Contractors Gouge as Much as 1,700 Percent on Katrina Cleanup

Federal agencies in charge of Katrina cleanup have been repeatedly criticized for lapses in managing the legions of contractors who perform tasks ranging from delivering ice to rebuilding schools. Last Thursday, Congress's independent auditor, the Government Accountability Office, said inadequate oversight had cost taxpayers tens of millions of dollars, by allowing contractors to build shelters in the wrong places or to purchase supplies that were not needed.

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