The Nation
FEMA hasn't collected more than $600 million in improper payments
Posted: Jan 3, 2011 3:18 PM by Greg Boyce
NEW ORLEANS (AP) - A government audit says the Federal Emergency Management Agency hasn't tried to collect roughly $643 million in improper payments made to victims of Hurricane Katrina and other disasters. A report issued Monday by the Department of Homeland Security's inspector general's office says the improper payments have gone uncollected since June 2007 because FEMA hasn't given its final approval to a new recoupment process.
FEMA has distributed more than $7 billion in disaster assistance payments since the 2005 hurricanes. An estimated 160,000 applicants received about $643 million in improper payments resulting from fraud, FEMA errors or other mistakes.
The audit says a new process for recovering improper payments has been awaiting approval from FEMA's administrator since late 2008.
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