Thursday, January 05, 2006

Bush's price-gouging crony Katrina recovery

A lot going on lately makes it difficult for me to stay on top of posts, but here's a Times-Picayune article that merits considerable attention:

Sizable chunks of [federal recovery funds] are being lost along a lengthy food chain of contractors, subcontractors, sub-subcontractors, sub-sub-subcontractors and so on.

For example, the Army Corps of Engineers pays the Shaw Group an estimated $175 per 100-square-foot section to attach blue tarps to damaged roofs. The Baton Rouge-based firm hires subcontractors that hire their own subcontractors, and companies at each level receive a share of the money. The low-level firms that actually do the work of putting tarps on roofs earn as little as $2 per square.


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