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Obama and Coburn Investigate Possible FEMA Refusal of Free Cruise Ship Offer

Thursday, September 29, 2005

FOR IMMEDIATE RELEASE
Obama Contact: Robert Gibbs or Tommy Vietor, (202) 228-5511
Illinois Contact: Julian Green, (312) 886-3506
Date: September 29, 2005

Obama and Coburn Investigate Possible FEMA Refusal of Free Cruise Ship Offer

WASHINGTON - U.S. Senators Barack Obama (D-IL) and Tom Coburn, M.D. (R-OK), chief sponsors of a bill to create a Hurricane Katrina Chief Financial Officer, sent the following letter today:



September 29, 2005

The Honorable Michael Chertoff
Secretary
Department of Homeland Security
Nebraska Avenue Center, NW
Washington, DC 20528
Dear Secretary Chertoff:

Two days ago, we expressed our profound concern with the exorbitant costs associated with what appears to be a sweetheart government contract with Carnival Cruise Lines. Our concern was amplified this morning by reports that the federal government may have been able to utilize cruise ships to house evacuees at no cost to American taxpayers.

According to an ABC News report today, the Greek government offered to provide cruise ships for free to house hurricane evacuees. The Federal Emergency Management Agency (FEMA) apparently accepted this offer but never implemented it. Instead, FEMA signed a six-month, $236 million agreement with Carnival Cruise Lines - an agreement that is costing the U.S. government approximately $2,550 per guest per week (assuming the current half-occupancy rate). This amount is four times the price of a seven-day western Caribbean cruise including entertainment and fuel costs.

Even if the Carnival contract were a good one - and it almost certainly is not - it is inexplicable why FEMA would fail to implement the Greek government's offer of free cruise ships. Unfortunately, this is merely the latest example of poor decision-making by FEMA

By the close of business tomorrow we request that you confirm whether the offer of free cruise ships was in fact made by the Greek government and whether FEMA failed to implement the offer. If the offer was not implemented, we request that you provide us with information as to the reasons for the lack of implementation.

Sincerely,

Tom Coburn, M.D.
United States Senator
Chairman of the Senate Homeland Security
and Governmental Affairs Subcommittee
on Federal Financial Management		 Barack Obama
United States Senator