NEW ORLEANS – The Federal Emergency Management Agency hasn't tried to recoup about $643 million in improper payments made to victims of Hurricane Katrina and other disasters in the wake of a judge's order more than three years ago, according to a government audit issued Monday.
The improper payments have gone uncollected for more than three years because FEMA hasn't given its final approval to a new process for recovering the money, auditors found in a report by the Department of Homeland Security's inspector general's office.
The federal agency has distributed more than $7 billion in disaster assistance payments since hurricanes Katrina and Rita struck the Gulf Coast in 2005. An estimated 160,000 applicants received about $643 million in improper payments resulting from fraud, FEMA errors or other mistakes.
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