You think these two items are connected?
The Times Picayune reports that FEMA may have actually authorized insurance companies to overbill:
The Federal Emergency Management Agency may have told the insurance industry that it was OK to load up damages on the taxpayer-funded flood program while shorting people on their wind damage payments.In the now controversial Sept. 21, 2005 memo explaining the expedited flood adjustment procedures that were developed in consultation with private insurance companies, flood program director David Maurstad said:
“FEMA will not seek reimbursement from the company when a subsequent review identifies overpayments resulting from the company’s proper use of FEMA depth data and a reasonable method of developing square foot value in concluding claims.”
Not “if” a subsequent review identifies overpayments, but “when” a subsequent review identifies overpayments.
Keep in mind, this is taxpayer money that is being spent.
Then comes this from the Sun-Herald:
The cash-strapped city of New Orleans is turning to foreign countries for help to rebuild as federal hurricane-recovery dollars remain slow to flow.Kenya Smith, director of intergovernmental relations for Mayor Ray Nagin, said city leaders are talking with more than five countries. He wouldn’t identify the countries, saying discussions were in the early stages. But he said the city is “very serious” about pursuing foreign help.
“Of course, we would love to have all the resources we need from federal and state partners, but we’re comfortable now in having to be creative,” Smith said. He did not know if the city would have to overcome any obstacles if it got firm pledges for aid, but “we want to make sure we’re leaving no options unexplored.”
For months Nagin has complained bureaucracy is choking the flow of much-needed federal aid dollars to New Orleans – slowing the city’s recovery. As of June 8, the city said it had received just over half of the $320 million FEMA has obligated for rebuilding city infrastructure and emergency response-related costs. The city has estimated its damage at far more than that – at least $1 billion. And that doesn’t include other improvements – such as raised neighborhoods – meant to help build the stronger city promoted by Nagin and his recovery director.
Now of course, I’m all for any and all aid – foreign or domestic – to get the job done and get New Orleans back on track. But, that said, it’s interesting that the federal money is a mess and not flowing and the need to go for foreign aid has become required.
Do the math.
I think we are in fact on our way to getting on top of the whole Katrina exercise.” –Vice President Dick Cheney, Sept. 10, 2005
“I believe the town where I used to come – from Houston, Texas, to enjoy myself, occasionally too much – will be that very same town, that it will be a better place to come to.” –President Bush, on the tarmac at the New Orleans airport, Sept. 2, 2005 (Source)
