Foreign Aid For Katrina Recovery Largely Uncaimed, Unspent

Washington Post:

Allies offered $854 million in cash and in oil that was to be sold for cash. But only $40 million has been used so far for disaster victims or reconstruction, according to U.S. officials and contractors. Most of the aid went uncollected, including $400 million worth of oil. Some offers were withdrawn or redirected to private groups such as the Red Cross. The rest has been delayed by red tape and bureaucratic limits on how it can be spent.

In addition, valuable supplies and services -- such as cellphone systems, medicine and cruise ships -- were delayed or declined because the government could not handle them. In some cases, supplies were wasted.

The struggle to apply foreign aid in the aftermath of the hurricane, which has cost U.S. taxpayers more than $125 billion so far, is another reminder of the federal government's difficulty leading the recovery. Reports of government waste and delays or denials of assistance have surfaced repeatedly since hurricanes Katrina and Rita struck in 2005.

Administration officials acknowledged in February 2006 that they were ill prepared to coordinate and distribute foreign aid and that only about half the $126 million received had been put to use. Now, 20 months after Katrina, newly released documents and interviews make clear the magnitude of the troubles.

Simply put: the Admiistration doesn't care.