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New Fear for Katrina Victims: Collectors

Company claims it overpaid on some rebuilding grants

By Harry Kimball,  Newser Staff

Posted Mar 29, 2008 7:37 PM CDT

(Newser) – A contractor responsible for doling out federal rebuilding money to Katrina victims is seeking another company to collect what may amount to hundreds of millions of dollars from Katrina victims. ICF International claims it overpaid some applicants in a rush to get $11 billion out the door; meanwhile, a third of claimants have yet to receive a dime, AP reports.

ICF says that as many as 5,000 people received too much money in the Road Home program it administers, with the overage overpayment at $35,000. The announcement comes two weeks after Louisiana authorities announced a probe into why the company was paid an extra $156 million for the job. Activists were skeptical. “What they need to be is aggressive about finding the underpayments,” one said.

Rep. William Jefferson, D-La., left, talks with Louisiana Gov. Kathleen Blanco, right.
Rep. William Jefferson, D-La., left, talks with Louisiana Gov. Kathleen Blanco, right.   (AP Photo/Evan Vucci)
This is one of the homes that has yet to be repaired from the damage caused by Hurricane Katrina in Grand Bayou, La., Friday, Nov. 30, 2007.
This is one of the homes that has yet to be repaired from the damage caused by Hurricane Katrina in Grand Bayou, La., Friday, Nov. 30, 2007.   (AP Photo/Bill Haber)
Construction workers rebuild a home in the Lakeview area of New Orleans.
Construction workers rebuild a home in the Lakeview area of New Orleans.   (AP Photo/Eric Gay, file)
Some of the damage from Hurricane Katrina to Joyce Ridgeway's home is  still not repaired in New Orleans Monday, March 5, 2007.
Some of the damage from Hurricane Katrina to Joyce Ridgeway's home is still not repaired in New Orleans Monday, March 5, 2007.   (AP Photo/Alex Brandon)
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