U.S. forces return of millions in disaster aid

©Associated Press

© St. Petersburg Times, published June 21, 2000

WASHINGTON -- Years after coming to the rescue of victims from California earthquakes to Pennsylvania blizzards, the government demanded nearly a half-billion dollars back from states and local communities, federal records show.

The Federal Emergency Management Agency insisted on the refunds after auditors found the aid wasn't deserved. In some cases, the work was not completed as promised or the recipients got paid twice -- by the government and insurers.

The Sheriff's Office in New Orleans had to return $56,000 it charged for flood cleanup work performed by prisoners working for free, an Associated Press review of more than 100 recent audits found.

California was required to repay $1.4-million from a wildfire that duplicated money recovered in a lawsuit.

And a former Florida parks official was indicted after authorities couldn't locate the federally purchased palm trees his agency was supposed to replant after a hurricane. The investigation continues.

The nation's disaster relief agency has recouped $442-million over the past decade, according to FEMA. That total likely will rise as more audits are completed. Examples were gleaned from the most recent audits in 1999 and 2000.

FEMA officials say the effort is needed to improve accounting for money that is distributed quickly in the aftermath of catastrophes to ensure that victimized communities get the help they need.

FEMA's public assistance funds are provided to state and local government agencies and non-profit organizations to help rebuild communities after disasters.

While cleaning up the books, FEMA Director James Lee Witt is taking steps to avoid future problems. FEMA now sends insurance experts and auditors with initial disaster teams to screen for ineligible claims.

In one case, it was the news media, not FEMA auditors, that uncovered an apparent misuse of funds: In Miami-Dade County, FEMA was unable to account for 4,200 coconut palm trees it had paid for after Hurricane Andrew eight years ago.

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