Feds: Nola Need To Supply Again $2 Billion

× Feds: NOLA should give back $2 billionWASHINGTON – A report from the federal Office of the Inspector General claims that FEMA should not have awarded the City of New Orleans and the Sewerage and Water Board $2 billion to repair streets and water lines after Hurricanes Katrina and Rita.
And the report says the federal government should get that money back– an amount equivalent to $5,200 for every man, woman, and child in the city.
“In fact, evidence shows,” writes McCoy in the report, that the city’s “infrastructure was old and in poor condition even before the hurricanes.
Eligibility for FEMA funding requires that damages be the direct result of the declared disaster, and it is the applicant’s responsibility to show that the damages are disaster-related.
“Even though FEMA attributed the damages to the water distribution system directly to Hurricanes Katrina and Rita in 2005,” writes Acting Inspector General John McCoy, “we concluded that FEMA did not have sufficient documentation to support its decision.

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