The chairman of the House Homeland Security Committee yesterday called for an investigation to determine whether billions in 9/11 recovery aid to New York were spent properly.And it gets worse as the Daily News reports that mobsters tried to angle their way into doing business related to WTC cleanup. The good news is that Manhattan DA Robert Morgenthau had been tapping the phones of the involved parties:
"I will ask Congress," said Rep. Pete King (R-L.I.). "I think it's important for New York and Washington to see what happened."
King was reacting to yesterday's first installment of a Daily News investigative series that has uncovered waste, fraud and mismanagement in the $21.4 billion federal aid package to help the city recover from the 9/11 terrorist attacks.
"In the months after Sept. 11, the intention was to get the job done and worry about the details later," said King. "Now we should look to see how well the job was done and see if money was given to those who didn't need it or weren't entitled to it."
King said an inquiry was needed to make sure any abuse is "not used as an excuse not to give New York money in the future."
In fact, organized crime and corrupt subcontractors turned the terrorist attack into a windfall, according to a four-month Daily News investigation of the federal government's $21.4 billion 9/11 disaster recovery program.The federal funding for WTC rebuilding and assitance totaled more than $21.9 billion. Of the $458 million for the FEMA funded cleanup, at least $63.2 million went to companies accused of mob ties.
Down at Ground Zero, the Luchese family, the Colombos, the Gambinos and even the New Jersey-based DeCavalcantes all made out, according to court documents, government records and interviews.
They divvied up Ground Zero the way the mob carved up Las Vegas in the old days.
Unbeknown to Monchik and his business associates, all of the calls were being tracked by Manhattan District Attorney Robert Morgenthau's office.
The DA had been looking into corruption in the asbestos removal industry and happened to run into the blizzard of phone calls in the hours following the terrorist attacks.
In other words, more than 1/7 of the money for the cleanup went to companies accused of mob ties. Some of the problems may be attributed to the speed in which the contracts were let - the need to remove debris from the site and cleanup the surrounding areas were so overwhelming that normal contracting procedures were not utilized except where practicable (which didn't happen).
With Congress looking to bail out Louisiana and the Gulf Coast, the fears of mobsters and corrupt officials throughout the region getting sticky fingers are a real and distinct possibility, especially given the shady history of Louisiana politicans.
UPDATE:
Also noting the NY Daily News report, and the ensuing commentary: The Subjective Scribe who thinks that the party in power should be held accountable (hint - the GOP), Michelle Malkin who lays the blame on Democrats in NY and NJ, The Reclusive Antiquarian, and BizzyBlog
Technorati: World Trade Center, WTC, Pataki, LMDC, urban policy, Freedom Tower, IFC, International Freedom Center.
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