Monday, September 12, 2005

New Orleans contracts - cronyism

Torcuil Crichton, in the Sunday Herald, 11 September 2005, reported claims that New Orleans contracts are 'mired in cronyism'.

After Katrina, many disaster relief and reconstruction contracts are going to 'companies with ties to the Bush White House and the former head of FEMA.'

Joe Allbaugh was George W Bush’s campaign manager and was head of the Federal Emergency Management Agency. At least 2 clients of Allbaugh have reportedly been chosen to start recovery work:

1. Shaw Group
2. Halliburton Co subsidiary Kellogg Brown and Root.

Cheney is linked to Halliburton.

Bechtel National Inc. has been chosen by FEMA to provide short-term housing for people hit by the hurricane. Bechtel has links to the Bush government.

Kellogg Brown & Root has received $29.8 million in Pentagon contracts to begin rebuilding Navy bases in Louisiana and Mississippi.

Shaw has received a $100 million emergency FEMA contract for housing management and construction. Shaw also clinched a $100 million order on Friday from the U.S. Army Corps of Engineers.


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