Katrina victims may have to repay money

[Dixie*Darling]

Contractor says it rushed to deliver aid; agency to collect overpayments

http://www.msnbc.msn.com/id/23859898/

...

A private contractor under investigation for the compensation it received to run the Road Home grant program for Katrina victims says that in the rush to deliver aid to homeowners in need some people got too much. Now it wants to hire a separate company to collect millions in grant overpayments.

The contractor, ICF International of Fairfax, Va., revealed the extent of the overpayments when it issued a March 11 request for bids from companies willing to handle "approximately 1,000 to 5,000 cases that will necessitate collection effort."

The bid invitation said: "The average amount to be collected is estimated to be approximately $35,000, but in some cases may be as high as $100,000 to $150,000."

The biggest grant amount allowed by the Road Home program is $150,000, so ICF believes it paid some recipients the maximum when they should not have received a penny. If ICF's highest estimate of 5,000 collection cases — overpaid by an average of $35,000 — proves to be true, that means applicants will have to pay back a total of $175 million. 

...

Greed, corruption and just plain stupidity  ...  LMAO, and Dummies STILL want big government to decide their health care issues! 

[Dixie*Darling]

same article, continued ..

Governor under investigation
The prospect of Road Home grant collections comes less than two weeks after the Louisiana inspector general and the legislative auditor said they were investigating why former Gov. Kathleen Blanco paid ICF an extra $156 million in her waning days in office to administer the program. With the increase, ICF stands to earn $912 million to run Road Home, a contract that also sweetened its initial public stock offering, helping it buy out four other companies and enter government contracting in sectors including national defense and the environment.

Paul Rainwater, executive director of the Louisiana Recovery Authority, the state body that asked for the Blanco-ICF investigations, acknowledged the collections could be painful for applicants, many of whom have used up their nest eggs to rebuild.

"The state must walk a fine line of treating homeowners who have been overpaid with fairness and compassion and ensuring that all federal funds are used for their intended purpose," said Rainwater, an appointee of new Gov. Bobby Jindal.

Looks like Lucy has some 'esplain'in to do!   

[Lacarnut]

Feds need to investigate Blanco. Crooked Democ. politicians are nothing new in this state.

[jtyangel]

Imagine that...the little guy via Sarbanes Oxley wants the big evil corporation to be accountable for money movement. That they would be held to the same standard with taxpayer provided funds...oh the humanity!!