FOR IMMEDIATE RELEASE September 11, 2005

CONTACT: Brendan Daly/Jennifer Crider 202-226-7616

Pelosi: Anti-Fraud Commission Needed to Ensure Accountability in Government Contracting in Response to Hurricane Katrina

Washington, D.C. – House Democratic Leader Nancy Pelosi announced today that she supports forming an anti-fraud commission to oversee government contracts issued in response to Hurricane Katrina:

“Congress is rightly spending billions of dollars to help the people and businesses of the Gulf Coast who have been devastated by Hurricane Katrina.   To ensure taxpayers’ money goes to those in need, not to fraudulent contractors, we must establish an independent commission to oversee government contracts for hurricane relief.

“Already we have seen despicable stories of those trying to profit off desperate Gulf Coast residents.   To ensure accountability and that taxpayer money is spent efficiently and effectively, this ‘anti-fraud commission’ would investigate waste and fraud in government contracting, as soon as the contracts are awarded.

“The Bush Administration has eased contracting quotas for small and minority businesses to funnel lucrative no-bid contracts to Halliburton, Bechtel and other large companies, the same firms that received no-bid contracts in Iraq, some of which have been found to shortchange taxpayers.   Just as we cannot tolerate this wasteful spending and corruption overseas, we must not allow it here at home.

“Congress must also do everything in our power to prevent price gouging at the gas pump and for home heating oil and natural gas, especially as the winter months approach.   We cannot allow profiteering from those who are exploiting this tragedy for monetary gain.   The American people expect and deserve nothing less.”

“ Democrats are united in presenting a New Direction for America, one that will make our nation as strong as its people, one that brings opportunity, security, and prosperity to all Americans. ”

Democratic Leader Nancy Pelosi