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Auditors to probe Katrina contracts
(AP)
Updated: 2005-09-28 21:50

They included contracts such as a $16 million deal involving Halliburton subsidiary Kellogg, Brown & Root Services Inc. of Arlington, Va., that has been cited for overcharging the government for work in Iraq; and San-Francisco-based Bechtel Corp. Both companies have strong ties to the Bush administration.

Primary oversight falls to the agency IGs and the GAO, the auditing arm of Congress, but critics have said that isn't enough. The various proposals, including ones from Republican Sen. Susan Collins (news, bio, voting record) and House Minority Leader Nancy Pelosi, D-Calif., call for a specially appointed IG who would oversee all the various agencies' work.

But in their testimony Wednesday, the inspectors general said additional review was unnecessary. The GAO and Homeland Security Department IG Richard Skinner have said they would look closely at the no-bid contracts that may have been unfairly awarded based on political connections.

Pentagon auditors also announced a broad-scale review of their defense contracts. The measures include sending teams of auditors to the Gulf Coast to monitor reconstruction efforts.

Investigators also will carefully examine whether federal employees have been abusing government-issued credit cards since their purchase limits were hastily raised to $250,000 to help pay for hurricane-related expenses.

Previous government audits have shown that the credit cards, which typically have a purchase limit of $2,500, were improperly used to pay for prostitutes, gambling activity and even breast implants. About 250,000 federal employees have the government credit cards.


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