FBI investigating Katrina contracts

[Anita Garcia]

St. Bernard deals involve debris, overtime, trailers
Thursday, March 30, 2006
By Karen Turni Bazile
<http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-5/114370242758250.xml>

The FBI has launched a multifaceted investigation into post-Hurricane Katrina spending in St. Bernard Parish, examining several public contracts including a $370 million debris pickup deal that parish officials granted without bids five days after the storm and gave again to the same firm later last year despite receiving lower offers, according to interviews with competitors and a parish official who have been questioned by federal agents.
. . . .
Parish President Henry "Junior" Rodriguez, who signed that original contract as an emergency measure Sept. 3, said the FBI has not interviewed him and that he was unaware of the investigation.

"I don't give a f - - - if the FBI is investigating," Rodriguez said. "If an FBI investigation would clear up everything and get the progress started in St. Bernard, I would welcome it. The feds need to do their job, but please hurry it up so we can get moving."

[salin]

1. first contract... emergency

if true about going with the higher bid later in renewal - than it ought to be looked into as to why ... but I can't help wonder why the feds would focus on this, instead of looking at the huge contracts awarded to Halliburton, given their proven record of tax payer fraud, and kickbacks to officials who give them contracts.

[rodeodance]

2. makes no sence to me at all-

[rodeodance]

3. and Fema is holding up payment so the contractor won't pick up debris.

What a mess--!


.... St. Bernard officials said hiring a firm themselves gave them more control over the contract and would ensure efficiency. But seven months after the storm, United Recovery Group has amassed $70 million in mostly unpaid bills because the contract has been mired in controversy as the Federal Emergency Management Agency continues to haggle about specific charges. The company stopped debris pickup March 11, saying it could no longer afford to work while waiting for government reimbursement. Collections may resume, however, after the state Wednesday said it will pay some of the company's bills.

When Rodriguez signed United Recovery Group's no-bid contract four days after Katrina, most of the parish was still flooded. Parish officials said URG representatives arrived by helicopter, offering enough equipment and personnel to begin clearing streets.

URG executives who flew into St. Bernard after the storm were representing four firms: Cabal Industries and Compliance Envirosystems, both of Louisiana, and Alabama companies IED and McInnis Services, according to parish documents. Rodriguez signed the Sept. 3 contract with the four firms, which proceeded to register United Recovery Group as a joint venture Sept. 19, according to records of the Louisiana secretary of state.

Murphy said the FBI asked about that initial process. He declined to give more details but said his company also had approached parish officials shortly after the storm looking to help in the cleanup. No contract came out of that effort, he said. .......