Sunday, October 02, 2005

More questioning the Katrina cruise ship contracts

On September 19th, readers of Porkopolis were alerted to the fact that the FEMA cruise ship contract appeared to be a badly negotiated deal resulting in a per person cost of $33,000 for the six month contract: Katrina Waste: At least $33,000 per person in cruise ship housing costs.

It's encouraging to see others starting to echo that concern and at the senate oversight level:

Chicago Tribune (Sept. 29, 2005 Senators Want Cruise Ship Deal Explained):
WASHINGTON -- Two senators on Thursday asked federal officials to explain their decision to sign a $236 million deal with Carnival Cruise Lines for Hurricane Katrina housing, saying Greece was ready to provide two ships for free.

In a letter, Sens. Tom Coburn, R-Okl., and Barack Obama, D-Ill., asked Homeland Security Secretary Michael Chertoff to explain why Federal Emergency Management Agency officials chose Carnival and turned down the Greek offer.

Houston Chronicle (Sept. 30, 2005 Carnival CEO defends cruise ship deal for evacuees):
FORT LAUDERDALE, Fla. — Carnival Corp. CEO Micky Arison defended his company's $236 million contract with the federal government to use cruise ships to house hurricane victims, denying reports today that the vessels were mostly empty.

U.S. Sens. Tom Coburn, R-Okla., and Barack Obama, D-Ill., called it a "sweetheart" deal in a letter Thursday asking Homeland Security Secretary Michael Chertoff to explain the contract with the Miami-based company.

The senators alleged the contract guaranteed the Carnival Cruise Lines brand rates that were much higher than market levels. The company has said it doesn't expect to make a profit on the deal...
KBGT4.com: (October 02, 2005 Senators seek accounting on $236 million cruise ship deal)

CAPITOL HILL A deal to rent cruise ships for Hurricane Katrina victims is making waves on Capitol Hill.

Two senators want officials to explain their decision to sign a 236 (m) million-dollar agreement with Carnival Cruise Lines for Katrina housing. Senators Tom Coburn and Barack Obama say Greece was ready to provide two ships for free.

The six-month deal with Carnival is for three full-service cruise ships which now sit mostly empty in the Gulf Coast. The deal's been criticized by lawmakers of both parties as a prime example of wasted spending in Hurricane Katrina-related. contracts

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