FEMA's "Toxic Bureaucracy"

FEMA's been under fire from critics who claim the Gulf Coast recovery is moving too slowly. Now FEMA officials said they're investigating allegations of serious misconduct at the New Orleans office. CBS News has learned workers there accuse their bosses of intentionally holding up Katrina aid.

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The day Hurricane Katrina hit Slidell, La., in 2005, more than six feet of tidal surge flooded the city's downtown. Today Slidell mayor Ben Morris is still running city hall - out of a trailer.

"When the train goes by, it shakes," Morris said.

All because of endless delays, caused by FEMA, he says, which just last month delayed money for rebuilding yet again, CBS News chief investigative correspondent Armen Keteyian reports exclusively.

"It's been an indescribable nightmare that most people would not believe," Morris explained.

Today, nearly $4 billion intended to rebuild the Gulf Coast remain unspent. That's 68 percent of the $6 billion promised by FEMA.

This is leaving hundreds of projects, like a police station in New Orleans, and the Charity Hospital, waiting.

Now, a CBS News investigation has uncovered what more than a dozen current and former employees say is one key reason help isn't getting to those in need.

They point to a FEMA office in downtown New Orleans, which is responsible for distributing the money. They say the way the office is managed is itself a disaster.

Three senior level staff people - who still work for FEMA - fear they will lose their jobs for speaking out. CBS News agreed to protect their identities.

Keteyian asked one employee to describe the atmosphere in the office.

Keteyian: Cronyism?

FEMA employee: Yes.

Keteyian: Sexual harassment?

FEMA employee: Yes.

Keteyian: Racial discrimination?

FEMA employee: Yes.

Keteyian: Intimidation?

FEMA employee: Yes.

Keteyian: Retaliation?

FEMA employee: Yes.

CBS News has learned that since January 1, nearly 80 employment-related complaints have been filed by staff at the office.

And in the last year, more than 30 complaints have been filed against one man - chief of staff Doug Whitmer - including charges of sexual harassment.

"The harassment, the equal rights - violations that are currently taking place over there, this office is slowing down the recovery in this region." said one former FEMA employee.

And slowing down the recovery - these former employees charge - is exactly what some senior managers at the New Orleans FEMA office want.

Keteyian: But what's in it for them? To slow this process ...

Former FEMA employee: They're making ... over $100,000 plus a pension in some cases.

Keteyian: So they've taken a natural disaster and turned it into a huge boondoggle for themselves?

Former FEMA employee: In my opinion, yes.

"Shame on FEMA," said Rep. Joseph Cao, R-La.

Cao said the New Orleans FEMA office needs to be investigated.

"They're more worried about their own positions in FEMA, their own salaries," Cao said. "Than the recovery process down here."

CBS News wanted to speak with Doug Whitmer or Jim Stark, his boss. Stark opened up this morning in Washington. He denied there was any intentional slow down of the recovery process.

"I find that pretty offensive, Armen," said Stark. "I live in New Orleans, I've lived there for six years. I joined FEMA to help my community to recover."

"Does that trouble you in any way that one man has 30 complaints in the last year against him, employment-related?" Keteyian asked.

"I am concerned for the people that may have been abused," Stark responded. "We'll have to see."

"The word that has been used with us is 'toxic.' That the atmosphere in your office right now is toxic," Keteyian said.

"Then we'll take steps to fix it," Stark said.

Gulf Coast resident shouldn't expect FEMA's recovery work to end here anytime soon.

Employees say they've been told to expect it to go on for as long as 15 years.

[DeGuyz-n-Mississippi]

4.415 cases that had been previously disqualified by the Mississippi Development Authority have qualified in The Road Home Program. An agreement reached between Former Governor Barbour's administration and HUD to re divert CDBG funding that was originally earmarked for victims of the storm. MS-FEMA has been accused of some pretty serious allegations including falsifying federal documents and conspiring in an effort to cover up at least one case. An end stage Alzheimer's patient died from her disease in 2008 with no services ever rendered at her damaged address from her local disaster recovery office. www.deguyz.******** FEMA agents are trained NOT to get involved with community problems. Turned out that the agents were part of the community where the acts of hate started. It could possibly lead to the end of FEMA as we know it. Just enough toxic bureaucracy to prove a point. "It only takes one".

[DeGuyz]

6 years after Katrina made landfall, the largest breach of equal rights is still trying to make its way into a federal court. The Mississippi division of FEMA conspired and falsified federal documents in an effort to cover up removing a homeowner's name from a disaster application. An end stage Alzheimer's patient died with no services ever rendered and while there's enough evidence known by the division of equal rights in Maryland to expose the case and vindicate the homeowner, their position is they have to believe the documents submitted to them by the state.(Another loophole to allow criminal activity) They tried to arrest the homeowner on felonious charges and when that failed, it opened pandora's box. Federal witnesses names were removed and replaced with names of people who may or may not have played a part. My guess is the whole state was involved. As a federal appeal was granted in 2007, the state had made their own laws to ignore it. www.deguyz.******** is the case. FEMA was ruled to be guilty but it has to be heard in court. Poor people do not have access to counsel. That's the only thing that is stopping this case from moving forward. Possibly the first time in the history of the entity (FEMA) that a death has occured under a disaster proclamation. The state of Mississippi will go down in history as being the state that "allowed for all" because of their hate and greed.

[BP_04]

Katrina is not the only disaster where corruption has taken place within the FEMA AFO's or JFO's. I worked for 3 months at the Beaumont AFO, for the Ike recovery and I have seen the same issues there. I believe there is nothing that can be done about it because it is just too wide spread. The ones in charge are making a lot of money, so they will find a way to get rid of those that may threaten their positions, such as humiliating someone by having them write a paper on how to make a P&J sandwich. In other words, the corrupt ones cover for each other and they make up the majority of the FEMA DAE's. Anyway, who will listen to the disgruntled employee?s?

[pheeoz08]

Some of the recipients of FEMA funds are just as corrupt as FEMA itself. Some FEMA recipients receive rental funds from FEMA, rent an apartment in other cities, sublet those apartments, move back to New Orleans and live with family, rent free, and receive money from the sublet. Scamming.

[Ronibach]

" . . . soon nationalized health care, nationalized oil, and nationalized banks will be run with the same efficiency as FEMA. Can't wait!~ "

If the neocons ever get back in government, then maybe the same incompetence and corruption and lies that came from the Bushies will reappear.

Bush and his inept appointed officials were more worried about paying off their supporters than getting a job done.

The Obama administration and the Democratic Congress are just now starting to expose the corruption, rot, and incompetence that was the conservative GOP Bush administration.

Hold on folks, there will be even more GOP failures that come to light.

[jilletv]

For the record NawlinsDean, you COMPLETELY missed my point. When I said for NO residents to get off their butts, I was referring to the ones that don't work (even if they are able to), don't try to rebuild their own house, and wait with their hand out. They EXPECT our tax dollars to build them a brand new home. Now, are there exceptions for residents that genuinely can't afford to rebuild their home?..ABSOLUTELY. I am not talking about those exceptions. If you would have actually read my previous comment, I said this.."However, we absolutely need rebuilding money for projects like rebuilding the coast, marshes, etc. to protect us from another hurricane." To enlighten you, NawlinsDean, "etc." means hospitals, levees, fire stations, schools, streets, .......And by the way NO is not the only city that was devasted. Have you heard of Holly Beach, Creole, Johnson Bayou, Pecan Island? All of these cities were devastated by Rita AND Gustav. THEY DON'T HAVE ANY BUILDINGS STANDING/LIVABLE IN THE ENTIRE TOWN! They now have had to rebuild twice. To this day no schools have reopened. And for your information, I am not from north Louisiana, I have lived my entire life south of I-10. Also, I have been to NO five times since Katrina for vacations. My family CHOSE to go there instead of other places to help the businesses of NO. Not only do I believe of it's importance to the state, it is my favorite city I have ever experienced. (And, I have been to 40 states and 4 countries.) So, get off your high horse NawlinsDean and understand the anger of the rest of the state. I didn't get a government paid house when Hurricane Lily blew mine away. I rebuilt a smaller one, with my own money.

[NawlinsDean]

Shame that Northern LA's are such snobs when it comes to New Orleans. Let's correct Jill's misinformation>
6.9 Billion dollars that is being held hostage is for the CITY not the citizens.

1) Fix Charity Hospital so there is a) an active ER in the city, and b) a Public Hospital
- I guess Jill doesnt believe New Orlean American citizens arent supposed to have a hospital.

2) Public Works : Replace miles of broken water pipes, streets and street lights.
- I guess Jill thinks New Orlean Americans arent allowed to have a fixed water system, repaired streets and street lights

3) Fix the Fire Houses: there are only 3 working firehouses in New Orleans Proper.
- I guess Jill taht Tax Paying New Orleanians aren't allowed fire protection

4) Fix the Police Stations: over half of the police stations were destroyed, currently, the New Orlean's Police are working out of TRAILORS!
- I guess JILL doesnt believe we have a right to police protection

5) Rebuild the Public Schools - most were destroyed, including private schools.
- I guess Jill doesn't want New Orleanian Children access to education.

Fact: Most home owning New Orleanian's had flood insurance, sadly that flood insurance rate was based on the Army Corp's flood maps. Those maps were very wrong. Thus, there is a gap between what the insurance will pay - if they pay at all - caused by the army corpes FAILURE to acknowledge a well known fact: The LEvees were going to fail.

_ But JILL believes its our fault we didn't have enough insurance.

Fact: To help the home owners fill the gap between their insurance and the actual damage, the Federal goverment credited the Road Home Program.

- But JIL believes its fair to short change tax paying american citizens.

6.9 Billion dollars of OUR money is being held back by FEMA - but to JILL that's okay

Katrina did not destroy my HOME. The army corpes of engineers failure to respond to a known fact: The levees were poorly designed and built completely wrong.

That is what destroyed the city.

And where is Bush's tax incentive for Business to remain or come to the city? Never Happened.

We can get food and water to the tsunami victims in less than 24 hours, but we couldn't take care of our own citizens...I find that frightening.

Because the fact is: there will be another disaster. and WE ARE NOT PREPARED.

Jill, get off your high horse. New Orleaniaqns are American, tax paying, voting citizens who have teh same rights as you.

And, without New Orleans, teh State would have no real income as we remain one of the major gulf ports.

And those are facts that are not disputeable!

Nawlins Dean

5) Fix the COurt building and recover criminal evidence

[mjvwsr]

Who's the sucker? Big Business, Big Brother, or Americans?
Posted by cdwalker

you are if you think government can fix it

[cdwalker]

Just how corrupt was the Bush administration? Everyone knows someone in their hometown who would rip you off for 100 dollars, what will these executives,(Public, Private, Government) do for 100's of millions of dollars. 4 billion is still being withheld from the people who need it? What does that say about the people Bush appointed to run FEMA, because Obama has yet to make any move to reform FEMA. Same could be said about SEC and how they have let Wall St. run itself. And the FDA, who no longer inspects food processing plants because those companies have done so well regulating themselves, just look at the Peanut Problem we went through. No inspections, no regulations, and Republicans just assume executives will do the right thing, the right way, and follow the letter of the Law. Who's the sucker? Big Business, Big Brother, or Americans?

[briannorwood]

And more cleanup required from the Bush Administration...."Wash, Rinse, Repeat!"