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Millions Owed to Katrina Contractors07-23-07 | News
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Millions Owed to Katrina Contractors




Local officials said one big reason for the delays is that FEMA underestimated cleanup costs. St. Bernard, for example, is appealing four projects the FEMA valued at nearly $9.3 million but the parish says are worth $16.5 million.

Contractors hired to clean up after Hurricane Katrina are fuming over delays in getting paid by FEMA, and some fear the red tape will discourage companies from bidding on the big rebuilding projects that lie ahead for New Orleans.

One company claims it is owed about $150 million, and some contractors have walked off the job or gone to court to get the money they say they should have been paid for demolition and debris removal completed as much as a year and a half ago.

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Johnson called the whole situation ?EUR??,,????'?????<

Contractors must submit their bills to the local governments that hired them. Then the bills have to be sent to the state for approval, after which they are forwarded to FEMA for review. FEMA is responsible for releasing the money back down the chain.

FEMA said slow payments often stem from incomplete paperwork submitted by the contractors and parishes. The agency said it is trying to protect the taxpayer by making sure that the government is not overpaying and that the work was performed as promised.

In hard-hit St. Bernard Parish, local officials fear the slow-pay reputation will discourage contractors from bidding on the next major phase ?EUR??,,????'?????<

The situation is so bad, officials said, that bidders are tough to find for demolition and debris-removal work that remains nearly two years after the storm.

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?EUR??,,????'?????< Source: Associated Press

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