February 11, 2009 3:25 PM

Report: FEMA Spent Millions Fraudulently

(AP)  The Federal Emergency Management Agency misspent millions of dollars it received from selling used travel trailers, government investigators have found.

Instead of buying more trailers - as allowed under the law - FEMA used more than $13 million toward fully loaded sport utility vehicles, travel expenses and purchase card accounts, according to a draft report by the Homeland Security Department's inspector general obtained by The Associated Press. The report is to be released Friday.

During its three-month review last summer, the inspector general found that FEMA used some of the proceeds from trailer sales for tree-removal services, agency decals and banners and global positioning systems. FEMA spokesman James McIntyre said the agency discovered these problems on its own and has taken steps to fix them.

After Hurricane Katrina, FEMA purchased 200,000 travel trailers and mobile homes. When displaced hurricane victims leave these housing units, FEMA may sell the units to the general public. The law states that FEMA must use proceeds from these sales to buy more trailers or return the money to the U.S. Treasury.

"Once again, FEMA has proven to be a poor steward of taxpayer money. In order to regain the public's trust, FEMA must ensure that this type of wasteful spending never occurs again," said Rep. Bennie Thompson, D-Miss., the chairman of the House committee that oversees the Homeland Security Department.

In its comments on the report, FEMA said it spent all the money received from the sales to help disaster victims, but the agency agrees with investigators that there needs to be better oversight and control in the future.

"The funds received from the sale of used travel trailers and mobile homes were used specifically for what they were originally obligated for - that is, the proceeds were used for disaster relief and emergency assistance," according to the agency's comments to the draft report. In its comments, FEMA said it will establish a system to track the sale proceeds so that the proper amount of money is returned to the U.S. Treasury.

Since the 2005 hurricanes, Congress and the government have investigated FEMA's spending practices and determined the agency was defrauded, purchased trailers that pose potential health risks and misspent taxpayer dollars. In 2006, a congressional investigation found that purchase cards were used improperly and the Homeland Security Department - FEMA's parent agency - wasted hundreds of thousands of dollars on items like iPods, beer-making equipment and designer jackets.

© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 59 Comments
by keithle1 February 21, 2008 9:25 AM EST
FEMA couldn''t manage a teddy bear picnic let alone an emergency.
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by keithle1 February 21, 2008 9:23 AM EST
FEMA is a joke. I hope I never have to rely on their help.
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by kansas1946 February 21, 2008 2:39 AM EST
What''s the big surprise. This whole administration and everyone he appoints turns out either to be a liar, a crook, or just plain incompetent. Nothing new with this story. Just another Bush administration SNAFU.
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by libsrweak February 20, 2008 9:27 PM EST
Posted by Benst1 at 04:35 PM : Feb 20, 2008
+ report abuse


***********

did you notice that 3% of that layer of sh*t you just spread was about FEMA and 97% are all anti-bush non-compatible with the topic at hand????********

i really dont that you care about the money waster either with Fema or the money spent on our war on terrori..ALL YOU CARE ABOUT IS TO HAVE ANY SORT OF PLATFORM TO RANT..

THE IMPEACHEMENT PROCESS...are you guys done whinning, ******** and moaning yet???? you guys are so busy you forgot to ACTUALLY ACT ON THE IMPEACHMENT PROCESS..

lesson to this story..dont depent on a liberal anit-american bullsh*tter to do anything.
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by libsrweak February 20, 2008 7:23 PM EST
I dont know why could this issue be an ISSUE??

we have laws and guidlines for these...PUNISH THE FU CKERS AT THE FULL EXTENT OF THE LAW..FIN !!!!!!!!!!
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by randynason February 20, 2008 4:08 PM EST
This should come as no big surprise. Anyone with half a brain already knows this happened and has been wondering when the "powers that be" would eventually investigate properly and draw needed attention to this crime. Stealing millions upon millions of tax payers'' dollars is not a petty crime. It''s huge.
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by jwind11 February 20, 2008 4:03 PM EST
I''''m sure Sarge would love to be able to do more. The problem is he''''s HE CAN''''T WALK! You are wrong also about people who come here to communicate. It''''s like a giant break room for some of us. It''''s a chance for me to get on here and talk to people who have the same disgust for the loser Bush that I do. WE all have to do our jobs or as in MCVets case, get treatments, but we can share our beliefs in what is wrong with this nation. The Republican Party took over a nation with a balanced buget and a surplus. We have borrowed trillions of dollars and have a record deficit. Add that to the mess being discussed here!


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Posted by skyk


I bet your "breakroom" would be similar to a an AA meeting... You get up to the podium "hi my name is skyk and i am whining liberal" and the room responds "hi skyk".
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by valendug February 20, 2008 3:24 PM EST
I''ll bet FEMA hasn''t stolen a fraction of the money that Jewliani and company did after 9/11.
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by tejasdemo February 20, 2008 3:23 PM EST
I am sick to death of all these meaningless reports. The next one I want to see goes something like this.

Fema employees thrown in state prison for ripping off poor people. Period.
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by gracianp February 20, 2008 3:21 PM EST
And this is news?
The entire Bush administration is RIFE with fraud and criminal ineptitude. They have made it their trademark. Whatever they touch they turn into a funnel of our taxdollars to millionaires, family members, and cronies, and a nightmare and huge debt to the citizens and our children. This administration with its traitorous Republican rubber-stampers cannot end soon enough. PLEASE vote them all out!!! And go with a video to observe the November elections in your area- because they will be trying to steal or shred your vote AGAIN.
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