Joined: Mar 17, 2005
Location: Staten Island
|Posted: Wed Dec 03, 2008 11:44 am Post subject: The Rich Get Richer Part III
From Wed Dec 03, 2008 3:00 am to Sat Dec 06, 2008 2:59 am (included)
|As we mentioned yesterday in regards to the WTC Captive Insurance Corp the Inspector General's draft report stated that the city had the right to use the funds to defend itself against lawsuits.
But the report also called for tighter scrutiny of legal and administrative costs.
Obviously this has not taken place as the WTC Captive Insurance Corp. continues to spend like a drunken sailor on everything but compensation for those injured.
And do you want to know why?
Once again the blame goes to FEMA who were charged with overseeing the fund.
As reported by Sue Edelman back in July the Inspector General's draft report stated FEMA admitted they had little experience with insurance and found financial reports difficult to understand and barely gave the balance sheets "a really good glance"
Is it no wonder that the WTC Captive Insurance Corp keeps spending as it has.
The fact that they have been permitted to invest the federal aid funds (and lose millions of dollars) and spend 99% of their expended funds on everything but aid to the victims is directly a result of this lack of oversight by FEMA.
The obvious question is how many other programs are in the same situation.
With the state of the economy somebody needs to call for a complete and "REAL" audit of federal programs like this one.
It is apparent that hundreds of millions are being diverted from their intended purposes.
Victims continue to be ignored and lawyers and administrators keep padding their wallets.
Since at the state level the Insurance Department, the Comptroller's Office and the Attorney General have ignored requests to get involved we need this addressed at the federal level.
The investigation should start with the IRS not Homeland Security as this is a not for profit corporation.
This is probably just the tip of the iceberg and all programs should be reviewed beginning with those monitored by FEMA.
With expected cuts coming in federal programs we cannot afford this type of waste and mismanagement.
Lets hope that somebody in Congress has the courage to get this done!