Katrina Recovery - Louisiana businesses left high and dry

Louisiana businesses have received only a miniscule share of FEMA dollars for the recovery from Hurricane Katrina.

Gannett News Service reports that less than 6 percent of all dollars spent so far have gone to companies in Louisiana.

Of the 413 post-hurricane contracts that FEMA had awarded to Louisiana companies as of Nov. 18, only 125 were worth more than $100,000, according to a Gannett News Service analysis. And only 50 were worth $500,000 or more.

Of the $3.7 billion FEMA has spent on contracts related to hurricanes Katrina and Rita, about $201 million -- or 5.4 percent -- went to Louisiana companies, according to the analysis of all 2,009 contracts FEMA had awarded by Nov. 18.

Much of the blame goes to the no-bid contracts doled out to firms like The Shaw Group, which is based in Baton Rouge, and Halliburton. The Shaw Group worked with lobbyist and former FEMA chief Joe Allbaugh to secure its share of federal recovery dollars.

A promise last month by FEMA to rebid the no-bid contracts has yet to materialize.