically connected corporations -- than to any of the three Katrina-devastated states.
The CorpWatch report also exposes abusive "contracting charge pyramids" where the companies doing the actual reconstruction work often get only a tiny (and insufficient) fraction of the taxpayer money awarded for projects and widespread non-payment of local companies and laborers, including what has been alleged to be the deliberate and systematic exploitation of immigrant workers, including undocumented individuals...(much more)
Link to text version:
http://www.corpwatch.org/article.php?id=14004Link to pdg version:
http://www.corpwatch.org/downloads/Katrina_report.pdf