Row erupts over Katrina clean-up contracts awarded without bidding

MAJOR contracts for the Hurricane Katrina clean-up have been awarded without bidding or with limited competition, prompting controversy in the United States.

The storm created contracts worth over $1.5 billion (1.24bn) awarded by the Federal Emergency Management Agency (FEMA) alone. Most are for the clearing of debris, trees and shattered homes across the ravaged Gulf coast. But over 80% of those awarded by FEMA were reportedly handed out with limited competition.

Two companies in particular have raised questions the Shaw Group and Kellogg, Brown & Root, a subsidiary of Halliburton, formerly headed by Vice-President Dick Cheney.