FEMA changes disaster procedures to avoid fraud
In order to prevent the kinds of [tag]fraud[/tag] and abuse that went on after Hurricane Katrina, the Federal Emergency Management Agency ([tag]FEMA[/tag]) is changing the way it distributes emergency aid.
The changes include the following:
- Displaced families will receive $500 in emergency aid after a major disaster, down from $2,000 per household
- FEMA will start registering evacuees before the storms hit, which will help with distributing money and finding temporary housing for people whose homes are damaged
- Evacuees will not be moved from shelters to apartments or temporary housing until their identities are verified
- State and local governments will be asked to sign contracts with local clean-up companies prior to a disaster
These changes are being made after discovering that over $1 billion in aid to hurricane victims was misspent. Some of the fraudulent spending included $3,700 for jewelry, $2,000 for New Orleans Saints season tickets, $600 for strippers and $300 for “Girls Gone Wild” videos.
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