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Ron Jackson's Perspective
The Sunday Journal - Think
Kankakee, Illinois
June 18, 2006

Defense fraud worse than hurricane rip-offs

Logo for The Daily Journal newspaper of Kankakee, Illinois - which carries Ron Jackson's editorial columns every Sunday


     It’s darned if you do, and darned if you don’t.  Just a few days into this year’s hurricane season, our nation’s disaster relief agency finds itself in the center of another embarrassing storm.
     The Government Accountability Office conducted an audit of the Federal Emergency Management Agency’s Hurricanes Katrina and Rita aid distribution and discovered many misuses of federal funds.  FEMA was found to have paid out almost $1.5 billion in fraudulent relief claims.
     According to the audit, as much as 16 percent of FEMA’s hurricane assistance may have been obtained fraudulently.  FEMA paid for hotels stays in Hawaii, season football tickets, divorce lawyer fees, funerals not related to these hurricanes and a sex-change operation.  The agency was duped by prison inmates as well as free citizens.  One man used a cemetery as his home address to successfully receive benefits.  Another man received rental assistance after providing several different addresses and had all the payments made to his East Coast home.
     Some reports of fraud really strike a nerve.  Like the one of a man who spent nine weeks in a Hawaii hotel for $100 per night at government expense while also receiving a check for more that $2,300 for a residence he didn’t live in.  A second man received a check for the same amount for a residence that turned out to be a cemetery.
     FEMA reported that out of the 2.5 million claims for assistance, 900,000 were determined to be potential duplicates.  Since we don’t have any pictures or other identification of the con artists, we are left to conjure up our own images.  Even some of the inspectors hired to process claims for FEMA were found to have criminal histories ranging from drugs to embezzlement.
     As ridiculous as this all seems, FEMA can’t be held solely responsible.  After Katrina hit, the agency was bombarded with accusations of not doing enough.  Then Rita delivered her punch.  The government body was left with no option but to avoid operating in the typical, slow, bureaucratic manner and was forced to respond in a more expeditious fashion.  It did so with reckless abandon.
     We, the public, from the safe perches of our dry homes thousands of miles away, demanded FEMA conduct itself in an ungovernment-like manner.  We shouted and demanded that the government do more and do it faster.  We wanted our fellow Americans cared for.  We watched the unbelievable videos, and then mandated all levels of governments do whatever it took.  Take the money from the war chest, raise our taxes.  We didn’t care.  Just do something.  We wanted our government to exceed the efforts of the private sector.  We didn’t demand that the government make sure every waist-high-water-wading person was a true victim.  We got what we wished for.
     Doing something and doing anything took precedence over doing the right thing.  This was a classic example of spending by the people for the people.
     If 84 percent of the dollars went to deserving persons, that is a pretty good success rate for the government.  Operating under dire pressure and public scrutiny, FEMA made mistakes while responding to the worst natural disaster we have ever faced.  However, it did so while performing a pretty fair service as far as government standards go.  Many deserving people were helped.  Some deserving may still be waiting.
     If we are alarmed by the amount of fraud FEMA experienced, imagine the fraud and misuse of the millions of dollars the public donated.  It would not be far-fetched to think that some of the con artists tapped into the private sector funds, too.  It would be impossible to get a full accounting of how those dollars were handled.
     We were all duped to the tune of over a billion dollars.  We all should share in wiping the proverbial pie off our faces.
     After that, we should leave our bibs in place while preparing ourselves for the next storm, the report of the scandals perpetrated by some of those involved in the clean-up and rebuilding phase.
     The FEMA findings still come up short when it is compared to some of the other government audits.  Remember the audits of the Defense Department contracts that found our government had paid for $900 toilet seats, $600 hammers and $300 pliers?  Ironically, none of this was considered fraudulent.

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