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Latest Business News

Minority Firms Getting Few Katrina Pacts

Tuesday, October 04, 2005 1:17:51 PM
By HOPE YEN

An employment banner advertising available jobs hangs on Canal Street in downtown New Orleans, Tuesday, Oct. 4, 2005, while business owners survey the damage caused by Hurricane Katrina. Over a month after Hurricane Katrina,  the city is still recovering from the devastating storm and jobs are advertised all over town. (AP Photo/Kevork Djansezian)WASHINGTON (AP) - Minority-owned businesses say they're paying the price for the decision by Congress and the Bush administration to waive certain rules for Hurricane Katrina recovery contracts.

About 1.5 percent of the $1.6 billion awarded by the Federal Emergency Management Agency has gone to minority businesses, less than a third of the 5 percent normally required.

On Tuesday, Sen. Olympia J. Snowe, R-Maine, and Rep. Donald A. Manzullo, R-Ill., asked the Government Accountability Office to investigate whether small and minority-owned businesses have been given a fair opportunity to compete for Katrina contracts.


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