Wednesday, July 19, 2006
Brewing kit, plasma TV among government Katrina purchases
WASHINGTON (CNN) -- Government "purchase cards" were used to buy a beer brewing kit, an $8,000 63-inch Samsung plasma screen television, hundreds of laptop computers that are now missing, and 20 flat-bottom boats at greatly inflated prices, according to a government audit of spending associated with Hurricane Katrina relief efforts.

The new audit, also done by the Government Accountability Office (GAO), looks at purchases made by DHS employees during a five-month period beginning in June 2005 using "SmartPay" purchase cards, intended to give government employees a more flexible and efficient way to purchase goods and services. Typically, government employees can make purchases up to $2,500 with the cards, but Congress increased the threshold to $250,000 for Katrina-related purchases.

But the GAO's Gregory D. Kutz will testify to a Senate committee Wednesday that weak controls at DHS exposed the department to "fraud, waste, and abuse," according to prepared testimony.

A previous government audit showed that about $1 billion FEMA gave to Hurricane Katrina and Rita claimants were fraudulent.
Posted By Jeanne Meserve and Mike Ahlers, CNN America Bureau: 7/19/2006 12:47:00 PM ET | Permalink
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