Disaster-Resource.com
Government Overpaid $32M in Katrina Evacuation Costs

The Federal Aviation Administration (FAA) is in hot water over a bill it paid for busing evacuees from New Orleans after Hurricane Katrina, as the Transportation Department inspector general has found the agency overpaid it.

According to a new Associated Press report, the FAA paid an extra $32 million for the bill. AP says a company, Landstar Express America, “was given 570 specific tasks to supply enough vehicles to haul thousands of truckloads of goods and thousands of busloads of people after the hurricane struck.” The inspector general’s office reviewed six of those tasks for which the FAA paid.

The report found that the FAA overpaid Landstar for two of those six tasks. According to AP, the Federal Emergency Management Agency asked for 1,105 buses from Aug. 31 through Oct. 7 to evacuate people from New Orleans, and in early September, Landstar asked for an advance of $59,082,000.

But AP says only about 400 buses per day were needed, and they only cost $27,081,859, or $32 million more than the FAA should have paid. The report found that the FAA paid the invoice regardless of the actual costs.

However, AP also says that Landstar came forward with the information of how many buses it actually used, and repaid the money. According to AP, the inspector general said it was the company's action that allowed the government to recover the money.

To read the full article, click here: http://www.newsmax.com/archives/articles/2006/1/20/215710.shtml?s=us