Audit: FEMA wasted millions on no-bid contracts WASHINGTON (AP) (wrkf) - There's continuing evidence that the multibillion-dollar Katrina hurricane recovery effort has been badly mismanaged.

A report by the Homeland Security Department's office of inspector general says the government wasted millions of dollars on four no-bid contracts it handed out for Hurricane Katrina work.

Investigators say FEMA did not always properly review the invoices submitted by the four companies, exposing taxpayers to significant waste and fraud.

FEMA says it generally agrees with the IG report and will further investigate the 45.9 million dollars in questioned costs and recoup the money as necessary. FEMA says it has taken several steps to improve its disaster response since the 2005 storm, such as requiring a standard invoice form and better tracking inventory.

Investigators say at least a billion dollars has been wasted in the recovery effort. © Copyright 2009, wrkf